Quote from: Inaba on August 29, 2013, 12:11:30 AM

Quote from: Jutarul on August 28, 2013, 11:59:22 PM

Quote from: Inaba on August 28, 2013, 11:16:16 PM

This is a completely disingenuous market that is predicated on completely ludicrous assumptions. Lets look at a few of them, but this list is by no means comprehensive:

Mining has different market dynamics than you'd like to make people believe. In mining the product is money or a money substitute itself. Thus miners are generally interested in increasing their purchasing power within the money system itself.

Put another way: A miner becomes by definition the issuer of the currency and benefits from the ongoing inflation because they get the new money first before the market can price in the inflation or the mining costs are generally lower than the mining revenue. He thus operates CONDITIONAL on the assumption that the purchasing power of the mined asset increases, stays the same or inflates slower than the expected incoming cash flow. If I would expect the mined asset price to fall, I would NOT buy hardware in the first place, but hedge my asset position by selling them for something else.

Thus, mining investments are similar to doubling down on an appreciation of the mined asset. The miner accepts a certain degree of risk and capital expenditure for the prospect of getting that capital back. If I expect the capital expenditure to outsize the mining revenue, I wouldn't do the investment in the first place. That simply doesn't make any economic sense.

You clearly do not understand the motivations of the vast majority of miners, then. This may be your way of thinking, but I assure you beyond any shadow of a doubt, most miners are in it to make a profit in USD (or their local currency) not to "increase their purchasing power within the money system itself." Most miners couldn't give a shit about how much BTC it makes in the end, they just want to know how much USD (or local currency) it makes.

Once again, I challenge you:

Ask an average miner which they'd rather do:

Purchase a widget that costs 10 BTC and will generate 400 BTC, valued at $2 each or
Purchase a widget that costs 10 BTC and will generate 5 BTC, valued at $200 each

Invariably, the answer will be the second option, even though that person could have increased their BTC holdings by 40x! Very few people want BTC for BTC sake, they want BTC for what value it provides in their local currency. Again, you may be different, but you are in a very tiny, miniscule minority.

Do you agree no matter motive, you cant obtain it without receiving a product to mine?

And Josh i love your posts as a follower of the forum. I like that you have your products made in KC..... makes it easy just use a dolly to move products to you hosting center.

But have you thought about changing aspects of your sourcing and production? If you cant make a product without getting close to a year back log, maybe find a third party to build and ship to you. Or become a chip company and focus on providing chips for others to use in their product.

Or you could always focus on getting someone really good at image rendering and announce a PCI-E card that no one has anything close to and charge customers to upgrade at a chance of getting something meaningful.