ASICMINER: Entering the Future of ASIC Mining by Inventing It

[rastapool]

oh man if rastapool cancelled the auction they would be soooo burned...

It would not look good for rastapool and from words that I've exchanged with him, he does not seem like that kind of person.

lophie, but I will do not
Franktank, thank you

I'd guess that you're right. Bidding in the last hour of that auction will likely push the price to BTC2+.

Will see, less than 30 min remains, and current prices are 1.87-1.84

[frejo]

Did the price of the share drop on BTCT because of the attacks, or did it drop everywhere ? 

Or people did like me and thought it was a good time to take home a nice little profit =) and invest it elsewhere for possibly even more profit (100TH mine )

[🏰 TradeFortress 🏰]

Maybe ASICMINER should look into starting their own pool. Reduce their variance with solo mining, and earn fees off the people that want to mine there (especially people who bought ASICMINER hardware).

[Eric Muyser]

I think someone just cashed out from btc-tc and moved part of their investment on bitfunder where prices were 0.1btc lower until some hours ago.

I think there's someone who wants to keep the stock price under control and not let the new surge of investors throw the price into a parabolic, crashing it and inciting panic. I wonder who this person could be

Red bars, trying to balance the incline.
Green bars, people getting crazy (and all in between).



When there's not much demand it kind of just idle's as people hold their shares for the next incline. There's very little on either side trying to trade this, just holders and occasional sell offs to keep it balanced. For going long it's an investor dream.

[eiprol]

http://deepfriedcat.com

According to its charts, seems that the hashrate has dropped suddenly more than expected... any knowledge on this? solomining?

[romerun]

Maybe ASICMINER should look into starting their own pool. Reduce their variance with solo mining, and earn fees off the people that want to mine there (especially people who bought ASICMINER hardware).

this has been rejected. AM will not make a pool. however they might solo mine.

what's the reason not to make a pool ?

[Caesium]

They'll already have a significant enough portion of the network hashrate without further risking 51%ing it by adding more miners to their hashing.

[JimiQ84]

Maybe ASICMINER should look into starting their own pool. Reduce their variance with solo mining, and earn fees off the people that want to mine there (especially people who bought ASICMINER hardware).

this has been rejected. AM will not make a pool. however they might solo mine.

what's the reason not to make a pool ?

DDoS risk, maintenance...

[hammurabi]

what's the reason not to make a pool ?

What is the reason not to run all types of businesses there are?
From selling burgers, through mining to commercially launching satellites.
That would be huge profit combined....

[helixone]

http://deepfriedcat.com

According to its charts, seems that the hashrate has dropped suddenly more than expected... any knowledge on this? solomining?

Likely moving Hashes to solomining. However, this is insignificant in Friedcat's "conservative" expectations to reach 1000TH by end of this year. https://bitcointalk.org/index.php?topic=99497.msg1604192#msg1604192

Hopefully though, not all will see it this way, and price will stop rising, and perhaps dip, and we'll be able to keep reinvesting dividends in cheap AM shares.

-helixone

[stripykitteh]

Hopefully though, not all will see it this way, and price will stop rising, and perhaps dip, and we'll be able to keep reinvesting dividends in cheap AM shares.

-helixone

Sssshh! 

[stripykitteh]

Maybe ASICMINER should look into starting their own pool. Reduce their variance with solo mining, and earn fees off the people that want to mine there (especially people who bought ASICMINER hardware).

this has been rejected. AM will not make a pool. however they might solo mine.

what's the reason not to make a pool ?

DDoS risk, maintenance...

I agree. AM should keep focus on what it's good at. Running a pool might be profitable but I doubt it's as profitable as their core business (designing, manufacturing and selling hardware, plus mining). Running a pool would be a boat-anchor on returns for those who like reinvesting dividends.

[romerun]

with all the hash they have AM could be the next BTCGuild if they want to, they sure have capital to do it.

[helixone]

Maybe ASICMINER should look into starting their own pool. Reduce their variance with solo mining, and earn fees off the people that want to mine there (especially people who bought ASICMINER hardware).

this has been rejected. AM will not make a pool. however they might solo mine.

what's the reason not to make a pool ?

DDoS risk, maintenance...

I agree. AM should keep focus on what it's good at. Running a pool might be profitable but I doubt it's as profitable as their core business (designing, manufacturing and selling hardware, plus mining). Running a pool would be a boat-anchor on returns for those who like reinvesting dividends.

To put this in perspective: if AM were entirely solo mining, it would be earning for its shareholders 100% of 20-30% of all coins mined. By running a pool, even if it was the biggest pool allowed, (50%), that would be 1.5% of all coins mined. (Subtracting of course any of that hash power that belongs to them).

In other words, AM makes 10 times the amount of btc that the largest pool operator theoretically possible could make. (Assuming a standard 3% cut.) For all the customer service and security headaches, there is NO reason AM should get into this.

IE: If they started a public pool, I would in almost all certainty sell my shares, as it would show incredibly poor judgement. (Which would be very uncharacteristic for Friedcat.)

-helixone

[stslimited]

I want ASICMiner to hedge their production buy selling futures contracts against the bitcoin-fiat exchange rate.

Can a futures market be established in china or hong kong?

[muyuu]

I want ASICMiner to hedge their production buy selling futures contracts against the bitcoin-fiat exchange rate.

Can a futures market be established in china or hong kong?

It's a lot simpler to just keep a part of the savings in BTC and a part in fiat. However, Friedcat is very bullish about Bitcoin and that's why he prefers to avoid converting funds to fiat.

So far this strategy has worked remarkably well.

[Aureum_Coffee]

I want ASICMiner to hedge their production buy selling futures contracts against the bitcoin-fiat exchange rate.

Can a futures market be established in china or hong kong?

A good idea to bring in more options and financial products to table.

There is serious risk, however, with futures contracts.

With futures contracts, one can create derivatives, and then create credit default swaps.  These are very potent and powerful tools to manipulate Bitcoin values to fiat currency rate.  We can't ever escape the fact we have to exchange Bitcoin to fiat currency to pay for electricity, product shipping, airplane tickets for bitcoin conference, etc.

Futures contracts allow leverage, and allow relatively few people to manipulate quantifiable "things".  The ASICminer share price is quantified with numbers.  BTC/USD exchange rate is quantified with number. 

Futures plus thinly traded market equals easy manipulation.

[matt4054]

I think ASICMINER is the greatest Bitcoin investment at the moment, but I also think that the prices are too high right now to invest more than a couple of shares with some risk.

About hedging, shareholders can do it on their own with other ASIC companies. I sold about 1/4 of my shares very high yesterday to hedge the risk and buy BASIC-MINING shares with the proceeds. They have an AVALON batch 2 pending delivery and another batch 3 order on the way so I think if you are looking of another mining security with a good potential, that is not overvalued right now, it is worth making it some % of your portofolio on btct.co. And there are others, too.

Anyway, it's really nice to see that stock price above 2, and I will hold most of my shares for sure. I just wouldn't buy more at the current price. But I wouldn't call you silly if you did

[ThickAsThieves]

I think ASICMINER is the greatest Bitcoin investment at the moment, but I also think that the prices are too high right now to invest more than a couple of shares with some risk.

About hedging, shareholders can do it on their own with other ASIC companies. I sold about 1/4 of my shares very high yesterday to hedge the risk and buy BASIC-MINING shares with the proceeds. They have an AVALON batch 2 pending delivery and another batch 3 order on the way so I think if you are looking of another mining security with a good potential, that is not overvalued right now, it is worth making it some % of your portofolio on btct.co. And there are others, too.

Anyway, it's really nice to see that stock price above 2, and I will hold most of my shares for sure. I just wouldn't buy more at the current price. But I wouldn't call you silly if you did

What you did isn't a hedge, it's selling one thing to buy something else that is less valuable. Where's the hedge aspect?

[matt4054]

What you did isn't a hedge, it's selling one thing to buy something else that is less valuable. Where's the hedge aspect?

Basically, I made a profit by selling some of my ASICMINER shares high (I think, time will tell), while I bought them much lower. And I still hold 75%.

That profit is for sure. Now I speculate that the BASIC-MINING stock price will rise when AVALON batch #2, then #3 ships. On the other hand, I think that there are chances that ASICMINER shares stock price goes lower than the current price (that what I call a small risk => hedge the risk). All in all, I hope to maximize my profits by doing so, while minimizing my risk if something very bad were to happen to ASICMINER

It's unlikely, and I hope not, as 3/4 of my assets are in ASICMINER. But now I have at least 1/4 invested elsewhere. Do you get my point? I'm not telling it the best strategy, I just sharing my thoughts... and holding 100% is perfectly OK, not saying the contrary.