ASICMINER: Entering the Future of ASIC Mining by Inventing It

[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.

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[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?

[velacreations]

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?

that's a BTC100,000,000 idea right there...

[keeron]

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?

that's a BTC100,000,000 idea right there...

Fried, Hot Cats sold from a Garden, with ICE tea on the side :-)

[Ninshatamoto]

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?

that's a BTC100,000,000 idea right there...

Fried, Hot Cats sold from a Garden, with ICE tea on the side :-)

I think that Hot Cats are bASICally, nasty from a nutritional standpoint.  I wouldn't want to be anyone's Lab Rat with regard to finding out whether it is safe to eat.  It's entirely possible that they feed them (BTC)Growth hormones to get them meaty enough. When it comes to chemicals in food, it's like a sandstorm of possible problems that could arise.

[lophie]

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?

that's a BTC100,000,000 idea right there...

Fried, Hot Cats sold from a Garden, with ICE tea on the side :-)

I think that Hot Cats are bASICally, nasty from a nutritional standpoint.  I wouldn't want to be anyone's Lab Rat with regard to finding out whether it is safe to eat.  It's entirely possible that they feed them (BTC)Growth hormones to get them meaty enough. When it comes to chemicals in food, it's like a sandstorm of possible problems that could arise.

Guys, I filled this thread with alot of nonesense for many months now and got numerous  ignores...... But you really opened my eyes to the necessity of this button......

[freedomno1]

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?

that's a BTC100,000,000 idea right there...

Fried, Hot Cats sold from a Garden, with ICE tea on the side :-)

I think that Hot Cats are bASICally, nasty from a nutritional standpoint.  I wouldn't want to be anyone's Lab Rat with regard to finding out whether it is safe to eat.  It's entirely possible that they feed them (BTC)Growth hormones to get them meaty enough. When it comes to chemicals in food, it's like a sandstorm of possible problems that could arise.

Guys, I filled this thread with alot of nonesense for many months now and got numerous  ignores...... But you really opened my eyes to the necessity of this button......

I'll be honest they opened up the possibilities of name jokes on the forum lol.... (Security ticker jokes thread anyone T_T)
Geez why do most of the bitcoin securities somewhat fit properly into various sentences  

Back to AM awaits a nice announcement sooner or later

[GodHatesFigs]

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.

I'm well aware of transaction fees; their potential simply does not justify ASICMiner's P/E of 100, especially as their first mover advantage is about to come under fire. The magnitude of the hype around this company is unreal.

[Ninshatamoto]

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?

that's a BTC100,000,000 idea right there...

Fried, Hot Cats sold from a Garden, with ICE tea on the side :-)

I think that Hot Cats are bASICally, nasty from a nutritional standpoint.  I wouldn't want to be anyone's Lab Rat with regard to finding out whether it is safe to eat.  It's entirely possible that they feed them (BTC)Growth hormones to get them meaty enough. When it comes to chemicals in food, it's like a sandstorm of possible problems that could arise.

Guys, I filled this thread with alot of nonesense for many months now and got numerous  ignores...... But you really opened my eyes to the necessity of this button......

I feel truly sorry for you.

[Jimmy2011]

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.

From a long-term point of view, I think ASICMiner share price should keep track of the bitcoin price at the short time scale, but on the other hand, ASICMiner share price may be the other case in bitcoin at a long time scale.

[Pale Phoenix]

I'm well aware of transaction fees; their potential simply does not justify ASICMiner's P/E of 100, especially as their first mover advantage is about to come under fire. The magnitude of the hype around this company is unreal.

I think you confuse hype with trust based on a history of strong performance and promises kept. There are obviously competitive threats facing the company, but to date, no one has come close to AM's track record. Many of us take those threats very seriously, but since we're dealing with imperfect information, you can't expect people to blindly bet on other horses when none have gotten very far out of the gate.

If you are entering this space for the first time, perhaps you'd place your bets on another company, but each of them has their own hype machine at work, and none have AM's record of success.

All of that said, I don't see what is to be gained by coming here and telling AM shareholders how bleak the future looks. If your analysis leads you to believe that AM is overvalued, invest accordingly and keep your perceived strategic advantage to yourself. That's how the smart money generally works anyway.

[101111]

I'm well aware of transaction fees; their potential simply does not justify ASICMiner's P/E of 100, especially as their first mover advantage is about to come under fire. The magnitude of the hype around this company is unreal.

How do you figure P/E of 100?

[ThickAsThieves]

ASICMINER mentioned on RT http://www.youtube.com/watch?feature=player_detailpage&v=LC3ZHRF_8kQ&t=699

[freedomno1]

ASICMINER mentioned on RT http://www.youtube.com/watch?feature=player_detailpage&v=LC3ZHRF_8kQ&t=699

So I wasn't the only one watching RT today  
They have been talking a lot about bitcoin lately it's been interesting to watch their talks

Adds to Press Board

[DeathAndTaxes]

I'm well aware of transaction fees; their potential simply does not justify ASICMiner's P/E of 100, especially as their first mover advantage is about to come under fire. The magnitude of the hype around this company is unreal.

How do you come up with a P/E of 100?