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Topic: ASICMINER: Entering the Future of ASIC Mining by Inventing It - page 445. (Read 3917543 times)

sr. member
Activity: 392
Merit: 250
$2.8 USD/GH vs $0.49 USD/GH is discount more than 500% ... unacceptable for ready-to-ship product

There's no such thing as a 500% discount. The most a discount can be is 100%, if you're selling something for free. $0.49 is an 82.5% discount relative to $2.8. Friedcat mentioned $0.49 - $0.99. $0.99 is a 65% discount relative to $2.8.




He meant 500% cheaper.  No biggie..
sr. member
Activity: 420
Merit: 250
The prices were quoted when delivery was predicted for end of Mar. The only thing counteracting the delay is competition equally having issues making deadlines. Regardless IMHO it's time to clarify the sale to rockminer as it does open the question of preferential pricing and how that may affect sales to the broader market. One would hope that rockminer isn't the main benefactor of AM's ASIC contribution in this venture and that AM's interests and that of it's shareholders are protected.

One would certainly hope Asicminer's investors are protected. I'm sure rockxie as a board member and thus holder of 5000+ AM shares also wants his shares to pay good dividends, too.

I would certainly be up for more clarification/info on the sale, or on Asicminer's business in general, but obviously communication has been very limited for a long time now so I wouldn't expect much, which is why I was just throwing some numbers out to see if $0.49-$0.99 / GH seems like a reasonable price. Given current rates of difficulty growth, I think an ASIC reseller that buys chips and makes miners would already have a hard time making much profit if they are buying chips at $1/GH in April, so I don't think friedcat's prices are out of line.

Every 1 GH turned on today will only ever make like $3-4 total. A manufacturer has to buy chips, PCBs, boxes, pay employees, etc, and still make a bit of profit too. If they are buying chips at $1/GH, and have $2/GH of other costs, that leaves like $0-1/GH of profit, pretty reasonable if you ask me.
sr. member
Activity: 420
Merit: 250
$2.8 USD/GH vs $0.49 USD/GH is discount more than 500% ... unacceptable for ready-to-ship product

There's no such thing as a 500% discount. The most a discount can be is 100%, if you're selling something for free. $0.49 is an 82.5% discount relative to $2.8. Friedcat mentioned $0.49 - $0.99. $0.99 is a 65% discount relative to $2.8.

sr. member
Activity: 378
Merit: 250
Bonam, I know, I was talking about chips

like Coincraft A1
http://bitmine.ch/?product=coincraft-ai-asic

I see. Well, looks like they are doing $2.8 USD/GH for large quantities.

$2.8 USD/GH vs $0.49 USD/GH is discount more than 500% ... unacceptable for ready-to-ship product

EDIT : yes I know, that max discount could be 100%, but I don't know how to say it in english that price is five-fold lower, but you get it
full member
Activity: 224
Merit: 100
Bonam, I know, I was talking about chips

like Coincraft A1
http://bitmine.ch/?product=coincraft-ai-asic

I see. Well, looks like they are doing $2.8 USD/GH for large quantities. Considering that it'll be like another month at best before friedcat delivers chips, and difficulty doubles every month, we'd expect the price / GH to be about half of what it is now, when he starts selling them. So by then competitors should be selling for like $1.4 / GH, and we're talking a 28% discount relative (at $0.99 / GH) to that, which sounds pretty reasonable.

The prices were quoted when delivery was predicted for end of Mar. The only thing counteracting the delay is competition equally having issues making deadlines. Regardless IMHO it's time to clarify the sale to rockminer as it does open the question of preferential pricing and how that may affect sales to the broader market. One would hope that rockminer isn't the main benefactor of AM's ASIC contribution in this venture and that AM's interests and that of it's shareholders are protected.
sr. member
Activity: 420
Merit: 250
Bonam, I know, I was talking about chips

like Coincraft A1
http://bitmine.ch/?product=coincraft-ai-asic

I see. Well, looks like they are doing $2.8 USD/GH for large quantities. Considering that it'll be like another month at best before friedcat delivers chips, and difficulty doubles every month, we'd expect the price / GH to be about half of what it is now, when he starts selling them. So by then competitors should be selling for like $1.4 / GH, and we're talking a 28% discount relative (at $0.99 / GH) to that, which sounds pretty reasonable.
sr. member
Activity: 378
Merit: 250
Bonam, I know, I was talking about chips

like Coincraft A1
http://bitmine.ch/?product=coincraft-ai-asic
sr. member
Activity: 302
Merit: 250
You can't compare cost of chips / GH to cost of finished miners / GH. There is a lot more that goes into a finished miner than just the chips themselves. Remember if someone is selling products to consumers that includes the chips, PCBs, boxes with a thermal solution, is paying their employees and for space, production, overhead, etc. How much more does a computer cost than just it's CPU? Same thing here basically.

And theoretically our costs are lower because we aren't dealing with the major supply chain and logistics that go into assembling, selling and shipping to the consumer as volumes continue to increase. It's all about  margin, which should be healthy selling chips, which coincidentally is where ASICMINER has the cost advantages.

sr. member
Activity: 420
Merit: 250
You can't compare cost of chips / GH to cost of finished miners / GH. There is a lot more that goes into a finished miner than just the chips themselves. Remember if someone is selling products to consumers that includes the chips, PCBs, boxes with a thermal solution, is paying their employees and for space, production, overhead, etc. How much more does a computer cost than just it's CPU? Same thing here basically.
member
Activity: 103
Merit: 10
It wouldn't be so bad if we got more than boiler room updates on how the ASIC was progressing. Fundamental to the equation but information regarding the business strategy with the recent rockminer development is thin at best.

yes, I suggest new round of shareholders questions for Friedcat 1-2 weeks after the 1st batch madness (what do you think friendly pumpkin? Smiley are you going to take initiative? )

and about that 0.49$-0.99$/Ghs pricing strategy ... ASICminer should really re-evaluate this after testing gen3. The selling price should be 10-20% under the competition, but not 500% ! Also we'll have product in hand, no pre-orders BS. Its insane pricing, its like tunneling a company in prime time LIVE. Shareholders are watching. I don't want to see, that ASICminer is selling chips 500% under current market price to Chinese mining mafia friends  Tongue

I agree, FC need to explain his price strategy.
sr. member
Activity: 378
Merit: 250
It wouldn't be so bad if we got more than boiler room updates on how the ASIC was progressing. Fundamental to the equation but information regarding the business strategy with the recent rockminer development is thin at best.

yes, I suggest new round of shareholders questions for Friedcat 1-2 weeks after the 1st batch madness (what do you think friendly pumpkin? Smiley are you going to take initiative? )

and about that 0.49$-0.99$/Ghs pricing strategy ... ASICminer should really re-evaluate this after testing gen3. The selling price should be 10-20% under the competition, but not 500% ! Also we'll have product in hand, no pre-orders BS. Its insane pricing, its like tunneling a company in prime time LIVE. Shareholders are watching. I don't want to see, that ASICminer is selling chips 500% under current market price to Chinese mining mafia friends  Tongue
full member
Activity: 224
Merit: 100
It wouldn't be so bad if we got more than boiler room updates on how the ASIC was progressing. Fundamental to the equation but information regarding the business strategy with the recent rockminer development is thin at best.
hero member
Activity: 686
Merit: 500
A pumpkin mines 27 hours a night
Don't know if there'll be much in the way of expenses, my understanding is FC retained funds for this, but happy to stand corrected.

You know, there must be expenses for the next batch. Which will be massive. I hope and believe™

I'd be happy with friedcat using the proceeds from the first batch to fatten the second batch if he deems this appropriate. We need some major batches right now at the beginning, not in 6 months.
full member
Activity: 224
Merit: 100
Also question is , why we should sell 1Ghs for 0.99$, when competition is selling 1Ghs for $5 ? (I am not sure about that $5, but the point is that its much more expensive).

Price prediction at that time was looking at a lot of moving parts. Everyone has experienced some form of delay which should result in re-evaluating the situation unless your intent is to flood the market and remove any further competition's incentive to conduct R&D. If the ASIC turns out to be most cost effective to manufacture and operate this could be a valid strategy and would allow AM to dominate the market through taking a lesser profit up front and saturating the market.
sr. member
Activity: 378
Merit: 250
Don't know if there'll be much in the way of expenses, my understanding is FC retained funds for this, but happy to stand corrected.

You know, there must be expenses for the next batch. Which will be massive. I hope and believe™
hero member
Activity: 525
Merit: 500
Don't know if there'll be much in the way of expenses, my understanding is FC retained funds for this, but happy to stand corrected.
sr. member
Activity: 378
Merit: 250
And thanks to Rockxie, we now know, that the first batch will be !at least! 1Ph ... I don't expect lower price than 0.99$/Gh for privilege to take very first batch, so we're looking at 1,000,000$ for 1Ph so around 1666 BTC (600$ USD/BTC) minus expenses. Also question is , why we should sell 1Ghs for 0.99$, when competition is selling 1Ghs for $5 ? (I am not sure about that $5, but the point is that its much more expensive).
hero member
Activity: 525
Merit: 500
Yes I was being ironic.

On the bright side, the USA tax news should be good for AM and other mining suppliers, as the cost of rigs and associated expenses will I believe be deductible.
hero member
Activity: 686
Merit: 500
A pumpkin mines 27 hours a night
Yeah, they're basically totally irrelevant right now unless there are unexpected sales coming in at some point over the next weeks.
Right now the most important thing is how the engineering sample performs and whether gen 3 works. Things actually do get tingly now, since fc confirmed physical chips will come March 28. Plus transit and testing time, I guess we're in for the answer to the biggest question in AM there is during next week. Eerie!
sr. member
Activity: 302
Merit: 250
everyone looking forward to divs tonight?  Cheesy

I don't think they will be higher than normal - I don't think FC has taken in any revenue for gen3 yet

there is only 25BTC in AM's address. it think he was being ironic. Cheesy

Yes, my fault didn't catch the  Cheesy

Need coffee
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