This has nothing to do with the end of bitcoin, but about things that are going to cause problems for the regular investor. I have been thinking about this for a while. Before starting, I assume the price of bitcoins has been lifted due to speculation.
First, the people selling asic machines in return for bitcoins are going to destroy bitcoins for a period of time. Think as a seller. You sell a bunch of miners for bitcoins and let the people attempt to reap the rewards of mining. Once price rises enough, you sell out and reap the benefits before miners can. What perpetuates the price rising is early adopters who spread word of their earnings bringing in more people who want to get rich. In order to sustain the price and continue rising, you need more people to invest in the currency and believe in it. once influx of people come, this is where as a seller of machine i'd sell out or the next big wave.
It is the greed in which people want to earn money that will make this system fall faster because everyone will invest in miners and coins and watch them rise. Which it will, no doubt, but at who's expense? You and me the regular investor. It's the same in stocks or our own market. Remember this - when everyone believes they can make lots of money, that is when you get worried. All it takes is one bomb (mass sell off) to start and then rest of the disaster starts. As many investors tell you - MANAGE YOUR RISK.
Spoken like a true investor. The thing is "Bitcoin" is just using you (the greedy investors) as a stepping stone. Remember Bitcoin wants to be more then just an investment opportunity like stocks. It want to become an actual currency that people use. To do that it needs a certain amount of backing to be a viable form of currency. This is where the greed of the foolish comes in. Yes you can make your investment and cash in your reward but by using you Bitcoin can become and established currency not prone to your average investment predictions.
Edit:
Also.. yeah... I do not think the companies making the miners have that elaborate scheme planned. That is just far fetched.
Good point. I guess its not a plan scam us, but more a plan to protect themselves. I think Avalon has tons of bitcoins somewhere in the 50,000+ range. Some other smaller companies as well. I think one thing they've managed to do is play smart with cashing out. But in order to protect themselves, they will likely sell out on the next peak especially since AValon pulled a huge amount of Bitcoins sellign chips.