Why would anyone "sell" a money making machine?

[kthejung]

Why do mining companies sell their miners?  In other words, why would anyone honestly sell a money making machine?

I am interested in hearing a reasoning that I have not yet come across before.

Do not post if you are going to say that:

mining companies mine with the machines and sell old hardware for profit. (people exceed ROI on certain machines)

mining companies need pre-orders as start-up money for their company.

companies do not have space to run their miners.

just because...

they believe in the idea of having decentralized servers.


     These are all good explanations but I want to hear from another angle.

[roslinpl]

Why do mining companies sell their miners?  In other words, why would anyone honestly sell a money making machine?

I am interested in hearing a reasoning that I have not yet come across before.

Do not post if you are going to say that:

mining companies mine with the machines and sell old hardware for profit. (people exceed ROI on certain machines)

mining companies need pre-orders as start-up money for their company.

companies do not have space to run their miners.

just because...

they believe in the idea of having decentralized servers.


     These are all good explanations but I want to hear from another angle.

Answering shortly: Why would anyone "sell" a money making machine?
To sell it and prduce another one and sell it and produce another and another...

Main reason. ;]

[benjamin07]

Because there are people who need (i mean want) to buy them.

If: you setup a company and make the machines and use them for yourself,
And: everyone else does like you,
Then: the people who cannot setup their own companies and make machines will still be left out in the cold
Hence: there will come someone who caters for the needs of those people out in the cold
Why: it is no so innocent, as per the previous reply, they need money to make their own machine, where do they got the money from? you of course.
How much: the ratio is 6 to 1. For every 6 dollars you pay, 5 go into their pockets, 2 of those are costs and 3 of those are to make machines, so using your own money to finance them and beat you 3:1.
Finally: since one such company existed, other people copy the idea, like they copy the bitcoin.

[roslinpl]

Because there are people who need (i mean want) to buy them.

If: you setup a company and make the machines and use them for yourself,
And: everyone else does like you,
Then: the people who cannot setup their own companies and make machines will still be left out in the cold
Hence: there will come someone who caters for the needs of those people out in the cold
Why: it is no so innocent, as per the previous reply, they need money to make their own machine, where do they got the money from? you of course.
How much: the ratio is 6 to 1. For every 6 dollars you pay, 5 go into their pockets, 2 of those are costs and 3 of those are to make machines, so using your own money to finance them and beat you 3:1.
Finally: since one such company existed, other people copy the idea, like they copy the bitcoin.

indeed! You said it in very nice way!

Cheers indeed!

[jimmothy]

It would take a massive amount of electricity for a company to use even a small percentage of the amount if hardware they could sell.

They can sell money printers for more than they will print in their life. And as someone said once you have the money upfront from selling the hardware you can make/sell another batch while the customers are left slowly hashing away.

Also nobody is saying that they don't use their own hardware because they all most likely do. Just that selling hardware is much more profitable than mining alone.

[9inety7even]

What do you think "delays" actually means? Not that the units aren't ready in most cases.

[mine4fun2]

Just that selling hardware is much more profitable than mining alone.

+1

[Farmer17]

Also nobody is saying that they don't use their own hardware because they all most likely do. Just that selling hardware is much more profitable than mining alone.

Exactly.
The manufactures can get more bitcoin selling the hardware, and they can get it right away (instead of operating the hardware for a year or so).

[ISAWHIM]

Cash up front NOW guaranteed, as opposed to possible undetermined cash potential in the future, that costs you money, before it makes you money.

That... and this...

Charge them 100% more than it costs to make...

1 for me *
1 for bob
1 for me *
1 for sue
1 for me *
1 for joe
1 for me *
1 for dave
1 for me *
1 for jess

Total:
5 for me (50% of the market)
5 for others (50% of the market, or 10% each x5)

End of the day, I spent $0 for my 50%, and you spent 200% for your 10%... I win. Not to mention, I can cash-out 100% faster than any one of the 5x miners can... at a lower price. Take your money both ways... Have a nice day!

Also...

Make 1000, keep the best 500 for yourself, sell the 500 slower ones... (Future market security)

P.S. China, selling you USD prices for the same miners are making 3 for them, 1 for you. You are paying 4x more then it costs them to make them.

[iamahappyminer]

Maybe the answer is simple - they want fiat money not btc as btc is volatile and because they can use this money to make a new hardware and sell it again and get another profit

[miner49erltc]

Why do mining companies sell their miners?  In other words, why would anyone honestly sell a money making machine?

I am interested in hearing a reasoning that I have not yet come across before.

Do not post if you are going to say that:

mining companies mine with the machines and sell old hardware for profit. (people exceed ROI on certain machines)

mining companies need pre-orders as start-up money for their company.

companies do not have space to run their miners.

just because...

they believe in the idea of having decentralized servers.


     These are all good explanations but I want to hear from another angle.

It's like the tortoise and the hare.
Say it takes a day to build a machine that costs $90 in parts, sells for $100 and which earns $1/day net allowing for power costs etc.
A builder can build a new machine every day.
If they keep their machines and create a "farm" they need a lot of money to finance the parts.
If they sell the machines they make a daily profit of $10.
The farm doesn't break even for 180 days and is $4005 in debt on day 90.
The sales plan has made 900 on day 90  ($4905 ahead of the farm) and $1800 on day 180  ($1800 ahead of the farm)
but the farm catches up with the sales plan on day 200 and thereafter earns much more.
Most small operators can't get over the initial loss period and prefer to make steady profits selling machines.
They probably also have limited space to run a machine farm so start selling them when that is maxed out.

[Ekaros]

Capital... You get pre-orders you can pay the stuff to make miners. Which you sold...

You don't have money, you can't make stuff to sell...

And we are quite far beyond the point when mining was a good profitable way for manufactures. Now it's finding a fool who buys the stuff they are currently making...

[sshapiroNJ]

I am also wondering why companies are selling their machine that can mine a lot of bitcoins.

[pjviitas]

Why do mining companies sell their miners?  In other words, why would anyone honestly sell a money making machine?

I am interested in hearing a reasoning that I have not yet come across before.

Do not post if you are going to say that:

mining companies mine with the machines and sell old hardware for profit. (people exceed ROI on certain machines)

mining companies need pre-orders as start-up money for their company.

companies do not have space to run their miners.

just because...

they believe in the idea of having decentralized servers.


     These are all good explanations but I want to hear from another angle.

The cost of powering and cooling miners does not scale linearly.

Electrical Services can either be at secondary voltage or primary voltage.

Secondary services are generally simple to setup since they are built to standards.  These types of services are usually found in residential and light commercial installations.

Primary service are not so simple to setup since they are engineered.  These types of services are usually found in heavy commercial and light industrial installations.

Heavy Industrial installations are usually served at transmission voltage which is a whole different matter.

In any event if you where going to find a space to mine your Bitcoin, which type of service would you think is the cheaper?  A secondary service is cheaper by an order of magnitude sometimes 2 orders of magnitude depending on how many parties are involved.

So if I was building Bitcoin miners, there will be a point where I need to concentrate on either building Bitcoin miners OR building Bitcoin mining facilities.

Most Bitcoin miner manufacturers dabble in mining but stick to building miners because building Bitcoin mining facilities is a whole other industry.

[benjamin07]

New mining equipment are not made for household.

You should go to a datacenter that does co-location and rent space and vpn and cooling and power for them.

By them time you get three, you wouldn't be putting one (1) device , you would be putting more, hence big capital for you as a miner.

Mining Bitcoin at home for kids is ancient history, go mine maxcoin or something, it has become highly professional.

[cloverme]

New mining equipment are not made for household.

You should go to a datacenter that does co-location and rent space and vpn and cooling and power for them.

By them time you get three, you wouldn't be putting one (1) device , you would be putting more, hence big capital for you as a miner.

Mining Bitcoin at home for kids is ancient history, go mine maxcoin or something, it has become highly professional.

I completely agree, couldn't have said it better myself lol

[Guava]

Because these money makers lose value every day.

[theonegilly]

if only Miner company's mined Bitcoin then there would be no value to the coin.

[Sp00n1980]

because they can make more money faster selling machines 

[Equate]

Because first they make money by selling and then by mining on you pre order machines.As the difficulty rises and customers gets fucked up by not getting their machines in time after then they ship the machines.