Post
Topic
Board Hardware
Re: Why are people cheering that ASICMINER will bring 800-1000TH online this year?
by
k9quaint
on 02/07/2013, 04:59:19 UTC
The greedier ASICMINER gets, the less profit they make on each coin, that's because their energy costs rise as fast as they add gear. At some point they wont be able to pay a dividend as all their revenue will be going into running the bloated ASIC farm, for roughly the same number of coins each week. Then there is a good chance they will have to close up shop, leaving a  lot of worthless shares, but also that means 1,000TH/s+ suddenly disappears from the BTC net hash rate, and confirmation times blow out until ridiculous, effecting everyone.

Of course it is so obvious, they are doomed.  Wait why couldn't they just stop expanding?

That would require simple mathematics, basic business sense, and a pulse. Most people around here are only batting .333 on that list.  Grin