Microelectronics Technology Co. (fka MELY)

[RHJ~BT]

I have done some mining myself with equipment and cex.io. Now I'd hate to shit on the parade but here I go anyways.. Bitcoin mining relies on difficulty this is done because the supply of Bitcoins is a fixed amount.

Let me give you a small scale example of the point I'm trying to make these numbers are just to give an example: Lets say there is 100 bitcoins that are suppose to be minted this year. You have 1TH and there is only 2 other people in the world that are mining Bob and Sam and ofcourse yourself. Bob and Sam also have 1TH so everyone is getting about 33% of the coins that are suppose to be issued this year.

Now Sam has some extra money from mining so shes going to buy some more equipment she now has 2Th and you only have 1TH and Bob 1TH as well so now Sam is getting 50% of the coins to be issued this year and you and Bob are only getting 25% each this is because there is only a set amount of coins to be issued this year.

Now picture this scenario but on a much larger scale here is a difficulty chart you can use set the data to all http://www.coinwarz.com/difficulty-charts/bitcoin-difficulty-chart

It gets increasingly harder and harder to generate Bitcoins. Now let me give you something easy to use here https://cex.io/calc no matter what number you type in there you will notice that that mining will no longer be profitable in just a few short months.

It is far to late to get into the bitcoin mining business. IMO the CEO or whoever they have in charge of this operation didn't see the whole thing through in a long term perspective. Yes they will make a lot of money every month for a very short period of time only though not even a full year. Will this cover there expenses? More than likely not high power bitcoin mining equipment is very expensive. Will they be able to sell the equipment back at cost? History shows that no they will not be able to.

The price of 1GH on CEX.IO in November 2013 was .07 BTC. It currently stands at .007 BTC. Now why is this? Because the people who are doing their research in it are seeing that very soon in a couple months bitcoin mining will no longer be profitable.

But now there is something called altcoin mining which uses SCRYPT instead of SHA. This is fairly new and only recently are ASICS being made for it. Let me give you some history and a overview of what I'm talking about. ASICS are specialized machines that are used to mine coins which is basically what MELY is using. Back then Bitcoin was mined on GPU's and processors after a short period of time ASICS were made to do this. The people who bought the ASICS in the beginning are probably the only people who were able to make a profit, since now it is almost unprofitable to mine Bitcoin no matter what you use. So if history is to repeat itself those who buy the SCRYPT ASICS should be able to profit to before it all becomes unprofitable to mine.

Since bitcoins and altcoins use different algorithms a SHA 256 ASIC can not mine on SCRYPT. HOWEVER, once again there is new machines that are being made that can mine both although these are not the machines that MELY has.

Even if Bitcoin went to $1000 per coin again in a few months it will still be unprofitable to mine.

TO conclude it MELY is getting into something that is already going down the hole. I believe in Bitcoin and I do believe in the price per coin to go up but I do not believe in Bitcoin mining because the time for that is up already.

One more bad thing about MELY they just increased their A/S to 7.5 billion 3 days ago. http://nvsos.gov/SOSEntitySearch/corpActions.aspx?lx8nvq=wVnebV4BOymPxDq8tQXLRw%253d%253d&CorpName=MICROELECTRONICS+TECHNOLOGY+COMPANY