KnCMiner completes scrypt miners, sells $2 million worth in four hours

[Shawn Knight]

KnCMiner, known for making Bitcoin mining rigs, completed work on a scrypt mining machine called Titan earlier this month. The systems went up for pre-order recently and as evident by early sales figures, the company has yet another successful configuration on their hands.

The machines, rated at 100MH/s and aimed at mining alternative coins like Litecoin and Dogecoin, retails for $9,995 each. According to the company, they managed to sell $2 million worth – or 200 systems – within the first four hours of the pre-order. That’s a far cry from the 2,500 they plan to build in the initial run but it’s certainly a good start.

The development is good news for the altcoin market as it means there’s significant interest in it but for the average Joe mining at home with GPUs, it could be the beginning of the end. To put the Titan’s processing power into perspective, the homebrew Litecoin miner featured in a recent article here on TechSpot was able to generate around 2,600 Kh/s using three video cards.

The Titan, on the other hand, turns out 100,000 Kh/s. Based on current mining difficulty and exchange rates, it’d take a little over a month for someone to recoup their $10k Titan investment but consequently, such efficient miners will no doubt drive up the difficulty even further. As was the case with Bitcoin, these types of miners will ultimately make it inefficient to mine using GPUs.

The Titan is expected to ship sometime during the second or third quarter of this year.

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https://www.techspot.com/news/56073-kncminer-completes-scrypt-miners-sells-2-million-worth-in-four-hours.html

 

[wastedkill]

The new Titan 100k Kh/s will take 1.2months to pay off I would say it is the BEST thing to get!!! Lets just say in 1 yr your $10k investment would earn you $108K PROFIT!!!! seems like a win to me...

 

[davislane1]

Another day, another company selling people ways to chase money.

 

[VitalyT]

Stupid as it gets. If it was profitable to use those machines, the manufacturers would rather use them than sell them.

 

[theBest11778]

Stupid as it gets. If it was profitable to use those machines, the manufacturers would rather use them than sell them.

Not unless they see crypto currency as a scam, and want to make real money on other people's stupidity.

 

[NTAPRO]

Can someone help me understand the concept for coin mining and how it's related to video cards? I've been lost since then :/

 

[davislane1]

Stupid as it gets. If it was profitable to use those machines, the manufacturers would rather use them than sell them.

Opportunity cost. While coin mining may be profitable initially, selling machines to coin miners is more profitable.

Think of it like selling water. Which do you think will net you greater short-term gains, using water to put out your own burning house, or selling it to all your neighbors whose houses are also burning?

 

[Raoul Duke]

"Based on current mining difficulty" - there's the rub. Every single person added drives up the difficulty so the very second after you buy it, the difficulty has already gone up. By the time the month that was supposed to pay for it goes by, the difficulty will have risen to the point it will not be paid off.
Lot of money changing hands here and it is coming from the end user and flowing to companies like this selling gear that sets new records for obsolescence.

 

[Guest]

Not a chance! Every block gets progressively harder, so each block takes just little more time than the one before. And the more of these they sell the harder everything gets (that is what makes get mining gpu mining ineconomical) so it would get say10k the first month, 9.5 the second 8.5 the third, 7 the fourth until it gets obsolete in terms of keys/watts.

 

[misor]

The new Titan 100k Kh/s will take 1.2months to pay off I would say it is the BEST thing to get!!! Lets just say in 1 yr your $10k investment would earn you $108K PROFIT!!!! seems like a win to me...

agree.

Stupid as it gets. If it was profitable to use those machines, the manufacturers would rather use them than sell them.

agree again.

 

[Puiu]

The new Titan 100k Kh/s will take 1.2months to pay off I would say it is the BEST thing to get!!! Lets just say in 1 yr your $10k investment would earn you $108K PROFIT!!!! seems like a win to me...

you won't get that big of a profit because it will give you less and less bitcoins as time passes. getting around 5-6 times your initial investment in the first first year is not a dream though depending on how much you pay to keep it running 24/7.

 

[wastedkill]

you won't get that big of a profit because it will give you less and less bitcoins as time passes. getting around 5-6 times your initial investment in the first first year is not a dream though depending on how much you pay to keep it running 24/7.

Wrong thread mate this is for Litecoins... And $110K profit is a DREAM investing $10k and getting $110k in the first year is amazing then every year you get $110k a year which will get reduced by 5-10% each year which btw is amazing... Or are you bill gates?

 

[ahmadsiddiqi]

I just got 6 290x's and the Titan will surely make it difficult to recoup my costs.

The same will happen to Titan when it arrives. It will most likely net you profit the first month but then the profit will drastically reduce.

If you recoup your costs consider yourself a winner because by the time you get this device the difficulty would already have risen to a point beyond Titan's reach.

 

[wastedkill]

I just got 6 290x's and the Titan will surely make it difficult to recoup my costs.

The same will happen to Titan when it arrives. It will most likely net you profit the first month but then the profit will drastically reduce.

If you recoup your costs consider yourself a winner because by the time you get this device the difficulty would already have risen to a point beyond Titan's reach.

Please thats like saying Bitcoins difficulty exploded at 5x what it actually did, The difficulty would only see a 20-30% increase in difficulty increases than it normally would specially as they are selling a limited amount of them unlike Bitcoins ASCIS etc.

 

[VitalyT]

Opportunity cost. While coin mining may be profitable initially, selling machines to coin miners is more profitable.

I'd rather agree with the theBest11778 in that the manufacturers see it as scam, that's why they don't get into it themselves and rather sell the machines.

As for your long-term selling strategy. Those machines are claimed to pay for themselves in a month-two. That's not a long-term by any market measure. So why they still wouldn't just use them? - 'cos they think it's a scam, and rather sell the hardware to those who think otherwise. This is the only way it makes sense.

 

[Guest]

Glad I just sold off my 4 7950's on Ebay for more than I bought them for last year. I basically mined for free for several months...made money. Then sold off all the equipment at no loss The people getting in now are too late.

 

[Camikazi]

Opportunity cost. While coin mining may be profitable initially, selling machines to coin miners is more profitable.

I'd rather agree with the theBest11778 in that the manufacturers see it as scam, that's why they don't get into it themselves and rather sell the machines.

As for your long-term selling strategy. Those machines are claimed to pay for themselves in a month-two. That's not a long-term by any market measure. So why they still wouldn't just use them? - 'cos they think it's a scam, and rather sell the hardware to those who think otherwise. This is the only way it makes sense.

Or they are using them to mine while the difficulty is low AND selling them at the same time, I mean I would do that if I could.

 

[captaincranky]

Stupid as it gets. If it was profitable to use those machines, the manufacturers would rather use them than sell them.

This is sort of similar to what I believe exists in photographic equipment manufacture. The makers are likely among the very few people making money with camera equipment.

 

[Guest]

You're all missing the point on why KnC don't mine with them.

They'd be shooting themselves in the foot if they used all their machines to mine. Firstly the difficulty would rise tremendously and in a couple of days they'd be no better off than a normal GPU miner was before their ASICs. They could also perform a 51% attack which would destabilise the crypto-currency, scare the community, and drive down the market price. It seems likely to me that they'll be using a handful of machines to mine before they release them, just to make a little extra cash.