Quote:
Originally Posted by TomCollins
This is typical miner logic. Yes, being a step ahead of everyone is crucial. And in the short term, you can pretty well, if you stay on top. But assume your device will be completely worthless in 6 months.
There is a fixed number of Bitcoins released a day. This means that there is a fixed value that is divided by everyone who is mining, proportional to their hash rate (and the network total). There is a fixed size pie, that only expands when the price of Bitcoin expands. So you either try to get a bigger piece of that pie (which everyone else is doing), or just hope the price increases.
Taking advantage of these suckers by selling something that made $4000/month at first that might net $50/month within a few months by selling for $1500 each is much better than trying to corner the market for a few months before someone else comes out with the same thing.
Obviously you don't release many, you let stories of how profitable they are go out, then wait until you can unload thousands of them at once. Then laugh when everyone wastes $1500 trying to make pennies a month.
This is pretty much what i said, except that i am a little more optimistic. It is absolutely a risk to buy an asic to mine. If you are going to buy an asic, you really need to do some research. I don't think that paying 6 times the retail price for an avalon right now is the way to go. You are likely to get 2 months out of it at current levels, if that. then the bfls hit the system, and your profits go down by 90%. However, I don't think that there are/will be enough miners to reduce monthly take to pennies, unless the price per btc crashes to $1 again. Unless the price of btc absolutely nosedives, you should be able to recover your investment in an asic, so long as you don't pay out the nose to get one.
