I hope this will put a stop to most of the non-believers constantly trolling on bitcointalk.org
EDIT: Now confirmed on Jeff's blog: http://garzikrants.blogspot.com/2013/01/avalon-its-alive.htm...
and for a limited amount of time. Bitcoins are a finite resource, once they are all mined, this hardware will be pretty much useless, as far as I understand.
Miner reward = Transaction fees + block reward
Currently the the former accounts for only 1%. This will likely change in the future (a decade or so). See here https://en.bitcoin.it/wiki/Tragedy_of_the_Commons
Right now, 66 GHash/sec generates about $210/day (11 bitcoins/day).
Avalon is literally the work of 2 chinese guys (ngzhang and yifu). They are not a big company with lots of money.
Secondly, $200-300k is not "nothing". I bet they tried to raise investor money, but didn't find any. $210/day/unit is a lot, but Bitcoin still remains relatively a risky investment.
If they can't, then they're not worth $1.k/ea.
No need to sell any of these machines before somebody else hits the market.
I don't really follow the maths here.
That still doesn't make sense to me. If these machines work, they're money trees. You build them, run them, and use the ridiculous proceeds to build and run more of them, or to get out before the market becomes too crowded.
At scale you could fill racks with these things for a relatively small outlay.
> ... and turning on these 300 for themselves would make customers much less willing to buy more from them in the future.
The truth outs. In a gold rush, sell shovels.
I know people who have unplugged their entire setup and flown it half way across the US to get power 10% cheaper.
Deepbit, one of the more popular pools (teams that split profits) is currently doing 1.9 TH/s and accounts for roughly 17% of all mining operations.
So you are buying a single device capable of approximately .5% of the output of everyone else combined.
The future people would probably like a nice list of things that people are trying. Bitcoin mining (and to a lesser extent Folding@home) are entry level clustering for hobbyists.
>The future people would probably like a nice list of things that people are trying.
I can imagine future "coin" collectors gathering the ancient application-specific hardware that was used to mine bitcoins. "And here we have a 2013-era bitcoin ASIC...quite quaint really. I'd imagine she might be worth around...600 pounds?"
Is this what you are looking for?