My theory about business on ASICs for shitcoins

[FP91G]

I came up with this theory while studying ASICs for mining Alephium, Radiant, Kaspa

1. At the first stage, before the release of a new ASIC, the price of the coin is pumped so that ASICs can be sold at a high price. The payback period of an ASIC at the time of sale is 90 days.

2. Since ASICs are sold much more expensive than their cost, the ASIC manufacturer has money left to prevent the coin price from falling too much. But eventually, with the increase in the payback of ASICs, the manufacturer is forced to reduce the price, but selling ASICs at this stage is profitable.

3. At stage 3, I thought that everything would end, but I was wrong. Using the example of the Kaspa coin, Kasplex KRC-20 is launched. This is an analogue of the classic Ethereum, where various profitable defi products may appear, the purpose of which is to reduce the sale of the coin on exchanges. ASIC manufacturers will earn again
https://x.com/kasplex/status/1833114527040168295

4.At stage 4, I think there will be an outflow of liquidity, sale of coins on exchanges and disappointment of newbie miners who recently bought these ASICs.


Do you like my theory?

[Grim]

You have some basic understanding of an ASIC manufacturers "game".

Think more deeply/sinister and you might get closer to the real game. 

[1971ECPT]

100% I agree with your theory!

[ccplz]

Every time I bother with an ASIC , I get burned. The manufacturers are utter scumbags. Honestly just stay away unless you have free electricity or something and are 100% sure you will ROI. The ASIC mining game is rigged so hard for the manufacturer to profit over you.

[safar1980]

Kaspa miners' profit has increased due to the launch of KRC-20 tokens. Even the old ASIC KS0 now gives several dollars of profit per day.
We will see how long this situation with increased profit will last.

[ccplz]

Kaspa miners' profit has increased due to the launch of KRC-20 tokens. Even the old ASIC KS0 now gives several dollars of profit per day.
We will see how long this situation with increased profit will last.

it's already over

[arielbit]

basically a pump and dump scheme with shit/scam tokens that are also pump and dump schemes (if you are lucky, if not so lucky->dump only LOLOLOL)  

[swogerino]

The only ASIC I would mess with are those affordable 100 watt max power consumption and that offer a relatively good hash rate although we know now to be in a very hard time for all miners. Now coin is profitable and the so called new all time high has not appeared, not that I was expecting it, I expect it on last quarter of 2025 based on history so maybe a good choice buying a few of these home ASICS as I call them and mine some well known coins with them, if Q4 of 2025 is what history suggests will happen most people would be happy.

However investing in these huge value ASICS is f*cking yourself over again and again and expecting different results.

[arielbit]

The only ASIC I would mess with are those affordable 100 watt max power consumption and that offer a relatively good hash rate although we know now to be in a very hard time for all miners. Now coin is profitable and the so called new all time high has not appeared, not that I was expecting it, I expect it on last quarter of 2025 based on history so maybe a good choice buying a few of these home ASICS as I call them and mine some well known coins with them, if Q4 of 2025 is what history suggests will happen most people would be happy.

However investing in these huge value ASICS is f*cking yourself over again and again and expecting different results.

100w max?? LOL, those days are looooooong gone, minimum setup is a dedicated room/garage size area (not maxed out of course, have other stuff in there and when bull market comes, that area will become a mining room/garage exclusively).

i remember usb type BTC miners when heat is not yet a problem LOL, nowadays no pain(heat) no gain LOL

[FP91G]

The only ASIC I would mess with are those affordable 100 watt max power consumption and that offer a relatively good hash rate although we know now to be in a very hard time for all miners. Now coin is profitable and the so called new all time high has not appeared, not that I was expecting it, I expect it on last quarter of 2025 based on history so maybe a good choice buying a few of these home ASICS as I call them and mine some well known coins with them, if Q4 of 2025 is what history suggests will happen most people would be happy.

However investing in these huge value ASICS is f*cking yourself over again and again and expecting different results.

If you are talking about ASICs for shitcoins, then such ASICs exist, but the payback is very bad there. For example, you can buy an ASIC for 300-600 dollars and then get your money back in 2 years, but most likely the ASIC will become useless much earlier.
And if this is lottery mining of bitcoin, then luck is very rare there

[tuaris]

I pity the fool who spends more than a few hundred dollars on ASIC's for these altcoins that come out of nowhere.  It took years before anyone considered making an ASIC for Litecoin.  Now all of a sudden we have ASIC's for things like KDA, KAS, and ALPH in less than a few months.  Something fishy indeed.  My hunch is that it's a single large shady company behind the scenes who has the most to gain with over priced chips.

The best investment is in scrypt ASIC's.   My L3+ are several years old, but I can still squeeze out some profit from them with the mine and hold method.