Quote from: SOSLOVE868 on June 22, 2013, 06:22:59 PM

Quote from: Mabsark on June 22, 2013, 06:16:38 PM

Quote from: empoweoqwj on June 22, 2013, 05:09:36 PM

Quote from: Mabsark on June 22, 2013, 04:31:31 PM

Quote from: empoweoqwj on June 22, 2013, 03:43:42 PM

Quote from: Mabsark on June 22, 2013, 03:41:34 PM

It's my opinion that a lot of investors simply don't understand how mining works. If they did, then they would understand that AM hardware and shares are vastly overpriced.

Just like a lot of people paying silly money for mining bonds have found out, AM investors will come to the same realisation that share prices are currently way overpriced.

LISTEN AND LISTEN CAREFULLY. The only reason why AM is able to charge such outrageous prices is because they've had no competition. By the end of the year, there will be plenty of competition. Here's a quick comparison:

AM Block Erupter Blade
10 Gh/s
50 BTC = 5,000 USD @ 100 USD/BTC
2 Mh/s per USD

KNC Jupiter
350 Gh/s
7,000 USD @ 100 USD/BTC
50 Mh/s per USD

It should be blatantly obvious to anyone with half a brain that there's going to be a lot less income from hardware sales due to competition. That same competition will also decrease AM's share of the network hash rate.

AM share holders are going to get hit by a good dose of reality in the coming months. Perhaps then they will stop listening to idiots trying to flog them overpriced stuff and do the maths themselves.

Where can I get a KNC Jupiter? I want to start mining with it tomorrow. I have the cash right now.

Perhaps you should have paid attention to the part where I said:

Quote

The only reason why AM is able to charge such outrageous prices is because they've had no competition. By the end of the year, there will be plenty of competition.

No, I couldn't be arsed to pay attention to what you said when you compared old ASICMINER hardware (early 2013) with vaporware, scheduled to be launched at end of year. Apples and ... not even oranges.

ASICMINER priced their stuff to sell. And it has. That is perfectly normal business. Its not outrageous prices because if it was, nobody would have bought the things. Think before you type.

Outrageous is announcing vaporware many months in advance and watching gullible people flock to pre-order it because the specs are way ahead of today's standards. Of course stuff delivered in 6 months time will be much much better. That goes without saying. That's if they deliver.

At least ASICMINER have a history of delivering stuff, and maintaining a high % of the total network hashing power.

Competition is to be expected because its a profitable business. Whether the competition can live with the team first to market remains to be seen.

No need to cry and waffle on about irrelevancies because I stated a fact. AM hardware has been vastly overpriced due to not having any competition. With competition available it won't be able to charge such outrageous prices. And seriously, if you think 2 BTC for a USB miner is not insane, then you are insane.

Who cares if AM are bringing out 2nd generation miners. If they want to sell such hardware, it'll also have to be priced competitively, so closer to 50 Mh/s per USD than 2 Mh/s per USD. For the mining operation, all those new chips will do is decrease the power consumption, which should cause a very slight increase in dividends due to lower power costs. It won't be anywhere near enough to offset the decrease in income from hardware sales, nor the decrease in income due to a decrease in the share of the network hash rate.

Over the next few months, you'll see a decline in AM dividends and anyone claiming otherwise is talking out their arse in order to try and inflate the share price even further.

The price of AM also determine by its supply, those limited supply in market ,also make it valuable than anything else.

That's what I'm saying! AM has had a monopoly so far, so could charge outrageous prices. With the incoming competition, AM's prices will have to be competitive or people will simply go with the competition. With AM having limited hardware for sale, the only possible result is a decrease in income from hardware sales.