Post
Topic
Board Hardware
Re: BitcoinOrama Report on the KnCminer/OrSoC Open-day Mon 10/06/13 (Stockholm)
by
johnyj
on 17/06/2013, 20:14:08 UTC
Quote

Even current ASIC manufacturers make some organization like OPEC, due to there are hidden players developing ASICs mining for themselves, that does not work either. One of the most important mission of ASIC miner manufacturers is to promote the bitcoin-only sale to support the price of bitcoin (hence their own income)

This is simply not true... and even if it was, it would be disastrous to bitcoin long term considering all you have at that point is an exclusive club where the only persons who have access to the tools of the trade are those that had got into the mining market at ground level and have a hoard of bitcoin. Meanwhile these companies producing their mining products are reliant on third-party vendors to exchange their bitcoin to pay the vendors that only accept local currency for the raw material needed to make the finished products. This is NOT good for business.

This practice is just not tenable and you can see that in the moves that most of the major ASIC manufacturers are making towards including PayPal's shitty service into their payment options (ie. BFL, Terrahash, KNCMiner) because they know that people that weren't in the game before are already scared as it is moving into a highly volatile new currency let alone, the promise of generating it, and will need a comfortable entry point into the market in order to have any chance of growth.

Sure you can counter argue the use of Mt.Gox and other exchanges are there to serve as intermediaries but the reality is people are lazy, scared, and resistant to change... And the easier you make for them to enter into the market, the more sustainable the growth and confidence in it will be long term. The companies know/are learning this and is one of the best chances that Bitcoin has to succeed.

Just because people can always use fiat money to do the purchase, there is no need for bitcoin, and if there is no need for bitcoin, it's value will be heavily affected by speculators on exchanges

Avalon already done bitcoin-only sales and based on recent report their bitcoin income never cashed out to fiat, this is a great approach for a bitcoin related business, but I think not every one understand the meaning behind this move

This is the huge difference between a bitcoin entrepreneur and a classical entrepreneur. A classical entrepreneur only cares about his profit, because the value of fiat money is not his business. A bitcoin entrepreneur usually care about promoting the value of bitcoin itself, because in this economy no one can change the money supply, so in general their business decision will all have a impact on the value of bitcoin