Easy.
Any mining stock that does not currently have ASICs in hand today is a short to zero.
I liked that one, and hard to disagree.
I disagree, and find it easy to do so. One could mine profitably with Radeon 48xx GPUs at this difficulty & exchange rate.
...but short away fellas.
Just because it's profitable to GPU-mine, doesn't mean that it's a good investment to buy into any GPU-mining fund at any old price.
Of course not, but that's not what my comment implied either, it was about shorting. Anyone serious about mining that doesn't have a plan to move to ASICs at this point is behind the curve, but GPU mining is still very much profitable at this time.
The other problem is the switching back and forth between btc-profit and fiat-profit. Any BTC I invest better pay for itself in BTC. Just because BTC goes to US$10k in the next 5 years which means your overpriced mining fund that returns 1 uBTC per day is still "profitable" doesn't mean you wouldn't have been better off doing something else with your BTC.
Electric bill = fiat, this is still inescapable. If this theoretical fund returns "1 u
BTC per day" and retains it's unit price then it's soundly beaten the performance of a pure BTC investment. This is the compensation for the greater risk of investing BTC rather than just holding them.
One of the funds I looked at was an order of magnitude more expensive based on a GH/sec per share basis compared to ASICMINER. And even adding in their future delivery of Avalons, they were still 50% more expensive on that metric when compared to ASICMINER and its future delivery of 50TH/sec.
Which is a shame - I was looking for a good way to get exposure to a batch 2 avalon... I guess I'll keep looking.
Is it possible that the price of the ASIC order or orders were already accounted for in the unit price or that others value them differently than you? Why should someone invest their hard won BTC in hardware and then share the proceeds with others for nothing? Avalons are again unavailable for purchase from the manufacturer, ASICMiner has been stuck at 6.5Th for a couple weeks, BFL isn't shipping. How does one properly value a batch 1 or even batch 2 Avalon order?
