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Author Topic: Why do companies sell Bitcoin miners, like ASIC?  (Read 2767 times)
feofhweufheuiwhfef
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February 19, 2014, 11:53:18 PM
 #1

Why do companies sell Bitcoin miners, like ASIC?

Surely if they can make money from mining, they would keep it themself.

The only other option is that they make more from selling it, than they would make from mining with it.

It's definltely not some charitable gift to the people.

So, what do you all think?
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February 19, 2014, 11:54:45 PM
 #2

Why do companies sell Bitcoin miners, like ASIC?

Surely if they can make money from mining, they would keep it themself.

The only other option is that they make more from selling it, than they would make from mining with it.

It's definltely not some charitable gift to the people.

So, what do you all think?

Winner!

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February 19, 2014, 11:58:31 PM
 #3

Or they mine with them, then sell them once they can't earn as much.


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MakeBelieve
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February 20, 2014, 12:00:17 AM
 #4

Or they mine with them, then sell them once they can't earn as much.

Exactly what they do and its the best business you can own in Bitcoin.

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feofhweufheuiwhfef
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February 20, 2014, 12:01:45 AM
 #5

Why do companies sell Bitcoin miners, like ASIC?

Surely if they can make money from mining, they would keep it themself.

The only other option is that they make more from selling it, than they would make from mining with it.

It's definltely not some charitable gift to the people.

So, what do you all think?

Winner!

Right... but, according to minr.info... there is an ASIC that makes $397.40 per day, and takes 26 days to break even... After that, you would make $397.40 per day in pure profit.... and the total price of the ASIC is $ 9,995.... so... within a few weeks after break even, you would have made more than the total price itself....

So, I can only assume that by then, mining difficulty has increased so much that you're no longer making $397.40 per day...

Is this right?
Lauda
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February 20, 2014, 12:04:01 AM
 #6

Or they mine with them, then sell them once they can't earn as much.

Exactly what they do and its the best business you can own in Bitcoin.
So let's make an ASIC factory.


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Speaker1264
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February 20, 2014, 12:18:27 AM
 #7

This is what they are probably doing, or what I would do if I were them at least.

1. You build a bunch of new ASIC miners.
2. Start using the new ASIC miners to mine.
3. Put them for preorder on your website.
4. Start developing better ASIC miners.
5. Once you've created the upgraded ASIC miners, replace the old ones and sell them
6. Go back to 2. and repeat forever!

Essentially, they build their own top of the line equipment, and use it to mine.  Once their old equipment is outdated sell it for profit.  You've already profited from the mining, now they profit again from the selling, and they are probably selling for much higher than the cost of manufacturing them in the first place.  They are probably making so much money.
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February 20, 2014, 12:24:08 AM
 #8

This is what they are probably doing, or what I would do if I were them at least.

1. You build a bunch of new ASIC miners.
2. Start using the new ASIC miners to mine.
3. Put them for preorder on your website.
4. Start developing better ASIC miners.
5. Once you've created the upgraded ASIC miners, replace the old ones and sell them
6. Go back to 2. and repeat forever!

Essentially, they build their own top of the line equipment, and use it to mine.  Once their old equipment is outdated sell it for profit.  You've already profited from the mining, now they profit again from the selling, and they are probably selling for much higher than the cost of manufacturing them in the first place.  They are probably making so much money.
Well this is very possible. This would work.


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February 20, 2014, 12:27:05 AM
 #9

Or they mine with them, then sell them once they can't earn as much.

This is correct. If they were able to be more profitable using them themselves, they wouldn't be selling them in the first place
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February 20, 2014, 12:42:43 AM
 #10

Basically your "Fancy ASIC" miner will be obsolete with the exponentially increasing difficulty of mining. Your profit of mining bitcoins is diminished when you add in electricity and other cost to run your "mining rig" Then ASIC manufacturing do a little thing called tweaking and making faster chips that mine twice as fadt but cheaper than before but you don't break even for a while or even at all. Irony buying something that is suppose to make money when in reality you more likely to lose it.
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February 20, 2014, 01:23:00 AM
 #11

You folks are forgetting that your can mine other alt sha256 coins with these ASIC miners to remain profitable.

Just point the ASIC miner to one of those sha256 multipools and you making money if you got big ass hash rates. Or mine a new sha256 coin before it comes onto cryptsy....

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February 20, 2014, 01:33:23 AM
 #12

They just sell their running miners because they made giant miner.
When other people run giant miner, they will run huge miner farm.

This is how world moves. Cheesy

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February 20, 2014, 01:54:44 AM
 #13

Why do companies sell Bitcoin miners, like ASIC?
Surely if they can make money from mining, they would keep it themself.
The only other option is that they make more from selling it, than they would make from mining with it.

You could ask the same question about all manufacturers.

Why does a company sell super-computers when it could do all the computing itself?
Why does a company sell construction equipment when it could build buildings, bridges, roads, and houses itself?
Why does a company sell airplanes when it could be an airline?

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February 20, 2014, 02:03:31 AM
 #14

Why do companies sell Bitcoin miners, like ASIC?

Surely if they can make money from mining, they would keep it themself.

The only other option is that they make more from selling it, than they would make from mining with it.

It's definltely not some charitable gift to the people.

So, what do you all think?

For the same reason it was much more profitable to sell pans and shovels during the gold rush. 

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February 20, 2014, 02:06:20 AM
 #15

When the price of a miner is more than the expected pay-out it makes sense to just sell them enthusiasts.
They have no maintenance costs and with the difficulty rise it's always a bit gambling.
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February 20, 2014, 02:18:11 AM
 #16

What kind of question was that?!?

I swear this place kills a few of my braincells every time I read a thread like this.

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February 20, 2014, 02:20:29 AM
 #17

Sometimes I relate Bitcoin ASIC companies to Lamborghini.

Ferruccio Lamborghini sold farming equipment even though in the 50's farming was very profitable. So using the wealth he got from selling farming equipment, he was able to start up Automobili Lamborghini.

A good amount of the time selling equipment makes more than the market that the product is being produced for.
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February 20, 2014, 03:24:49 AM
 #18

 Roll Eyes This is just like asking "If apple's computers are so good, why would they bother selling them. Shouldn't they just keep all of them for themselves"

Absurd no?

They are the first movers in this space, each company is battling to become the Microsoft, Apple, (or even Standard Oil) of Crypto Mining.

Simples!!!!Where theres a need, theres a market. Where theres a market there's $$$$$$$$$. Plus it certainly costs them shit tons less to make these things than they sell them for so it's a no brainer! "In a Gold rush it is much wiser to sell tools to the miners, than to get on your hands and knees and prospect"

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February 20, 2014, 05:55:30 PM
 #19

OK... I got a response from XtremeMiners support team, as to why they sell ASIC miners...

We actually don't use the machines to mine for ourselves because it would destroy the bitcoin concept if one company has too much power over the currency (that's why butterflylabs and other companies sell as well) and also, we are all about spreading the idea of bitcoins, we want people to use them, and make bitcoins popular, to support the bitcoin project. That's why we provide them with miners.

Personally, I think that this is their BS excuse, rather than telling me that you're simply not going to make much money from this, if at all.... and that they make mores selling the ASIC than they would make from mining.

What does everybody think?
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February 20, 2014, 06:03:17 PM
 #20

because people with guns would come in and take the stuff if they didn't sell it.


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