Quote from: BFL-Engineer on September 21, 2012, 08:55:49 AM

Regarding whether we are a scam or not, the several thousand shipped units can speak for itself. We've used the experience gained in mass production
of our singles in our SC production cycle (we've got a MyData Pick-And-Place and an Oven for high-speed and high-volume inhouse assembly). Someone
mentioned the backlog is already 5,000. On a production speed of 500 units a day for instance, 5,000 will only take 10 days. We've already prepared the
infratructue for very high volume production, since the great portion of the orders will come in after the SC is released to the public. 5,000 units is not much
compared to orders we expect to receive after SC release, so we're very ready for it.

What we should be worried about is a post initial delivery flood of ASICs. Consider this. Approx. 3 small time operations, 2-3 individuals each, outside of BFL contributed to FPGA options for Bitcoin mining. Only two of the small FPGA operations will move to providing ASIC products. These small operations will rely on electronics assembly companies to produce units in rather small batch quantities.

With BFL having confirmed 22 employees, purchasing PCB SMT assembly equipment typically found in high volume assembly, we must consider BFL's capital and operating expenses, their need to make a profit and what impact that will have on Bitcoin.

Once BFL's capital investments are recouped, e.g. assembly equipment and ASIC NRE, BFL will be free to produce ASIC's at an estimated cost of 10-20 USD, including the PCB and housing. Then we should add on operating expenses such as labor, executive compensation, facilities, etc.

With all of this in mind the smart miner should keep in mind that Bitcoin is BFL's only market. That said, with BFL's sole profit center being Bitcoin there is a large incentive for BFL to sell as many ASIC's as possible at whatever cost the market will bare. The Bitcoin mining community may be faced with a harsh reality that BFL would be the only party that would make a profit with certainty.

BFL has advertised their high volume assembly as a boon to miners, so that they can get their hardware fast - now. Looking forward, it is another indication to how BFL is poised to saturate the mining market at whatever price point.

edit:
If I did not already have BFL equipment on order I would not invest. This seems to me to be a very questionable time in Bitcoin mining.