Will asicminer price ever drop again?

[pornluver]

The current price is not based on auction anymore but fixed price. Meanwhile difficulty has been going up. So will there be an auction again followed by fix price?

[kinitex]

All asic prices will drop drastically once the supply catches up to the demand. I give it another month before we see major price cuts, especially if the BTC/USD price remains stagnant while difficulty sky rockets.

[Eastwind]

ASIC miner price will stabilise when the market is saturated with the ASIC miner. By that time, there will be no GPU left except those on free electricity. The price of the ASIC miner depends on the difficulty level and BTC price at that time.

[bitman442]

You are referring to Asicminer the company and not just ASIC mining devices correct? If so, then the price of the shares is driven by the % of the total network hashing power that they control, and the amount of consumer hardware they can sell. Nobody can say how this will unfold in the future but up to now they have been doing a damn good job IMO.

[bitman442]

You are referring to Asicminer the company and not just ASIC mining devices correct? If so, then the price of the shares is driven by the % of the total network hashing power that they control, and the amount of consumer hardware they can sell. Nobody can say how this will unfold in the future but up to now they have been doing a damn good job IMO.

The more they sell h/w the lower their shares.  Unless they don't sell their own blades, but had them made for resale.

They make hardware for themselves, to try to stay around 30-35 percent of the total network hashing power and then they also sell the blades and USB miners on the side. They then distribute the earnings from those sales along with mining profits to the shareholders. The more hardware they sell, the more the shares will be worth. It's a win-win because when they start controlling too much hashing power they can just start pumping out hardware for resale.

[af_newbie]

They make hardware for themselves, to try to stay around 30-35 percent of the total network hashing power and then they also sell the blades and USB miners on the side. They then distribute the earnings from those sales along with mining profits to the shareholders. The more hardware they sell, the more the shares will be worth. It's a win-win because when they start controlling too much hashing power they can just start pumping out hardware for resale.

Did not know that.  That is a good plan.  I'm not sure they worry about having too much hashing power.  If I had 60% of the network and did not intend to use it to double spend, I would keep the 60% until all blocks are mined.  I think their reason to sell hardware was to reduce the risk of owning too much of it.  Cash is king.

I think over time they will make more from h/w sales than from mining on that hardware.

[mgio]

They make hardware for themselves, to try to stay around 30-35 percent of the total network hashing power and then they also sell the blades and USB miners on the side. They then distribute the earnings from those sales along with mining profits to the shareholders. The more hardware they sell, the more the shares will be worth. It's a win-win because when they start controlling too much hashing power they can just start pumping out hardware for resale.

Did not know that.  That is a good plan.  I'm not sure they worry about having too much hashing power.  If I had 60% of the network and did not intend to use it to double spend, I would keep the 60% until all blocks are mined.  I think their reason to sell hardware was to reduce the risk of owning too much of it.  Cash is king.

I think over time they will make more from h/w sales than from mining on that hardware.

Just because they don't plan on double-spending, doesn't mean other people won't worry about them double-spending if they could double-spend. Selling their hardware is the right thing to do because it keeps mining stable and thus keep the bitcoin price from crashing.

I think their price will have to drop as we approach the next block halving in 3 1/2 years as mining will become less profitable then in terms of bitcoin.

[bitman442]

They make hardware for themselves, to try to stay around 30-35 percent of the total network hashing power and then they also sell the blades and USB miners on the side. They then distribute the earnings from those sales along with mining profits to the shareholders. The more hardware they sell, the more the shares will be worth. It's a win-win because when they start controlling too much hashing power they can just start pumping out hardware for resale.

Did not know that.  That is a good plan.  I'm not sure they worry about having too much hashing power.  If I had 60% of the network and did not intend to use it to double spend, I would keep the 60% until all blocks are mined.  I think their reason to sell hardware was to reduce the risk of owning too much of it.  Cash is king.

I think over time they will make more from h/w sales than from mining on that hardware.

Just because they don't plan on double-spending, doesn't mean other people won't worry about them double-spending if they could double-spend. Selling their hardware is the right thing to do because it keeps mining stable and thus keep the bitcoin price from crashing.

I think their price will have to drop as we approach the next block halving in 3 1/2 years as mining will become less profitable then in terms of bitcoin.

Exactly. If anyone owns 51% of the hashing power it will severely hurt the credibility of Bitcoin. That would be extremely counterproductive.
And I think you're right about the block halving making the price drop in regards to mining revenues, but if that allows them to sell more hardware then that will counteract it to some extent. It's just too far out to know, Asics are still in their infancy.

[lch]

They make hardware for themselves, to try to stay around 30-35 percent of the total network hashing power and then they also sell the blades and USB miners on the side. They then distribute the earnings from those sales along with mining profits to the shareholders. The more hardware they sell, the more the shares will be worth. It's a win-win because when they start controlling too much hashing power they can just start pumping out hardware for resale.

Did not know that.  That is a good plan.  I'm not sure they worry about having too much hashing power.  If I had 60% of the network and did not intend to use it to double spend, I would keep the 60% until all blocks are mined.  I think their reason to sell hardware was to reduce the risk of owning too much of it.  Cash is king.

I think over time they will make more from h/w sales than from mining on that hardware.

Just because they don't plan on double-spending, doesn't mean other people won't worry about them double-spending if they could double-spend. Selling their hardware is the right thing to do because it keeps mining stable and thus keep the bitcoin price from crashing.

I think their price will have to drop as we approach the next block halving in 3 1/2 years as mining will become less profitable then in terms of bitcoin.

Exactly. If anyone owns 51% of the hashing power it will severely hurt the credibility of Bitcoin. That would be extremely counterproductive.
And I think you're right about the block halving making the price drop in regards to mining revenues, but if that allows them to sell more hardware then that will counteract it to some extent. It's just too far out to know, Asics are still in their infancy.

True, but that still doesn't stop them from going to 51% if they feel like it. You can help prevent something if you use P2Pool. So please check it out.

[pornluver]

What I mean is the following.

Friedcat has 2 auctions.

First the price for blade eruptor is 75 BTC.

On second auction the price is 50BTC.

50BTC is not market price. Almost a month have passed.

Now it stays at 50BTC even though difficulty is already high.

When will Friedcat have another auction again so that the price is set by market price again?

[bitman442]

What I mean is the following.

Friedcat has 2 auctions.

First the price for blade eruptor is 75 BTC.

On second auction the price is 50BTC.

50BTC is not market price. Almost a month have passed.

Now it stays at 50BTC even though difficulty is already high.

When will Friedcat have another auction again so that the price is set by market price again?

So you are only referring to hardware sales? You have to be specific when talking about Asicminer, hardware sales are sort of a "side" business for them.

[ebildude123]

It'll probably drop when difficulty skyrockets, if they do drop.

[VJain]

True, but that still doesn't stop them from going to 51% if they feel like it. You can help prevent something if you use P2Pool. So please check it out.

Friedcat has stated that they will NOT go near the 51% - which is why they moved away from BTCGuild in the first place.

Somewhere in the 400 pages, there's a post of him saying him and his company is in it for the long haul... and increasing the distribution of hash rate will help stabilize the currency and the price of bitcoin overall, thereby increasing ASICMINER's value (relative to fiat).

A few people have commented about how the price for Blades/USB is high, considering they have been out for a few weeks already - there may be a plan to decrease it in the future to keep the price relative to the demand.

[freedomno1]

Friedcat has the capacity and ability to have a lot more network but chooses not to do so
Until convinced otherwise would say no to this but 2.5 Is a bit high to go for 2.4
The dividend loss by waiting for the price to drop is probably greater
Considering the APR it is actually in a quite undervalued position as it is to get a normal APR based just on dividend considering the stability it has
Of course some factors in competition so your call

[derr777]

In next few weeks of diff increases, you'd be an idiot to pay 50BTC for 13GH/s...  there are idiots in the world, and there are over-enthusiastic speculators in this community, but a week or two after that it will be apparent even to those who aren't good at math.

At that point, he'll either lower the price or not sell anymore.. its that simple.

[freedomno1]

In next few weeks of diff increases, you'd be an idiot to pay 50BTC for 13GH/s...  there are idiots in the world, and there are over-enthusiastic speculators in this community, but a week or two after that it will be apparent even to those who aren't good at math.

At that point, he'll either lower the price or not sell anymore.. its that simple.

When BFL finally delivers and catches up to their orders but its always 2 weeks 

[rex]

definitely will drop. but the price is in BTC

[Xian01]

True, but that still doesn't stop them from going to 51% if they feel like it. You can help prevent something if you use P2Pool. So please check it out.

Friedcat has stated that they will NOT go near the 51% - which is why they moved away from BTCGuild in the first place.

 This speaks volumes to Friedcat really caring about BTC long-term, and why I've thrown money at the guy. I can't imagine them wanting to go much more beyond 25% of total processing power without causing massive fear or risk destabilizing Bitcoin.

[KSV]

nah probably not. . .

[freedomno1]

Well if the currency keeps dropping for a bit might actually just keep going up