Topic: Is Avalon mining with customer hardware? Answer is here. - page 21. (Read 44419 times)

Yes, what you are talking about is reality. But as a company selling products, it is really suitable?

The root of all these problems -where and if they exist- is a hundred dollar bitcoin.  When BTC were ten bucks, then the decision to sell spades to the miners was no-brainer; the "mine" only produced $36,000 a day total.  But now the mine produces over a third of a million dollars a day.

If one has a room full of the tools to grab a big chunk of that bounty for a few days, well... The kids have been waiting so long already, whats another week or two to them?

It is generally understood that mining as many coins as quickly is good for the persons/pools mining, right ?
It is also generally understood that mining difficulty will increase once too many coins are generated too quickly.

Consequently, mining is more profitable as long as you have a certain edge, so that you can mine profitably without overly affecting difficulty.
Increasing mining difficulty will make even ASIC hardware less profitable fairly quickly, especially once it is widely shipped and deployed.

Thus, it is no surprise that ASIC vendors are having a hard time delivering their products: economically, it simply makes more sense to mine NOW rather than 3 months from now. There's basically time decay at work: powerful ASIC hardware will suffer serious theta-decay once it is widely used.

Difficulty is already increasing at ~30% currently, so things will become even more dramatic during the next months, which is why it makes sense to run ASICs now, rather than sell them.

Just imagine for a second that you were providing GPU/FPGA miners in early 2010: Would you have sold it, or would you have used it for yourself ?
Obviously purchasing hardware (especially custom stuff) is expensive, but fortunately there's the concept of "pre-orders" a modern form of "crowd-funding", where customers are willing to pay for hardware that they will only get their hands on after significant time-decay.

not suprised at all.every company will test their machines.maybe one week,maybe few month,who know

Agreed.  They are in the business of manufacturing genies.  It is hard to complain if you still get at least 1 wish.

I think everyone is totally cool with Bitsyncom testing against mainnet.  It is just that it sets up a conflict of interest/temptation to extend the "testing/burn-in" time rather than shipping completed units. 

The 3.5TH/s spike a does imply that a week before the end of May their were 50+ B2 units being tested.

It's not a farm, the payouts would be much higher. Testing is still possible.

Here is another thread discussing the 3.5TH/s enigma on eligius a few weeks back.

https://bitcointalksearch.org/topic/m.2280383

Avalon farm of 50+ units seemed unlikely... but not impossible.  Looks like confirmation.

I guess the good news is that the mining difficulty won't go up much when those units ship to their new owners 

"RLW" was noticed in the Eligius pool thread a few weeks ago as having brought in 3.5 Th/s for a few days.  Then they (Avalon) left, and came back a couple days later.  There were several pages of discussion speculating who it was.  I guess we know for sure now.

https://bitcointalksearch.org/topic/m.2276814  

Nope, but I am sure wizkid057 or Luke-Jr can pull those stats if they wanted to.  Also, you can sort of get a feel for the dates and how much they were mining based on how everyone was talking about "RLW" in the Eligius pool thread I linked to above.

I remember I think at the conference they said the units are dusty because they don't have a clean room where they are doing the burn in. I don't know why users should be so upset at the idea of them doing a burn-in on the real network. They need to be sure the machines work, and it's not like if they had used testnet they would have been able to complete the testing any sooner.

I guess you could be pissed that the difficulty has gone up because of this, so I guess you could make an argument that Avalon "stole" your early ASIC adopter advantage. However I'm not surprised.

ASIC 2.0 anyone?

Aren't you off by a factor of 10 in your valuation of BTC?

798 * 101= USD 80k

But surely you don't burn in 798 coins?! That's almost US $1million!!

Agree. I heard several persons said that the ASICMiner blades they received are shinning new.

I stand corrected. Would you have a pic?

You're just looking at a graph of the past week.  The 3.5 terahash jump that took place was continuous for a several days, and that was in late May and early June.