And that is missing a huge part of the market for small time miners, miners who just want to mine to be apart of it, hobbyists, and people who want to learn. I agree with the above post, and it is unfortunate that there is no USB version of this chip as I still sell 333 MH/s units on amazon daily. They are still a hot commodity. And they could be priced to be profitable. One of the things that annoys me the most is that people say you can only make money when you have a lot of starting capital, which is just not true. I am not here to get rich, but I can get decent returns on S3's and other miners that I buy that grows my capital. Even small fries can earn money if they know what they are doing and play the game right.
I see a contradiction in your statement and I have highlighted why. Last year it was very easy to profit off a USB miner, but this year it's a bit trickier and like you said people have to know what they are doing. Hobbyists and people that are just learning how mining works (there are still people that are asking questions about variance on the Pools section) will likely fail now with a USB miner and maybe they will never come back to mining again. Just comparing r/bitcoinmining with our Hardware section and there is a clearly difference in mining knowledge which I found to be a good argument for my statement. Selling miners to consumers is pretty much exactly what it was last year. AM sold a ton of those 333 MHs units. Tens of thousands. More 1-chip USB miners than anyone else ever did combined. Go to ebay, even today over half of the ads are for 333 Mhs USB miners. The market is HUGE. AM did not walk away from that market by choice.
Please read my post again. I said that past performance isn't a reference for the future performance. If you want to play the yes-no-yes-no-yes-no game then just let me know.
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Good day jtoomim I have been looking for hosting space and thought i had found but to my dismay they where not using a " to code" pdu set up and there cooling was questionable. I was wondering what you are using for both and if you could maybe post a pic or two. I would like to talk about rates for my miners and if they are negotiable for bigger orders.
Out of curiosity what units do you plan to host?
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I am surprised no one has pointed out a particularly obvious issue with the BE200 chips which caused a significant loss of revenue to AM. The power consumption of the chips came in higher than expected. For large mining units, that is not really an issue because the consumption vs the g/hash is still pretty decent. The real problem is that AM cannot produce simple 1-chip usb units similar to the 333 Mhs units. There are no USB hubs on the market that can handle the power requirements of a full compliment of (not designed, not released) USB miners.
The market should have been flooded with BE200 single-chip USB miners by now. Unfortunately, the power requirements locked AM out of that very lucrative market. For shareholders this is a real punch in the gut.
Disclaimer: Still a stockholder and still hodling.
Mining isn't the same like last year. What worked in the past doesn't mean that it will work in the future too. Mining is moving forward towards big ass machines.
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Even if they have too many chips, the cost of the chip is likely much less then what they can get from mining on a NPV basis. So you think they are selling hardware at no profit as a charity because they have extra chips?
There is an obvious reason for selling hardware instead of using it to mine. (profit)
I think you got it both wrong. Unless FC expected to sell out all the chips in 2 months then not starting mining 3 months ago is a big business and profit mistake. I am not saying that he should have done one thing. I am saying that he should've mined and sell hardware in the same time. Picking only one was a very big mistake. jimmothy selling at no profit doesn't automatically means that you are doing charity work. It means that you are moving forward and looking into the future and trying to gain at least your investment in order to pursue other plans. Selling at no profit only occurs when selling at a profit isn't working as you expected. Having all/majority of liquidity invested in bare chips doesn't let you start/pay another chip design/mask. Getting your liquidity back does let you move on. Bitcoin and mining taught me to never put all my eggs in a basket and to decentralize! FC/AM did exactly the opposite.
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I think we are just looking a break even on this hardware with BTC prices at the current level
Who is forcing you to exchange the BTC?
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Thinking that AM is the only one that can sell hardware at less than 50c and still make a profit would be incredibly naive (especially since that you know the AM case already).
I wouldn't go that far. I don't think they are making a profit out of that cost. They need to get rid of the 40nm chips asap. Why would they sell hardware for no profit while they are trying to accumulate hardware for their massive datacenter? Because they ordered too many chips? The question that you should ask should be why would they sell hardware from the first place when they could mine with a part of it from the start?
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Not to bad actually. They are running around 80 C and we have about 160 ton of AC on the building so its pretty cold most of the time. ![Smiley](https://bitcointalk.org/Smileys/default/smiley.gif) Just out of curiosity, who is paying the electricity on that? Who pays for the air conditioning? Customers ![Smiley](https://bitcointalk.org/Smileys/default/smiley.gif)
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P.S. Btw do you think you can handle/cool a full rack of SP30s? I know that many people (*cough*jimmothy*cough*) were complaining about the fact that nobody can coll off a rack full of SP10s and you have more power there than a full rack of SP10s and I don't see any problem if you couldn't do it, but I asked just for the fun.
Most "high density" hosting facilities max out under 10 KW per rack. A rack of SP10s is what, 40 KW, and a rack of SP30s at 60 KW? So yeah, you'll have a real hard time filling a rack of those in a regular facility. Regular maybe, even though I have a feeling that it's close to doable. Not under optimal conditions, but possible. @jtoomim One more question about the cooling for my personal knowledge. What you needed more for your super cooling? Money or knowledge? My guts tells me that the "custom" cooling itself didn't cost that much compared to the cost of the full rack filled with SP30 miners, but it's so efficient because of the airflow knowledge that you have. Am I right?
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Haven't you forgot something?
* Take picture and post it here.
Excuse me for intercepting. Here's a photo of some of our customers' machines. There's 48 kW running in that rack so far, and we only stopped filling it because we ran out of SP30s. ... Yes, I know we need to clean up those cables. We're still changing the port connectivity around; we'll make it neat when we're done rearranging. That's what I'm talking about! Great job and since you seem to have run out of SP30s I will e-mail you about hosting another one with you instead of Advania (who usually needs 1 full business days to fulfill my requests). P.S. Btw do you think you can handle/cool a full rack of SP30s? I know that many people (*cough*jimmothy*cough*) were complaining about the fact that nobody can coll off a rack full of SP10s and you have more power there than a full rack of SP10s and I don't see any problem if you couldn't do it, but I asked just for the fun.
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On my to-do list: * Upgrade the firmware to the latest version * Install the rubber feet. I think this might reduce vibration noise.
Haven't you forgot something? * Take picture and post it here.
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Yeah, it is. But I want to spend less money for the same hash rate.
If you have infinite power then just setup an amateur DC and host other's people miners and you can make some money out of that. Why would you mess with all that? If I had infinite almost free power I would rent a building close to mine and run underground cables to the other building. I would then send the electricity into the other building where I sell it to the power company and make a profit. I think that the power company will ask you a bit of questions about the source of your power. I think it's easier to sell the power to miners than to the power company. But I like your idea ![Smiley](https://bitcointalk.org/Smileys/default/smiley.gif)
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Thinking that AM is the only one that can sell hardware at less than 50c and still make a profit would be incredibly naive (especially since that you know the AM case already).
I wouldn't go that far. I don't think they are making a profit out of that cost. They need to get rid of the 40nm chips asap.
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Yeah, it is. But I want to spend less money for the same hash rate.
If you have infinite power then just setup an amateur DC and host other's people miners and you can make some money out of that.
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How much "free"/cheap power do you have available? 1kW? 10kW? 100kW?
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They got 20 Million for just the batch 1 and 2 pre-orders for the Neptune. Plus the early and current mining income.
Then the profits from the Mercurys, Saturns, and Jupiters sales. Plus the early and current mining income.
Getting 20M$ in sales is one thing and getting 60M$ in funding is a totally different thing.
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Since it's 1 September I am assuming that all GB units were shipped. I am locking this topic. Thank you everyone!
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But let's assume it goes down to 0.5$ per GH/s (what is pretty close to the limit).
Could you elaborate on how you got to this number? Maybe with the current technology...even if AM broke that limit. I still see a Markus who has no idea what he is talking about...which makes me sad.
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So this beats Bitfury's 20M$ funding? Pretty surprising!
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Playing with numbers I got to this. Having ~2Th/s will produce one block every 2 years assuming the difficulty doesn't change.
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