Argo Blockchain Share Discussion Threads

[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.

[alm6] 18/1/2021 11:23

For context, MARA have increased shares outstanding by 936% in the past 3 months alone. Their share price has increased by about 2000%. These are not typos. Sort of backs up 2tykes message

[mnomis] 18/1/2021 11:22

Accumulation time then for patient longer-term investors?

[pwhite73] 18/1/2021 11:22

mnomis - "Re TR1, need to disclose if 3% - issuing 8.5% shares, if 3 or more institutions, below TR1?"

That's correct and a common trick used by companies to hide the fact that the shares have been flipped to private investors. The number of institutions involved would mean they are all under the 3% so no need to report. The reality is the institutions are nominee account holders like Hargreaves and Barclays.

[pwhite73] 18/1/2021 11:21

pogue - PWhite73 you said 'The value of BTC as a currency lies in the value others place on it. BTC cannot have any true, intrinsic or lasting value as a currency unless it is actually owned by the government.'

What about gold then? Its satisfies the criteria above yet it does very well when currencies are devalued.

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.

Therefore gold is a legitimate bet against currency inflation or deflation for that matter. As BTC is not centrally controlled by governments it has no real intrinsic value other than what speculators are prepared to pay for it. If tomorrow they decide that BTC is worth zero then you lose all your money. This is not the case for currencies or gold as they are legal tender. They have value supported by the government and the highest courts of the land.

[2tyke] 18/1/2021 11:19

The btc lower lows and lower highs still playing out.
Any drop below 34.5 would likely accelerate the decline.

[siralex99] 18/1/2021 11:14

Never happy to be watered down with new shares but 610 extra Petahash should pay for itself pretty quickly. I am currently assuming 0.15 BTC per Petahash so an extra 91.5BTC a month. At 35k dollars per coin we are looking at additional revenues of 3.2m dollars per month so you can see how this could potentially be very good for us. If we do hit 100k per coin we will be laughing