r/BitcoinMining • u/Altairandrew • 2d ago

General Discussion When prices fall

Do people stop mining when BTC prices fall below some level. I know there are some who wouldn’t. But at some point cheaper to buy btc than mine it.

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u/Altairandrew 2d ago

I get the break even, but do miners actually stop mining. Certainly not the small miners like me. Though i would cut back to only the cheapest time of day.

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u/Discokruse 2d ago

The big miners are not stopping. They want to spend the money on electricity....it's all near term write-downs on income. You literally are writing off the purchase price of the bitcoin. You get regular income, maybe less that expense, but they don't want regular income anyways...it is all about the long term capital gains. Zoom out a few years and play the long game.

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u/Altairandrew 2d ago

And write off investment in equipment. At some point you are better off just spending the money you’d spend on electric and purchase btc. They will have the write off either way. Just not in electricity if they are t using it. But a loss is a loss.

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u/Ill_Cause_7364 1d ago

Not necessarily. There are many benefits to doing it through a business to have those deductions. There also benefits to how businesses handle those taxes and how they pay out their income and how that income gets taxed. You are also mining as you pay for electricity. If you only buy, you are forced to buy/sell at certain prices. Mining ensures you have steady revenue.