They had great knowledge of the hardware market, and they just hit on the right time.
They surely knew they would sell their stock immediately to the thirsty miners in no time.
They surely knew they would sell their stock immediately to the thirsty miners in no time.
At the time Bitmain was developing their 55nm chips KnC, Cointerra, Hashfast, and countless others were going to flood the market with 28nm chips promising all sorts of things. Bitmain took a risk that their chip would even be competitive late November, early December. Further, there is/was no guarantee that their chip would function as expected the first go-around.
There is massive overhead and a lot of variables at play. Near every single ASIC manufacturer has placed all of that risk on the consumer whereas Bitmain did not. They risked their own money, not mine, not yours, not anyone elses. Their risk was far greater than yours was in purchasing any of their hardware at any point in time.
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Now, you mean we didn't fund them with their expensive S2? Aren't they a preorder? For designing what ? A 55nm?
I don't know how I'd classify the S2. Was it a pre-order? Maybe, maybe not, but I certainly didn't buy one because I didn't like the prospect of waiting and seeing, not that didn't trust Bitmain. In response to your other comment, the S2 orders have nothing to do with 55nm development. That was done in November long before they sold a single machine. What you and others did with the S2 pre-orders, if you want to call them that, was assure Bitmain that there was a market for a new product based on their old chip design. From my knowledge they didn't sell hundreds of S2s, and they haven't kept rolling sales going. Good on them.Quote
And you mean that the risk of us mining, is the same as Bitmains?
You mean they risked and would not sell their equipment?
No, I mean their risk was greater than ours in terms of magnitude. They risked millions and you risked $3,000. As covered above, they took a risk that their money wouldn't be wasted on a failed design, and/or wasted on a design that was non-competitive in the face of the 28nm rush of all their competitors. You mean they risked and would not sell their equipment?
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And as the "millions" you said they spent, I am sure they could afford a single person just to reply to their emails.
I'm sure they could. From my time in Bitcoin and ASIC land what I understand is that Chinese business does not care for Western concepts. In China the customer is not always right, and in reality they (customer) could by all accounts go eff' themselves. The idea of hand-holding and end-user support is not something that exists in Chinese business models.
