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Bitcoin Mining Economics and the Pivot to AI
One common feature of commodity producers is slim profit margins. In general, commodity producers are price takers, and their primary competitive advantage is the ability to scale. In times of increased demand for a commodity (or when there is a shortage of supply), producers' margins can temporarily expand. Sometimes, other factors can influence producer margins, resulting in more sustainable competitive advantages. As an example, proven reserves in metals mining (which has a higher concentration of reserves), typically results in higher revenue per ton of metal processed and lower operating costs. Government ... (full story)