nico on Nostr: Well the auctions are really just a free-market pricing mechanism. There's a limited ...

Well the auctions are really just a free-market pricing mechanism. There's a limited amount of hashrate we can sell so we put it up for auction to let the market decide what the appropriate value is of this scarce resource. How much you have to hope that the difficulty drops in the future depends on what you paid for the hashrate in the first place. I wouldn't bet against difficulty going up over time, but the question is at what rate does it increase? That's where the market can come in...

This is also what we plan to simplify with our new fixed discount product. You can buy some hashrate and not have to worry about the difficulty because you will mine until you make back a fixed return.