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Topic: If you consider getting an ASIC machine, read this - page 2. (Read 2218 times)

legendary
Activity: 2212
Merit: 1038
If you had a machine that literally printed money, would you sell it?

If my machine's cost was $100 and I could print $1000 out of its lifecycle, I would print $700 out of it and then sell it for $200.
The customer would be happy that he paid $200 and printed $300

That's what BFL-like companies are doing in ASIC pre-orders.

Lots of happy pre-order customers on this forum...

sgk
legendary
Activity: 1470
Merit: 1002
!! HODL !!
If you had a machine that literally printed money, would you sell it?

If my machine's cost was $100 and I could print $1000 out of its lifecycle, I would print $700 out of it and then sell it for $200.
The customer would be happy that he paid $200 and printed $300

That's what BFL-like companies are doing in ASIC pre-orders.
legendary
Activity: 2212
Merit: 1038
If you had a machine that literally printed money, would you sell it?


If my customer was a mint, then yes  Grin

newbie
Activity: 4
Merit: 0
If you had a machine that literally printed money, would you sell it?
hero member
Activity: 616
Merit: 500
with mining they would need to take the risk of bitcoin mining, they also would need to hire IT guys to setup the network, buy space to put the ASICs, be always informed about btc market, and so on. Plus most ASIC makers are on China, so there is always a risk of buy such a huge thing and btc be baned, or they don't have how to sell it.

Why the enterprises that do stuff to explore oil don't explore oil themselves ?


But i agree that in ASIC community there are scams, so better be aware
legendary
Activity: 2212
Merit: 1038
I ve read a very nice piece on Bitcoin mining these days, basically comparing mining rig to a golden goose, very interesting. It sums up to the following, why would ASIC manufacturers sell their machines if they can use them for mining:

This is a very naive perspective that misapplies the experience of a small basement operation to a large enterprise.

Once you're talking about the volume that an ASIC manufacturer would produce, there are two EXTREMELY critical issues that come into play --

(1) Building equipment in order to mine instead of sell exposes the manufacturer to an additional level of risk that they might not be interested in taking on;

(2) It's not trivial at all to design and administer a facility in which to house all of this mining equipment.

Most of these manufacturers state reaching ROI in about 3-6 months. If this is really the case, only a total fool would sell instead of mine, regardless of any obstacle they might face.
Apart from reasons already stated, the only reason to sell which comes to my mind is that most of these companies are not sufficiently capitalized to develop their own products. To overcome this, they sell preorders, get your money, develop the product, use it for MINING for a few months and then deliver to you when it almost useless.

An excellent business model, whoever started this first should be nominated for Nobel prize in economics.

That would be Butterfly Labs (BFL). Correct me if I'm wrong but I think those guys are being indicted and the subject of a massive class action lawsuit.
legendary
Activity: 1652
Merit: 1007
DMD Diamond Making Money 4+ years! Join us!
I ve read a very nice piece on Bitcoin mining these days, basically comparing mining rig to a golden goose, very interesting. It sums up to the following, why would ASIC manufacturers sell their machines if they can use them for mining:

This is a very naive perspective that misapplies the experience of a small basement operation to a large enterprise.

Once you're talking about the volume that an ASIC manufacturer would produce, there are two EXTREMELY critical issues that come into play --

(1) Building equipment in order to mine instead of sell exposes the manufacturer to an additional level of risk that they might not be interested in taking on;

(2) It's not trivial at all to design and administer a facility in which to house all of this mining equipment.

Most of these manufacturers state reaching ROI in about 3-6 months. If this is really the case, only a total fool would sell instead of mine, regardless of any obstacle they might face.
Apart from reasons already stated, the only reason to sell which comes to my mind is that most of these companies are not sufficiently capitalized to develop their own products. To overcome this, they sell preorders, get your money, develop the product, use it for MINING for a few months and then deliver to you when it almost useless.

An excellent business model, whoever started this first should be nominated for Nobel prize in economics.
hero member
Activity: 667
Merit: 500
I ve read a very nice piece on Bitcoin mining these days, basically comparing mining rig to a golden goose, very interesting. It sums up to the following, why would ASIC manufacturers sell their machines if they can use them for mining:

This is a very naive perspective that misapplies the experience of a small basement operation to a large enterprise.

Once you're talking about the volume that an ASIC manufacturer would produce, there are two EXTREMELY critical issues that come into play --

(1) Building equipment in order to mine instead of sell exposes the manufacturer to an additional level of risk that they might not be interested in taking on;

(2) It's not trivial at all to design and administer a facility in which to house all of this mining equipment.
full member
Activity: 131
Merit: 101
Jap the days of easy mining are long gone
legendary
Activity: 1652
Merit: 1007
DMD Diamond Making Money 4+ years! Join us!
I ve read a very nice piece on Bitcoin mining these days, basically comparing mining rig to a golden goose, very interesting. It sums up to the following, why would ASIC manufacturers sell their machines if they can use them for mining:

“The only logical reason would either be because you know the productivity of the golden goose (ASIC) will go down over time — something which is the case for bitcoin because its hash rate doubles roughly every month — the goose was faulty or because someone was offering more than its value in the first place. Which means — unless you know how to make a rig yourself — chances are you won’t be making millions from a rig investment any time soon because the Bitcoin system is literally “rigged” against you from the outset.”

Here is the entire piece:

http://www.cryptocoinsnews.com/news/mining-rigs-killed-golden-goose/2014/05/20

Think twice before buying.



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