Bitmain is preparing to CRUSH GMO ( By "D3ing the L3+ and S9" )

[BenRickert]

     I am seeing the exact same tactic from Bitmain right now in the L3+ and S9 ASIC markets, that we saw them employ in the recent D3 Bloodbath. Announce the sale of L3+ and or S9 on twitter and watch the lowlife resellers, swoop in with their bots and clean out the offerings. Resellers know nothing about mining. They just think they can sell the units at a huge markup without knowing anything about difficulty, profitability or application. Enter the horde of new miners trying to make the "easy cash". They are willing to pay just about ANYTHING to get their hands on these liquid Gold machines. The end result is, by June, S9 daily profits at .10 Kwh will be $7.50 per day and the L3+ will be $5.50 per day.

       Why would Bitmain do this? You ask. Well, lets look at it;
     Bitmain knows that GMO is making a major play for their market share. GMO is launching the exact same business plan that has fed Bitmain so richly. Start a huge mining operation, run your own technology and also sell it to the public after you've skimmed the cream off the top of the pot. Bitmain is making a full on assault on GMO. They are flooding he market with the older fading technology to drive difficulty up and profits down. This will clean MANY customers out of the market before GMO can tap them. New miners are very clueless and they pay WAY too much for ASIC machines from resellers and for their electricity. Their S9's and L3's will never return their original cost. S9's and L3's by mid to late summer will be selling in the used market for less than half of their release prices. Think D3. Finally, Bitmain launches their own "new Tech" at rock bottom prices to further pressure GMO's fledgling business launch, knowing that slim margins on their new product will likely kill their venture.

This is war people. Don't take it personal. Don't get killed in the crossfire. I predict Bitmain will reign victorious. Most of all DON'T BUY ASIC SERVERS FROM RESELLERS!! Let those dirtbags CHOKE on these servers.

This has been a "public service announcement".

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[BenRickert]

LMAO. I gave the same warning during the D3 debacle and it was either ignored or people laughed at my prediction. Rock on Plebes. Enjoy your gutting...

[woogod]

What is GMO?

[NameTaken]

ASIC miners are clients and not servers.

[BenRickert]

What is GMO?

A Japanese company that is starting a 20 million dollar mining operation in Northern Europe to run on Hydro. In addition they are building 7nm ASIC miners to use themselves and to sell to the public. Exactly the same business model as Bitmain. According to reports their mining farm is due to go online early this year.

[BenRickert]

ASIC miners are clients and not servers.

Hmmmm, feel better now? In this space you will see them used synonymously at every turn. Technically of course I agree. But cmon. Mere semantics. Kleenex/tissue, Soda/Pop, Spaghetti/Noodles.....etc

[NameTaken]

ASIC miners are clients and not servers.

Hmmmm, feel better now? In this space you will see them used synonymously at every turn. Technically of course I agree. But cmon. Mere semantics. Kleenex/tissue, Soda/Pop, Spaghetti/Noodles.....etc

The client-server model has existed and been defined since the earliest days of computer networking so I would say it's more than just semantics.

[bigjee]

Doesn't matter if Bitmain floods the market the way they're doing.
If GMO's future asics can excel at the following points they've already won:

-Higher quality and 1 year industry standard warranty. Some continents 2 year warranty is law (6 months is bs; you either have quality or you dont. Lets not pretend)
-After sales customer service (e.g. repair centres in each of the top three continents based on sales) and customer service (well this is self explanatory)
-Ease of ordering and simple sales process (none of the Ctrl F5 party on the bitmains website once batch is released per twitter; its a clusterf***)
-Improved distribution network (price standardisation) will prevent the bs resellers and scalpers like Cryptocrane hogging the supply selling D3's for 10,000 on amazon.
-Bulk order discounts for large orders (to improve customer base)
-Initial deep discount on ordering miners so ppl can get them and test the above points.

Businesses will switch overnight if the product is superior.

[BenRickert]

Doesn't matter if Bitmain floods the market the way they're doing.
If GMO's future asics can excel at the following points they've already won:

-Higher quality and 1 year industry standard warranty. Some continents 2 year warranty is law (6 months is bs; you either have quality or you dont. Lets not pretend)
-After sales customer service (e.g. repair centres in each of the top three continents based on sales) and customer service (well this is self explanatory)
-Ease of ordering and simple sales process (none of the Ctrl F5 party on the bitmains website once batch is released per twitter; its a clusterf***)
-Improved distribution network (price standardisation) will prevent the bs resellers and scalpers like Cryptocrane hogging the supply selling D3's for 10,000 on amazon.
-Bulk order discounts for large orders (to improve customer base)
-Initial deep discount on ordering miners so ppl can get them and test the above points.

Businesses will switch overnight if the product is superior.

I would not argue a single one of your points. But that list is a veritable road map for manufacturing and distribution at the highest most efficient level. Elusive goals to say the least for any company. Let alone a new startup. But....if anyone can do it, the Japanese have a very good chance. Don't get me wrong. I'd love to see the competition. We would all benefit.

[Vann]

To be fair, the problem with the lack of profitability from the D3 was compounded by the DASH block reward structure, which reduces the block reward as the difficulty grows. The massive influx of new D3's on the network created a double-whammy where the difficulty rose exponentially, while at the same time the block reward was being reduced the more the difficulty grew = a race to the bottom as more and more hash power hit the network with each successive batch. In the DASH block reward structure, 10% of the DASH block reward goes to the treasury system and the rest is dived equally between miners and masternodes, further compounding the problem for miners.
 
LTC and BTC are much more capable at handling a sudden influx of hash power due to the block reward and transaction fees going 100% to the miners and their difficulty adjustment structure.

[Miningtry]

Any word of price of that new 7nm ASIC and when will be available to buy?

[Shunyo]

competition will benefit all in the end

[BenRickert]

To be fair, the problem with the lack of profitability from the D3 was compounded by the DASH block reward structure, which reduces the block reward as the difficulty grows. The massive influx of new D3's on the network created a double-whammy where the difficulty rose exponentially, while at the same time the block reward was being reduced the more the difficulty grew = a race to the bottom as more and more hash power hit the network with each successive batch. In the DASH block reward structure, 10% of the DASH block reward goes to the treasury system and the rest is dived equally between miners and masternodes, further compounding the problem for miners.
 
LTC and BTC are much more capable at handling a sudden influx of hash power due to the block reward and transaction fees going 100% to the miners and their difficulty adjustment structure.

Agreed, but the math is still relevant. Even SHA 256 and Scrypt can only handle so much hashing power. In a addition, the metric is still the same. There are massive numbers of "new attendees" at the ball as the BTC Network effect has thrown into full swing. I see countless posts of completely new to the space actors, ordering or trying to order 100's of S9's. Even beyond that, they are beiong shut out by "resellers" that are buying massive numbers of these offerings. Think about it. It used to take days for these Institutional miner offerings to sell out. The last three batches have gone in mere minutes. I expect to see Bitmain continue to hammer the market with offerings to feed all these speculators (resellers). It's exactly the same as what happened in the D3 debacle, just on a much grander scale. Personally I look forward to the steep discounts I will buy S9's at when the last of these resellers get caught holding the bag. I managed to buy a couple D3's for $750.00. Less than HALF the release.

[flipflop.0]

Any word of price of that new 7nm ASIC and when will be available to buy?

2019 at earliest, if they can beat competitors.

12nm coming next

https://bitcointalk.org/index.php?topic=2701162.0