Topic: [ActiveMining] The Official Active Mining Discussion Thread [Self-Moderated] - page 441. (Read 771302 times)

YOU GET THE GOLD STAR!!

A poxy 20 miners for 5% in 2 months.

I like this.

Pick me Pick me,

The answer is 17-20

or

1632 - 1920 256GH Cards

or

26,112 - 30,720 16GH Chips

Here's a challenge for someone - can you work out how many of these machines ACtM will need to have running in 2months from now to capture 5% of the global market in BTC mining?

First answer gets a gold star.

Santa Clara, CA and Springfield, MO – September 4, 2013 – eASIC® Corporation, a leading provider of single mask ASIC devices and Virtual Mining Corporation (VMC) today announced that VMC will use eASIC Nextreme-3™ 28nm devices to create a series of scalable Bitcoin mining machines capable of generating up to 24.756 TH/s (tera hashes per second) of cryptographic hashes.



Yeah I think we know it's not a single chip or perhaps not all in one base unit, what difference does that make? Each miner will be 24TH period. How do you like them apples?


LOL to you quoting retail price, er I don't think ACtM will be paying that some how. And I think for the large industrial unit there will be a solution that doesn't involve 96 PCI cards.

That floor space right there alone could hold 20 banks of three tier 30 bank shelves so that would be 600 miners.

Current Bitcoin difficulty is 2677 TH

1% of that is 26.77 TH

1 of our fully specced machines churns out 24.58 TH

Anyone see where this is going...?

So to maintain >1% of global hashing, we only need to add 1 machine for every 24TH increase in difficulty.  Doing so would increase our percentage everytime we added a machine.  Can Ken build and operate dozens or even hundreds of these?  Of course he can.  That is what he does.  He's a miner.

Listen to the FUD if you want to guys.  You can't sell now even if you wanted to so just sit back and enjoy the show.

The war is just beginning and ActM will prevail.

THE BATCAVE IS COMING TO A CITY NEAR YOU!!!!    

We're making a 24TH miner...assuming we could afford more than 1 of our own miners, i'd say 1% is a tad low.

I think most people are looking as the difficulty question and the hugeness of the apparent possibilities blinds them a bit.

One thing to remember is for example a 500% increase in difficulty for ACtM is the same for their competitors. Every industrial scale mining operation has the same issue of how they will they keep their market share? If ACtM need to upscale their operation by 500% well so do all the others. How will ACtM do it? Well how will any company do it? If it can't be done across the board for logistics/funding issues then will that rise in hashing difficulty occur?

We know not all mining is done by large outfits, but there will be a finite number of people with the interest and cash available to order a home mining rig. When does the home market reach saturation point? Is it close? (any one have any accurate figures on % of home miners vrs % of industrial outfits?)

A good way I think to look at ACtM's prospects is in terms of % of 'global production'. Lets pretend for a second that ACtM make not miners but golf clubs. Lets also say the market for golf clubs is rising by 100% a month and all manufactured clubs are bought by eager golfers. Lets also say that ACtM have a deal with a very very successful golf club manufacturer, lets call them eASIGolf. Now in that situation would we think that ACtM could initially capture 1% of the global golf club market? Bearing in mind they have a couple of mill USD to have eASICGolf design and fab the latest tech clubs. I think that is more than likely. Now there are already several established golf club makers on the market but still the 1% seems to me to be conservative. Lets, move on 2 months, the golf club market has expanded, can ACtM ramp up production to meet demand? Well yes, everyone else is having to so there is no reason why eASIGolf can't knock out more and more sets of clubs. 1% of a global market worth say 400 million USD per year is not actually all that big a deal. It's only 4mill USD isn't it?

Here's a shorter way of saying the same thing.  UR welcome.

I'm starting to think that I may need to re-evaluate my own estimates as 1% of the network seems way too low for a company that is developing its own chips. Hell, in my calculations 3-5% of the network (and this is just mining, without hardware sales which could add another 3-5%) is closer to my pessimistic projections than my luck neutral projections.

Regardless, unfortunately I'm finding it it more and more difficult to view my shares as an investment due to how in the dark I am about our progress, but I can probably hold on to them a few more months if I just view it as a long-term gamble.

While I appreciate you working off of the numbers we currently have, expecting the hashrate to forever increase by 40% every adjustment period is probably not realistic on a long-term view. The problem is that we don't really know what to expect through 2014. Eventually things will die down, but when? And by how much?

By the way, I say the same thing about the BTC/USD price. People calculate the price by EOY 2014 based on limited data. "ZOMG 37% growth this month! 500$/BTC within Q1 2014!" Probably not, man.

Probably not.

This is a bit harsh. However I agree that 1% is not conservative.

We will need to maintain a hashrate as follows for 1% all throughout 2014:

Jan - 500 TH/s
June - 32,000 TH/s
December - 2,000,000 TH/s

That 1% figure is where you are going wrong. This variable is the most crucial thing and right now many investors do not believe the company can ever sustain 1%

1% is not conservative, its actually a really difficult number to hit. Bitcoins being mined right now will be the easiest Bitcoins to be mined for the entire future of this currency, its unlikely we'll ever see mining this easy again. So every delay kills another opportunity to mine these "easy" Bitcoins.

If we managed to hit 1%, to maintain that ratio we would have to increase our mining power by 40% every difficulty change.

This may require huge reinvestment.

I am hoping this is achievable and I believe in Ken to do the right thing.

There is absolutely *nothing* conservative about 1% of the hashrate.  The phrase you're looking for is "pipe dream."
Thus far, ActM controls roughly 0% of the hashrate.
The sales figures thus far represent what's commonly known as "debt" -- ActM *owes* the devices it sold to the unfortunate "customers."
There is no evidence of anything else., other than most American money leaving ActM & share prices tanking.
That's what you are missing.

I did a quick napkin calculation of ActM's valuation and future expected dividend.
Please help me correct this if I got it wrong somewhere.

Okey, so I'm thinking of next year, in average ActM can hold 1% of the market share of mining.
Hopefully they'll manage to have a higher %, but I'm going to be conservative here.
Their sales numbers might also be very low, let's assume they only cover the electricity + other costs of the company, so in total, that 1% of market share mining is profit that is going to be dividend payout.

Total number of BTC mined during 2014: BTC1,314,000
ActM mines and pays out as dividend (1%): BTC13,140
13,140 divided with 10,000,000 shares: BTC0.001314

That is twice the current share price.
What am I missing here?

I want to post happy things, but the difficulty jumps scare me and make me sad.

My posts just reflect on this rather unfortunate situation.

Right you.   Just stop!

EDIT:   I mean your doom and gloom isn't helping anyone.  Everyone is feeling it at this difficult stage.  

Another massive wall has formed...

Please may we be blessed with powerful eASIC miners soon!

nice one zero. lol