Topic: AMHash1: Cost-Effective Mining Contract - page 92. (Read 304259 times)

Unless you own AM1 or AM100, you're not a shareholder, you're a customer.


It's about time that shut down, payments have been negative for weeks by most reports I've seen. If those customers wanted to get back into cloud mining then the logical choices are AMHash and Hashnest so there could be spurt of buying on both/either which could increase the price.

in case it has not been discussed yet: is that good or rather bad for amhash1?

http://blog.cex.io/cryptonews/cex-io-temporarily-suspends-cloud-mining-services/

By buying their contracts (or units or whatever else the cloud mining services call it) we are in effect lending them money for new and even better equipment to continue this nonsensical production model. Since the equipment gets obsolete rather fast in this accelerating race to the bottom the yield has to be rather high. The more people that understand this the higher yield demand will be and thus the lower the price of contracts. Given the continuing inverse correlation between production capacity and price of product of course.

You see, when you have this sort of insane production model, over time it becomes a question of which dries up first, buyers of product or bankers to finance production. So, we shareholders are basically a hedge.

 I'm sure it's a consideration but AMHash has a unique product which they can readily convert it to fiat without us.  Theoretically, a free market would give them at least as much as they could get going it alone would it not?  You're right; there will have to be some compromise between mining genius and trading acumen if they list AMHash4.
 

They announced that a secondary market, like the one at Havelock, is in the works.

I think it´s pretty realistic. When you have a production model that is total nonsense the obvious and inevitable result is near total  lack of bid for product and contracts for producing it.

will there eventully be trading at  amhash.com directly,  havelock is not ideal for trading.

Update:

Well, maybe .00075-0.0008. Or simply be ahead of the curve and offer it at .0005

It´s of course highly unlikely but still there´s an outside chance that some of them pay more attention to trading idiots than mining geniuses.

 That's just the weekend effect.  Not much action.

It has to be lower than where the current issue trades. Otherwise it won´t move much I guess.

If the mining industry refrains from boosting difficulty the next period and if BTC doesn´t tank further the shares could hold a dividend of 600-625. So, 0.0008-0.00085 tops.

P.S. I see that Ms. Market took the bid down to .000835 just now. Sensible.

 Well AM has generally priced their wares at a price point of about 100+ days ROI (without taking electricity or future diff increases into consideration) so you might be surprised when they set the price AMHash4.  I would be surprised if it isn't closer to 0.001BTC/GH

 By the way, thanks for getting back on topic.  Please keep it that way.

Back to the coming AmHash 4 and its pricing.

Difficulty +7% in a day or so, BTC at 270 and chronically weak - I think .0008 is absolute top. Anticipating a dividend of 600 fairly soon, maybe it´ll tank more. Maybe they´ll just call off the issue. Too embarrassing to have it 33% cheaper than the one from just a month or so ago.

Hey, I hope you stay around. Kind of lonely to be the only idiot here that these mining geniuses mock. 

I was told that 1k+ price was mathematically inevitable hyperexponential trend proven by science in colleges?  But you say it ain't so?

If the big players milking this nonsensical production model don´t level off production capacity (hashrate up by 125% over the last six months, price of product down 55%, no volume, no interest) then this steady grinding down will continue. It isn´t enough to have fancy mathematics and lofty ideals, it has to be in touch with reality in this world. If it isn´t well then obviously it will be taken apart in the market. Traders typically aren´t emotionally attached to their investments and speculations. They just look for opportunities and exploit them.

The guy making this model clearly wasn´t concerned about exponential functions but hopefully those big miners are. If the hashrate doubles every six months I don´t see much of a future for mining.

Despite the fact that this is hard-boiled trolling, the exponential rise in Bitcoin's difficulty and some of the subsequent price decline can be explained by the run-up to $1200 last fall. As the price spiked up and and up to 10x its SR-Closure value of $90, people saw dollar signs in their eyes.

It was then that the true ASIC war began - people decided that, at a block reward of $25,000 or more, they could make a pretty good profit. So they ran to chip designers and manufacturers (both of which are fixed, sunk costs) and put their orders in. I believe that the BTC mining ecosystem was still feeling the effects of this up until just a few months ago.

As the price slowly slid down from $1000 to $800 to $600, declining in part due to the lack of constant buying established by Mt. Gox (and later the shock to the BTC ecosystem by its demise), these mining companies with sunk costs had to trudge on and mine at a loss (over their manufacturing costs) just to try to recoup a some of their investment.

This becomes a vicious cycle with miners dumping BTC to recoup manufacturing costs and electricity, further driving the price down. I believe that this will start to level off in the next few months. Most of the ASICs that were hastily put into production from Q4 2013 to Q1/Q2 2014 are now out in the wild and further ASIC development has been centered/centralized around a few large players like AM, ST, Bitmain, KNC. These large players, some of whom are not even selling retail anymore (KNC) are now able to self-finance their manufacturing and need only to answer to investors and board members, not customers and the public - they have a much bigger incentive to hold BTC than to sell it immediately on the market if they have enough capital reserved for such a strategy.

I do think you are correct that there are some mining farms taking advantage of China's low cost chip design, manufacturing, and miner assembly capabilities to throw up large farms to exclusively generate and sell BTC, but they are not the main driver or mining or BTC 'dumping' at the moment.

It has to be priced according to the current and anticipated yield obviously.

What do you expect the price to be ?

It won't be lower than AMhash1 ipo minus dividends to date