Quote from: ex-trader on August 13, 2013, 07:57:04 PM

Quote from: velacreations on August 13, 2013, 07:53:31 PM

And who says AM has to stay at 13%? Why not 30%?

Thats my point - at 13% the maths don't work, even adding an extra 50% to mining revenue for hardware as in the post above gets to earnings of 4 BTC over 10-15 years on a 4 BTC investment - wow 0% return......

My point is simple - if AM do not increase their hashrate a lot, the shares are over-valued.....

ok, so you admit that hardware adds a considerable amount of profit, but what about franchising?

With mining, franchising and hardware sales, AM can literally have a hand in over 50% of the network. So, by your own figures, 9.5M /2 = 4.25M btc. Even at 30% of the network, that's 2.85M btc.

Of course, this all ignores fees in the future...

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Mark my words, if AM can get back to 20-40% then all is rosy if not then you'll be seeing big falls in price.

That's the nonsense. When hardware is for sale, mining typically makes up less than 1/2 of the profits. So, if they can continue to sell hardware, and maintain hash at 15%, then it is like they have 30-40% of the network, because that's the kind of profits they are making.