KNC Miner Declares Bankruptcy – Chinese Competition Too Tough - page 3.

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Quote from: LiteCoinGuy on May 27, 2016, 12:56:29 PM

if you cant mine profitable at 400-500 USD per coin, you should go out of business.

Agree in some way. Electricity can be very cheap in parts of China, they obviously have lots of financial issues if they can't continue to turn a profit in this climate.

Quantus

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If China keeps doing what its doing no amount of tariffs or trade wars will stop them. China is the new model of growth and America must try to emulate it. Even if that means the end to a world currency denominated in US dollars.

gentlemand

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I never really bothered to investigate them in detail. What was their setup?

The Chinese just get on with shit by the sounds of it. Westerners noodle around creating cool brochures and drowning in health and safety.

cjmoles

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Quote from: Quantus on May 27, 2016, 02:27:53 PM

They are still making money but they can't raise enough money to continue expansion and in the Bitcoin mining world if your not constantly reinvesting in new hardware then your old hardware quickly becomes obsolete.

China is economically speaking in high gear, If it were a car engine flames would be shooting out the tail pipe. The question here is how long can China continue to heavily subsidize all these industries, specifically power and chip manufacturing. My dad thinks their economy will equalize over the next 15 to 30 years with the rest of the world and will (the USA) be bitching about India or someone else as they take over for a short time.

India....! For sure....it is a sleeping giant in the literal since. It always amazed me when I would walk into my Engineering courses and feel like a minority. An amazing number of East Indians are entering the field of engineering....The contrast in the demographics between my CSCI coursework, my EE coursework, and my girlfriends liberal arts coursework was something to ponder. India is getting ready to start moving soon. So, I think you're old man has an astute understanding of things to come.

Quantus

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They are still making money but they can't raise enough money to continue expansion and in the Bitcoin mining world if your not constantly reinvesting in new hardware then your old hardware quickly becomes obsolete.

China is economically speaking in high gear, If it were a car engine flames would be shooting out the tail pipe. The question here is how long can China continue to heavily subsidize all these industries, specifically power and chip manufacturing. My dad thinks their economy will equalize over the next 15 to 30 years with the rest of the world and will (the USA) be bitching about India or someone else as they take over for a short time.

I disagree with my father, China has outlawed the exodus of wealth and outlawed foreign companies from operating inside of China; to me this is the perfect yen to the yang of a world currency, they are saying to the world "fine the world reserve currency can be denominated in US dollars as long as we hold all the wealth." And what we get is a rich America and a wealthy China.

If China keeps doing what its doing no amount of tariffs or a trade war will stop them. This is the model and America must try to emulate it. Even if that means the end to a world currency.

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Quote from: alani123 on May 27, 2016, 01:57:42 PM

Not unexpected IMO. Those people knew what they were getting into when they created this startup. Nobody really expects a long term career in a business like bitcoin mining, which by design isn't destined to last for long. Competition just makes things worse in western countries where the jib market has pushed wages so high compared to Asia.

True-True. And there will be more to come very soon. There are interesting times ahead for sure. But, is it a problem that has no remedy, or a problem that requires the community to be more proactive?

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Not unexpected IMO. Those people knew what they were getting into when they created this startup. Nobody really expects a long term career in a business like bitcoin mining, which by design isn't destined to last for long. Competition just makes things worse in western countries where the jib market has pushed wages so high compared to Asia.

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Quote from: Gyrsur on May 27, 2016, 01:34:49 PM

guess the real reason is the access to chip produktion for reasonable prices.

could be that they were pulled over the barrel.

salient point, the chinese do have a near monopoly on chip fabrication for hire. It's difficult to imagine who KnC were using if not a China based fabricator

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guess the real reason is the access to chip produktion for reasonable prices.

could be that they were pulled over the barrel.

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Quote from: alyssa85 on May 27, 2016, 01:21:45 PM

This does mean that all bitcoin mining is now done in China. That is a risk, especially with their authoritarian govt that is trying to stop capital fleeing the country...

Source?

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This does mean that all bitcoin mining is now done in China. That is a risk, especially with their authoritarian govt that is trying to stop capital fleeing the country...

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Quote from: mindrust on May 27, 2016, 01:09:10 PM

You just can't compete with Chinese when it comes to "cutting off expenses". Every goddamn thing is the cheapest in China, including manpower. Once someone invents a new technology, you can get it for free the next day in China.

“We knew that there were risks related to doing this in Sweden. We aimed for the skies, not to build a mediocre medium sized business. We got big investors on board and took a chance. But it hasn’t paid off.”

Here is their mistake.

Yeah, they are masters in making everything as cheap as possible, that is why chances are if you look at something it will say "made in china" or "manufactured in china". Of course, this has negative impacts in the long term, look at all those deaths by elevators that malfunction happening in china for example.

But not only this, it turns out electricity is very cheap in china, so this is perfect to run Bitcoin mining business.

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You just can't compete with Chinese when it comes to "cutting off expenses". Every goddamn thing is the cheapest in China, including manpower. Once someone invents a new technology, you can get it for free the next day in China.

“We knew that there were risks related to doing this in Sweden. We aimed for the skies, not to build a mediocre medium sized business. We got big investors on board and took a chance. But it hasn’t paid off.”

Here is their mistake.

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if you cant mine profitable at 400-500 USD per coin, you should go out of business.

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http://swedishstartupspace.com/2016/05/27/knc-miner-declares-bankruptcy-chinese-competition-too-tough/

Quote

Breakit has previously reported on the company’s difficulties with increasing competition from China. In February, the company laid off somewhere around ten full time employees, which constitutes a fifth of it’s total workforce, to cut costs. The parent company, KNC Group, along with its seven subsidiaries has now decided to file for bankruptcy as a result of the changing marke

...The company raised $3 million (28 million SEK) i december last year but has apparently still been forced to shut down. The money was used to build a new server center. With the new center the company was able to make 80 quadrillion calculations per second. However, because of the declining price, the increased capacity would not result in any substantial increase in revenue.

Topic: KNC Miner Declares Bankruptcy – Chinese Competition Too Tough - page 3. (Read 2413 times)