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Author Topic: Why do companies sell Bitcoin miners, like ASIC?  (Read 2767 times)
nlsupernova
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March 25, 2014, 02:23:17 PM
 #41


It surprises me how naive some people are in relation to these issues...

Nlsupernova - In regards to KnC go and have a look at this video:

http://www.gp.se/nyheter/sverige/1.2276893-datorhall-for-bitcoin-byggs-i-boden.

There is no hiding, and the cat is already out of the bag... It is completely open to everyone what is happening.

There is also no hiding on the network, these companies are the elephant in the room!  Roll Eyes

It is the perfect business. You mine with the new miners while they are still the most profitable and when it starts to become more marginal you ship them to your customers. You then develop the next generation miners and the process repeats itself...

So I suppose everyone will stop buying ASIC miners from KnC now that I have "let the cat out of the bag"!? Shocked Grin

why shouldn`t they be allowed to build their own center to use their equipment long term? if they build that just to mine for a few weeks with customers equipment and then shut it down again when units are sold i still doubt if there is a decent margin.

things arent always what they seem to be. just because you can cheat your customers, doesn`t mean that you will.
but having the faccility in place allready for long term mining does make it easier and cheaper to scale if they wanted to do it.

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Beliathon
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March 25, 2014, 02:28:41 PM
 #42

For profit?

Is this really a question ? Why does any company sell anything?

Remember Aaron Swartz, a 26 year old computer scientist who died defending the free flow of information.
sosulon
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March 25, 2014, 05:41:17 PM
 #43

They are usually pre order when the time you get your miner the bitcoin diff have already went up
Meuh6879
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March 25, 2014, 06:00:32 PM
 #44

The problem of industrial farm is already here ...


(bro, stop this idiot redirection of image ...)
bananas
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March 25, 2014, 10:12:17 PM
 #45

The mining asic companies are kind of a scam in my opinion.
Their prices are not based on their costs like any other product, those ASICs could cost much less.

They calculate how much bitcoin you may hypothetically farm in a period of about 6 months.
Supossing that in 6 months you may farm 1BTC , so 1BTC is exactly what they will charge for the equipment. If you manage to make anything after 6 months, that's your small profit.

By selling it to you they get the full, or near full minning profit IN ADVANCE FROM YOU. That's why they sell the equipment.


softron
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March 25, 2014, 10:33:38 PM
 #46

Well i guess they make a lot selling them in thousands and they might not be into bitcoin that much.

Blinken
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March 25, 2014, 11:04:47 PM
 #47

Because making ASICs is a different business than mining bitcoins. Its like saying, why do tool companies sell 6-axis CNC machines when those machines can generate more than their own value in less than a year in machine work. It's two different businesses.

Also, you are neglecting the energy cost problem. The biggest mining cost is not the equipment, its the electricity. Most profitable miners are only profitable because they steal electricity or for some reason have access to cheap or free electricity.

Bitcoin ♦♦♦ Trust in Mathematics, Not Bankers ♦♦♦
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March 26, 2014, 12:16:25 AM
 #48

Selling miners completely offloads the risk to the miner instead of themselves.

Just like the real gold rush of the 1920s. The makers of the shovels made out well, because once they sell the equipment they already made their profit. If the miner wielding that shovel goes out in search of gold and comes up empty, the shovel maker could care less. This is why some ASIC makers both sell rigs and mine too to diversify the risks.

Selling miners is no different than selling anything else for them. There is demand, and they are supply.

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