ASICMINER: Entering the Future of ASIC Mining by Inventing It

[candoo]

Basic math shows how overpriced the shares are: there are ~10million more bitcoins left to be mined over the next century or so. Even if ASICMiner were able to maintain 20% of the total network hashrate throughout that period (breathtakingly unlikely), they'd only mine 2million BTC. Split between the 400,000 shares that creates an upper limit of 5BTC/share.

You did forget the hardware sales

[101111]

Basic math shows how overpriced the shares are: there are ~10million more bitcoins left to be mined over the next century or so. Even if ASICMiner were able to maintain 20% of the total network hashrate throughout that period (breathtakingly unlikely), they'd only mine 2million BTC. Split between the 400,000 shares that creates an upper limit of 5BTC/share.

and how much in tx fees over that time?

[DebitMe]

Basic math shows how overpriced the shares are: there are ~10million more bitcoins left to be mined over the next century or so. Even if ASICMiner were able to maintain 20% of the total network hashrate throughout that period (breathtakingly unlikely), they'd only mine 2million BTC. Split between the 400,000 shares that creates an upper limit of 5BTC/share.

sigh, and once again we hit this discussion.  Just continues that once every 3 to 4 pages some ignorant fool pops up who can't/doesn't read and tries to state share price valuation like he has any idea how bitcoin works.  Well once again here is the answer.  The idea behind bitcoin is that transaction fees will increase by then to a point where they alone will be compensation enough for miners to continue mining.  This effectively destroys your "upper limit" as the same coins can be mined multiple times as TX fees.

Please do some homework before posting crap like its fact, its getting pretty sickening.

[zy02264]

Basic math shows how overpriced the shares are: there are ~10million more bitcoins left to be mined over the next century or so. Even if ASICMiner were able to maintain 20% of the total network hashrate throughout that period (breathtakingly unlikely), they'd only mine 2million BTC. Split between the 400,000 shares that creates an upper limit of 5BTC/share.

Not necessary. A significant part of dividends come from selling mining equipment. Because of that, the real profit they are making could be 30% or even more while it has 20% of the total network.

[BR0KK]

Im actually quite happy to have bought AM shares back in the GLBSE days and i'm looking forward to buy more.

I found this: https://www.havelockinvestments.com/fund.php?symbol=AM1

Is this a legitimate way to purchase AM shares? The text there sounds like AM is in contract with havenlock investments?

[101111]

Im actually quite happy to have bought AM shares back in the GLBSE days and i'm looking forward to buy more.

I found this: https://www.havelockinvestments.com/fund.php?symbol=AM1

Is this a legitimate way to purchase AM shares? The text there sounds like AM is in contract with havenlock investments?

Yes, legit.

[TsuyokuNaritai]

Is this a legitimate way to purchase AM shares?

It's one of the many ways.
It's a pass-through, but it can give you direct shares if you want it.

There are lots of other pass-throughs too, here's a guide to some of them: https://bitcointalk.org/index.php?topic=188550.0

Although it doesn't look it if you're new to AM pass-throughs, right at the minute it's probably better to buy the btc-e ones at the current prices. It's currently a little more expensive that BitFunder, whereas it's normally a lot more expensive than BitFunder.

https://btct.co/security/ASICMINER-PT

This should be a good time to buy. There are big profits coming from sales, and if the APR is suddenly about 50% even for one week, the buzz from that alone should attract some decent money in.

[BitcoinOxygen]

Is this a legitimate way to purchase AM shares?

It's one of the many ways.
It's a pass-through, but it can give you direct shares if you want it.

There are lots of other pass-throughs too, here's a guide to some of them: https://bitcointalk.org/index.php?topic=188550.0

Although it doesn't look it if you're new to AM pass-throughs, right at the minute it's probably better to buy the btctc ones at the current prices. It's currently a little more expensive that BitFunder, whereas it's normally a lot more expensive than BitFunder.

https://btct.co/security/ASICMINER-PT

This should be a good time to buy. There are big profits coming from sales, and if the APR is suddenly about 50% even for one week, the buzz from that alone should attract some decent money in.

[tinus42]

Im actually quite happy to have bought AM shares back in the GLBSE days and i'm looking forward to buy more.

I found this: https://www.havelockinvestments.com/fund.php?symbol=AM1

Is this a legitimate way to purchase AM shares? The text there sounds like AM is in contract with havenlock investments?

Actually if you buy one of these PT shares you have a contract with Thick As Thieves who has a contract with Havelock.

[Kuroth]

I think I might Sell..  Good time bad time too?

[velacreations]

I think I might Sell..  Good time bad time too?

I would wait and get the dividends for the next few weeks, as they should be significantly higher (.03-.04) that now, which will certainly push share prices up.

[ThickAsThieves]

Im actually quite happy to have bought AM shares back in the GLBSE days and i'm looking forward to buy more.

I found this: https://www.havelockinvestments.com/fund.php?symbol=AM1

Is this a legitimate way to purchase AM shares? The text there sounds like AM is in contract with havenlock investments?

Actually if you buy one of these PT shares you have a contract with Thick As Thieves who has a contract with Havelock.

There's no contract with Havelock. When you buy a TATI PT share, we hold "real" shares for each represented share.

[TheJuice]

Basic math shows how overpriced the shares are: there are ~10million more bitcoins left to be mined over the next century or so. Even if ASICMiner were able to maintain 20% of the total network hashrate throughout that period (breathtakingly unlikely), they'd only mine 2million BTC. Split between the 400,000 shares that creates an upper limit of 5BTC/share.

You did forget the hardware sales

You forgot 2 things:

1) If a company is selling shovels to those looking for gold. Can the company make more than all the gold that exists in the world? Obviously YES. AsicMiner is selling shovels. I saw someone try and estimate the amount of hashing by asicminer hardware (sales + it's own) - i think it was more like 30% of total network speed.
2) Transaction fees. When bitcoin takes off we should see transaction fees drastically increase, thus the about 'mined' is infinite.

[chriswilmer]

Basic math shows how overpriced the shares are: there are ~10million more bitcoins left to be mined over the next century or so. Even if ASICMiner were able to maintain 20% of the total network hashrate throughout that period (breathtakingly unlikely), they'd only mine 2million BTC. Split between the 400,000 shares that creates an upper limit of 5BTC/share.

You did forget the hardware sales

You forgot 2 things:

1) If a company is selling shovels to those looking for gold. Can the company make more than all the gold that exists in the world? Obviously YES. AsicMiner is selling shovels. I saw someone try and estimate the amount of hashing by asicminer hardware (sales + it's own) - i think it was more like 30% of total network speed.
2) Transaction fees. When bitcoin takes off we should see transaction fees drastically increase, thus the about 'mined' is infinite.

Theoretically, ASICMiner could start selling hot dogs if it made business sense. Thus, the profits from the dividends are not constrained in any way by the number of bitcoins remaining to be mined.

[Aedius]

Basic math shows how overpriced the shares are: there are ~10million more bitcoins left to be mined over the next century or so. Even if ASICMiner were able to maintain 20% of the total network hashrate throughout that period (breathtakingly unlikely), they'd only mine 2million BTC. Split between the 400,000 shares that creates an upper limit of 5BTC/share.

You did forget the hardware sales

You forgot 2 things:

1) If a company is selling shovels to those looking for gold. Can the company make more than all the gold that exists in the world? Obviously YES. AsicMiner is selling shovels. I saw someone try and estimate the amount of hashing by asicminer hardware (sales + it's own) - i think it was more like 30% of total network speed.
2) Transaction fees. When bitcoin takes off we should see transaction fees drastically increase, thus the about 'mined' is infinite.

This is correct. If Bitcoin is to succeed, then AM will likely be around for a long time. If there is mass adoption of Bitcoin, block rewards could be higher than they are now.

Does anyone else find it interesting that the share price of ASICMINER has seemed to move inversely proportional to the price of BTC? Perhaps this is do to the recent string of IPOs and people looking to make a 'quick buck'. IMO, ASICMINER is a leveraged bet on the success of BTC and if BTC is successful then ASICMINER is vastly undervalued at current levels.

[Kuroth]

How much has Bitfountain already invested, to give it right to 50% of shares?

Good Question..  I would like to know too..

[JimiQ84]

How much has Bitfountain already invested, to give it right to 50% of shares?

Good Question..  I would like to know too..

Bitfountain invested know-how. Asicminer would be worthless without it. Know-how is what makes the difference between failure and success.

[lophie]

Basic math shows how overpriced the shares are: there are ~10million more bitcoins left to be mined over the next century or so. Even if ASICMiner were able to maintain 20% of the total network hashrate throughout that period (breathtakingly unlikely), they'd only mine 2million BTC. Split between the 400,000 shares that creates an upper limit of 5BTC/share.

You did forget the hardware sales

You forgot 2 things:

1) If a company is selling shovels to those looking for gold. Can the company make more than all the gold that exists in the world? Obviously YES. AsicMiner is selling shovels. I saw someone try and estimate the amount of hashing by asicminer hardware (sales + it's own) - i think it was more like 30% of total network speed.
2) Transaction fees. When bitcoin takes off we should see transaction fees drastically increase, thus the about 'mined' is infinite.

This is correct. If Bitcoin is to succeed, then AM will likely be around for a long time. If there is mass adoption of Bitcoin, block rewards could be higher than they are now.

Does anyone else find it interesting that the share price of ASICMINER has seemed to move inversely proportional to the price of BTC? Perhaps this is do to the recent string of IPOs and people looking to make a 'quick buck'. IMO, ASICMINER is a leveraged bet on the success of BTC and if BTC is successful then ASICMINER is vastly undervalued at current levels.

Not ASICMINER, The whole bitcoin related stock market is affected by it especially the companies who got more friction against fiat.

[velacreations]

Bitfountain invested know-how. Asicminer would be worthless without it. Know-how is what makes the difference between failure and success.

know-how, experience, contacts, location, etc, etc, etc

They took a company from nothing to almost $200M in under a year.  I think that warrants some ownership.

[Birdy]

Theoretically, ASICMiner could start selling hot dogs if it made business sense. Thus, the profits from the dividends are not constrained in any way by the number of bitcoins remaining to be mined.

Hotcats? Maybe even fried?