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ost0
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CEO
ASIC solutions
ost0   2/4/2014 3:43:23 AM
There are already asic's out that does this job.

See https://en.bitcoin.it/wiki/Mining_hardware_comparison

But I always wonder, why does it pay off selling these machines compared to keeping the mined bitcoins themselves?

 

jackOfManyTrades
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Manager
Re: ASIC solutions
jackOfManyTrades   2/4/2014 4:03:28 AM
One reason might be that seling a bitcoin mining machine gives you real money rather than virtual money.

ost0
User Rank
CEO
Re: ASIC solutions
ost0   2/4/2014 4:12:32 AM
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Hehe thats really not a neutral view on the subject. The path from bitcoin to real money is short, although you dont know how much money you will get from day to day.

You may argue that selling these machines gives you a more predictable income, but that hardly holds water as the demand surely will follow exchange rate.

The only valid argument left seems to be the timeline of wich the money comes in. If they sell a lot of machines early, they certainly will get the money back slightly faster, so for the buyer, its a highly speculative trade.

 

Ecomstudio
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Re: ASIC solutions
Ecomstudio   2/4/2014 5:52:08 AM
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The key reason the ASIC miner companies can't keep the machines for them selves is they rely on pre-order capital to manufacture the units, arguably there are "delays" on these units getting to the customer. If you was to have 50 units "testing" for a number of days before shipping you could as a miner merchant make a fair few Bitcoins, note that I say could as this has not been proven and these units do make a big difference to the network once connected especially the 600gh/s units on pre order now.

ost0
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CEO
Re: ASIC solutions
ost0   2/4/2014 6:38:13 AM
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I guess if those companies DID keep the machine for themselves, we would never hear about them, so maybe they DO exist.. There may be investors taking this risk for all I know.

Then there are the ones we hear about with a different financing model..

PS:Not sure how much load on the network (IP) these machines do.. I though that the real number crunching was done offline, but blocks was fetched from the net, but I dont know the details.

Kreator11
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Rookie
Re: ASIC solutions
Kreator11   2/4/2014 9:21:35 AM
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It seems everybody is making money with Bitcoin. It was $4 just last year and rose to over $1200!

There's plenty of media hype surrounding the currency but nobody really tells you the whole story.

Do yourself a favor and find out the Secrets of Bitcoin.

http://bit.do/BitCoinSecrets

krisi
User Rank
CEO
Re: ASIC solutions
krisi   2/4/2014 11:23:25 AM
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Sure, you can always use of the shelf microprocessor or even FPGA...but it is much more efficient to use custom made ASIC for this application specifically...I think jury is out...if bitcoin maintains its popularity and appeals to every Joe, and that is a big IF...and if the US goverment doesn't kill all digital currency as they would threaten the US dollar., and that is a small if (they likely try)..then bitcoin CPU actually makes sense, you have to be able to run these encryption operations very quickly if you are paying for coffee or parking with these bitcoins...Kris

rick merritt
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Author
Re: ASIC solutions
rick merritt   2/4/2014 12:48:37 PM
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@Osto: Thanks for the wiki reference.

Do you know who makes the chips inside these systems?

I'd like to do a follow up interviewing some bitcoin silicon designers.

rich.pell
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Blogger
Re: ASIC solutions
rich.pell   2/4/2014 2:20:41 PM
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"Do you know who makes the chips inside these systems?"

Some of the FPGA-based systems used Xilinx and Altera devices:

Bitcoin: A technological and economic game changer?

As far as ASICs, one bitcoin-mining ASIC was recently developed by Uniquify for HashFast TechnologiesAnother was done by Cointerra with design partner Open Silicon.

AZskibum
User Rank
CEO
Re: ASIC solutions
AZskibum   2/4/2014 2:55:36 PM
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It seems that the market appeal of these parallel processors & custom ASICs is similar to the appeal of ever faster network connections to the high frequency traders on Wall Street -- the race to get there microseconds before the other guy. Someone will always come forward with a faster machine, so the "miners" need to make their money quickly, before their hardware becomes obsolete. But it remains to be seen whether Bitcoin can go mainstream. Meanwhile, it does bear a certain resemblance to a Ponzi scheme.

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