Topic: Why release ASIC miners? - page 3. (Read 2043 times)
K7, Thats a very good comparison. When I think of it in that sense, it's a no-brainer
Because they sell them for more btc that they can ever mine. You should ask why people are buying them instead...
This one has been bothering me for a while now. Why did companies like butterfly labs release ASIC miners. Back when they first made them, 5 gh/s was hard to come by and the ASIC did it in just one unit. Here is the thing that makes me confused, they release the units for a small profit and they flood the market with them, making it even harder to mine. Why not keep them for themselves and mine the majority of the bitcoins using the ASIC units. With as much processing power they have, they could of found a bitcoin block everyday. I understand there was competition too, but still, why? 
I read somewhere a while back when someone else asked this very same question this response: that during the gold rush in the 1800s in the US, it wasn't the average miner making big bucks in that day and age, but rather the guy selling the pickaxes and other mining supplies. Perhaps the same holds true here?
I don't know if I buy into that, but it was an interesting response. Unlike gold mining though, these manufacturers would likely be guaranteed some cash flow, unlike a bunch of rusty old pickaxes gathering dust in a shed (or even these suppliers going out to mine for themselves could be a bust). I suppose it isn't a 1:1 comparison.
I'm rambling.
They are probably and probably have loads of BTC already. Don't know how much money they get but im sure they can quit their normal jobs and focus on just selling miners and earn money that way. Who does'nt want to run an own bussiness?
+ They don't have to worry to much about the BTC price going up and down. (?)
+ They don't have to worry to much about the BTC price going up and down. (?)
Good question
I kinda see your point, but people want to buy miners. If you don't sell them, other people will. If you're already making them for yourself, it's not all that more costly to make more to sell.
I'm sure BFL are mining for themselves as well, of course.
I'm sure BFL are mining for themselves as well, of course.
This one has been bothering me for a while now. Why did companies like butterfly labs release ASIC miners. Back when they first made them, 5 gh/s was hard to come by and the ASIC did it in just one unit. Here is the thing that makes me confused, they release the units for a small profit and they flood the market with them, making it even harder to mine. Why not keep them for themselves and mine the majority of the bitcoins using the ASIC units. With as much processing power they have, they could of found a bitcoin block everyday. I understand there was competition too, but still, why?
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