Miners DUMPING their ASICs

[baller1]

How is it going to lower prices? Mining just slows the creation of new bitcoin...the usefulness of it and the short supply is what gives it is market value...I'd imagine it would rise since they'd be more scarce.

Not correct.  The bitcoin network self-adjusts to keep the creation of new bitcoin on schedule.  From an investor's point of view, the creation of new bitcoin has a known, tightly self-regulated rate of creation.

Not correct.. well partly correct, yes it does self adjust...  after 2016 blocks have been mined, ie, a very long time.  To pretend that the centralization of hashing that is going on, like how the "unknown" petahash has grown about 40% just in the last month, .. you know. KNC's solo mining...  Isn't a big problem? ..  Is really bad and could be catastrophic to the network if/when one of these giant powers were to go down, power loss, whatever.  We've already seen a few occasions where there have been whole days of petahash dropping a bit and block finds were longer than usual throughout those days..

We need to be open and honest about it, perhaps there's a way for mining to still be competitive while helping the network without it becoming just a few huge centralized powers of hash, but I feel that boat has sailed because of skewed information like you and others keeps propagating..

For the record, I've done over a 100 tx with BTC and have yet to have one tx only take 60 minutes for 6 full confirmations, and I always pay fees, there's always a 20-40 min. block in there somewhere... just saying..

[serenitys]

As much as I've fallen in love with this forum and have gotten maybe 13 hours sleep in 3 days, might I just say that yall are about the nit pickiest buncha people I've ever seen...must yall seriously debate half a dozen pages over a word?

I mean really...


(see ya on page 112) 

[master-P]

Guys it's going to be game over soon. I just read an article explaining how bitcoin is going to reach negative values and bagholders are going to have to pay people to take bitcoins off their hands: http://finance.yahoo.com/blogs/talking-numbers/this-could-be-the-end-of-the-bitcoin-era-220746326.html

First people were dumping their ASICs and now this. Oh what shall we do? 

On a more serious note, it's no surprise that next-gen mining hardware will make the previous generation obsolete. Some of those people buying these unprofitable ASICs probably don't pay for electricity, and may yet see an ROI.

[jockular]

bitcoin is going nowhere, it's literally the new paradigm, but 99.999999% of people just *dont get it*... yet

[TwinWinNerD]

bitcoin is going nowhere, it's literally the new paradigm, but 99.999999% of people just *dont get it*... yet

Let me guess, you were shouting things like that, since BTC was 1$?

[Tripjammer]

They dumping the old crappy equipment. Newer equipment is all sold out. Mining will be fine. New equipment is just going to get cheaper. If a bitcoin is worth something people are going to still mine plus bitcoins are not the only cryptocoin that you can mine with asics...there are a lot of other profitable sha256 based coins.

[BoogieMan82]

Eh,  I'll likely keep my miners going even with a small negative roi.  How many of us leave lights on, or TV's plugged in at night.  Far more power is wasted in your house by Phantom Energy Loss.  I have no problem helping keep the network going smooth.

... when my miner arrives tomorrow ...

[kthejung]

Guys it's going to be game over soon. I just read an article explaining how bitcoin is going to reach negative values and bagholders are going to have to pay people to take bitcoins off their hands: http://finance.yahoo.com/blogs/talking-numbers/this-could-be-the-end-of-the-bitcoin-era-220746326.html

First people were dumping their ASICs and now this. Oh what shall we do? 

On a more serious note, it's no surprise that next-gen mining hardware will make the previous generation obsolete. Some of those people buying these unprofitable ASICs probably don't pay for electricity, and may yet see an ROI.

wow... just watched the video.  some notable quotes: "bitcoins can be created indiscriminately by the (bitcoin)community"  and "bitcoins may be -$100 someday" 

[J_Dubbs]

Sold my cubes at low USD (eBay) prices and bought BTC and picked up a bunch of Antminers (ninja tech). Sell low buy low, and there's still a spread on selling through eBay but buying more direct sources with BTC. In the end, mining is a long-term play and selling equipment low will just help with claiming losses anyways. You might see selling, but lots of those sellers might be buying with the proceeds from sales... I'm psyched, got out of my high-heat units before summer, got more revenues a, less heat and less power consumption, essentially exchanged through selling.


"Profitability" only matters if buying with BTC, the unit should be able to mine back more BTC than it cost. Everyone makes this mistake though- when a unit is purchased with USD the profitability is based entirely on a speculative value of Bitcoin. In fact, now that the IRS wants everything recorded in terms of USD even the BTC purchases are measured in terms of dollars. You cannot measure profitability accurately in any way with something like BTC, the further out you forecast the less accurate it will be. I have no idea why people constantly measure this shit based on present exchange values, we are speculating, the whole point is the uncertainty is priced in and nobody knows what units will end up profitable.

[Beliathon]

PANIC

[raindex]

Guys it's going to be game over soon. I just read an article explaining how bitcoin is going to reach negative values and bagholders are going to have to pay people to take bitcoins off their hands: http://finance.yahoo.com/blogs/talking-numbers/this-could-be-the-end-of-the-bitcoin-era-220746326.html

First people were dumping their ASICs and now this. Oh what shall we do? 

On a more serious note, it's no surprise that next-gen mining hardware will make the previous generation obsolete. Some of those people buying these unprofitable ASICs probably don't pay for electricity, and may yet see an ROI.

wow... just watched the video.  some notable quotes: "bitcoins can be created indiscriminately by the (bitcoin)community"  and "bitcoins may be -$100 someday" 

You both didn't notice that it's dated April 1st.

[Lauda]

PANIC

]

[Trillium]

PANIC

http://cdn.memegenerator.net/instances/500x/43180543.jpg

Where's my towel?

[hellscabane]

Sold my cubes at low USD (eBay) prices and bought BTC and picked up a bunch of Antminers (ninja tech). Sell low buy low, and there's still a spread on selling through eBay but buying more direct sources with BTC. In the end, mining is a long-term play and selling equipment low will just help with claiming losses anyways. You might see selling, but lots of those sellers might be buying with the proceeds from sales... I'm psyched, got out of my high-heat units before summer, got more revenues a, less heat and less power consumption, essentially exchanged through selling.


"Profitability" only matters if buying with BTC, the unit should be able to mine back more BTC than it cost. Everyone makes this mistake though- when a unit is purchased with USD the profitability is based entirely on a speculative value of Bitcoin. In fact, now that the IRS wants everything recorded in terms of USD even the BTC purchases are measured in terms of dollars. You cannot measure profitability accurately in any way with something like BTC, the further out you forecast the less accurate it will be. I have no idea why people constantly measure this shit based on present exchange values, we are speculating, the whole point is the uncertainty is priced in and nobody knows what units will end up profitable.

There definitely has been a clamor to sell at "low" prices with the intent to buy at "lower" prices. But yes, in the end, mining is a long-term play and the sale of equipment is a factor is making ROI. Now it's a matter of consolidating equipment to address many factors that are upcoming in the next few months (a new generation of ASICs, the impending summer months, and speculation on the BTC conversion rate).

[Equate]

Because now the profitability with asics is not good.

[igorr]

Now is mining factor about 3.5 cent/Gh at 24h,
What  will happen when the drops below 1 cent/Gh at 24h ?

I warned 17.dec 2013 year: https://bitcointalk.org/index.php?topic=374935.msg4014576#msg4014576

[Bitcoin Magazine]

people make more btc = more likely to sell it at a lower price
people make less btc = more likely to sell it at a higher price

it's simply economics folks!   

[johnyj]

They will become heaters in Nordic country

[igorr]

They will become heaters in Nordic country

[Newmine]

They will become heaters in Nordic country

I had 3 Block Erupter Cubes running through February and March and they kept my large living room at about 72 degrees consistently. My heater never kicked on.

I bought the three off Ebay for $1040.00. I sold them for $795. I made .24BTC. I paid ebay 10% of the $795.
-1040+795-79+(.24*450current BTC= -216.00

Not Profitable at current BTC price!

BTC was around $800 I think. If I bought 1.25BTC for $1000, I would be underwater $440.

Less Profitable at current BTC price!


It's a gamble either way