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Author Topic: Jack Dorsey: Block is ‘officially building an open bitcoin mining system’  (Read 204 times)
franky1
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January 16, 2022, 09:11:12 PM
 #21

those that find their role stressful, step back and take a break
those that find their role boring, step back to find a challenge

he found his role as CEO and founder "severely limiting"

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January 16, 2022, 09:31:34 PM
 #22

In order to produce an ASIC, the manufacturer needs to first invest (a lot of) money in R&D so they know how to create the miner. They also need to use specialized chips that are not trivial to procure.

It is unclear what exactly they are going to make "open-source". If they are going to make the firmware and software that runs the miners open-source, this will do effectively nothing for anyone, as without the R&D investment in designing the hardware, the firmware and software is worthless.

if they are open-sourcing their hardware design, they would be effectively giving away their R&D investment.

Since it's open source even if it's there it would be easy to see and remove.
The biggest obstacle I see is that fact that there are a lot of people with a lot of time and money and effort already out there and they may not like new competition coming in.
Would bitmain & others drop their price to the point of dumping just to keep new people out?

-Dave
No, probably not. It is not trivial to mass-produce ASICs. If Jack were to produce some ASICs that he sells for less than the market rate, they will quickly sell, and will be resold for the going market rate.
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January 16, 2022, 09:44:34 PM
Last edit: January 16, 2022, 10:02:08 PM by franky1
 #23

No, probably not. It is not trivial to mass-produce ASICs. If Jack were to produce some ASICs that he sells for less than the market rate, they will quickly sell, and will be resold for the going market rate.

like sports stadium ticket 'touting'..
its a profitable business model competitors can try. by buying up all the asics to resell for more.
this can be dealt with by an ASIC manufacturer limiting asic units per physical home delivery address

usually this also is done the opposite way when businesses can handle large orders., where they discount large orders.
however if some of the idea's of distribution, supply and access to normal people is the aim then i can see him limiting it to 1-10 units per home and not accept orders of 1000-10,000

theoretically even on low order numbers, 'touters' can still gain.
if they know the manufacturer direct sale rate was 0.01btc($430) and the 'tout' wants to sell for $1k
the touter can offer lots of individual customers that paid $430. an incentive to sell the asic for $516(0.012) meaning customer instantly gets ROI + 20% extra bitcoin without even hashing at all. and the touter gets lots of asics at $516 which if demand is there can sell for upto $1k

so as it was said they would have to find the fine economic line between cheap asics and hash profit

I DO NOT TRADE OR ACT AS ESCROW ON THIS FORUM EVER.
Please do your own research & respect what is written here as both opinion & information gleaned from experience. many people replying with insults but no on-topic content substance, automatically are 'facepalmed' and yawned at
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