Post
Topic
Board Bitcoin Discussion
Re: One problem with BTC
by
pening
on 11/12/2013, 23:48:23 UTC
This is ridiculous and not true at all.

Six months ago there were only 3 ASIC manufacturers. Now there is almost a dozen.

Six months ago you had to wait months to get your hand on an ASIC. Now there are plenty of options that ship in much shorter time frame.

Six months ago ASICMiner dominated mining with nearly 30% of the global hashrate. Now there are serveral major players.

You are very mistaken when you say that you need a lot of ASICs to be efficient. In fact, the opposite is true!

The average person can presently run a couple of terahashes/second out of his home and only have to worry about his electricity bill.

If you want a larger setup you need to rent space for them, figure out a way to remotely manage them, pay for a separate internet bill, figure out how to cool them, plus pay commercial electricity rates.

Electricity is quickly becoming the limiting factor once again.

A large corporation does not have an advantage here. Mining ASICs are a commodity of which there is no bulk discount.

OP sounds like sour grapes that he didn't think to order an ASIC months ago when they were very profitable.

Nothing you say argues against my point.  I'm not talking of six months ago or now, or the next six months.  Once "banks" were little more than a money lender and a ledger, and ledgers are a commodity.  The power, the limiting factor you highlight, is one of the key reasons for this inevitable shift.  Corporations can have an advantage here, they can buy "bulk", or place their ASIC farm where power is cheap or free.  Having a half dozen or a dozen producers of ASIC hardware doesn't make much difference if you need $'00,000 of them just to mine a Bitcoin a month. The ROI on ASIC is already priced out most, if you don't get the next generation within the first couple of weeks the difficulty soon eats the returns. See contracts for hosted hashing, how far removed is that from a bond or other financial instrument?  The centralisation is already happening.