Quote from: LPCobris on March 16, 2014, 01:48:58 AM

They will win anyway.. by mining full scale, they are recovering all the invested money, drying out the market and killing any oportunity for the smaller miner...
Gridseed might never sell to the miners, but the chinese will get the BTC they ever need, by mining like they are doing now...

For me, its sad that pools are acepting that INSANE Processing power from just one guy...
I understand the "money on the pocket" idea, with an incredible fee for free... but in the end... It all about two things...

a) Greed
b) Greed

LPC

Yes, they can indeed reap many virtual coins by concentrating so much hash power essentially under the control of one decision maker. But do you have any idea the development and manufacturing costs required to build a scrypt mining asic? In dollars, yuan, or any other currency? No? Then how can you state that they will recover all the invested money? You have no idea of whether that is actually the case.

The problem with concentrating so much hash power in the hands of the few, is that by forcing smaller miners out of the market, those miners likely remove themselves from not only mining, but also speculating on coin values as it naturally becomes less interesting for them. The lure of "free" coins, or at least coins created solely for the cost of mining them, is what builds the overall market demand. Lose smaller miners and the demand for coins decreases too, and thus the value of the coins themselves.

Though such outcomes are ultimately unavoidable. People flock to where the profit is in the moment, regardless of sustainability. The real trick is to identify the opportunity first. Even the value of tangible items such as diamonds is largely irrational and emotionally based, except the ugly ones used in manufacturing processes. But their value is maintained via monopolistic practices.