ASICS MANUFATURERS STARTING TO COMPETE WITH THEIR BUYERS

[gperez2000]

It looks that the manufactures starting to compete with the people that buys their products, that's really awful.

[hintss]

Hasn't this been happening for years?

[bubbabc]

Yeah, it's a pretty neat kickstarter scheme. Get us to fund their initial work, ramp up production, do some more R&D, then mine all the Coins for themselves.

d-_-b

[bubbabc]

CoinTerra mining plant - close to $100Grand a month just for the electricity.

At their retail price, 500 CoinTerra mining rigs would cost ~$1.6million and ~$93500 per month in electricity based on anticipated power consumption and average Utah electricity prices (not including HVAC and other power costs).

[Suspicious link removed]j.com/moneybeat/2014/06/09/bitbeat-like-a-hurricane-cointerras-giant-bitcoin-mining-plant/

Note: Video is noisy and loud.

[Cranky4u]

It looks that the manufactures starting to compete with the people that buys their products, that's really awful.

Always been considered an issue that just lacked confirmation...

[DrG]

The first company to release ASICs to end-users was Avalon.  Check this out:
http://www.coindesk.com/avalon-accused-of-mining-with-customer-asics/

And they blatantly lied to their customers and were quoted as saying they would never mine with customer's hardware.

BFL was the first company to take pre-orders and in their current class-action lawsuit they have admitted to mining for profit with customer's hardware even though BFL promised it would use a test-net.

I would assume every company is cheating unless you know them personally.  Sad state of affairs 

[R4v37]

The first company to release ASICs to end-users was Avalon.  Check this out:
http://www.coindesk.com/avalon-accused-of-mining-with-customer-asics/

And they blatantly lied to their customers and were quoted as saying they would never mine with customer's hardware.

BFL was the first company to take pre-orders and in their current class-action lawsuit they have admitted to mining for profit with customer's hardware even though BFL promised it would use a test-net.

I would assume every company is cheating unless you know them personally.  Sad state of affairs 

they'll mine it for some profits
well, profits from selling hardware isnt a good choice for this kind of company, why?
they have to keep up with the new generation, new idea, etc. which will cost them MONEY!
so, its still normal if they mine using customer's hardware...

nvm, cant blame them, they're trying to deliver the best to us

[Glizlack]

It just goes to show if a company has great gear and isn't desperate for cash why would they sell something they could make more money with?  Of course they wouldn't. The only companies pushing out product obviously need the cash.

I realize i am generalizing a lot but still look at the history!  Only 1 major company off the top of my head doesn't seem to be doing this bitmaintech stands alone. I would also say the innosilicon miners have saved us all a lot of money by having a bunch of different companies competing with a reference design.

Steve

[DrG]

The first company to release ASICs to end-users was Avalon.  Check this out:
http://www.coindesk.com/avalon-accused-of-mining-with-customer-asics/

And they blatantly lied to their customers and were quoted as saying they would never mine with customer's hardware.

BFL was the first company to take pre-orders and in their current class-action lawsuit they have admitted to mining for profit with customer's hardware even though BFL promised it would use a test-net.

I would assume every company is cheating unless you know them personally.  Sad state of affairs 

they'll mine it for some profits
well, profits from selling hardware isnt a good choice for this kind of company, why?
they have to keep up with the new generation, new idea, etc. which will cost them MONEY!
so, its still normal if they mine using customer's hardware...

nvm, cant blame them, they're trying to deliver the best to us

Are you OK with a waiter eating some of your soup before serving you?  Are you OK with a store using the light-bulbs they're selling for a couple hundred of hours and putting them back in the box.  EU laws actually state this is illegal and in the US items for sale that have been used need to explicitly say they are not new.

I'm OK if they say they are going to mine with hardware until it gets sold, but you place a pre-order and they spend any time mining with it outside of a short reasonable burn-in time they're committing fraud.  Unfortunately this has been happening quite a bit since BTC is the Wild West apparently.

Are you insane enough to actually condone it?  Perhaps you meant to say you understand why they would do it 

[cesarm]

I don't know about competition, I believe they use their customers to mine for them.

Cycle: buy hw with money or bought coins > mine x coins > buy more hw with x coins > mine 1.1x coins > buy more hw with 1.1x coins > ...

This way the customer is actually mining for the manufacturers (and I think this is the best scenario, I believe some people put more money every round).

In the end the customer will stay with obsolete pieces of HW and the last "round" of coins.

My only doubt about the process is if the manufactures believe in the BTC concept and are keeping the coins or if they are selling every single coin they make.

[thirdprize]

Sorry, but if they sent the hardware out untested you would all be the first to complain.  You need to run these things for a while just to prove test it works and doesn't go BANG! two hours later.  And while you have paid for it, I am sure it is not technically yours until you receive it.