Topic: [2018-01-30] Samsung Enters `Mass Production` of ASIC Miners - page 2. (Read 839 times)

The timing? were they waiting for BTC to crash, the way it has now.?
With all their resources, and this is the best they can do.
Do they know something we don't.

Samsung always invests too little in the Quality and Testing stage of the product development, so there is no guarantee their chips or miners will not be as buggy as their smartphones and laptops.

The best thing about this news being that these processors save up to 35% of the energy then conventional mining systems, which is great considering energy used by mining will increase as bitcoin price increases. Bitcoin computing is designed as such that computing becomes more difficult and consequently uses more power as traffic increases. This traffic will only increase as bitcoin price increases so a more wholesome solution has to be in pce other than this but for now this is okay.

Do you mean Samsung will build miners based on GPU, not ASIC?

People checking mining profitability before a purchase is exactly how this correlation get established in practice. When they see that mining is profitable, they will buy mining equipment. But profitable is synonymous here with rising prices because the coins which miners receive simply start to cost more. So the higher the profitability the greater number of would-be miners are going to buy ASICs. But as you correctly pointed out yourself, more miners leads to higher difficulty. Thus the correlation between the price and mining difficulty is established.

I really think these are good news, because it king of shows that the interest in bitcoin is very much alive. Mining is a huge industry right now, and it's important to bitcoin. Good ASICS are usually made by the same dominant miners, so it's always good for a healthy competition. A lot of people complain about mining being centralized, so maybe this will open doors to new miners entering the market because maybe ASICs prices will drop, and it will be more profitable to mine bitcoin.

Dude, u are dead wrong. There is no relationship besides people checking mining profitability before a purchase. That doesnt affect much and is made alot WORSE when there are more manufacturers.

Look at dash mining. So many people using the antminer D3 will not break even. Bitmain is nice enough to give us coupons to help some. The most efficient dash miner via innosilicon is also a bad investment because it takes too long to break even for the cost. Dash price has risen about 100% in last 3 months and 200% in last 6 months and Bitmain has stopped selling the D3 and yet, it is bad. This is because there are TOO MANY miners since then.

Everyone looks at the profitability of the coin and orders the miners. The miners come 2 months later from 2 different manufacturers. The difficulty skyrockets when all the miners are online (2 months later) and people realize it will take many months to break even. The problem is that new more efficient miners appear before they can break even and thus, their miner is obsolete.

That is made worse when instead of ordering from 2 manufacturers, miners can now order from 3 manufacturers ....there will be MORE miners that suddenly appear after the 2 month delivery time because there are now MORE manufacturers selling more amounts of machines....




And as someone pointed out that while we buy miners at 1300-2300 USD, the manufacturers can create it at a fraction of the cost, under 1000 USD. There is nothing stopping them from just making more machines and mining it for themselves. Their breakeven is alot faster than any buyer. It is even possible that in future, only asic miner manufactures may be miners. At the moment, it looks unlikely though.

I am really wondering why there is no so much competition on the manufacture of those mining equipment considering that the demand is so high. I am glad that Samsung is taking the Bitcoin industry seriously and is planning to be the number one supplier most especially to small miners worldwide. The bottomline is that with a healthy competition, we should expect the consumers or buyers to be greatly benefited. It is indeed about time that a big conglomerate enter into the Bitcoin mining scene dominated by you-know-who for a long time.

And here start the problems, more companies will get involved...more technology advancement...asic's 10th generation will see the light...in few years people will ask what's mean cpu/gpu mining?...

Since it is profitable for miner, then we will expect more companies will enter this crypto space. More stable it will be for our txs.

Price may have nothing to do with difficulty but difficulty definitely has everything to do with price. When will there be more miners - when the price rises or when the price falls long-term? Rising prices will undoubtedly increase profitability of mining at the current difficulty simply because the same number of coins mined will cost more, but if profits increase in some field or activity, they will invariably attract a lot of new players.

Therefore, the rise in Bitcoin prices will attract new miners and the rise in difficulty will follow as you say yourself. More miners means higher difficulty. Price is the cause and difficulty is the effect in this case but all causal relationships are necessarily statistically correlated, though the opposite is not always true, of course. It seems like you are looking at one side of the equation or in one direction only.

Samsung wants a quick cash in the domain, but I doubt how much market share they will get.

Dude, there is no correlation. Tbat is just u thinking someone is looking out for u lol.

More miners = higher difficulty
Price has nothing to do with difficulty

And yes, while people are less likely to order when it is not profitable, bare in mind that miners are ordered 2-3 months in advance, no one calculates the total difficulty that all the miners will create, and the media sensationalizes mining which makes people juz buy...
So, more manufacturers means that every month, there are much more machines going online than when there were less manufacturers. And currently, it is already rising too fast.
Many D3 miners will probably never break even....

They finally realized it's a business for them, should they realize that a few years earlier, the market is all theirs.

There is no direct and instant correlation but the price will always affect difficulty.

Let's say the price goes to 10$ (for the sake of the argument), who is going to mine? Those that don't give a damn about profits and those that get free energy.  Expect the difficulty to go back by a few (more) digits.

The same if the price spikes up to 100k. With so much money as reward for each block people will plug back block erupters.

Do you go to a special school to be so retarded, or does it just come naturally?

Difficulty is a reflection of increase in total network hashing power, which in itself is representative of substantial investment in Bitcoin. The reason you don't see the corresponding rise in other shitcoins, is because they haven't proven themselves and none have been toughened and attacked like Bitcoin has and survived. While a baby might make it across a busy highway due to sheer probability, it doesn't mean that baby-shitcoin is worth anything yet.

Bitcoin is the big boy on the block, and it has not only crossed that busy highway, but at sprinting speed while onlookers take potshots at it from the nearby pedestrian walkway. So shut the fuck up about some crapcoin having high difficulty -- it isn't the same fucking thing. Which brings me to another point...

MARKETCAP IS A FUCKING IDIOT MEASURING STICK

You keeep fucking mentioning "marketcap" like you know something. You fucking don't.

Its easy to game, and clearly plenty of shitforks and shitcoins have relied on large issuance of their tokens so they can boast large "muh marketcap" numbers. If you don't realize how some idiot in his underwear can create a shitcoin and value it at a dollar per 100 billion units, giving it an insane marketcap, then you fail basic logic and should shut the fuck up for all eternity.

"Rise 10 times in a year" -- since you can't write worth two fucks, I'll use my superior deduction abilities to infer you meant "Bitcoin can't rally more than 10x in a year".

Look at this chart -- https://cdn-images-1.medium.com/max/800/0*YupospXpDV3ZRkln.

Stare at it, let it sink into the soft folds of your fucking walnut-brain.

See the left? Its price wiggling around down to 100.

See the peak? Its price after it rallied to 1,000+

That is more than 10x in a FUCKING YEAR. And even if it didn't manage that multiple, its mouth-breathing idiots like you that can't grasp the most basic fucking principles that drag down the entire space. So go to your nearest computer, buy all the shitcoins you want, and shut the fuck up.

You are a complete fucking idiot -- and you're so intellectually lazy you can't even bother to type "you" for fucking "u".... get the fuck outta here with that texting shorthand shit.

In short, go fuck yourself.

I agree with what you say above. Moreover, I can add that it is not only with mining cryptocurrencies. It is the same with any commodity out there. If we substitute production costs for difficulty, we will see that the costs rise and fall together with the price, though in a somewhat deferred manner. For example, when gold surged to almost $1,900 dollars a few years ago, production costs also rose soon thereafter. The reason was quite simple. It became profitable to extract gold from more expensive mines given high prices. And when people later argued that the price of gold couldn't fall because of the high production costs, they were pretty much wrong. The price then fell over 40% in a couple of years and so did the costs. Crude oil is another obvious example of this pattern.

Sorry to say that but you might be wrong here because there is some correlation between price and difficulty. It may indeed take some time to get established and revealed, especially when there are huge price swings in the short term. Nevertheless, if the price goes up in the long term, new miners will join the club, and the rise in difficulty will definitely follow after some adjustment period until profitability sets at some typical value.

On the other hand, when the price goes down, it becomes less profitable or just no longer profitable to mine for some or most miners, they fall off, and difficulty goes down too. Obviously, it is not as simple as it looks for there are a lot of factors at play here. Volatility is likely the most important one of them, which massively complicates the matter, but certainly not the only factor. Another likely factor is that miners may be mining at a loss for some time expecting the price to rise in the future.

Yep, spot.on. it will be like the D3 or thd obelisk miner which will have a very hard time ROI now.
Obelisk miner will probably never roi. Kodak also gave a ridiculous proposal for mining that puts them in profit and users in likely losses.
Samsug is a huge company and this is juz small business for them.


And that is why it is actually a good thing that we dont have more manufacturers. The most profitable mining time would have beem when bitmain had a monopoly.

More mabufacturers means more machines and since there is a fixed amount of new bitcoin that can be mined every 10mins, that means less profit per miner.

In general, miners are bought 2-3 months in advance. This makes things worst. People will see the profitability as low but somewhat decent and order. By the time the order reaches them, the profit is lower due to difficulty increases. This is made worst when many manufacturers deliver at the same time.... The media will irresponsibly sensationalize mining because they need something to write.

This is not like a normal product where more competition means cheaper prices for consumers and so competition means consumers win. There is a limited amount of coins released every time period that can be earned by evrryone...

It's about time this c*nt get's some serious competition. He's had his monopoly on the ASIC miners for way too long now and it's about time that his share of hashing power in the network significantly decreases. If Samsung happens to become a worthy competitor his influence in general will most certainly decrease and for someone as pathetic as Wu that's really something we want. The interest of Samsung in cryptocurrency is also worth nothing. News like this reiterates that cryptocurrency is here to say despite a mostly red market.