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Totally agree. Why would anyone wants to sell the goose who lays golden eggs while gold cost more than the goose? They'll pile up cash from "preorders", mine
by gesman 14y ago
Totally agree.
Why would anyone wants to sell the goose who lays golden eggs while gold cost more than the goose?
They'll pile up cash from "preorders", mine bitcoins and when time is right - will dump outdated devices to customers.
- BaconJuice 14y agoare there any alternatives to this? and some thing that's already selling them and not pre-orders?
- starpilot 14y agoI see it as a futures contract on the value of the BTC. Selling a mining ASIC locks in profit for the seller, betting that this will exceed the time-value generated from the rig itself. Buying a rig locks in a loss, betting that it will pay for itself. We can't be certain whether the BTC will be at US$1,000 or US$1 a year from now. You could make a case for either side, that's why the contract exists.
- sliverstorm 14y agoWhich, by the way, doesn't mean they are betting against BTC. They just elected to take sure profit up front, over less certain profit of potentially greater value long-term.
- rbanffy 14y agoI don't think so. They probably needed the preorder money to fully develop the device and to be able to manufacture it.
- sachingulaya 14y agoThe profitability of ASICs is going to decrease at a rapid rate once they start shipping to consumers. Additionally, in a few months the market is going to be flooded with cheap ASICs. From BFL's perspective if they don't release first they're dead in the water. They don't know where their competitors are compared to them but they recognize it's a winner take all situation. The natural thing to do would be to take pre-orders to fund the manufacturing and start realizing profits now. Also, if your competitors are offering pre-orders you should be too.
- laurenia 14y agoDid they collect the money in advance? If not, it seems to me that the shipping time is almost irrelevant.
- unreal37 14y agoYes, you pay at time of order, and wait a few months for the unit.
- thereallurch 14y agofew months - year...
- ihsw 14y agoThis waxing and waning of mining devices is certainly going to become the norm. * Buy up $10K worth of devices * Make your money while flooding the market with fast and easy BTC * Sell off all your hardware after the profit margins have cratered * Wait for new hardware and rinse and repeat Personally I will be extremely glad when the first wave hits as the hoarders will start feeling the pinch of inflation.
- nazgulnarsil 14y agobitcoin does not work that way. Inflation decreases at a set rate.
- jquery 14y agoDifficulty adjusts week-to-week. Being the only guy with an ASIC is like a license to print money. Being the 10,000th person with an ASIC will be like trying to mine with a netbook today.
- ihsw 14y agoSupply will always be constant however how it's divided changes -- people who previously enjoyed lack of competition are now having their feet held close to the fire.