ASICMINER: Entering the Future of ASIC Mining by Inventing It

[wasubii]

Weren't a lot of the chips originally sold in Fiat so shouldn't we have Fiat reserves to handle expenses right now? I'm all for taking a large share of the network even at low profitability if it means we price out competition to give us a better footing when the price increases. That said I still want divs.  

Exactly this. The low BTC price is the same for everyone - as long as AM can be relatively more profitable then it is good news as it will hamper competitors with higher power costs (I'm looking at you Bitfury)

[webbrowser]

I'm really worried that the current BTC prices will affect the profitability of the whole mining operation. Sure, we'll mine the same amount of coins and possibly even more if the competition goes down. But, as some people already pointed out, AM will have to pay for electricity and other expenses. And with the price tanking this severely, I think the whole mining operation may become too unprofitable.

For centralised industrial mining operations (like Bitfury, megabigpower?) where the block rewards are converted to Fiat as soon as practical, lower bitcoin prices discourages further investment. This is a good thing, in my view.

If the centralised industrial mining operation only converts to fiat what is necessary to pay for overheads, and holds the rest because they are long on bitcoin, they don't depress the value of bitcoin and I'm somewhat neutral about them.

As for individuals like you and I who are considering exposure to the mining sector, we're probably long-term bullish on bitcoin and would plan to hold most of it. So the decision to mine is essentially a bet that we will reap more in mining over time than if we simply bought and held bitcoins. In this case, I don't think the current bitcoin price is a big factor.

[Mabsark]

I don't think this price drop will have any effect on miners at all as I don't believe the price will stay so low for more than a few days, it'll be back to around 600 USD by the end of the week.

[feifa]

Total hashrate reaches 199P

[rudi]

We had gain access of cheap electricity and high power capacity.

Does anyone know what "cheap electricity" can realistically mean in China?
The equivalent of about $0.1/kWh? More? Less?
I realize we can't know for sure, but maybe someone knows what is possible in China.

[xhomerx10]

We had gain access of cheap electricity and high power capacity.

Does anyone know what "cheap electricity" can realistically mean in China?
The equivalent of about $0.1/kWh? More? Less?
I realize we can't know for sure, but maybe someone knows what is possible in China.

 There's not going to be any cheap power in China.  They have problems with pollution and smog due to the fact that around 80% of their electricity production is fossil-based (and about 60% of that is coal).  Hell they are still trying to stop people from burning coal in their little 30m² flats for heat.  Pushing these people into the electricity market is sure to put a burden on their already strained grids.  Presently they are implementing incentives for solar, wind, gas and other "clean" energy alternatives and pushing a conservation agenda with a tiered rating structure based on consumption which means higher rates with higher consumption. 

 The cheap power is in Washington state, good ole USA.

The rates I have seen for China are  $0.08 USD/kWh and up for residential and $0.12 USD/kWh and up for non-residential, non-industrial.  There is cheap power for farmers in poor areas which is around $0.03USD/kWh but you don't want to get caught running a mining farm there or you will surely be a friedcat.

[bitcoin.newsfeed]

Update
1. Due to the relatively lower interest from individual miners as well as OEM producers, the self mining has re-started from middle of July. We had gain access of cheap electricity and high power capacity. We hope to regain the average hashrate percentage similar to 2013 with this generation of chips.

Why aren't bitcoins from one month mining distributed to the shareholders? And why isn't AM hashrate or mining address public ? ? ?

And what about that promised interview ?   ffs...

What is the reason to announce that AM re-started the self-mining when all bitcoins goes to the private hands?

[MichaelBliss]

Update
1. Due to the relatively lower interest from individual miners as well as OEM producers, the self mining has re-started from middle of July. We had gain access of cheap electricity and high power capacity. We hope to regain the average hashrate percentage similar to 2013 with this generation of chips.

Why aren't bitcoins from one month mining distributed to the shareholders? And why isn't AM hashrate or mining address public ? ? ?

And what about that promised interview ?   ffs...

Poor guy you are.  That bag must be heavy by now.   May I suggest you lighten it?   I could use some more shares at the current rate.

[whalezy]

why not AM build a public hashrate pool? The affiliates can join this pool, then the pool will be big enough to attract outsiders. Our dividends will include the fees, at least AM's affiliates don't need to pay the fee to other pools.

[KarmaShark]

We are now at 200 Petahash for the Bitcoin network, and it is still growing as we speak. There is a good chance FriedCat has something to do with this, I would be patient over the rest of August as this story unfolds. If the price of Bitcoin stays in the $500-$600 USD range, rising difficulty and dropping BTC price will push many of AM's competition into a situation where they either mine at a loss and wait for the price to ramp up, or turn off their miners.

In the approaching environment, whomever can deploy hashrate onto the network at the cheapest cost per GH is going to make bank. AM may well flood the network with cheap to run Gen3 chips and put the hurting on the competition. This is in-line with ASIC MINER's stated goal for the remainder of 2014, so we could see some fireworks soon (along with a lot of upset miners).

[jjdub7]

We are now at 200 Petahash for the Bitcoin network, and it is still growing as we speak. There is a good chance FriedCat has something to do with this, I would be patient over the rest of August as this story unfolds. If the price of Bitcoin stays in the $500-$600 USD range, rising difficulty and dropping BTC price will push many of AM's competition into a situation where they either mine at a loss and wait for the price to ramp up, or turn off their miners.

In the approaching environment, whomever can deploy hashrate onto the network at the cheapest cost per GH is going to make bank. AM may well flood the network with cheap to run Gen3 chips and put the hurting on the competition. This is in-line with ASIC MINER's stated goal for the remainder of 2014, so we could see some fireworks soon (along with a lot of upset miners).

+1

why not AM build a public hashrate pool? The affiliates can join this pool, then the pool will be big enough to attract outsiders. Our dividends will include the fees, at least AM's affiliates don't need to pay the fee to other pools.

Yep, they should.  Even with a pool fee for outsiders of something small like 0.1%, this would begin to offset electrical costs for hosting the servers, etc and of the overall operation.  And its a much smaller fee than most pools, so I'm sure you'd start to see some pull-back from other pools as people switched.  It would also make the AM pool larger, decreasing the variance between blocks (and therefore should add value to the share price in this manner).

[Chris_Sabian]

We are now at 200 Petahash for the Bitcoin network, and it is still growing as we speak. There is a good chance FriedCat has something to do with this, I would be patient over the rest of August as this story unfolds. If the price of Bitcoin stays in the $500-$600 USD range, rising difficulty and dropping BTC price will push many of AM's competition into a situation where they either mine at a loss and wait for the price to ramp up, or turn off their miners.

In the approaching environment, whomever can deploy hashrate onto the network at the cheapest cost per GH is going to make bank. AM may well flood the network with cheap to run Gen3 chips and put the hurting on the competition. This is in-line with ASIC MINER's stated goal for the remainder of 2014, so we could see some fireworks soon (along with a lot of upset miners).

Let's just hope that fireworks are beautiful and not explosions of terror.

[Mabsark]

Yep, they should.  Even with a pool fee for outsiders of something small like 0.1%, this would begin to offset electrical costs for hosting the servers, etc and of the overall operation.  And its a much smaller fee than most pools, so I'm sure you'd start to see some pull-back from other pools as people switched.  It would also make the AM pool larger, decreasing the variance between blocks (and therefore should add value to the share price in this manner).

I created a poll recently about what method people would prefer AM to use for mining.

The results are currently as follows:

P2P = 36.4%
Solo-mining = 34.5%
Own pool = 29.1%
Already established pool = 0%

[gog1]

We are now at 200 Petahash for the Bitcoin network, and it is still growing as we speak. There is a good chance FriedCat has something to do with this, I would be patient over the rest of August as this story unfolds. If the price of Bitcoin stays in the $500-$600 USD range, rising difficulty and dropping BTC price will push many of AM's competition into a situation where they either mine at a loss and wait for the price to ramp up, or turn off their miners.

In the approaching environment, whomever can deploy hashrate onto the network at the cheapest cost per GH is going to make bank. AM may well flood the network with cheap to run Gen3 chips and put the hurting on the competition. This is in-line with ASIC MINER's stated goal for the remainder of 2014, so we could see some fireworks soon (along with a lot of upset miners).

What's AM's power cost?  Is it significantly better than the competition?

[Franktank]

From the Hardware thread:

1. The miner can not directly run with f2pool. If you want to mine on f2pool, you need a PC or a raspberry PI
with a mining proxy. The ethernet controller needs to be pointed to the proxy instead of the pool.

2. We now offer the shipping of fully assembled devices. If you need them to be shipped as a whole please specify
in your order. We still prefer separate shipping though, because it will reduce the potential shipping damage significantly.

3. The ethernet controller needs a 12V 1A DC input. You could either use a separate AC/DC for it, or wire one
directly from your PSU for the hashing boards.

4. Shipping to countries outside mainland China is free.

[chairforce1]

Something is lacking somewhere. There is equipment in hand yet the hardware thread is dead and other companies have pre-orders filled for miles.

[stompysteve]

Something is lacking somewhere. There is equipment in hand yet the hardware thread is dead and other companies have pre-orders filled for miles.

I think people are reluctant to buy miners when the hashrate keeps flying up

[dropt]

Something is lacking somewhere. There is equipment in hand yet the hardware thread is dead and other companies have pre-orders filled for miles.

I think people are reluctant to buy miners when the hashrate keeps flying up

Also there may be some hesitation due to efficiency.  It'd be nice to see what could be done chasing efficiency with the BE200 instead of max HR.

[aahzmundus]

Something is lacking somewhere. There is equipment in hand yet the hardware thread is dead and other companies have pre-orders filled for miles.

I think people are reluctant to buy miners when the hashrate keeps flying up

Also there may be some hesitation due to efficiency.  It'd be nice to see what could be done chasing efficiency with the BE200 instead of max HR.

I think the lack of first hand English information on Asicminer is to blame, I mean... most all the information you can find on the company is in this thread... for most people that looks shady as fuck.  Sure most people in the know consider AM the best mining company in existence in terms of how they have conducted themselves relative to competition... but the PR game is only now being addressed.

Another issue for me at least was that FC wants to sell lots of units, I am still debating on buying one right now from Canary... or waiting till the difficulty goes up and people are dumping them.  I mostly want one just to sit on my desk because they look sexy as fuck!

[hdbuck]

I dont get it, the website is a total mess. How can you offer miners worldwide without a proper version in both chinese and english (+ with some sort of basic 'basket' payement system!)?
Wtf do they only sell via PMs and emails?!