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Lets agree that if the mining price goes up, it will be always cheaper than public cloud. Otherwise, you would have run mining on AWS/GCP and be profitable. In
by davidbuniat 8y ago
Lets agree that if the mining price goes up, it will be always cheaper than public cloud. Otherwise, you would have run mining on AWS/GCP and be profitable. In this scenario, we are still able to offer cheaper price to the customers and higher price to the miners even by just binary switching. Assuming the gap is not negligible.
If the price goes down, customers will be able to set lower price. As long as GPU holders profit margin is high enough given electricity and maintenance costs, they will do the compute.
If the marketplace matures, pricing of mining, deep learning, rendering and other tasks will be driven by the market. At Snark AI we are working on towards creating this marketplace that will provide optimal benefits to all parties.
- thisisit 8y ago> Lets agree that if the mining price goes up, it will be always cheaper than public cloud I am confused. Let's say your price is $x while public cloud is $x+y. When cryptocurrency price rise the incentive is to increase your price to $x+y, if that is the profit point. In which case you will no longer be cheaper than public cloud. Any differences will be negligible. So, I am not sure you can claim to be always cheaper than public cloud.
- davidbuniat 8y agoFollowing your notation, consider our new price will be $x+y', where y' is the mining price difference. You are right my claim that y'<y is slightly weak (was based on "gap is not negligible" assumption, see below). "gap is not negligible" - means if y' gets near to y, then y will get even higher and there will be always a market gap, which I think you disagree with. Based on your suggestion, on extreme scenario I would soften my claim to y'=<y, without us making profit. :)