ASICMINER: Entering the Future of ASIC Mining by Inventing It

[mc_lovin]

wait, doesn't BTC-Guild mergemine automatically?

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[SebastianJu]

Namecoin can not be mined with stratum.

Wrong!  Bitparking and Bitminter feature merged mining via stratum.

ASICMINER needs to point their local stratum proxies at those two, so we stop missing out on the extra 9% offered by the altchains.

Here's a fun activity: look up AM's current hashrate and plug it in to http://dustcoin.com/mining.

Today, we're leaving about $7,000 in IX/Name/Dev coins on the table by not mining merged style!!!   

IDC if Namecoin is dead.  The corpse wants to pay me dividends, if AM lets it.   

Do you say that Bitcoin 100% + Namecoin 5.52% + DevCoin 1.47% + IxCoin 1.84% could be mined instead only Mining Bitcoin 100% that we do now? That would be 108.83% earnings in BTC than we mine now. That sounds good.

So stratum allows merged mining. I think it should be considered to do it when it brings more income than before with the same hashpower. Its not that we have less bitcoins at the end, we only have some more other coins too that can be turned into bitcoins easily. As i understand it. Please correct me if im wrong.

Till now i thought the transaction fees are a nice addition... but now it looks to me there is more that we miss at the moment.

I dont want to be an ass but can it happen that poolowners silently merge mine but claim they dont so that they earn the additional money for themselves? I mean the data the poolminers get to mine with remains still the same so that it doesnt necessarily have to be noticed. Only a question, not an accusation.

@Franktank... if it means that we have less Bitcoins at the end i would say youre right... but if it doesnt mean to lose anything but to get some extra income i think it really should be considered. I mean if its really so much like it sounds then the transaction fees for bitcoins are peanuts compared to it... merged mining would bring in way more on top.
And while friedcat has problems with the power supply and network so that deployment stops it would be a good thing to consider now when there cant be done much other things.

wait, doesn't BTC-Guild mergemine automatically?

They dont as far as the wiki says. Not even Namecoin. But maybe the wiki is outdated. But eleuthria didnt answer to my question yet regarding this.

[Luke-Jr]

Could pool hop too.. :p

[toffoo]

how can i invest here? and is this working now?

I have 175 direct ASICMINER shares for sale here:

https://bitcointalk.org/index.php?topic=171800.0


And yes, this is working now.  You can see our current hash rate (the big one) here:

http://www.btcguild.com/index.php?page=rankings

[ninjarobot]

It implies that mining bitcoins with namecoins can give 13% more earnings. I wonder if thats true but if yes, then it would be a not small loss. Too bad that its not possible with stratum.

Merged mining NMC would provide 5.5% additional profit according to http://dustcoin.com/mining

[Rodyland]

The financials of ASICMINER are pretty opaque ( ) however I'm thinking that the recent run-up in the price of bitcoin should be a good thing for the size of the dividends.

My logic is that most if not all expenses are in fiat.  Increasing exchange rate means less bitcoins need to be converted to fiat to pay bills (electricity, rent, hardware costs etc), leaving more for dividend payments.

Would be awesome if we had more detailed financials.

[vortex1878]

The financials of ASICMINER are pretty opaque ( ) however I'm thinking that the recent run-up in the price of bitcoin should be a good thing for the size of the dividends.

My logic is that most if not all expenses are in fiat.  Increasing exchange rate means less bitcoins need to be converted to fiat to pay bills (electricity, rent, hardware costs etc), leaving more for dividend payments.

Would be awesome if we had more detailed financials.

+1

We have reached such a financial impact here that all investors deserve to get a full financial report.

[gmouse]

The recent staggering run-up in BTC relative to $USD makes conventional analysis very difficult.  When hardware is ultimately sold for BTC, for example, how much, if any, of the proceeds should be converted and held as a hedge against the possibility (probability?) that this is a bubble?  Makes my head hurt...  And, having an investment arm of AM is surely a distraction the principals don't really or should take on as additional responsibility.

Have any of the Board members been analyzing this? (I am not asking for details, but I am just curious if there has been discussion)

[Jutarul]

The recent staggering run-up in BTC relative to $USD makes conventional analysis very difficult.  When hardware is ultimately sold for BTC, for example, how much, if any, of the proceeds should be converted and held as a hedge against the possibility (probability?) that this is a bubble?  Makes my head hurt...  And, having an investment arm of AM is surely a distraction the principals don't really or should take on as additional responsibility.

Have any of the Board members been analyzing this? (I am not asking for details, but I am just curious if there has been discussion)

What you describe is usually the job of the CFO. It's a good question and certainly deserves more attention. I don't know whether friedcat has delegated that task from the leadership team to a single person by now. IIRC up to now company policy was to keep as much money in BTC as possible and as much money in fiat as necessary, for the obvious reasons...

[toffoo]

Have any of the Board members been analyzing this? (I am not asking for details, but I am just curious if there has been discussion)

ASICMINER raised funds in BTC, earns BTC, pays dividends in BTC, shares are quoted in BTC, and if/when selling boards will be for BTC.

Apart from the (increasingly small) fixed costs (electricity, rents, wafers, etc.) which may be in USD (but more likely CNY) why does the USD/BTC exchange rate move matter for anything?  (Apart from making this investment look increasingly valuable relative to other real world companies.)

I don't think hedging USD (much) should be something management should be doing.  But it may be something individual shareholders might want to do.

[Franktank]

@Franktank... if it means that we have less Bitcoins at the end i would say youre right... but if it doesnt mean to lose anything but to get some extra income i think it really should be considered. I mean if its really so much like it sounds then the transaction fees for bitcoins are peanuts compared to it... merged mining would bring in way more on top.

And while friedcat has problems with the power supply and network so that deployment stops it would be a good thing to consider now when there cant be done much other things.

Don't get me wrong, I'm all for bigger dividends. I'll say that I only have a very general understanding of mining and lesser on altcoin mining but it would require some effort (ranging from a single click of a button to dedicating resources and manpower). For now, I would rather have all efforts focused on increasing hashrate and maintaining it but I'm sure friedcat could address it in a future update if the demand is there.

Just my two 0.02BTC

[gmouse]

My greed clouds my judgement, so in a way, it would be somewhat a relief to have someone else making the decisions about hedging.  Part of me really wants to believe that the buyers of BTC are not casual speculators that will develop cold feet and panic sell in a drop, but instead are using their BTC for actual transactions  The recent rise just leaves me in shock and awe.  

[Jutarul]

The recent rise just leaves me in shock and awe.  

we had it coming for two years now. but I agree, preparing for take off is different from actually doing it.
 
Bleeding money from extremely volatile assets to more reliable assets on a predictable schedule is usually the prudent thing to do. It's all about opportunity costs. However, the current policy to pay high dividends delegates that financial planning to shareholders to a large degree.

[JordanL]

Just did some figurin, those who bought an ASICMINER board seat (5000 shares) at IPO turned $6500 USD in to nearly a million dollars, if they sold today. Not bad for eight months.  Kudos to those who did.

[gigantic]

When exactly the 50TH will be plugged?

[jeprokzki]

how can i invest here? and is this working now?

I have 175 direct ASICMINER shares for sale here:

https://bitcointalk.org/index.php?topic=171800.0


And yes, this is working now.  You can see our current hash rate (the big one) here:

http://www.btcguild.com/index.php?page=rankings

hi thanks for answering my questioin.. is there a site that can i buy lower asicminer share price?

[JordanL]

how can i invest here? and is this working now?

I have 175 direct ASICMINER shares for sale here:

https://bitcointalk.org/index.php?topic=171800.0


And yes, this is working now.  You can see our current hash rate (the big one) here:

http://www.btcguild.com/index.php?page=rankings

hi thanks for answering my questioin.. is there a site that can i buy lower asicminer share price?

haha, if there is, be sure to tell me about it!! You can buy shares in ASICMINER passthroughs for ~0.75 - 0.8 BTC on bitfunder.com and btct.co, but educate yourself on the potential additional terms, costs, and liabilities before you do.

There is also this: https://docs.google.com/spreadsheet/ccc?key=0AkPdXsQFT-vIdHRVUjQ5Ql9BQWR6OENLMkhyUktUblE#gid=0

[gmouse]

It is a strange world where we need to be cognizant not only of total hash% but also total hash% in one pool.  So, if we now have total hash% of 10%, and the proposed deployment of AM is going to add 20Th..  giving us 30%+...  You see where I am going in the thinking. 

It is a fine line to deploy, especially if BFL continues to fall on its face; although given that their pre-sales were in $USD at what amounts to a gift price at the current BTC/USD rate... well, I'd seriously be surprised if any of those BFL units ever actually ship.  They priced in 90% depreciated $USD at current exchange rates, and now have every motivation to mine in secret with that hardware.

This whole 51% attack fear seems way overblown to me though.  In order for one to succeed would you not need to convince someone to accept a zero-confirmations transaction, seconds after the attack was made?  And then, run out of there like a bat out of hell?

[mrb]

This whole 51% attack fear seems way overblown to me though.  In order for one to succeed would you not need to convince someone to accept a zero-confirmations transaction, seconds after the attack was made?  And then, run out of there like a bat out of hell?

No. A majority attack allows the attacker to recover his coins that were sent out in transactions confirmed by multiple blocks. This is pretty much the ultimate blow to confidence in Bitcoin.

With that said, it is not in friedcat's financial interest to perform such attacks, as it would undermine the validity of his own Bitcoin wealth.

[JimiQ84]

This whole 51% attack fear seems way overblown to me though.  In order for one to succeed would you not need to convince someone to accept a zero-confirmations transaction, seconds after the attack was made?  And then, run out of there like a bat out of hell?

No. A majority attack allows the attacker to recover his coins that were sent out and confirmed by multiple blocks.

But it needs also luck. 51% of hashrate is not enough to succesfully create longer blockchain.