Havelock reports 0.00879957 on 9/25

I agree to terms

5 * 3.7 = 18.5 BTC sent to 1F7fMxe4SaKwgU4jV4B8pciMqs6EAj3fPy

txid: 85615225c6dc2e861e02b6a51609cda21857d9ceb8c090f0df1716b42a8e51d1

email and share address sent to JohnK and CoCo in PM

5 @ 3.7

4 @ 4.35 - John K as escrow

conditional on confirmation from Friedcat.

11Blade

Bid 0.36 BTC

there is a new groupbuy for USB block erupters at 0.5 Btc.

looks like ASICminer is dropping the GH/$ price quickly

ASICMiner doesn't sell direct shares anymore. The original shares were available through GLBSE which shut down, and now only passthrough shares (i.e. an operator holds the actual shares and has an ownership stake, but we trust him to pay us the dividends and pass on ownership rights) exist.

A return on investment of 2 years (i.e. 50% a year) is INSANE in comparison to something in the real world. A ROI of 7 years is expected in the real world, and as you can imagine, there is also a lot of risk involved with investing in ASICMiner and Bitcoin as a whole.

There are several major ASIC manufacturers, and ASICMiner is the only one which actually mines on the side. They auction off their old blades, their USB miners, and invest in new hardware to bolster their hashrates, and something around 60% of all profit is divided equally amongst shareholders.

I see ASICMiner as a prime candidate as an investment opportunity as compared to usual perpetual mining bonds (PMBs), they are not bonds, they actually create the future of bitcoin mining (ASIC design and creation) and they have incentive to constantly increase their own hashrate, as the owners have an ownership stake in the company as well. Most PMBs such as TAT.VIRTUALMINE, YABMC etc offer a higher payout % per mh/s i.e. 95% or 100%, yet they do not offer or promise increased hashrates in the future (when difficulty rises) so it is essentially diminishing returns until the bond is worthless, as it is simply a loan.

There is risk, but ASICMiner would be a company with the lowest risk at the moment, IMO.
[/quote]

Thanks for clearing that up.

The missing piece on all this is that they sell off hardware as well as ASICs and reinvest into bolstering their hashrates. (which I did not know)

Anything that 'returns' 50% clearly has risk attached to it.

The risk appears three-fold share price fluctuation, dividend payout stability and Bitcoin fluctuation.  much akin to buying foreign stocks

interesting times.

11Blade

Reads like a slow motion train wreck.

It appears that direct ASICMiner shares are selling for 2.5 BTC and generate about 0.02-0.03 BTC per week.

I'm not an economist or bitcoin rocket scientist, but a payback of your original investment in approx 2 yrs
(100 wks) is ok if it continued to return that over the lifetime of 10-20 yrs. 

If it gets increasingly difficult to mine BTC and ASICMiner has to buy more hardware to maintain its share
of the hash pool - doesn't this represent investment risk?

I assume with BFL and knc and Avalon hitting the computing pool, ASICMiner will have to generate more
and more hashing power to generate the same return.

Does anyone see this as a problem and thus over-priced?

those damn litecoins..  no respect

You are more likely to make more money by using the money for your mining rig and buying bitcoins and letting them appreciate.

5 x 7950  is impressive.

what motherboard and power supply are you using?

custom case?

The assumptions:

1. Mining capabilities will increase significantly in the next few months because of BFL and Avalon units,
2. The approximate used price for GPU cards is about 1Gh/sec for about $500-600 bux (e.g. 5870 x 3 x 160.00)
plus PSU,ram,cpu and motherboard ($300) Estimate 1k for 1 Gh/s of BTC mining power.
3. The asic units will make it easier to acquire BTC (for those who own the units) - causing a short term spike in
successful block and supply of BTC
4. Assuming BTC = approx 100USD
5. GH/sec asic pricing will be 5x cheaper (5 Gh/sec for approx 1000)

Questions

1. is there enough time between now and shipping date to recoup the 1k USD and mine perhaps 20 BTC with
the above ?

2. the supply of BTC will increase with radical increasing in mining power (in the short term) - will this drop
the price of BTC ?

3. will used GPU market implode.?

4. will it be cheaper to speculate in the BTC/cryptocoin markets rather than GPU mine?


Thanks for your time

11Blade

350 Mh/sec - running cool on MSI 5870 - guiminer

Been building rigs since apple ][ days.

Its modular and pretty straightforward.

The hard part is figuring out why it doesn't work if it doesn't start right up.
(Finding the point of failure becomes detective work)