🎶 Ohh, I'm gonna getcha with the Kodak KashMiner 🎶 pic.twitter.com/IX5zy5vtCf
— Jeremi M Gosney (@jmgosney) January 10, 2018
Remember a couple years ago when Kodak announced a cool new Super 8 camera and everyone thought it was great?
Today’s story is nothing like that.
Yesterday, Kodak announced a new cryptocurrency called KODAKCoin and a blockchain technology for licensing images called KODAKOne. Today, on the CES 2018 show floor, Kodak showed off its new Kodak KashMiner, which mines bitcoin.
Essentially, you pay $3400 to rent the Kodak KashMiner for two years. During that time, Kodak keeps 50% of the bitcoin revenue and Kodak estimates that you’ll receive $375 per month for a total USD equivalent payout of $9,000.
There are a number of problems with this scenario.
First, the Kodak KashMiner miner appears to be rebranded Bitmain Antminer S9, which retails for around $2400. So, Kodak is renting its KashMiner to you for $1000 more than you could buy it outright and have forever. This will likely put even more pressure on the supply and demand bottleneck right now since Antminer S9s are going for around $6,000 on the secondary market. Way to go Kodak.
— Angry Albert (@Angry_Albert) January 10, 2018
Second, Kodak’s calculations assume that the difficulty level of mining bitcoin stays the same, when the difficulty level has been increasing by about 15% per month. Accordingly, the anticipated mining revenue is way off over the course of those two years. And if the value of bitcoin drops from current, it’s an even worse deal. Potential KashMiner customers would be much better off with a cloud mining contract through an existing service like Hashflare or Genesis with flexible rate and reinvestment packages.
There is no way your magical Kodak miner will make the same $375 every month, unless Bitcoin mining difficulty stays the same. It is currently increasing at around 15% a month, so mining output should drop around 15% a month, too. Good luck to everyone who bought this deal! pic.twitter.com/0xA2HNtHFc
— Saifedean Ammous (@saifedean) January 10, 2018
I find the label at the top of the page “In Math We Trust” to be more than a little ironic. There are apparently already 80 contracts for Kodak KashMiner and another 300 units are on the way.
Kodak appears to have simply slapped a sticker on the side of the industry standard bitcoin miner and charged you $1000 more for a 2-year rental fee than you can buy one outright. For every eyebrow that may have been raised with interest in the earlier announcement of KODAKOne and KODAKCoin, this move undermines the legitimacy that Kodak could have for its blockchain technology.
If Kodak wanted to become a real player in the cryptocurrency and blockchain market, it could have blown the doors off CES by bringing in actual hardware to the US and helped the bottleneck in supply chain. Instead, Kodak looks like a total shill after a quick stock pump.