Topic: ASICMINER Speculation Thread - page 72. (Read 808905 times)

I completely agree.  That's why AM is moving towards enterprise solutions.  They're setting up to sell fleets of bulldozers, while everyone is focused on shovels.

I will put it extremely simple for you. The gold rush is over. No longer will AM be able to make shitloads from selling shovels because there is already a massive surplus of shovels. Now it will come down to the most efficient large scale mining operations.


The only reason AM made so much money was the gold rush, a massive influx of people thinking they would be getting rich by buying hardware that they thought would reach ROI in 15 days. This scenario will never happen again.

no, AM was selling the first hardware for like 70 btc a blade.  The profit margins were HUGE!  way over what they could make mining with those products.

What you don't get is that they couldn't expand the mining operation at that time.  The network was not growing fast enough.  They already had 30%.

Acting like BFL caused AM to start selling hardware is laughable, especially when you look at how many units BFL actually shipped during that time.

BFL didn't start rolling out anything respectable until August/September. They shipped a handful of units in June, a few in July and AM had already been selling lots of hardware by then.  They were no threat to the network, and AM was having no problem keeping up with the network growth during that time.

you are having a problem understanding something.  AM is selling it's hardware at more than it can mine.  Do you understand what that means?  That means they can get more money from that piece of hardware than they can mine from it. This is nothing new, it has always sold at these levels, and AM sold out of hardware, so yes, people are still interested in their hardware.

New gen will not change the fact that it is more profitable to sell it than mine with it.  You get the entire ROI up front (or in AM's case, more than ROI)

I read it as if you think you can outpace us in mining go for it we will sell the shovel handles and then use that income to build something better to go with our cube.
If we get outpaced serious retail miners will still use the cube to make (your stuff) aka. the competitors hardware more efficient hence the Cube is a unique stream of income and a supplement for its unit production.

At least that's one way of viewing it, by hedging against the hashrate war which may become or turn into a war of attrition they are securing their lines and completely reinventing the ballpark by moving to the eventual end point.

But as AM speculators we are primarily focused on these short term dividends, they prove that their is an income stream coming in and as a result we value them more in the short run, aka money (one cat) in hand is better than money (two cats) in the wild, that said as a long run outcome it is a good strategy, since it not only seems plausible but likely an eventuality that mining will reach that scale after a certain point even if not in the short run.

The idea of AM turning into a swiss army knife, is interesting, by not starting a new company with the funds it has built but instead naturally expanding its scope and the services it provides as a part of the same venture.
As friedcat said nothing is more profitable than bitcoin at this point in time, following that logic it makes sense to extend AM's reaches in the sphere it believes has the most profit.

Mining through hashing, hashing through franchising, and franchising through facilities
Aka: The Gradual evolution of Bitcoin mining as we reach larger scales.

By becoming the first mover in the larger scheme of things and having working asics they will still remain profitable by having advanced services to supplement their hardware and extend their reach which will become a distinct competitive advantage of invincible proportions XD

"Profits" did not make AM start selling asics? Let me ask you why, when you have a steady income of 20% of the hashrate, would you randomly decide to start selling your machines ultimately making your piece of the pie less? You wouldn't. AM only began to sell right before BFL began rolling out their massive amounts of TH. Why? because FC knew that with current gen hardware nobody would buy for such a high price after BFL begins shipping/raising the difficulty. The massive profits came from a "gold rush" of people thinking they would make money from those usb asics which we now know will never reach ROI.

One of the biggest complaints people have about AM hardware is that it never meets ROI, or takes ridiculously long to do so...  That automatically makes it more profitable to sell it than to mine with it.

Your whole "if they had 20% of the network" is irrelevant, because they don't have the hardware to maintain 20% of the network, nor the datacenter to house it.

Not only do I think they can make more money from hardware, their financial records prove it.

Profit margins on those cubes are likely 60% or better.  Their cost is likely less than $2/GH to produce them.