But when it comes to mining it isn’t just the ‘lucky’ that make the money it’s also the ones selling the shovels and spades. I’m talking about the manufacturers like KnC and Butterfly Labs; the ones who escape the rate race by giving the rats what they want. Surely that’s where the profit lies. They take your money up front (like the banks) and they teach you a lesson but you don’t see any profit until you learn from it.
What one also have to understand, the manufacturers do make some bucks of the shovels and spades, however their business plan is based on using the newest equipment first (before anyone else have them) and then selling them just about when profit is barely possible with the tools they just used. The first few in line to buy one will make big bucks and get ROI, thus pumping the reputation of the tools. However, if you’re a bit down the line you’re giving money away without a gain.