Announcement: A public company is being formed to enter ASIC Btc Mining market

[dizzy1]

https://bitcoin.org.uk/forums/topic/486-announcement-a-public-company-is-being-formed-to-enter-asic-bitcoin-mining-marketplace/

Thoughts?

[1714774460]

1714774460

[terrytibbs]

Store it in a bunker, eh?

[Gomeler]

Interesting. If someone can get over the financial hurdle of making bulk ASICs their $/MH will in theory be so low and their MH/W so high that they could force out the vast majority of current users given enough capital. Could make for a very interesting future IF this were to take off. If they were the only ones with access to very cheap and efficient hashing power it could in theory break the network.


Would be fun if the next currency that cropped up rendered their ASICs useless 

[dropt]

I'd really love to see the projected financials and related gantt chart surrounding the ASIC development.  The link makes it sound like this is going to be some trivial process that they'll roll out in the next couple of months. 

[Dabs]

Then, the ASIC schematics / design will leak out, and someone from China or some other country will make copies of it and sell it. Then we will have a lot of ASIC miners. The pools will be the one to benefit, since most normal private individuals will probably join the pools. The overall hash rate will rise, as will the difficulty.

And my bitcoins will be safe.

[haploid23]

Hmm I wonder how much that guy invested in these ASIC miners.

And just a side note, I've been around long enough to see how uber mad he got with this forum, deleted all his post, and started his own BTC forum. Forgot what the drama was about though.

[Brunic]

Interesting. If someone can get over the financial hurdle of making bulk ASICs their $/MH will in theory be so low and their MH/W so high that they could force out the vast majority of current users given enough capital. Could make for a very interesting future IF this were to take off. If they were the only ones with access to very cheap and efficient hashing power it could in theory break the network.


Would be fun if the next currency that cropped up rendered their ASICs useless 

That is what I find interesting. You can't get a dominant technology and hopes to takes the mining market, because you'll break the network and the market. You can aim under 51%, but if you consider the ups and downs of the network, I doubt you can get over 40% safely. If you get 40%, and the network goes a little down, you could get over 51% by accident.

Let's say that this guy play safe and goes for 30% of the market. At the moment, he would go for around 4-5 THash/s, pushing the network to 15 THash. Yeah, there would be a jump in difficulty, but not that cruel, and still 70% is available for the smaller miners.

ASIC is far from a panacea. You can't get too much, because you break the network (and you don't want that, because you have to pay back your ASIC). But you need to get a good chunk of the network, so you can profit and pay your ASIC. You have a ceiling in revenue that you can't go over.

At 30% of the network, you get 2160 BTC every day. At 5$ each BTC, you get 10 800$/day, hoping for 3.9 Millions/year. BUT, the more you sell, the more the price goes down. And when a guy with a lot of BTC sells, price crash hard.

So, with the magic ASIC, you have a limit in revenue, because you can't get too much of the network. You can't sell too much, because you'll crash the price yourself, and lower your revenue. And you still have to cover your cost. How much cost the ASIC? The bunker? The maintenance? The electricity (even if its supposed to be cheap, 5 THash will still cost a good chunk of electricity)?

I wish him good luck, but it's far from being the ideal business opportunity.

[st4rdust]

Is that Neil deGrasse Tyson?

[Raoul Duke]

Hmm I wonder how much that guy invested in these ASIC miners.

And just a side note, I've been around long enough to see how uber mad he got with this forum, deleted all his post, and started his own BTC forum. Forgot what the drama was about though.

Not that mad that he doesn't come back when it's convenient for him: https://bitcointalk.org/index.php?topic=75298.0
I guess his forum doesn't have as many users as this one
I could get you more examples, but only the most recent is enough.
Also goes to proof that this thread is a dupe and the OP didn't need to link to an external forum.

[mrb]

And you still have to cover your cost. How much cost the ASIC? The bunker? The maintenance? The electricity (even if its supposed to be cheap, 5 THash will still cost a good chunk of electricity)?

5Th/s would only costs $1825/month in electricity. This is peanuts compared to the $0.5 million NRE cost of developing an ASIC.

(That's assuming ASICs capable of 200 Mh/J, or an order of magnitude better than FPGAs, and an average rate of $0.10/kWh.)

[rjk]

And you still have to cover your cost. How much cost the ASIC? The bunker? The maintenance? The electricity (even if its supposed to be cheap, 5 THash will still cost a good chunk of electricity)?

5Th/s would only costs $1825/month in electricity. This is peanuts compared to the $0.5 million NRE cost of developing an ASIC.

(That's assuming ASICs capable of 200 Mh/J, or an order of magnitude better than FPGAs, and an average rate of $0.10/kWh.)

I think you will find that the NRE is much higher than that, many times so.

[Raize]

My thoughts are that Vladamir's eyes are bigger than his pocketbook and brain. I don't think he was ever a major player with his mining contracts, even when he spoke like he was. He invested heavily into a mining operation at the exact wrong time, when the same amount of money could have purchased Bitcoin at <$1. He said one BTC would be worth $100 by the "end of the year" (2011) and $1,000 by the end of 2012.

He left this forum in a tuff (deleted most of his posts) and his activity even over there at his new forum dwindled and dwindled. Then suddenly he comes out of nowhere and posts this?

His posting activity on his own forum: (check the dates, he's inactive on his own site)
https://bitcoin.org.uk/forums/user/1-vladimir/page__tab__posts

If they get publicly traded on an exchange I'll buy shares, but that's only because they'd be the first publicly traded Bitcoin company. I'm going to buy shares of such a company like that no matter what. I just don't have any faith he'll actually get that far.

Again, these "I've got an ASIC plan" people are always tall on hype and short on technical details.

If you are talking to a loan officer you tell them how much you are going to pay per month; if you are talking to a Bitcoiner you tell them how many megahash you are going to get per joule.

It really is that simple, he has no details, therefore all he has is an idea of what he wants to do. We all have plans to ASIC mine or invest in one, we just need someone that actually offers that solution.