ASICMINER: Entering the Future of ASIC Mining by Inventing It

[bitcoin.newsfeed]

I'd also like to add that unless you have time to follow the developements multiple times a day, you should instead get a broker that manages it, if you really want to invest something.

Wrong. You must be in ASICminer, or a Board Member at least. I was here 16+ hours a day, with multiple alerts set, grasping every public info what i could get... it didnt help... I am short of ~40 000 Euro now. I was wondering why boardmembers were selling thousands of shares when they were 2.5-5.0. Now i know. We simple didn't have an inside info, that ASICminer is mining at full capacity at 47Ghs in first datacenter and that ASICminer is not planning to increase hashrate for several months... with this info it would be easy to make market decisions and NOT lost money.

[data]

I think that selling miners currently is probably more profitable than mining, although I have the impression we are missing out on quite a bit of bitcoins. But there is no way (for me) to judge how ASICMINER is actually fairing as long as dividends are being withheld and no statement on financials.

That is: Maybe we are actually still making quite a bit, but nobody really knows about it. I have a feeling that the Gen-1 boards are still in high demand, even though they are inefficient, just because of better $/Gh

[SOSLOVE868]

I think that selling miners currently is probably more profitable than mining, although I have the impression we are missing out on quite a bit of bitcoins. But there is no way (for me) to judge how ASICMINER is actually fairing as long as dividends are being withheld and no statement on financials.

That is: Maybe we are actually still making quite a bit, but nobody really knows about it. I have a feeling that the Gen-1 boards are still in high demand, even though they are inefficient, just because of better $/Gh

Someone side that 20th of this month ,AM will be issuing its new financial statement, you may get useful information by that time.

[Rival]

yes, FC promised at financial statement on the 20th. That is only 5 days out.

[Rival]

Reposted to show validity of the assumption. Original post August 31,2013. How much was AM worth back then?

"The models for a deflationary currency are really not as established as inflationary, so people tend to not really understand the differences.  When the value of a unit of currency is continually rising, one of the best investments will always be buy the currency and hold. This is because the prices of everything as priced in the defationary currency will continuously drop, as opposed to always rising as in an inflationary currency. You can get more for the same unit of currency next week than you can by spending it this week. Savers get wealthier every day by doing nothing.

In an inflationary currency the opposite is true. The only way that your currency can be out there working for you is if you exchange it for something else. You must hold an asset, such as land, commodities, equities, bonds, anything that will generate an additional cash flow to at least compensate for the lost value of holding the currency. Infaltionary currency was designed to be spent, and deflationary currency is designed to be held.

Equities are not immune to this fundamental feature of a deflationary currency. If a stock costs 1 btc and the value of btc doubles, all things being equal the stock price should move to 0.5 btc. This is a simple concept that everyone should agree upon. The problem once again, is that you went nowhere. Had you held btc your wealth would have doubled. But since you are holding an asset, you gained nothing. This is fundamentally true in a deflationary currency system. You see this problem every day when people purchase asic miners, although it is overshadowed by difficulty increases.

The deflation is like and endless juggernaut, it never stops, and the base prices of everything priced in it must by definition drop and drop and drop. Market fluctuations and speculation can mask it for a time, but in the end it is relentless as gravity and it will reign supreme eventually.

Equities can certainly counteract this effect, by the inherent creation of value by the underlying company. A company may for example cost 1btc per share, and return 0.01 btc per week. This is enough to account for a 1% per week increase in the value of btc. If you purchase this stock for 1btc, hold it for a week, get your dividend, and the value of btc increases by 1% you are exactly where you would have been if you had just held btc, because the value of the stock should have decreased in a rational market by 1%.

Rumors, announcements, FUD, competition, momentum, perception,these things can also affect price. They can cause big moves and make everything look crazy to an analyst trying to sort it out. But working steadily and continuously in the background the gravity that is deflation will eat the value from any held asset. Even an asset such as ASICminer. In infaltionary currency, any asset that is not increasing in value is dead money. In a deflationary currency, an asset that that is not decreasing in value is a win, and if it rises at all you have really really really done well.

So, in conclusion, any equity that can consistently provide dividends to the shareholder at at rate that exceeds the rate of increase in the currency is better than just buying coins and holding. If it cannot, it needs to be taken out in the yard and shot because you are losing value every day you hold it."

[ex-trader]

Wrong. You must be in ASICminer, or a Board Member at least. I was here 16+ hours a day, with multiple alerts set, grasping every public info what i could get... it didnt help... I am short of ~40 000 Euro now. I was wondering why boardmembers were selling thousands of shares when they were 2.5-5.0. Now i know. We simple didn't have an inside info, that ASICminer is mining at full capacity at 47Ghs in first datacenter and that ASICminer is not planning to increase hashrate for several months... with this info it would be easy to make market decisions and NOT lost money.

Not true.

There were some people (Vycid most prominently) who spent a lot of time shouting that AM had got very over-valued. I was saying sell back in July....

https://bitcointalk.org/index.php?topic=235763.msg2633510#msg2633510

Shares we're over-valued then even with a decent share of hash-rate, that was only ever going to decline. Basic maths said 4-5 was over-priced but no-one wanted to listen..... great short-term dividend week by week DOES NOT equal long-term future...

[runeks]

Looking to borrow 100 ASICMiner shares for no more than 6 months at 50% yearly interest.

I am looking for someone to borrow 100 ASICMiner shares from. Either direct shares or shares on Havelock. I really want to borrow them from a single person, if possible.

I will be paying 50% annualized interest every week on the total value of the shares at the purchase date, according to Havelock. Interest will be paid once every week to an address of your choosing.

If you try 796,things would be much easier.The finacing and margin trade of 796 is exactly what you want except the period(the longest period is 4 weeks and the lowest weekly interest rate is 0.2% which is much lower than you offers)
If you are interested,try the link in my signature or just the link below http://union.796.com/link/redirect/100029?f=word

Thanks for the suggestion, but I am not interested in adding a counterparty.

[superduh]

AM should just buy up some equity in cointerra since they are open to selling off equity. owning like 5%-10% may be a good investment for long term.

[VolanicEruptor]

I even recall FC saying he is willing to accept single digit revenue annually.. this doesn't seem too hard to do if you just invest it into something else, no need to keep trying to build your own shit.  Hell, buy some VMC machines 

[SebastianJu]

AM should just buy up some equity in cointerra since they are open to selling off equity. owning like 5%-10% may be a good investment for long term.

Why should he buy for enduserprices? That negates the advantage one has with a own asic design and the possibility to create miners at cost. If it would make sense to buy at enduserprices i would buy miners myself. But i dont for a reason.

[bbxx]

I hope friedcat will design good looking bitcoin space heaters.
I am using new blades as heaters they are very good at it. Some buildings are still using electricity based heating, the demand would be huge.

Just integrate real controller board with wifi to avoid utp cables hassle and nice radiator with silent fans.
Nice case and 200 chips per heater to compete with standard heating solutions.

Fire and forget device, create also public place device, integrate with coin slot and qr display for pubs/shops and sells will skyrocked.

I would love to join to friedcat team i have a lot of ideas

[shawshankinmate37927]

On that note it may be interesting to establish a shareholder sentiment on the pricing strategy for ASICMINER hardware, between
a) aggressive (maximizing profits)
b) fair/honest
c) competitive (undercutting competition)

Maybe someone would want to organize a poll?

Has the board ever discussed or considered selling hardware via auction?

[Jutarul]

On that note it may be interesting to establish a shareholder sentiment on the pricing strategy for ASICMINER hardware, between
a) aggressive (maximizing profits)
b) fair/honest
c) competitive (undercutting competition)

Maybe someone would want to organize a poll?

Has the board ever discussed or considered selling hardware via auction?

Auctions were used in the beginning to do price discovery. After that prices were set by bitfountain and offset by resellers. So far the policy resembled a cross between a) and b), because a) would benefit shareholders and b) would encourage selling the equipment out in a timely manner.

[superduh]

AM should just buy up some equity in cointerra since they are open to selling off equity. owning like 5%-10% may be a good investment for long term.

Why should he buy for enduserprices? That negates the advantage one has with a own asic design and the possibility to create miners at cost. If it would make sense to buy at enduserprices i would buy miners myself. But i dont for a reason.

equity in the company.... not their actual miners .cointerra does well so does asicminer. symbiotic relationship

[kmtan]

friedcat any news for asicminer gen2 ASIC chips

[BitThink]

friedcat any news for asicminer gen2 ASIC chips

He mentioned some ongoing negotiate with other two gen-2 chip teams in China in the last update. Could we assume AM will not have its own gen-2 chip, or at least friedcat is not satisfied with AM's own design? Anyway, wish we hear some good news of the collaboration in the next update.

[kaidy1979]

Thanks for the suggestion, but I am not interested in adding a counterparty.

It's fine.

[VolanicEruptor]

Remember when we all worshipped Friedcat?  LOL

[keystroke]

Remember when we all worshipped Friedcat?  LOL

Remember when people were worried ASICMINER could 51% the network?

[bitcoin.newsfeed]

No. Im not a board member and even though i knew that Asicminer cant grow much further when it was at 4.5btc i didnt sell. Partly because i didnt want to lose the divs, partly because i feared to sell so many direct shares. Stupid me, now my shares are worth much less, even though i got the divs. Hopefully i learned the lesson for next time.
But no, there was no hidden info needed. Everything was given by friedcat.

ex-trader and SebastianJu, guys I am not arguing if share price was overvalued or not, i never wanted sell shares, what i am saying is that shareholders didnt know that ASICminer was mining at full capacity at 47Ths and dont plan/or cant increase hashrate for several months ahead. If we knew this and with all info from competitors and network growth it would be easy to guess that 2.5 wasn't so "Great entry point for new investors" as it was presented.