Author

Topic: How low can mining equipment get? (Read 1041 times)

legendary
Activity: 4242
Merit: 8515
'The right to privacy matters'
September 05, 2014, 10:24:01 PM
#6
Well at some point the margins for profit for the smaller miners become so small it's not worth selling.  If it costs Bitmain $25 to ship, $10 for packaging, and $25 for support and warranty work then they're losing $60 to overhead.  It may be cheaper for them to just sell it to themselves or to other companies in bulk.

Some are guessing they're going to stop end user sales shortly to keep difficulty from going up.

Huh Are you saying they will just sit on the equipment and not use it for a period of time? That makes no business sense to me unless all manufacturers agree to do the same - which I can't imagine will happen.
Am confused here..

Not confusing 200ph   mining today.

 150ph is in the hands of asic builders
50ph in our hands or someone like cloudhashing pbmining.
the top builders can build 1th for under 300usd maybe as low as 100usd.   

my evidence is asicminer sell and ships 8.5th for 7.9btc.  this is in the form of 10 tubes.    7.9 btc is about 3800 usd.
 so they can sell 8.5th for  3800 assembled and shipped and turn a profit.
 they are selling 1th for about 450 usd and making money on it. 

Many other companies   one like  antminer can sell 2 s-3's for 1.16 btc and make money this is about 500 usd for 1th as the new units can do closer to 500gh.
Right now AM has a cloud setup  once they go cloud they do not need to sell us miners. 
cex.io pulls in tons with the cloud.
GAwminers pulls in tons with a cloud.
zoomhash pbmining

just mine in house and slowly sell some off in cloud form to suckers (oh customers)   Fully cutting the in house guy right out.

DrG
legendary
Activity: 2086
Merit: 1035
September 05, 2014, 05:45:48 PM
#5
Well at some point the margins for profit for the smaller miners become so small it's not worth selling.  If it costs Bitmain $25 to ship, $10 for packaging, and $25 for support and warranty work then they're losing $60 to overhead.  It may be cheaper for them to just sell it to themselves or to other companies in bulk.

Some are guessing they're going to stop end user sales shortly to keep difficulty from going up.

Huh Are you saying they will just sit on the equipment and not use it for a period of time? That makes no business sense to me unless all manufacturers agree to do the same - which I can't imagine will happen.
Am confused here..

I didn't ascribe to this idea but others have guessed that it would be in the ASIC manufacturers best interest to not bother to make consumer grade miners.  Whatever profit they get from those would cut into their own farm's profits.
legendary
Activity: 1173
Merit: 1000
September 05, 2014, 09:33:36 AM
#4
Well at some point the margins for profit for the smaller miners become so small it's not worth selling.  If it costs Bitmain $25 to ship, $10 for packaging, and $25 for support and warranty work then they're losing $60 to overhead.  It may be cheaper for them to just sell it to themselves or to other companies in bulk.

Some are guessing they're going to stop end user sales shortly to keep difficulty from going up.

Huh Are you saying they will just sit on the equipment and not use it for a period of time? That makes no business sense to me unless all manufacturers agree to do the same - which I can't imagine will happen.
Am confused here..
legendary
Activity: 1008
Merit: 1000
September 04, 2014, 10:06:04 PM
#3
With the Hash rate shooting up and mining equipment prices having to go down, how low will it go to where the ASIC manufacturers are no longer making profit?

It seems like we have leveled off at about 28nm and slightly sub GH/W.

Will an Ant Miner S3 Cost $100 shipped over seas?

Will a Dragon 1.5 TH miner cost $300 shipped over seas?

Thoughts?

That is why we are seeing more and more cloud mining, cheaper to just build asic and mine immediately next door..
DrG
legendary
Activity: 2086
Merit: 1035
September 04, 2014, 05:04:30 PM
#2
Well at some point the margins for profit for the smaller miners become so small it's not worth selling.  If it costs Bitmain $25 to ship, $10 for packaging, and $25 for support and warranty work then they're losing $60 to overhead.  It may be cheaper for them to just sell it to themselves or to other companies in bulk.

Some are guessing they're going to stop end user sales shortly to keep difficulty from going up.
hero member
Activity: 991
Merit: 500
September 04, 2014, 05:01:15 PM
#1
With the Hash rate shooting up and mining equipment prices having to go down, how low will it go to where the ASIC manufacturers are no longer making profit?

It seems like we have leveled off at about 28nm and slightly sub GH/W.

Will an Ant Miner S3 Cost $100 shipped over seas?

Will a Dragon 1.5 TH miner cost $300 shipped over seas?

Thoughts?
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