This means that there is no realistic scenario where a small miner can’t compete on with big miners especially when you consider those with reduced or so called “free” power.
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People look at the USB Block Eruptors says it is a “bad” deal and assume that means small units will cost too much. The reality is the price of miners right now has little to do with cost and more to due with demand. Friedcat sells out of every batch of BE. As a merchant the best possible price is the highest price where you still continually sell out.
Any higher and you are stuck with inventory, any lower and you still run out you just makes less. As demand falls so will the price it already has to some extent from 2 BTC to 0. Eventually the margins on these small miners will be very low and they will be produced in hundred thousand lot units. USB Miners will lose their “premium” relative to larger units as they become more available and there is more competitions.
Mining isn’t really that attractive for corporations, most wouldn’t want to touch Bitcoin mining with a 10 foot pole.
Bitcoin mining is a somewhat unique industry where your profitability matters less on what you do but on what other people you can’t control do. For example a lot maybe the majority of early ASIC miners orders in and will have negative net profits.
This is because you can do everything “right” order when difficulty is low, pick the right supplier, have low electrical costs, buy the most efficient gear, etc and still lose due to tens of thousands of clueless noobs who combined deploy so much hashing power that the revenue for everyone falls.
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