Ninjastic
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Re: BitcoinOrama Report on the KnCminer/OrSoC Open-day Mon 10/06/13 (Stockholm)
by
Rampion
on 17/06/2013, 14:46:33 UTC
Quote from: amencon on June 17, 2013, 02:35:57 PM
Quote from: retro72 on June 17, 2013, 11:22:48 AM
Quote from: amencon on June 17, 2013, 06:26:31 AM


There is another potential ASIC investor scenario that would have the opposite effect of the one you describe.  The investor has BTC either bought or mined when bitcoins were "cheap".  They spend BTC to buy ASIC miners, in essence doubling down on their BTC investment.  Those BTC get converted to USD now creating selling pressure on the price.  If/when the ASICs arrive they then use the ASIC equipment to restock/"hoard" the BTC they spent on the machinery.

I think both scenarios will play out but I have no clue in what percentages they will exist.

Yes this is definitely true. But if what has been seen in the KnC miner thread is a general trend, there are a worrying amount of people who aren't using btc. They are using credit cards, bank transfers and apparently someone even paid with cash.
The price of btc has dropped more than 30% in the last week and is bouncing along at $100. I'm not sure there are many people around that have been in a market with this kind of volatility. The people that have to sell  to pay off their debt will sell at any profitable price as they have no idea where the price will be next week.


 



Yes you're right, that is a scary thought.

Let me state something very clearly: anybody incurring in debt to invest in Bitcoin related businesses is a reckless and clueless dumbass that deserves to go broke. This is a super high risk investment, it's much riskier than just buying BTC, which is high-risk by itself. I think nobody is so stupid to have asked for a loan to buy mining equipment from KnCminer or others.

BTW: Bitcoinorama, you seem to know everything that needs to be known about KNC. Do you have an idea of what are those gray numbers just by the name of each unit? See the images below, I mean the "250" close to Jupiter and "34" close to Saturn:





BTW, there's seems to be a massive number of units still in stock.

Do we know if they already arrived to the initial goal? I mean: did they order the chips yet? Crucial question. Time is ticking.

If the "available units" on KNC's web are correct, that means that 1,000TH are still available. Considering the +150TH in Avalon chips, plus another 100TH by ASICMINER, and +400TH by BFL, that would take difficulty to at least to 200 million. Without even counting for Bitfury. ROI is going to be tough, guys. If there is someone so dumb to have asked for a loan to buy ASIC... He might better cancel his order, this is going to be a tough fight for peanuts - as mining has always been, apart from that small timeframe in which ASIC equipment supply was hyper-short, and the very lucky ones who had one unit took all the profits.