Topic: [ActiveMining] The Official Active Mining Discussion Thread [Self-Moderated] - page 396. (Read 771288 times)
November 06, 2013, 05:00:53 PM
Also consider in Example 2 that today's bitcoin value is $100, but tomorrow is likely to be $10,000 and this is why global power consumption for bitcoin mining is nine times that the value of coins mined. People know that the important thing right now is accumulating as many coins as possible no matter the cost. Mining will be profitable all the way up to 2140 and the difficulty won't ever stop that being the case. It's in the design.
November 06, 2013, 04:56:58 PM
I always viewed the sales side of actm as a huge risk and waste of time. Engineering something for the consumer is an expesive and time costly task with little reward. The only reason it worked for AM is because they HAD to sell hashrate in order to be able to deploy the remainder of their chips while staying under a 51% threat. Many asic producers are around now. The fear of anyone capturing a portion of the network that size no longer exists. Mining is a race to the bottom by those who own chip ip . There is no room for for a consumer device. imo actm should focus on mounting our easic chips and cheaply as possible and bring hashrate online as quickly as possible. ... unfortunately presales have us locked into making those damn customer modules I guess 
November 06, 2013, 04:50:24 PM
I hate to be a downer, but wouldn't rising fiat/btc price actually hurt our hardware sales?
You can purchase our miners in BTC or FIAT.
Example1
So BTC rises to 10kUSD, you can buy a 1k miner for 1k and mine 10BTC to make 100kUSD = 99k USD profit.
Example2
BTC falls to 100USD, you can buy a 1k miner for 1k and mine 10BTC to make 1k USD = breakeven
BTC value exaggerated to make the point clearer.
So the more BTC appreciates the more FIAT you make mining so the more customers we will have eager to mine and to buy our machines.
Obviously if BTC went to 10k we would raise the price of a 1k miner, to around 80k perhaps, so that the profit would be a more reasonable = 20kUSD for the customer.
EDIT - in relation to revenue per machine - it's simple, we might get fewer BTC per machine sold but the BTC is worth more so in FIAT terms nothing changes. If we convert the BTC we get to FIAT to purchase more chips from eASIC we will have the same amount of FIAT due to the higher BTC/USD exchange rate. The same goes for divs = will equal the same in FIAT and it's FIAT that will buy you the fast cars and loose women.
November 06, 2013, 04:43:29 PM
Anyway, where is that feline lover boy bumble? Get him back in here I tell ya!
He's waitin in for DHL. There is a miner coming his way but the only thing is, he's not sure if it's arriving this week, next week, the week after......you get the idea.
November 06, 2013, 04:40:43 PM
Anyway, where is that feline lover boy bumble? Get him back in here I tell ya!
November 06, 2013, 04:39:01 PM
What is it with these serious questions dudes? This is the ActM thread ffs! Who wants bitch slapped first?
freakin LOLz
November 06, 2013, 04:37:18 PM
What is it with these serious questions dudes? This is the ActM thread ffs! Who wants bitch slapped first?
November 06, 2013, 04:35:57 PM
What a horrendously boring question. No FUD, no insults and no outlandish predictions.
Come on - get back on track.
TO DA MOON!!
ya dick.
Come on - get back on track.
TO DA MOON!!
ya dick.
I apologize, I'm all for the rah rah rah bullishness vs the-sky-is-falling bearishness (plus assorted malcontents on either side), but I was hoping to get a little signal before the noise overtook this thread for another couple of pages.
November 06, 2013, 04:31:54 PM
What a horrendously boring question. No FUD, no insults and no outlandish predictions.
Come on - get back on track.
TO DA MOON!!
ya dick.
Come on - get back on track.
TO DA MOON!!
ya dick.
November 06, 2013, 04:17:58 PM
I hate to be a downer, but wouldn't rising fiat/btc price actually hurt our hardware sales? I could easily be thinking through this the wrong way, but we are a bitcoin company - our shares our priced in bitcoins and our dividends are paid in bitcoins. If we keep the cost of our machines the same with respect to fiat it will necessarily decrease the bitcoin cost (since usd/btc is on a significant uptrend) thus decreasing the revenue per machine. The other side of that, is with rising price is rising demand for mining equipment so I suppose we could be selling more units at a lower btc price, but I'm not exactly (or even remotely) sure whether the price/demand curves intersect in our favor or against it.
Actually, thinking a little further, with a rising btc price, it may even be wise to focus more on our farm than on sales as we will be perpetually making less and less btc on sales as usd/btc continues to go up and in a double whammy, the more hardware we produce to sell, the higher the difficulty, and the less profit we derive from our farm.
Thoughts, opinions, math, corrections?
Actually, thinking a little further, with a rising btc price, it may even be wise to focus more on our farm than on sales as we will be perpetually making less and less btc on sales as usd/btc continues to go up and in a double whammy, the more hardware we produce to sell, the higher the difficulty, and the less profit we derive from our farm.
Thoughts, opinions, math, corrections?
November 06, 2013, 04:16:56 PM
Also, if you haven't noticed;
I contribute useful information (of which I have been handsomely tipped for) unlike whinny useless-post silly nannies like freddy zoom zoom zero and steuyUK...
I contribute useful information (of which I have been handsomely tipped for) unlike whinny useless-post silly nannies like freddy zoom zoom zero and steuyUK...
Major LOL
Useful information like 'Get out of BitFunder TODAY or you are ruined'
Yeah dude, whatever, have you been imbibing or do you always over-estimate your usefulness round here?
If you disappeared up your own jaxy no one would notice - oh hold on, I think you just did.
November 06, 2013, 04:12:17 PM
without question the prices of ACTM machines will need to drop by the end of the year, I think everyone knows this. What we don't know how thin the margins already are.
If the price of one BTC is up (by quite a bit) from when the price of the machines were already set. Then why does the price of the machine need to go down? Won't they now mine more BTC than they are worth.
For Example if you could buy a machine for $1000 that mined 10 BTC in its lifetime with BTC at $100 each, and then BTC now is worth $200 each, wouldn't the price of the machine be a much better deal than before, and actually should cost more, not less?
Yeah that's what I was thinking, are we purely doing ROI based on bitcoin amount? Or does the fiat value of bitcoin come into play as well…
At some point, as fiat value keeps going up, these machines are more valuable indeed… and more in demand.
Computer processing power rises exponentially. Mining difficulty rises exponentially. Cost of hardware undergoes exponential decay. Bitcoin value rises exponentially. We become rich beyond our wildest dreams and plug straight into the matrix.
Welcome to the singularity.
ha ha ha I want a pint of what your drinking.
It's a nice scenario!
A lot of you silly posters on here are forgetting - we are a mining company FIRST and a mining hardware seller to retail/bulk chip buyers SECOND.
So........
(please read this slowly if you are a regular forum poster) we make money if we can pump out large chip numbers, get them super glued to boards and start them mining.
IN SUMMARY:
Can we get enough chip volume from eASIC - I'd say CHECK
Do we have enough glue for chip assembly? CHECK
What about an internet connection??? OHHHHHHH SHIT!
SOMEONE PLEASE get on to AOL!
November 06, 2013, 04:04:32 PM
without question the prices of ACTM machines will need to drop by the end of the year, I think everyone knows this. What we don't know how thin the margins already are.
If the price of one BTC is up (by quite a bit) from when the price of the machines were already set. Then why does the price of the machine need to go down? Won't they now mine more BTC than they are worth.
For Example if you could buy a machine for $1000 that mined 10 BTC in its lifetime with BTC at $100 each, and then BTC now is worth $200 each, wouldn't the price of the machine be a much better deal than before, and actually should cost more, not less?
Yeah that's what I was thinking, are we purely doing ROI based on bitcoin amount? Or does the fiat value of bitcoin come into play as well…
At some point, as fiat value keeps going up, these machines are more valuable indeed… and more in demand.
Computer processing power rises exponentially. Mining difficulty rises exponentially. Cost of hardware undergoes exponential decay. Bitcoin value rises exponentially. We become rich beyond our wildest dreams and plug straight into the matrix.
Welcome to the singularity.
November 06, 2013, 03:55:27 PM
without question the prices of ACTM machines will need to drop by the end of the year, I think everyone knows this. What we don't know how thin the margins already are.
If the price of one BTC is up (by quite a bit) from when the price of the machines were already set. Then why does the price of the machine need to go down? Won't they now mine more BTC than they are worth.
For Example if you could buy a machine for $1000 that mined 10 BTC in its lifetime with BTC at $100 each, and then BTC now is worth $200 each, wouldn't the price of the machine be a much better deal than before, and actually should cost more, not less?
Yeah that's what I was thinking, are we purely doing ROI based on bitcoin amount? Or does the fiat value of bitcoin come into play as well?
At some point, as fiat value keeps going up, these machines are more valuable indeed… and will be more in demand.
November 06, 2013, 03:49:33 PM
now this is "The Official Active Mining Discussion Thread" that I know and love... people calling each other names, discussing off-topic items, and arguing about pure speculation.
Ahhh, shut up. Your mother swims out to meet sailors.
November 06, 2013, 03:38:07 PM
without question the prices of ACTM machines will need to drop by the end of the year, I think everyone knows this. What we don't know how thin the margins already are.
Like how low? How about 1 Silver Unit (1 module), Dec 2013 delivery, for 200 USD, so you can make 40 USD profit by end of March 2014.
November 06, 2013, 03:37:50 PM
without question the prices of ACTM machines will need to drop by the end of the year, I think everyone knows this. What we don't know how thin the margins already are.
If the price of one BTC is up (by quite a bit) from when the price of the machines were already set. Then why does the price of the machine need to go down? Won't they now mine more BTC than they are worth.
For Example if you could buy a machine for $1000 that mined 10 BTC in its lifetime with BTC at $100 each, and then BTC now is worth $200 each, wouldn't the price of the machine be a much better deal than before, and actually should cost more, not less?
More of a function of difficulty rising much faster than BTC price, you cant sell unprofitable miners, which is what these will be in Dec at the current difficulty trajectory.
November 06, 2013, 03:24:02 PM
now this is "The Official Active Mining Discussion Thread" that I know and love... people calling each other names, discussing off-topic items, and arguing about pure speculation.
Ahhh, shut up. Your mother swims out to meet sailors.
November 06, 2013, 03:21:34 PM
without question the prices of ACTM machines will need to drop by the end of the year, I think everyone knows this. What we don't know how thin the margins already are.
If the price of one BTC is up (by quite a bit) from when the price of the machines were already set. Then why does the price of the machine need to go down? Won't they now mine more BTC than they are worth.
For Example if you could buy a machine for $1000 that mined 10 BTC in its lifetime with BTC at $100 each, and then BTC now is worth $200 each, wouldn't the price of the machine be a much better deal than before, and actually should cost more, not less?
November 06, 2013, 03:17:42 PM
without question the prices of ACTM machines will need to drop by the end of the year, I think everyone knows this. What we don't know how thin the margins already are.
Jump to: