Why price of asicminer drops heavily

[pornluver]

It's now only 2.5 bitcoins. What's the factor?

[pand70]

Well maybe this world is running out of idiots buying overpriced asic products. 

[pornluver]

Anyone aware?

Perhaps price of new hardware is so cheap? Competitors?

[tgerring]

It's now only 2.5 bitcoins. What's the factor?

There's a lot of speculation as to why this is happening, but from what I can gather the sentiment is that it's one or more of the following factors:

• A whale panic sold a large chunk, adding additional downward pressure
• Despite operating almost exclusively in BTC, people evaluated the security with a peg to some fiat amount. As BTCUSD rises, people need less BTC invested to hit a specific fiat valuation
• Shaken confidence over network difficulty and competitors
• Many other theories...

In the end, it's a free market with supply, demand, and lots of externalities.

[Notanon]

Research and development costs as well as manufacturing setup costs being paid for by the initial batch can allow for cheaper products after they have been recouped by the initial product sales.

[ixne]

Maybe someone did the math and realized that a garage business selling legacy technology chips among an increasingly competitive market for a highly specific niche purpose - that purpose being a highly speculative and experimental digital currency that is itself among the most risky investments possible short of gambling - maybe isn't worth the hundreds of millions of dollars that the stock price implied.

That's why I sold mine weeks ago, in any case.

[johnmatrix]

I dont know why people are selling asics on bitmit at 10x the original price, i mean a butterfly labs jalapeño 8.5 ghs at 1,900 usd. i think that the one who cost 2,000 usd in the website is the 600 ghs bitcoin mining card. the price of the jalapeño is $274 usd, maybe if you have it in you hands you can sell it at twice $548 but no more.

[Carlton Banks]

Are the AM shares in the whole venture, or just in that product generation? If the former, then ixne has the definitive answer.

[tgerring]

Are the AM shares in the whole venture, or just in that product generation? If the former, then ixne has the definitive answer.

The former, so no.

[Polarstorm]

The price reduces around 50% every 2-4 weeks, cause the diff is raising, and the market is small.

[chinesechicken]

the equipment is getting obsolete too fast

[dave111223]

Dividend Yield Estimates
(calculated using 2.9106/Share)
Based On   Paid   Est Annual %   Est Annual BTC
30d   0.07605576    31.79%   0.92534508
90d   0.30360484    42.3%   1.23128629
174d   0.58593483    42.23%   1.22911616

A healthy return if you plan to do nothing with your BTC.  Once ASICminer brings out next generation chips (which I have to assume is in the pipeline) they will probably dominate again as they have a proven record of delivery...

[viboracecata]

Of course it should be that price.

and even the current price is overvalued.

[Rival]

There are more and more places to put your investment btc every day. People will put them where they believe they will get the greatest return within their own risk tolerance.

Unfortunately, most people will be wrong most of the time.

I can think of dozens of reasons why AM is underpriced, and dozens why they are overpriced. If you can't do that you are just handing your btc to people who can.

[viboracecata]

There are more and more places to put your investment btc every day. People will put them where they believe they will get the greatest return within their own risk tolerance.

Unfortunately, most people will be wrong most of the time.

I can think of dozens of reasons why AM is underpriced, and dozens why they are overpriced. If you can't do that you are just handing your btc to people who can.

Everyone thought himself as investor, but most of time them were destined to be speculator.

[hayek]

It's not a secret that when the BTC price goes up the value of the stock goes down.

Think of it like this. A snickers bar today is worth $1.00. If the value of the dollar doubles that means you can buy 2 snickers bars for $1.00. If the value of a dollar halves then you need $2.00 for 1 snickers bar.

People don't understand that. BTC goes up, they see ASICM going down a little bit. They panic and sell, then you get to buy up cheap shares

[Rival]

It's not a secret that when the BTC price goes up the value of the stock goes down.

Think of it like this. A snickers bar today is worth $1.00. If the value of the dollar doubles that means you can buy 2 snickers bars for $1.00. If the value of a dollar halves then you need $2.00 for 1 snickers bar.

People don't understand that. BTC goes up, they see ASICM going down a little bit. They panic and sell, then you get to buy up cheap shares

+1

[CurbsideProphet]

the equipment is getting obsolete too fast

Obsolescence would imply there is a better technology available. 

[adamstgBit]

I invested quite heavy in AM, I bought the BTC and then immediately bought AM, and kept track of the performance in $ terms. i'm holding a loss, but its not TO bad now that bitcoin has shot up a bit. I hope AM keeps up the good work, and this temporary slum is just temporary.... another reason for the fall could be the low dividend payout  for the last 2 weeks, It would seem the stock price is such that the dividends come out to ~25-30% / year.

[Moogle]

people are finally staring to realise that current prices are far too high. People buy these things to make money.If its easy to see that there isnt any money to be made at that price then people just wont buy them

plus with more competitors coming in they will naturally try to beat each other prices