Exactly right. Destriero is suggesting that Riot increase the contracts simply to extract more money, but the truth is, Riot wants to be mining. They clearly don't have 4 times the machines, so no way could they expand their operation 4x and hence collect 4x the rebate. They just want to be able to mine, and if they can't, they want compensation. On a side note deaddog, you're finally getting something about crypto!! I know you still have trouble seeing where the value is, but understanding the operation of the crypto miners is a huge first step!
I don't know enough of the details but the numbers are staggering and shows a problem with the texas grid. These payouts shouldn't happen and don't in other parts of the country.
When you see the power spike over 10x though, wouldn't you think the price is the price? I mean its like complaining GME or AMC isn't worth what it is while the price skyrockets. You never argue with the price! I figure if the price spikes up 10x for power, and someone is willing to use it and pay, then the miners can collect this 10x premium and the customer gets this power. I see it as simply a buyer and seller being matched up. Of course I don't know the true numbers, but it makes sense to me. Its just like a last minute international airline ticket. What could be $500 is now $4000. Someone is willing to pay to book the last seat if its a case of a family death or something like this. (I know, horrible example) But if another ticket was necessary and they announce in the lounge, who is willing to give up their seat for $4k because this is the going price, someone will stand up. So you match the buyer and seller and both are happy to do the transaction.
Regarding this point, you're not wrong, but I'm sure its the green energy problem. Their power generation isn't consistent while usage can spike greatly given the weather. So yes, perhaps the fault lies with the power companies and lack of infrastructure, but its not the miner being greedy, they are simply providing a service. They are almost like the money maker facilitating transactions.
Wind and Solar energy generated has been increasing year after year in Texas. It is now 2nd to only oil/natty gas surpassing electricity generated by coal and other sources. So therefore it is likely demand outstripping supply, during the hottest/coldest weather spikes. Not some of the overall supply being intermittent.
there’s no fault with the miner. It’s funny that they earned more shutting down than operating their core business. That says something about: their core business, their industry, or the power situation in Texas. I don’t think the power issue is a clean energy issue. Like I said this type of issue doesn’t happen anywhere else. It’s governmental policies (like disconnecting from neighboring states, etc) that allow these types of fees run rampant. In the end, homeowners (read tax paying voters) pay for it. MW just likes to argue. He argued that dividends are immoral. She’s a troll.
This is interesting and I can see how this is a huge part of the problem. Agreed. If I had a house and was wealthy enough, I would for sure invest in a battery backup system. When prices spike up 10x, it perhaps gets cost effective to use your own electricity storage vs. using the grid. I like the idea of being self-sufficient in whatever way possible. Good to know!
I don't really understand anything about crypto miners. My understanding is they try and sovle a riddle and if they succeed they get rewarded in tokens. If they are anything like conventional miners they burn thru cash like it's going out of style. Doesn't mean you can't make money trading them, they're just a poor investment.
This is exactly how the automotive industry works. Very high expenditures, lots of debt, and lots of time spent in down-cycles. And golden parachutes for their CEOs.