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Bitcoin ASIC Miner from BFL, finally

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Re: Bitcoin ASIC Miner from BFL, finally

#31

Post by sjtgraham »

funtober wrote: post #27
sjtgraham wrote: post #10

Earlier quoted context omitted.

How can one litigate against an entity beyond the jurisdiction of the US court system, e.g. say the rig manufacturer was the crook and not in the United States? What are the options there?

The options are to sue them in their foreign country or sue them in the United States. If you sue them in the US, you face jurisdictional issues (do they have sufficient contacts in the US to make a lawsuit here fair?) as well as judgment recognition issues (you would probably have to attach the damage award to a contract they have with someone in the US to collect if the foreign country court system doesn't recogniz…

Thanks for your answer. I have two questions if you don't mind:

- Are reciprocal judgements possible in a lawsuit such as this hypothetical example?

- What is to stop the defendent from liquidating and reappearing as a new legal entity?

Re: Bitcoin ASIC Miner from BFL, finally

#32

Post by ihsw »

sachingulaya wrote: post #15
gesman wrote: post #4

Earlier quoted context omitted.

Totally agree. Why would anyone wants to sell the goose who lays golden eggs while gold cost more than the goose? They'll pile up cash from "preorders", mine bitcoins and when time is right - will dump outdated devices to customers.

The profitability of ASICs is going to decrease at a rapid rate once they start shipping to consumers. Additionally, in a few months the market is going to be flooded with cheap ASICs. From BFL's perspective if they don't release first they're dead in the water. They don't know where their competitors are compared to them but they recognize it's a winner take all situation. The natural thing to do would be to take pr…

This waxing and waning of mining devices is certainly going to become the norm.

* Buy up $10K worth of devices

* Make your money while flooding the market with fast and easy BTC

* Sell off all your hardware after the profit margins have cratered

* Wait for new hardware and rinse and repeat

Personally I will be extremely glad when the first wave hits as the hoarders will start feeling the pinch of inflation.

Re: Bitcoin ASIC Miner from BFL, finally

#33

Post by thereallurch »

unreal37 wrote: post #18
laurenia wrote: post #16

Earlier quoted context omitted.

Did they collect the money in advance? If not, it seems to me that the shipping time is almost irrelevant.

Yes, you pay at time of order, and wait a few months for the unit.

few months - year...

Re: Bitcoin ASIC Miner from BFL, finally

#34

Post by nazgulnarsil »

ihsw wrote: post #32
sachingulaya wrote: post #15

Earlier quoted context omitted.

The profitability of ASICs is going to decrease at a rapid rate once they start shipping to consumers. Additionally, in a few months the market is going to be flooded with cheap ASICs. From BFL's perspective if they don't release first they're dead in the water. They don't know where their competitors are compared to them but they recognize it's a winner take all situation. The natural thing to do would be to take pr…

This waxing and waning of mining devices is certainly going to become the norm. * Buy up $10K worth of devices * Make your money while flooding the market with fast and easy BTC * Sell off all your hardware after the profit margins have cratered * Wait for new hardware and rinse and repeat Personally I will be extremely glad when the first wave hits as the hoarders will start feeling the pinch of inflation.

bitcoin does not work that way. Inflation decreases at a set rate.

Re: Bitcoin ASIC Miner from BFL, finally

#35

Post by baddox »

liveaxle wrote: post #29
SG- wrote: post #28

Earlier quoted context omitted.

I'm sure the same thing was said during the gold rush days and it was the store owners that sold prospecting equipment that made some very stable money.

Those store owners couldn't use a thousand pickaxes simultaneously.

They could hire people to operate the pickaxes, like how BFL would have to pay for electricity to power their mining hardware.

Re: Bitcoin ASIC Miner from BFL, finally

#38

Post by Homunculiheaded »

The more people get excited about faster ways to hoard bitcoins and eventually make a nice profit (presumably in USD in the end) the dramatically more cynical I become about its future. When the bitcoin discussion was mainly around its use as a currency for things like silkroad, VPNs etc I actually thought it seemed to have a promising future. I really hope I'm wrong, but I have a feeling in 2023 the bitcoin discussion will be relegated to nostalgic jokes about how crazy we used to be.

Re: Bitcoin ASIC Miner from BFL, finally

#39

Post by jquery »

nazgulnarsil wrote: post #34
ihsw wrote: post #32

Earlier quoted context omitted.

This waxing and waning of mining devices is certainly going to become the norm. * Buy up $10K worth of devices * Make your money while flooding the market with fast and easy BTC * Sell off all your hardware after the profit margins have cratered * Wait for new hardware and rinse and repeat Personally I will be extremely glad when the first wave hits as the hoarders will start feeling the pinch of inflation.

bitcoin does not work that way. Inflation decreases at a set rate.

Difficulty adjusts week-to-week. Being the only guy with an ASIC is like a license to print money. Being the 10,000th person with an ASIC will be like trying to mine with a netbook today.

Re: Bitcoin ASIC Miner from BFL, finally

#40

Post by sachingulaya »

ihsw wrote: post #32
sachingulaya wrote: post #15

Earlier quoted context omitted.

The profitability of ASICs is going to decrease at a rapid rate once they start shipping to consumers. Additionally, in a few months the market is going to be flooded with cheap ASICs. From BFL's perspective if they don't release first they're dead in the water. They don't know where their competitors are compared to them but they recognize it's a winner take all situation. The natural thing to do would be to take pr…

This waxing and waning of mining devices is certainly going to become the norm. * Buy up $10K worth of devices * Make your money while flooding the market with fast and easy BTC * Sell off all your hardware after the profit margins have cratered * Wait for new hardware and rinse and repeat Personally I will be extremely glad when the first wave hits as the hoarders will start feeling the pinch of inflation.

The evolution was CPU -> GPU -> FPGA -> ASIC. Now that we're at the ASIC stage growth is going to slow considerably. There's no longer order of magnitude gains to be made.
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