Hi all, I'm new to mining, want to get started. What I am confused about is this: why would I bid (up to BTC 50 or maybe even above) for this ASICMINER product (at 10Gh/s) whereas the butterfly at 5Gh/s goes for USD 274,- in their webshop?
Yes - I am already aware that BFL has LARGE back orders. But is that the ONLY reason why these ASICMINER blades are way more expensive?
Or is there something else I am missing (technically speaking, as said - I'm a newbie)?
Any help appreciated!
Thanks!
It's called opportunity cost. How much does it cost you in lost revenue to wait for BFL to ship their units?
Person A places an order today for 10Gh/s at BFL. The order is backordered, so Person A waits.
Person B places an order for 10Gh/s block erupter. If the unit ships immediately and B receives it and gets it set up and running within 1 week, then person B can have 3 weeks of BTC mining by the end of the first month. At the current BTC/USD rate and network difficulty, that's about $500 USD per week.
How long will Person A have to wait to receive their BFL units? 30 days? By the time A receives their first BFL unit, B can have generated $1500 USD in bitcoins. 60 days waiting for BFL? B can potentially produce over $3000 in that time.
The greatest hazard for waiting is that BTC mining difficulty will increase over time, which decreases the revenue per Gh/s. By the time BFL actually ships a unit to you, BTC mining difficulty may be so high that the BFL unit may never pay for itself. The BTC network is advancing. By the time BFL ships your unit, it may be obsolete. How much of a bargain is $274 then?