Quote from: aahzmundus on April 29, 2014, 12:30:10 PM

Quote from: Jutarul on April 29, 2014, 05:02:24 AM

Without going into the debate with competitors too much - from what is observable from the progression in bitcoin mining IT is that gen3 equivalent hardware from AM and "next-gen" hardware will likely co-exist long-term (> 2 years). This is because there are 10-fold variations in energy prices dependent on location and still large bitcoin price fluctuations, which gives mining a timing value. As such one may expect the less efficient hardware to migrate into areas of low electricity costs and opportunistic mining, while high-efficiency hardware goes into high-cost areas (e.g. through supply and maintenance chain issues) and sustained mining. This will make the overall hashing power of the network much more elastic.

The bottom line is that while gen1 or gen2 ASICs may come to an abrupt death, the gen3 ASICs will likely fade out smoothly.

I have been saying this for a while. Someone recently pointed out that in some parts of the developing world, in remote as fuck areas, the government subsidies electricity to the point where it is far cheaper then it should be in an effort to attract industry. There are very few takers as who wants to have a factory stuck in the middle of Africa. But bitcoin mining....

So who wants to do the leg work and get an ASIC farm set up in one of these areas!

You seem to have neglected the fact that you would have to cool these machines. Thats a lot easier to do in a colder country.