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>It sounds like he and many others are investing in BTC itself, not the Bitcoin ecosystem. If you can get a 10x return per year just by hodling, why bother to d
by tmh88j 9y ago
>It sounds like he and many others are investing in BTC itself, not the Bitcoin ecosystem. If you can get a 10x return per year just by hodling, why bother to develop anything?
I completely agree as of 2018, but Bitcoin has been around for almost 10 years now and has seen "real" returns for the past 4 or 5 years. I suppose my question should be restated as "Did Bitmain take a gamble and it paid off?" I still find it strange that not a single prominent US based BTC miner manufacturer has hit the scene.
- wmf 9y agoButterfly Labs, HashFast, and CoinTerra were all US-based. Then you had KnCMiner in Sweden, Spondoolies in Israel, etc. I would say that Bitmain was a huge gamble in the early days since the ASICs depreciate very fast and thus any delay in developing them can be fatal. But after selling eight generations of hardware at very high margins they can probably coast now.
- tmh88j 9y ago>Butterfly Labs, HashFast, and CoinTerra were all US-based. Then you had KnCMiner in Sweden, Spondoolies in Israel, etc. None of them produced anything. CoinTerra was the only that didn't close as a result of charges related to fraudulent activity. Not to be a jerk, but that's not what I was asking. You provided supporting evidence to my claim. >I would say that Bitmain was a huge gamble in the early days since the ASICs depreciate very fast and thus any delay in developing them can be fatal. But after selling eight generations of hardware at very high margins they can probably coast now. That's more in line with what I asked. I'm not in disagreement, but rather looking for any research into why the mining market currently stands this way.