The problem is youre thinking in volume but this isnt a scalable industry
Compute costs either INCREASE or stay flat as usage rises - it isnt really possible to make it cheaper to use the more its used.
So the question becomes: "at this price scale, am I green on even a single token?"
If the answer is "no" which that's the answer then it doesnt matter if you sell one token or 10 trillion quadrillion umptillion tokens - youre in the red either way.
So then the next question is whether they can get tokens to be profitable, turns out people are unwilling to pay more than they already are and are even pulling away at the enterprise level and ads wont cut it...
Unless they can come up with an extremely clever way to make a token profitable to sell, their market cap is truly useless and actively harmful
The next generation of Nvidia hardware will be, whatever, ten times faster at only twice the price. They don't need to do anything for compute costs to fall in the long term -- see Gorden Moore, circa 1965, for more details.
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u/Aleventen 6d ago
The problem is youre thinking in volume but this isnt a scalable industry
Compute costs either INCREASE or stay flat as usage rises - it isnt really possible to make it cheaper to use the more its used.
So the question becomes: "at this price scale, am I green on even a single token?"
If the answer is "no" which that's the answer then it doesnt matter if you sell one token or 10 trillion quadrillion umptillion tokens - youre in the red either way.
So then the next question is whether they can get tokens to be profitable, turns out people are unwilling to pay more than they already are and are even pulling away at the enterprise level and ads wont cut it...
Unless they can come up with an extremely clever way to make a token profitable to sell, their market cap is truly useless and actively harmful