Argo Blockchain Share Discussion Threads

[suffersnofools] 18/1/2021 12:18

QS99 - 38.5k is the battleground.

[suffersnofools] 18/1/2021 12:17

As our resident secret lemonade drinker is scared to enter into a debate on BTC's intrinsic value with me, here's an interesting article to digest. I don't agree with all of it but some good points covered;

[qs99] 18/1/2021 12:15

OK thanks SNF. Always long only bets for me on Stocks I like & (to some degree haha) understand.....

BTC suddenly perked up, wonder why?

[pwhite73] 18/1/2021 12:11

pogue - "So at this point the value of any currency a citizen holds is practically worthless"

No its not and this is the difference between fiat currency and BTC. You can only sell or exchange BTC to people who are prepared to accept it. If you went online or walked into a BMW dealership and said you wanted to buy a new car in BTC the dealer can refuse to exchange the new car for BTC because it is not legal tender. The dealer cannot refuse to exchange the car for pounds sterling or US dollars. They are legal tender, the dealer by law has to accept your currency. Because the currency is legal tender the dealer can then pay his staff with £ or $ the staff have to accept these currencies in exchange for their labour and services.

BTC is a completely speculative currency that has no legal status or intrinsic value. It is only worth what speculators are prepared to pay for it. Until the US, UK or global governments say "we own bitcoin" it has no real value. It is important to understand this.

[kcowe] 18/1/2021 12:08

btc breaks out .... 47 k target.. what price ARB?

[dorset64] 18/1/2021 12:03

yump, you've partly asked a question I've been thinking about. Everyone assumes that all miners out there today, and especially the 'smaller' companies & 'larger' individuals will all carry on into the future and with it, mining becomes harder by the day with less rewards IF the above do not continually invest in new machines, new hardware, new software & ever reducing their overheads.

With BTC continually halving, with it becoming harder for anyone to enter the mining game unless you have $m's behind you, would it be correct that as old machines become extinct that there will in fact be fewer new mining entrants into the game, and even more not making a profit due to slower & older machinery.

ARB's margins are circa 60-70% but are there any 'large' players of whom have margins of under 20% due to old machinery and, if BTC were to stay where it is or not increase quickly, would the likes of ARB & other larger players continually updating & increasing the number of their equipment in turn put some others out of profitable business.

I've struggle to understand this side of it as should the price continue to rise, you earn more but mine less = roughly the same until you are so small fry you end up get next to nothing?

[mciw] 18/1/2021 12:02

Mara is a complete bet on btc price maintaining current or higher price and their team's execution of the expansion and build of a new centre, if they nail it, and they are buying the latest most efficient equipment it will be huge but I'd prefer a proven high efficiency miner with slightly more conservative growth plans. Big danger for mara is not getting their equipment in before the next bear market and sitting with huge unprofitable equipment depreciating

[suffersnofools] 18/1/2021 12:02

pogue - I can't believe PWhite is still going with the old 'intrinsic value' argument. It's a failure to understand the current economic / monetary dynamic that boggles the mind in its stupidity.

[nico115] 18/1/2021 12:00

I'm also more bullish after today's rns as it gives us more gearing to a higher Btc price So IM UPGRADING MY 6 MONTH ARB PRICE TARGET FROM 180p TO 230p VERY STRONG BUY

[pogue] 18/1/2021 11:58

PWhite73
your said 'That is correct because if the value of currencies fall to zero governments can keep their economies afloat by the sale of their gold reserves. The UK government has £200 billion of gold reserves. Gold is an internationally recognised currency by all governments.'

So at this point the value of any currency a citizen holds is practically worthless so the economy is not really saved plus we are now in a barter economy as nobody in their right minds would trust the fiat money. So we are where I first said in a society that will need a safe store of wealth to buy groceries and bitcoin satisfies this need better than gold.

[suffersnofools] 18/1/2021 11:58

Brasso3

Thanks - I think ;)

As I kept trying to explain - it was ridiculous forecasting future share price WITHOUT building in capacity expansion. This is a land grab scenario for mining share so those that expand fastest at the highest efficiency will win.

[mciw] 18/1/2021 11:56

The rise to 35k usd increases the number of profitable machines which would have previously been mothballed, may increase that 50 pecent figure whilst the bull run continues.

[brasso3] 18/1/2021 11:55

SNF

I must confess to thinking your 1000p predictions were a bit excessive in past weeks/ months. I think with todays news that is not as far fetched as people would think.

I can see a clear path to 200p now but who know where BTC will drag ARB now. If institutions are willing to buy in at 80p clearly there is belief that this has a lot of legs.

[con90210] 18/1/2021 11:54

Some useful comments here this morning and pleased topped up near 90p a share. Felt like a gift considering the future here. Gla.

[suffersnofools] 18/1/2021 11:51

yump - a very valid point

When miners the size of Mara are struggling to be profitable at current BTC levels and the likes of ARB, a much more efficient miner, is adding capacity with the very latest hardware this will quickly spike the difficulty level to where many miners are loss making. Leading to a drop back in difficulty.

Peter was very clear that hashrate in and of itself was of little value. It's the efficiency that is key as that drives profitability.

I'm just updating my sheets but that 1000p looks a lot more like a pit-stop than a final destination now.

This is Nico replying to my last sentence :D

[csmwssk12hu] 18/1/2021 11:47

Qs99 long time no speak hope you are keeping well, despite placement still up nearly twenty fold in a few months which is not bad at all, take a look at ZAIM which is up quietly in the last two sessions, growth 490% over 5 months in last trading update in November and another due soon, not panicking here a while to play out

[investographer] 18/1/2021 11:45

Is there at mention of the discount to yesterday's closing price?

[yump] 18/1/2021 11:39

mciw

I agree hashrate will increase. Historically looks like about 50% a year. However, the unknown is how many miners are operating close to breakeven and will take their rigs offline as they're not efficient, which would lead to hashrate not rising as fast. Or just run at breakeven or loss for a while, if they've got the cash to keep going.

[mnomis] 18/1/2021 11:37

Yip, a good solid $1. I will buy another tranche of 10k shares at 80p if BTC plays along and gets us there, but not my expectation.

[yump] 18/1/2021 11:30

80p x 1.35 is about 1USD.
Fly on the wall: "We're in for 1USD but you need some PR in the US".

[pwhite73] 18/1/2021 11:25

mnomis

If I am wrong then that is good for the shareholders. Hope you are right!

[nico115] 18/1/2021 11:24

But the inflation rate reported doesn't really reflect the true inflation rate as food and energy aren't included Does anyone know why Peter Wall never commented on this mining purchase in the RNS ? Surely a nice upbeat comment would've helped ?I'm sure a podcast is on its way Btw I'm a buyer if btc at 33k if we get there

[mnomis] 18/1/2021 11:24

Re MARA, when does their capacity come on? Hence my comments earlier ...

[mnomis] 18/1/2021 11:23

PWHITE - I believe you are wrong re the identity of the institutions.