Topic: Why do companies sell Bitcoin miners, like ASIC? - page 2. (Read 2890 times)

They are selling them at a price more than they can mine back, that's why

if your business is making hardware, you probably assembled a team that`s good at developing hardware. doesn`t mean those people are any good in anything related to maintaining a massive mining farm.

example, knc is making 1200 neptunes in total i believe. what do you think it would cost if they wanted to run all of them for themselves.

you`d need to build or rent a huge business complex that allready has very big and expensive infrastucture to supply the electricity and internet acces.

you`d have to fit the complex with racks or shelves or something to setup the machines, hire a company to distribute and connect the electricity safely, hire a company to setup the network and also rent or buy expensive network hardware to support 1200 individual nodes, and hire IT and networking specialists to keep it running.

you need employees to set up the machines when they are ready, and a team to maintain it and trouble shoot once it is all up and running.
you have to train all new people every time your new product is reaching the production stage or keep them on as staff fulltime the whole year.

you`d have to do this while keeping investors happy (the upfront cost for this is masive) and hide it for the public. Because when your customers ever find out that you are doing business like that, nobody would ever buy from you again.
also with the amount of different people you need to pull this off, somebody is gonna let the cat out of the bag eventually, or simply blackmail you.

you have to hide it from the network. if suddently  1200 x 3ths = 3600 ths popped up on the network out of nowhere, people are gonna notice.

do i have to  go on?

at that point your not a hardware manufacturer anymore..
once everything is done and paid for, the profit margin also probably isn`t as big anymore.

i am sure they will run a decent amount for "testing purposes" long before any customer wil get their hands on the product. and maybe keep a decent amount from the first batch for themselves and sell them off when the rest of the stock is sold out. or maybe just keep them anyway.
it probably still is a decent amount of the income they generate on a yearly basis

once you have reached the amount of units your infrastrure and recourses can support, its not worth the time, money and hassle to expand. your better off just selling the units and invest that money in r&d for your new product .

Bad comparison. Computers don't earn money, miners do.

Morning 

You answered your own question.  They make more money selling it, and a lot quicker at that.


When you buy a minning rig take into consideration how many days/weeks/months  it takes you to break even.  Now consider a company selling that rig made a profit in every single purchase. They don't have to wait months for their rigs to start producing profits, they can get the profits in one single swoop.

Also worth noting that quite a few mining manufacturers do also mine on the side.  But yes selling them is more profitable.

What was last said is correct. Some people are willing to mine at a loss. I have mined for years, from when a gpu was worthy. I don't have a huge setup, but I still mine. Not loosing yet as I exchange monthly energy cost every month.

But that said. I would mine at a loss to an extent. I would also mine at a loss and exchange some till that extent is met. Not because I am seeking to be rich. But Bitcoin is a very useful method. It actually has saved me money with international purchases. It also has in my time made me upset based on how many I sold when it was stunning it hit 50$ , then again at 250$.

Had I just saved all the BTC I sold... but that is not the reason to do it. Despite what some people think. Yes some profit is nice. You are a business when your mining. Your supporting a system. If it covers your cost, so be it, If you make a little, great.

Also while the response is claimed to be BS , it has some true aspect. If one company took over. Or One pool took over. It could lead to a huge fall really fast.

I agree that it is a BS response, but that is irrelevant.

It doesn't make sense to buy an ASIC miner for more than it will ever mine, yet people do it all the time. It is difficult for anyone to make a profit from mining because there are so many people that are willing to mine at a loss.

It is not the fault of the manufacturers that miners lose money. People are lining up to buy their equipment regardless of the price, even knowing that they will lose money. If you don't want to lose money mining, then don't buy the equipment. If that means that you don't mine, then don't mine.

Why are there so many songs about rainbows?

because people with guns would come in and take the stuff if they didn't sell it.


OBVIOUS

OK... I got a response from XtremeMiners support team, as to why they sell ASIC miners...

We actually don't use the machines to mine for ourselves because it would destroy the bitcoin concept if one company has too much power over the currency (that's why butterflylabs and other companies sell as well) and also, we are all about spreading the idea of bitcoins, we want people to use them, and make bitcoins popular, to support the bitcoin project. That's why we provide them with miners.

Personally, I think that this is their BS excuse, rather than telling me that you're simply not going to make much money from this, if at all.... and that they make mores selling the ASIC than they would make from mining.

What does everybody think?

  This is just like asking "If apple's computers are so good, why would they bother selling them. Shouldn't they just keep all of them for themselves"

Absurd no?

They are the first movers in this space, each company is battling to become the Microsoft, Apple, (or even Standard Oil) of Crypto Mining.

Simples!!!!Where theres a need, theres a market. Where theres a market there's $$$$$$$$$. Plus it certainly costs them shit tons less to make these things than they sell them for so it's a no brainer! "In a Gold rush it is much wiser to sell tools to the miners, than to get on your hands and knees and prospect"

Sometimes I relate Bitcoin ASIC companies to Lamborghini.

Ferruccio Lamborghini sold farming equipment even though in the 50's farming was very profitable. So using the wealth he got from selling farming equipment, he was able to start up Automobili Lamborghini.

A good amount of the time selling equipment makes more than the market that the product is being produced for.

What kind of question was that?!?

I swear this place kills a few of my braincells every time I read a thread like this.

When the price of a miner is more than the expected pay-out it makes sense to just sell them enthusiasts.
They have no maintenance costs and with the difficulty rise it's always a bit gambling.

For the same reason it was much more profitable to sell pans and shovels during the gold rush. 

You could ask the same question about all manufacturers.

Why does a company sell super-computers when it could do all the computing itself?
Why does a company sell construction equipment when it could build buildings, bridges, roads, and houses itself?
Why does a company sell airplanes when it could be an airline?

They just sell their running miners because they made giant miner.
When other people run giant miner, they will run huge miner farm.

This is how world moves.

You folks are forgetting that your can mine other alt sha256 coins with these ASIC miners to remain profitable.

Just point the ASIC miner to one of those sha256 multipools and you making money if you got big ass hash rates. Or mine a new sha256 coin before it comes onto cryptsy....

Basically your "Fancy ASIC" miner will be obsolete with the exponentially increasing difficulty of mining. Your profit of mining bitcoins is diminished when you add in electricity and other cost to run your "mining rig" Then ASIC manufacturing do a little thing called tweaking and making faster chips that mine twice as fadt but cheaper than before but you don't break even for a while or even at all. Irony buying something that is suppose to make money when in reality you more likely to lose it.

This is correct. If they were able to be more profitable using them themselves, they wouldn't be selling them in the first place