Bitmain Bitcoin mining equipment is expensive

[septi.JR]

I don't really understand mining, but what I understand is that Bitmain is a big company that provides high-quality mining equipment, maybe the price that is valued at the price of a mining tool is quite expensive, because of the quality provided by the bitmain company

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[franky1]

Bitmain was facing multiple lawsuits, that's why they hiked up the miner's price to pay off the debt.

https://go.daneel.io/news?s=bitmain-mined-crypto-for-its-own-benefits-on-devices-owned-by-the-customers

article errors
1. samson MOW(not chow). of previous fame. the mining competitor BTCC which is now dead due to BTCC failures of their own IPO to DCG

2. everyone know asics go through a QC testing phase of being run for a while before shipping. this is not new or exclusive to bitmain. even other manufacturers did it.

3. the cost of manufacturing asics is not that high. so they did not sell at a loss

4. insinuating TSMC sold all its BM1397 chips to apple,samsung etc is a complete falacy.
ASIC chips are designed for one purpose. you cant just take a BM1397 chip and give it to a phone company and then the phone company use it for another purpose.. ASICS are ASICs because they are ASICS
the BM1397 chip is a specific chip for bitmain mining bitcoins PoW. it does no other job, thus useless for cell phone companies

5. TSMC only making enough chips for 1000 rigs.. thats a pretty low minimum order.. even that sound suspiciously false

[shamc]

Mining machines will pay for themselves so it doesn't matter about the price. The important factor is that it is plugged into a cheap power source or you will mine at a loss

[ASHLIUSZ]

As Bitmain is much more specific for mining equipments there products comes at an increased price. As of now very few users from the cryptocurrency network invest into gambling understanding the difficulty in mining as well with the decreased profitability with concern to the down trend of the market.

[TimtheYoutuber]

Mining machines will pay for themselves so it doesn't matter about the price. The important factor is that it is plugged into a cheap power source or you will mine at a loss

This is sort of true but there are other costs associated with mining as well. Labor costs, storage, and taxes. You should also be accounting for price drops in the cryptocurrency as well.

[zahed]

Because https://www.bitmain.com/ mining most of the equipment are high qualitative that's why huge expensive, cheap mining tools highest survive 1 years something like that. But they have a lot of customers i trying to buy Antminer S15-28TH/s (Price 1035$) but stock out in the last few weeks and still not a available.

[nauane]

The majority of people will make much more money if they just use their money to buy bitcoin instead of buying bitmain hardware.  By the time you receive your hardware projected profits will already have dropped off a cliff.  Its just not worth it to get into mining unless you have a source of free or nearly free electricity. 

Mining is not easy to do these days and this is more true for a common man. Electricity cost play a major role in deciding whether mining is feasible or not. I think also the hardware cost and the mining reward needs to be calculated before planning  to actually start the mining.

[kryptqnick]

Watch this quick 1-minute video on Bitmain's mining: https://youtu.be/OYCz2S6Nn14

What do you guys think about Bitmain?

The video is too short, informal and abstact, even though I appreciate the effort to try making an animation and stuff. Bitmain's equipment is probably too expensive, nevertheless, because that's what happens when there's someone's monopoly on the market. Bitmain really controls Bitcoin mining nowadays, and combined with the still bearish market it seems even unrealistic to expect cheap mining equipment.

Mining machines will pay for themselves so it doesn't matter about the price. The important factor is that it is plugged into a cheap power source or you will mine at a loss

You don't know that. If the equipment will get broken or obsolete in, say, half a year, and the prices don't get much better, mining might really be not the best choice nowadays. I honestly think that it's probably more profitable to simply buy bitcoins rather than miners and wait until the market recovers.

[oceantiger]

At $1200 I think it is expensive also. Because you are not even sure of its efficacy and the energy cost for it to be operational. The product owners are even harsh in their advert on that video about people minding their business and not talk about the cost of Bitmain.

[BurgerCash]

As with any other product in a free market, price is determined by supply and demand. And there's plenty of demand by entities that can get nearly free electricity. Bitmain is not spreading free income to the masses, they can't do that anyway.

[franky1]

28terra hashes for $1200 is expensive?

dang
AMD-ATi GPU offers only upto 1gigahash, but charges $600+
if you want to mine without asics. it would cost you 28,000x $600 to GPU mine bitcoin

so is ATI's $16,800,000 for 28terrahash expensive..
or is asics $1200 for 28trrahash

i think ASICS are cheap

[TimtheYoutuber]

As with any other product in a free market, price is determined by supply and demand. And there's plenty of demand by entities that can get nearly free electricity. Bitmain is not spreading free income to the masses, they can't do that anyway.

Of course they can offer it at any price they would like, I just think it is expensive.

[Carollzinha]

As with any other product in a free market, price is determined by supply and demand. And there's plenty of demand by entities that can get nearly free electricity. Bitmain is not spreading free income to the masses, they can't do that anyway.

Of course they can offer it at any price they would like, I just think it is expensive.

Still that depends on how much buy and sell exists in the current market which makes it worth demanding for doing so.

[TimtheYoutuber]

As with any other product in a free market, price is determined by supply and demand. And there's plenty of demand by entities that can get nearly free electricity. Bitmain is not spreading free income to the masses, they can't do that anyway.

Of course they can offer it at any price they would like, I just think it is expensive.

Still that depends on how much buy and sell exists in the current market which makes it worth demanding for doing so.

Well yes, this is economics 101. This doesn't mean it can't be incredibly overpriced though.

[TimtheYoutuber]

If you haven't checked out the video in the OP take a look at it! Who else has some opinions on Bitmain? Do you think they are expensive or do you think the equipment is fair priced?

[Kakmakr]

When you basically have a monopoly and a huge demand for your product, you can charge any price you want and people will pay for it. Bitmain will struggle even more in the future, because the Bitcoin mining scene has become very challenging with high electricity cost <input cost> and also the high difficulty <total hash rate> and the low Bitcoin price.

The Average Joe can simply not compete with huge mining farms that negotiated for fixed <lower> electricity prices and also bulk buying power with lower prices for hardware. <Demand from the average small miners are declining>   

This is mostly gibberish and fluff, either the average joe is the majority of the hashrate and sales or the neither. This goes towards hashrate and difficulty as well.

How can the average Joe be the majority, if large mining farms owns most of the hash rate and expensive ASIC hardware? The smaller miners owns one of two ASIC miners, compared to large mining farms that owns hundreds. It is also a fact that some mining farms negotiated for lower electricity tariffs in some countries. <Example : Iceland> 

There are even some mining farms willing to relocate to Iran where electricity prices are very low, compared to the rest of the world. <Not something that the average Joe would do.> 

[lyks15]

I think this equiptment is not worth it. This is so very expensive yet you can earn small amount of coin and you want to save it as a investment. I will tell you straight that this is not good because the return of investment took a long period of time. For me I will still choose to do other crypto activity to earn like trading and bounty.

[TimtheYoutuber]

I think this equiptment is not worth it. This is so very expensive yet you can earn small amount of coin and you want to save it as a investment. I will tell you straight that this is not good because the return of investment took a long period of time. For me I will still choose to do other crypto activity to earn like trading and bounty.

I agree it could be a good business move if it was cheaper. Money isn't easy to make and if the investment takes 1+ years to earn a profit that is acceptable, however with the current prices and average maintenance + electricity it is not worth it since bitcoin is fluctuating so much.

[fikal01]

Honestly I don't know much about bitcoin or cryptocurrency mining in general, the most important factor is the price of electricity.

I'm not a miner and this is logic once you see that miners are expensive, maybe you won't buy it, but maybe the quality of mining equipment is better than others because Mining is a very expensive way to get or get bitcoin or altcoin. 

[TimtheYoutuber]

Honestly I don't know much about bitcoin or cryptocurrency mining in general, the most important factor is the price of electricity.

I'm not a miner and this is logic once you see that miners are expensive, maybe you won't buy it, but maybe the quality of mining equipment is better than others because Mining is a very expensive way to get or get bitcoin or altcoin. 

The mining equipment is nice, however, it is still expensive. Which means a lot of normal people are not going to be participating in the network which is a large vision for bitcoin and other decentralized systems.