Post
Topic
Board Speculation
Re: Let's recap on what we've seen in the past few months
by
fcmatt
on 03/09/2011, 05:18:14 UTC

There is simply no point at which the difficulty will be low enough and electricity expensive enough to make FPGAs more profitable than GPUs!  

Fucking christ you people need to buy more nootropic drugs and fewer bitcoins and associated paraphernalia...

Not getting through, let's try a simpler example.

If the price per BTC is $50 but cost to produce is $3 there is no real reason to optimize for cost of production.  You will want to optimize for volume.  If you could produce 2x as many coins at the cost to produce of $6/ea, you would do that.  The actual difficulty is immaterial, what matters is the profit margin per unit.

If the cost to produce is $3 and price is $8 (as we see now) there is still little reason to focus on unit cost as the main optimization parameter.

If the cost to produce is $3 and the price is $1...  Well, I've already gone into it, you're just not following along.


BLEEP BLEEP BLEEP you BLEEP BLEEP and your BLEEP math.

I am just not sure many people are willing to spend 420 dollars for a FPGA board that will make 3 dollars a month with difficulty at a million
and a BTC price of $1.

Lets day difficulty just crashes to 200,000. With a BTC price of $1 that would make 15.29 per month. 27 months until it is paid off without
accounting for electricity costs of the board and some low power PC that has a molex connector and a usb port. So we might as well
triple or quadruple the cost of electricity?

If that happens I have to wonder if bitcoin will just die?