Relationships Between Mining Machine Supplier and Miners
Keep the miners mining for yourselves,why to sell them? Every outsiders has the doubt for suppliers.
It implies that suppliers cheat us! In fact, this is a very common misunderstand , but it is easy to make it clear. However, what the important is not to clarify this issue, but need to clarify, why outsiders have this doubt? I think the suppliers should be blamed for it.
In 2013 , IPO and pre-sales of suppliers entraped some miners miserable.Of course, these miserable miners reported their painful lessons.Mining hardware became synonymous with " pit" when a large number of miners did that. In fact , as far as I know, there are a lot of miners made money, for example , there was friends told me that in January 2014 took 8BTC purchased 4sets of ants S1 mining machine , which has now been dug up 20BTC, he still earned even if BTC exchange rate reduced much currently. However, miners who earned,rarely reported they made money, a muffled fortune is fine for them, why to tell you?
The purpose of this artical is to elaborate the relationship between miner supplier and miners ,who are an important part of the mining industry chain, they all needs to have their own strategy.
Partnership
suppliers and miners must be clear that they are cooperative relationship with each other , rather than pit and being pit relationship. At the forum,you often see the post , miner supplier advertising , how much of a mining machine ,then , a pile of miners began to curse , too evil. suppliers not see miners as partnership as they set a high price. Oppositely, miners reviled the suppliers when met the suppliers, then they did not treat supplier as a partner.
So, what kind of cooperatrive relationship between suppliers and miners?
Suppose 1, now that you have only one miner, three months earn RMB50,000, but sold it immediately to earn RMB40,000, then would you keep it mining for themselves or sell it? The answer may probably be mining for their own .
Suppose 2, you have 1,000pcs of such miners? The answer is likely to become selling them.
Why is there comes 2 different choice? Since 1000pcs of miners maintenance requires a very large space, requires high power consumption, and must individually equip a cable ( one cable is very expensive ) , which increases the cost enormously. If these 1,000 units sold to 1,000 people , they will be able to find a casual place to set it at home , that no need a individual cable. For suppliers, the immediate cash RMB40 million; for miners, the three-month investment of RMB40,000 can get RMB50,000, earning 25% of revenue. Then both of them are happy, this is called as win-win .
So between them is cooperative relationship, the most important is mutual trust. How to build trust? No other way, but only think about each other's benefits.
A miner supplier issued the first ASIC LTC miner, priced of RMB18,000 at beginning.According to market perspective, there is some support on this pricing, because there is no competitor but graphics card , so it is still more effective than graphics card even high pricing. However, the price did not consider their partners ( the miners ) in the interests of mining. The miners must be inevitably burned after buying it. Surely, in a few days that price decreased straightly down to RMB10,000, and now even lower. However, since the first time high pricing hurt miners , its sales are still poor even though gets lower, because the miners have lost confidence with that supplier. Why not consider the interests of the miners earlier? I believe that if first pricing RMB10,000, sales much be better than it is now.
Clearing Purposes
Since the suppliers and miners are partnerships, so both of them need to understand each other's purposes, to achieve their own goals while trying to help each other to achieve their goals .
suppliers' purpose is to make money, because the cost of miner paid by legal tender
, whether to buy chips, accessories, or pay for staff salaries. Although most of the miners may not know the exact cost of production, however, experienced miners can be able to estimate an approximate cost. Although miners' goal is not to let the miners suppliers lose money to sell the miners, but definitely miners do not want to be deceived, so an outrageous pricing must be rejected by them .
Miner's purpose is to gain BTC/LTC or other virtual coins, but many new comers do not understand their goal. I repeat it here , if you spend 4BTC to buy the miner which total gain 5BTC, then you earn ;If you can gain 3BTC, then you lose out. Only in the case of earning BTC , it is worth buying miners, otherwise , it is better to buy coins directly .
Game Strategy
When coins prices rising, both of miner providers and miners can achieve their goals simultaneously, one makes money, the other gains coins.
However, in some cases, the goals of miner providers and miners appears contradictory, such as coin prices are so depressed now. If the suppliers cut prices so that miners can make money, then it could face losses of their own. In this case, as a miner supplier, the best strategy is keeping the price , mining for themselves for some time,to cover some cost. As a miner, the best strategy is not buy the miner from suppliers. In fact , this strategy is beneficial to both of them , because if the miner supplier can not sell the miners, then they could not reproduce the new machines; If no new mining machines produced, the whole network mining force growth will slow down, then a fixed hashing mining machine's revenue will increase. When a mining machine revenue increases to near its cost , the miners start to buy the mining machines. This is a virtuous cycle, we can now clearly see , the whole network mining force growth begins to slow down. The same time, also accompanied by a rise in coin prices , then the mining machine business will soon be warmer.
Reversely, there comes a vicious cycle. What is a vicious cycle? Assuming, suppliers continuously flicker newbie miners to buy machines in wrong time, the result is that the whole network mining force will continue soaring , which leads to newbie miners never not return this machine. When they can not return its investment, they will post everywhere saying bad about supplier, at last the entire industry will suffer.
In short , the market is the best means of regulation. The major of miners wants to gain more coins,although some of the miners favorite mining machine then spare-no-expense buying mining machines. Do not flicker the newbie miners only for immediate interest , or you hurt yourself, and hurt the entire industry. When the mining machine is widely used as a synonym for "pit" , selling miner as a pyramid selling, each node of this chain will be damaged.
It seems that, it is easier to fudge foreign miners. That is only because they feel that the mining machine is interesting. After they played the "fun" , they will eventually consider their own interests/returns.
Finally, I hope the miner suppliers,who expect to survive in long-term miner production market,start thinking about founding one industry associations,to develop the basic norms. In the absence of norms, the bad money drives out good money easily. On the other hand,miners should also unite to form their own organizations, you can spread the knowledge to the newbie miners, to avoid being flickered by suppliers,then the less people flickered,the more standardized suppliers; besides, you can also upgrade their voice when negotiating with suppliers .
Article written by ahr999
Translated by zyhsu815
