Quote from: VeeMiner on May 25, 2013, 08:46:36 AM

Quote from: matt4054 on May 25, 2013, 08:39:07 AM

Friedcat has very good reasons NOT to deploy more hash power as long as AM hold the current high % of the global Bitcoin hashrate, and it's already close to 30%, so there is little margin here. Approaching 50%, let alone going over it would definitely (and rightfully) be seen as a threat to the security of the network (basically AM could decide what makes it to the blockchain or not, and double spend at wish), creating big FUD on BTC and probably plummeting the exchange rate. Friedcat does not want that to happen of course...

And that's not the only problem, it also wouldn't make sense economically. Always keep in mind that the money supply is constant (less the random variance, and difficulty retargeting every 2000 blocks window, that is removed when considering longer time frames). Let's suppose AM gets close to 100% of the hashrate at, say 200 Thash/sec. Then if it starts hashing at 400 Thash/sec, it would still earn close(r) to 100% and earn... just the same, but with twice the hardware costs, same for electricity costs. See the problem here?

you are exactly right. I think the most hashrate that AM should deploy is around 35 percent of the network. More than that would be harmful to the bitcoin enviroment and economy.

If this is indeed the path ASICMiner is going down, I sure hope they're not simply letting hardware sit idle, waiting for others to join the network so they can put more hardware to use.

Has friedcat stated his position on this?

In my opinion, if ASICMiner doesn't want to increase its hash rate with hardware it already has (which makes sense), it should sell this hardware instead.

In two years it will be worth nothing (or very little).