Re: No mining hardware is worth buying

5 - Hardware manufacturers and resellers have a problem right now. They're invested in manufacturer/reselling ASICs and people are catching on to point #1 above.

ASIC prices can come down a LOT before hardware manufacturers are hurting. <$2 per GH/s is pretty easy. $1 per GH/s might be harder to do but I would expect raw chips (ASICs on the reel) to hit that sometime in 2014. Of course vendor would rather sell a unit at $10 per GH than cutting prices to $5, or $3, or even $2 per GH/s isn't going to put anyone under.

That being said we likely will see one or more company go under. These are small and often poorly run companies. This is the gravy train portion with massive margins, lines of customers, or limited competition. Pretty much impossible to not make money now. When crunch time comes some won't make it.

Point noted, thanks. I haven't been following prices close enough to observe, so I'll take your word for it. I assumed the profit margins were thin.

However I would think resellers will end up in a bind first.

M

hardware manufacturers have been thief's selling for what the diff is. Look at asicminer that started selling at 3BTC now at .035BTC with a hub included. They have been playing on people greed and stupidity and laughing their way into the bank. The eruptor doesn't cost more then $1 to produce for gods sake!!! But look at how they are selling on ebay. The Jalo's are going for over $250 when they are worth tops $50 if one hopes to make ROI. Even the KNC 500G selling for $6000 are overpriced with a .15BTC return daily on the next diff, they'll never make ROI, NEVER. Thief's, that's the only name I can call them

There is a better Class of ASIC mining company coming . Mark my words . Other companies will need to modify their prices and customer care to compete with the next generation of Asic developers.