Why is bitmain selling its new gear at crazy low prices?

[philipma1957]

I did a break down of 5% jumps at ten cents  on bitmain's new miner  for ltc

I would love to read guesses as to why a bargain price.

The deal is too good.
Bitmain is really smart and does not off deals this good.

Conclusion WTF are they up to.

if you do 5 % a jump at 10 cent power with ltc at 9.50 usd the gear will earn back fully in sixty days and turn a huge profit.

look at daily numbers


look at per diff jump


look at weekly


look at monthly

[philipma1957]

Space

please  give your best ideas on this.

The current numbers I used are 5% per jump.
 jumps come fast for ltc  so 5%  is a high number to use.

This seems to be a market shifting move. On their part.

[Eyedol-X]

Space

please  give your best ideas on this.

The current numbers I used are 5% per jump.
 jumps come fast for ltc  so 5%  is a high number to use.

This seems to be a market shifting move. On their part.

My tin foil hat theory is that they are going to start cranking these out every 2-3 months and its going to drive difficulty sky high which will make these prices that seem crazy low now, more sensible later. Alternatively they may be trying to corner market and shut out Innosilicon by undercutting to drive business, maybe these first offerings are a loss leader to drive attention.

Another alternative is, they may be trying to flood the market with LTC mining hardware to stop Segwit as I believe they are currently against that.

If Segwit is successful on LTC it's going to drive a huge argument for it to be activated on BTC Chain and Bitmain is against that by itself as they have a specific agreement where they are willing to move forward with Segwit.

[philipma1957]

Space

please  give your best ideas on this.

The current numbers I used are 5% per jump.
 jumps come fast for ltc  so 5%  is a high number to use.

This seems to be a market shifting move. On their part.

My tin foil hat theory is that they are going to start cranking these out every 2-3 months and its going to drive difficulty sky high which will make these prices that seem crazy low now, more sensible later. Alternatively they may be trying to corner market and shut out Innosilicon by undercutting to drive business, maybe these first offerings are a loss leader to drive attention.

Another alternative is, they may be trying to flood the market with LTC mining hardware to stop Segwit as I believe they are currently against that.

If Segwit is successful on LTC it's going to drive a huge argument for it to be activated on BTC Chain and Bitmain is against that by itself as they have a specific agreement where they are willing to move forward with Segwit.

Yep  that bold  line is my guess.

[not.you]

Personally I have no faith in LTC to maintain a decent price.  I don't know if bitmain feels that way too or not.

[kemo6600]

Let's agree that they are not idiots to sell at loss.
My guess is that they have large number of units ready, with a quick calculation you will find that few thousands units can double the difficulty.
It could be that they will take lots of orders before shipping large amount at once, they will sell like hot cakes

[crypticj]

BOYCOTT!!!!

[sony87]

Space

please  give your best ideas on this.

The current numbers I used are 5% per jump.
 jumps come fast for ltc  so 5%  is a high number to use.

This seems to be a market shifting move. On their part.

My tin foil hat theory is that they are going to start cranking these out every 2-3 months and its going to drive difficulty sky high which will make these prices that seem crazy low now, more sensible later. Alternatively they may be trying to corner market and shut out Innosilicon by undercutting to drive business, maybe these first offerings are a loss leader to drive attention.

Another alternative is, they may be trying to flood the market with LTC mining hardware to stop Segwit as I believe they are currently against that.

If Segwit is successful on LTC it's going to drive a huge argument for it to be activated on BTC Chain and Bitmain is against that by itself as they have a specific agreement where they are willing to move forward with Segwit.

Yep  that bold  line is my guess.

The recent news and leaked communication about why Bitmain is agains Segwit for me is the answer and this market move is as ugly as possible and we should not fall with that but unfortunately most miners look only for profit and don't care for the development of technologies, they look only for ROI. And they will fall for that and buy the miners no matter what we talk. Like stated in the leaked email Bitmain have crippled down all their miners in terms of power efficiency and speed - the same ones in their hands produce 30% more speed with 30% less power consumption, what else can I say.

[Jamievs]

It's actually one of the reasons why I am holding back on ordering one (I'm a small fish I guess  ). It just seems too good to be true..

[philipma1957]

Let's agree that they are not idiots to sell at loss.
My guess is that they have large number of units ready, with a quick calculation you will find that few thousands units can double the difficulty.
It could be that they will take lots of orders before shipping large amount at once, they will sell like hot cakes

Agree

Which is why I mentioned this and made the thread.

I have purchased more then 100,000 in gear from bitmain.  So I don't hate them.  But people need to see the risk  in buying this gear.

Which  to me would be flooded market and a really long ROI.

Not that bitmain would do this to BTC , but in fact they did do it to BTC when they fought with Sp-Tech with sp20 against s-5.  that fight crashed the price of BTC  down to about 189-190 usd in Jan 2014

[Jamievs]

Let's agree that they are not idiots to sell at loss.
My guess is that they have large number of units ready, with a quick calculation you will find that few thousands units can double the difficulty.
It could be that they will take lots of orders before shipping large amount at once, they will sell like hot cakes

Agree

Which is why I mentioned this and made the thread.

I have purchased more then 100,000 in gear from bitmain.  So I don't hate them.  But people need to see the risk  in buying this gear.

Which  to me would be flooded market and a really long ROI.

Not that bitmain would do this to BTC , but in fact they did do it to BTC when they fought with Sp-Tech with sp20 against s-5.  that fight crashed the price of BTC  down to about 189-190 usd in Jan 2014

Batch 2 sold out too and they just now announced batch 3 for delivery in july. Maybe it is their purpose to crash, buy low and sell high? With hardware already being sold they hardly can loose..

[cashen]

Let's agree that they are not idiots to sell at loss.
My guess is that they have large number of units ready, with a quick calculation you will find that few thousands units can double the difficulty.
It could be that they will take lots of orders before shipping large amount at once, they will sell like hot cakes

Agree

Which is why I mentioned this and made the thread.

I have purchased more then 100,000 in gear from bitmain.  So I don't hate them.  But people need to see the risk  in buying this gear.

Which  to me would be flooded market and a really long ROI.

Not that bitmain would do this to BTC , but in fact they did do it to BTC when they fought with Sp-Tech with sp20 against s-5.  that fight crashed the price of BTC  down to about 189-190 usd in Jan 2014

What is your educated guess for ROI with this?

[philipma1957]

Let's agree that they are not idiots to sell at loss.
My guess is that they have large number of units ready, with a quick calculation you will find that few thousands units can double the difficulty.
It could be that they will take lots of orders before shipping large amount at once, they will sell like hot cakes

Agree

Which is why I mentioned this and made the thread.

I have purchased more then 100,000 in gear from bitmain.  So I don't hate them.  But people need to see the risk  in buying this gear.

Which  to me would be flooded market and a really long ROI.

Not that bitmain would do this to BTC , but in fact they did do it to BTC when they fought with Sp-Tech with sp20 against s-5.  that fight crashed the price of BTC  down to about 189-190 usd in Jan 2014

What is your educated guess for ROI with this?

maybe late fall  early winter say nov  or   dec. 

I don like what I see being done.  This is about  market manipulation via selling lots of miners too cheaply.

My guess is their cost for a miner is under 500 usd.  so  they are making big bucks on these.

[64dimensions]

Unless Bitmain has some inside info on the future direction of either BTC or LTC, it's hard to make sense of this. Other possibilities:

1) BTC and LTC are essentially the #1 and #2 crypto currencies. One is going segwit and the other is not. Maybe a practical business person instead of
trying to guess the future, has a foot in both camps. Possibly by making LTC a stronger competitor, you increase your leverage over the BTC devs.

2) Perhaps to continue to have the capability of designing/building low cost miners and having fab access for ASIC mining chips perhaps you need to keep a certain volume in the product pipeline.

[Eyedol-X]

maybe late fall  early winter say nov  or   dec.  

I don like what I see being done.  This is about  market manipulation via selling lots of miners too cheaply.

My guess is their cost for a miner is under 500 usd.  so  they are making big bucks on these.

Agreed here, but this move could also backfire, as many pools already signaling segwit.

Latest batch shows July delivery. If Bitmain is indeed attempting to stop Segwit by flooding market with miners, they may have waited too long.

Another thing is they could drop the requirement from 75% to 65% -- if that vote was successful, Segwit would be active right now.

[philipma1957]

Maybe their asic boost on these miners will be invalid if segwit goes through and they are trying to push them before it's forced through. Bitmain isn't the people's company and they don't do bargains, something is up.

Well ltc  has less gear then btc.

they are able to fully flood the ltc with gear  and they get the money upfront.

So I think they figure no matter what happens  they got paid.

I had ltc at 51 usd a coin and watched it fall to   under 6.  LTC  is the only coin that I  lost on.  Well into the thousands  maybe 6 or 7 k loss.

The ltc market is about to get shaken up just like it did in  2014.

To all that felt froggy and took a leap I hope you don't get  caught and cooked.

[Eyedol-X]

Maybe their asic boost on these miners will be invalid if segwit goes through and they are trying to push them before it's forced through. Bitmain isn't the people's company and they don't do bargains, something is up.

Well ltc  has less gear then btc.

they are able to fully flood the ltc with gear  and they get the money upfront.

So I think they figure no matter what happens  they got paid.

I had ltc at 51 usd a coin and watched it fall to   under 6.  LTC  is the only coin that I  lost on.  Well into the thousands  maybe 6 or 7 k loss.

The ltc market is about to get shaken up just like it did in  2014.

To all that felt froggy and took a leap I hope you don't get  caught and cooked.

I bag hold LTC I mine but I lost access to an LTC Core wallet a while back and lost a chunk.

I'm rebuilding with the intentions of holding it and seeing what happens.

However I don't allocate all my Scrypt hash to LTC payouts, I diversify between multiple coins.

[Searing]

Let's agree that they are not idiots to sell at loss.
My guess is that they have large number of units ready, with a quick calculation you will find that few thousands units can double the difficulty.
It could be that they will take lots of orders before shipping large amount at once, they will sell like hot cakes

Agree

Which is why I mentioned this and made the thread.

I have purchased more then 100,000 in gear from bitmain.  So I don't hate them.  But people need to see the risk  in buying this gear.

Which  to me would be flooded market and a really long ROI.

Not that bitmain would do this to BTC , but in fact they did do it to BTC when they fought with Sp-Tech with sp20 against s-5.  that fight crashed the price of BTC  down to about 189-190 usd in Jan 2014

They also are paid cash or btc,
Do they even take ltc. Maybe with seq witness now on ltc seems a go they don't need this
capacity to block. So they get btc bet on a pump and cold clock anyone with ltc price increase
Making a new competitive line of asics. Or hell they need $$$ for a new X11 line of miners

[OgNasty]

• Kill off manufacturer competition
• Get more users into LTC to boost price and increase the value of their holdings
• Block segwit
• Good PR
• Huge profit margin on L3+ units
• Hedge against BTC business line
• New revenue source
• Open up new partnerships and service opportunities

[philipma1957]

• Kill off manufacturer competition

------------ yes [/list]

• Get more users into LTC to boost price and increase the value of their holdings

------- no

• Block segwit

--------------- yes[/list]

• Good PR

-------------------- ?[/list]

• Huge profit margin on L3+ units

----------yes yes yes yes yes [/list]

• Hedge against BTC business line

---------- yes[/list]

• New revenue source

------------------------ yes[/list]

• Open up new partnerships and service opportunities

---- ?[/list]
[/list]

  Pretty much think  you are on the right track   with the exception of price of LTC.