Topic: ASICMINER: Entering the Future of ASIC Mining by Inventing It - page 1096. (Read 3917058 times)

Promise?

I'm sorry but I'm getting somewhat tired from explaining this over and over again

I think thats a very strange view. You think investors bough apple stock because they dont pay dividends? Apple has stockpiled large sums of money and it doesnt do anything with it. Its simply useless money.

I'm interested in what happened in Africa in the 1990's and 2000's. In many parts there infrastructure is poor, and liable to being unmaintained, stolen, or destroyed by conflict. Many parts of Africa have good mobile phone networks, though, as they're relatively cheap to deploy and can be deployed in numbers to provide redundancy (or even just moved around on trucks). If you said to a villager in many parts of Africa that his mobile phone can generate $2 a day if it does Bitcoin, he'd probably offer his daughter to you.

Wow thorough reply just does my reply
I think diversification can lead to lower revenue but pocketminer had a good idea of building chips for other things if ASIC does hedge a bit, doesn't need to be outside bitcoinworld could be inside bitcoinworld but we can leave options like the internet and real stuff on the list. It really depends on what seems like the best choice if we go that route and i'm sure there will be a lot of discussion before a plan is executed and made.
And as they say the horse that doesn't participate in the race can never win. ASIC took a risk building these devices so we will never know unless we try. Not out of desperation mind you but out of planning a well thought out strategy. Your right halving day affects all miners and were still seeing exponential growth of pc power so the market will adapt to that but it doesn't hurt to keep looking for new possibilities and having the window open to embrace new ideas. After all that's why we invested in bitcoin in the first place

Geh it's all in quote leaves it that way lol

- OR - BTCUSD doubles, hence while you are earning half BTC as before, you are actually earning the same equivalent USD.

Except in 2016, at a known and predictable time, poof, 50% of the possible income and dividends disappear and thus the share value drops to 50%. Now you've lost 0.85 in a day. Or around a years worth of dividends at 30% hash rate.

Also, one note regarding all this jabbing about how much dividend should be paid out: None of us isn't going to decide it. Friedcat (and his team, maybe, I don't know) holds over 50% of shares, so we can argue here until the last block is mined and it's not going to have any effect. About all these people who have made lenghty comments saying this and that about Apple or Microsoft or any other unrelated company, is there anyone who owns even 5000 shares that entitles to a seat in the board?

PocketMiner! Great idea!

USB-powered, but with internal battery and wifi. Put it in when you're home to charge battery and mine at higher speed, put it on your keychain and mine whenever you are near an open wifi-zone :-)

.b

I'm interested in what happened in Africa in the 1990's and 2000's. In many parts there infrastructure is poor, and liable to being unmaintained, stolen, or destroyed by conflict. Many parts of Africa have good mobile phone networks, though, as they're relatively cheap to deploy and can be deployed in numbers to provide redundancy (or even just moved around on trucks). If you said to a villager in many parts of Africa that his mobile phone can generate $2 a day if it does Bitcoin, he'd probably offer his daughter to you.

PocketMiner! Great idea!

USB-powered, but with internal battery and wifi. Put it in when you're home to charge battery and mine at higher speed, put it on your keychain and mine whenever you are near an open wifi-zone :-)

.b

On the topic of other businesses AM could pursue that would increase the value of Bitcoin v fiat.

Assume that AM achieve this by leveraging their expertize in designing integrated circuits at low cost and in volume.

We know from history the value of Bitcoin will rise if more people use it. So put a chip in many hands that rewards people to own it but requires them to use Bitcoin to realize its value. I'm not thinking mining-related like the Erupter Blocks, something else. Something that billions of people could possess. I'm thinking whatever the 'it' is, it could live in a mobile phone.

Try to be creative about this: The world has 10 coins. AM is currently paying 10 coins per cycle in dividends. How can you be creative, diverse, and industrious to get more than that?

The dividend that AM paid this week is 50% of the theoretical possible limit they can get from mining. They can kill Bitcoin to maintain this level, yes, but I don't think they will. All their competitors can fail, but I don't think they will.

Let's be crazy, then, and say that they generate dividends equivalent to 30% of the network for the next 44 months. At that rate, we'll see dividends at 0.018 per week, which would give us an ROI of 21 months. Great, right? 50% yield per year?

Except in 2016, at a known and predictable time, poof, 50% of the possible income and dividends disappear and thus the share value drops to 50%. Now you've lost 0.85 in a day. Or around a years worth of dividends at 30% hash rate.

It's still a profit, sure, but it's not even close to what people think at present, and it assumes that AM pays 30% of all coin production on average.

Can they maintain 30% for that long? I don't know. Their 262 TH will be a spit in the ocean in a year. AM needs funds to finance the next big thing, which needs to come on top of those 30%. Can all their competitors fail? Yeah, but I doubt they will.

Remember that hardware sales isn't really a factor here because that hardware needs to come from the maximum limit AM can produce. Whether they hash from it themselves over time or realize that hashrate immediately by selling isn't relevant except in temporarily boosting their dividends. Their customers will run the math when more purchase options are available. Selling hardware is at most a way to realize short-term capital, but doesn't really increase their long-term profitability when they pay sales out in the form of dividends.

Actually, screw all this, I'll publish my numbers and you can argue against those.

.b

I get you don't like where ASICminer is going.  Would you sell me 5 shares of your ASICminer stock for $1.5 BTC each?  Use John K. as escrow.  Thanks.

I'm sorry to say, but with the latest dividend payout, my confidence in AM has fallen dramatically. I think it is irresponsible of them to pay out the equivalent of ฿60K in dividends per month, the equivalent of almost 50% of the entire Bitcoin coin production.

I'll happily admit I've sold most of my AM holdings after running numbers again that show me there is no possible way to recouperate a share price of ฿1.7, much less yield a profit, when you think beyond 2016.

At these price levels, investors have a negative ROI of 8% per year if friedcat manages to get his projected 10% of the total hash rate on average and only manages to sell ฿1000 worth of hardware per month. Even at 15% of the total hash rate, the annual yield looks like around 1%. At 20% of the hash rate on average, AM yields slightly better than a NASDAQ composite index fund.

.b

Those are only a few examples, but the defining characteristics of a unique and unforeseen opportunity is that it is unforeseen and unique :-)

.b

Also true assuming they want to buy a company or if they want to make another one or extend the current one

The nice thing about Bitcoin is that it doesn't inflate, so we should nto be in a rush to spend whatever money we have. If you want to follow in WB's footsteps, you'll realize he can sit on billions upon billions of dollars for years, waiting until the right opportunity comes along. The thing is that if AM pays out everything they have or even a large part of it, they will not have the ability to move on those opportunities.

.b