Ninjastic
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Board Securities
Re: ASICMINER: Entering the Future of ASIC Mining by Inventing It
by
philipma1957
on 07/06/2013, 03:33:17 UTC
Quote from: bitfair on June 07, 2013, 02:53:55 AM
Quote from: GuiltySpark343 on June 07, 2013, 12:56:27 AM
Quote from: bitfair on June 06, 2013, 09:50:27 PM
The comparison is faulty because AM is a company and the other alternatives are hardware.

Why is that relevant, you ask? Well, AM will (hopefully) continuously renew itself and its strategy in order to keep earnings high, whereas the hardware simply gets outdated and earns progressively less and less as time goes along. So: buying hardware may earn you more in the short term, shares in AM may earn you more in the long term.

Comparison is NOT faulty. It is a comparison of "investment" (whether in hardware or a company) and "return" (whether mined bitcoins or dividends paid out as bitcoins). I think most people will agree that the value of hardware (GPU or ASICs) will generally depreciate over time, so that is a "known." The big unknown is AM, which as you point out is a company. We hope they will continuously renew itself, but anything can happen.

...

But the difference between AM and a piece of hardware is that AM is capable of strategic adaptation...

 I completely agree that AM can bust a move and when they bust one I will most likely buy in again.

   For now I see them with 6000 usb sticks  not sold and no new pricing strategy.   Now I concede I am not an insider and I have 0 info on what BFL can sell in the future but they have finished all of JULY 2012 and have started on August 2012.  On May 23 they had  June 23-25  shipped. So 2 weeks later (boy do we love that 2 weeks) they are up to August of 2012.  Just remember  1x  5ghs unit at 2.5 BTC = 16 sticks at a total of 32 BTC .  AM selling sticks  at 2 BTC may have looked good to most stock owners of AM but I always stated they were overpriced. Go back and look at my posts. So to me it looks like short term thinking on the part of AM. I am not second guessing since I said this at the get go.  

  Still the sticks may not be a big problem all that matters is AM paces the hash percentage correctly 22-32% and AM does not need to sell a thing just mine away and let others do the selling of the picks and shovels so to speak.