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BitCoin - 30K Investment = 422k/Month Returns

Discussion in 'BlackHat Lounge' started by 357Smith, Apr 7, 2013.

  1. 357Smith

    357Smith Junior Member

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    I'm talking about the 1,500 GH/s Bitcoin Miner (BitForce Mini Rig SC) that is about to go on sale for $30,000 in the next few weeks. All the mining calculators I've tried are saying the return would be like $14,000+ per day from this machine alone.


    I call total BS.... Why would a company sell a device for 30k, when they could just make 5,000 of them for themselves and net $70,000,000 per day profit (Yeah 70 Million). Obviousely I am missing the catch here, which is what I'm trying to figure out. If it was that easy to spend 30k and make $422,477/Monthly recurring income.... anyways you get the picture. Seems waaaaaaaaaaaaaay to good to be true and I know I'm missing something big here.


    So anyone care to tell me the catch?






    ==================================================================
    https://bitclockers.com/calc


    If you earn 25.00 BTC per block found with a value of $143.32 per BTC, mining with a difficulty of 7673000 at 1500000 Mh/s, power costing $0.22 per kilowatt hour @ 1500 watts for the next 90 days, spending $30000 in startup costs your profits would be....


    24Hrs: $14,082.59
    1Month: $422,477
    1 Year: $4,609,446




    Bitcoins per day: 98.31503785 BTC
    Generate a block every: 6 hours 6 mins 10 seconds
    Break even in: 2 days 3 hours 7 mins 37 seconds
    Net at 90 days: $ 1,237,433.21
    ==================================================================
     
  2. TeamUnique

    TeamUnique Regular Member

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    Seems legit
     
  3. Twixx

    Twixx Supreme Member

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    Well maybe they're not taking the risk of mining themselves since the price might boom down anytime. :) I don't really know, sounds pretty weird actually...
     
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  4. criticalmess

    criticalmess Regular Member

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    Bitcoin is actually the same as any other currency...

    = monopoly money
     
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  5. forwardedlandlines

    forwardedlandlines Jr. VIP Jr. VIP

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    The purpose of mining bitcoins is to expand the economy. If this happens fully centralized from a company having a huge mining rig, it will be countered with a newer system that rejects such. On the other hand, they can partially use their machines, and they can partially sell them. This stimulates decentralization of the bitcoin and natural expansion. So yes, this rig actually (currently) mines $12k+ per day depending on the current BTC value and the difficulty (how much mining capacity is out there already as competition).
     
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  6. 357Smith

    357Smith Junior Member

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    From further research it appears that when these ASIC machines are released the mining difficulty is going to go so far up that your 14k daily may go down to $100 daily or whatever. Thats about the best "catch" I can come up with.

    Seems that the more processing power that goes into the network, the higher the difficulty the lower your machine is going to make so you might make 14k per day in the beginning then in 3 months make $50 per day. Guess its a total gamble, but at 3 days to break even, seems almost bullet proof that your 30k is going to turn into 300k in less than a few months.

    Still seems too good to be true.
     
  7. Paco De Lucía

    Paco De Lucía Junior Member Premium Member

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    I wouldn't hold your breath. Butterfly Labs has been saying they'll ship "any day now" for the last six months. The dates keep getting pushed back, and back, and back -- I canceled by BFL "pre-order" many moons ago. If you're a new person with a pre-order, the earliest you'll get your equipment is in six months *if* you're lucky and by then the dynamics of mining with so many ASIC miners out there will make it barely more profitable than FPGA mining was in its heyday. Everybody is looking to "get rich" in BTC and the funny thing is that only a tiny percentage will. The rest are just chasing leprechauns at the ends of rainbows.
     
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  8. 357Smith

    357Smith Junior Member

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    Makes sense. Basically by the time I get honored with spending $30,000 on this machine so many of them will already be out there that the difficulty will increase to such a level that I'm lucky to generate $100/day compared to $14,000/day if I had this in my hands right now.

    So the company is probably banking off this soo hard until the difficulty rating goes so high its more profitable to sell them than to keep em?
     
  9. Paco De Lucía

    Paco De Lucía Junior Member Premium Member

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    It is likely that the company is making money, but given as this is vaporware as no one has the product in their hands at this point it is really hard to say for certain. Given the company's poor track record for keeping customers up to date, I would be *very* nervous if a dime of my money were still in BFL's hands.
     
  10. 357Smith

    357Smith Junior Member

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    Then again if you go with the 50 Gh/s miner which says in stock for $2,500....

    Say you buy 5 of them since the site says multiple can be used together with a simple USB hub.

    $469.42 profit after paying electric bill per day.... x 5 = $2,345 profit per day.

    And since it says in stock Im guessing you get these before the difficulty rating goes through the roof?



    EDIT:
    We plan on shipping the ASIC versions of our products by the end of April. We have orders that date back to June of 2012. Those are the orders that will be delivered first. Orders placed now will not ship until the month of July.
     
  11. garrido

    garrido Supreme Member

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    The catch is that you OWN the risk.
     
  12. determined

    determined Regular Member

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    I think that butterflylabs was shady off the start. It looks like they used 'pre order' status as a form of crowdsourced funding to make these machines. In a perfect world the mining stats are legit but there are ons of risks too like, mining difficulty, mark price,volume etc. However I do agree with the OP it doesnt seem right...
     
  13. steelballs

    steelballs BANNED BANNED

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    Come on folks if this process had any mileage the hi rollers like George Soros et al would be in on this act...

    What ordinary people have to understand that this is 99% BS and 100% hype that means before you even start with this nonsense fools are cash negative to minus 199% minimum
     
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  14. IamNRE

    IamNRE Jr. VIP Jr. VIP Premium Member

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    Seems legit.

    And I have a website that nets $1mil/month.... I'll sell it you for $100k.

    Let me know if you are intr.
     
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  15. Galator

    Galator Registered Member

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    I would buy bitcoin for 30.000$ and watch Myself earning, bitcoin will go up as its reaching Critical mass right now
     
  16. 357Smith

    357Smith Junior Member

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    Well after 2 more hours of research, especially after reading this: http://bitcoinmagazine.com/working-avalon-asic-confirmed/ and http://bitcoinwatch.com/ basically it the more ASIC units that are sold the higher the difficulty goes the lower amount you will make.

    Basically if I was the ONLY person to own the 1,500 Gh/s ASIC machine then yeah I could make $xxx,xxx per month, but the more and more power that is put into the network, the higher the difficulty the lower you will make.

    Right now the entire network is doing 22,000 Gh/s which isn't that much if you think about it, and adding machines that do 1,500 each, after 100 machines are sold the network power is 750,000 Gh/z, which means you will earn 3% of what you were earning if you got your device in your hands today (impossible, 3-6 month wait). So $14,000/day goes to $420 per day after 100 units are sold... there is your catch.
     
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    Last edited: Apr 7, 2013
  17. jazzc

    jazzc Moderator Staff Member Moderator Jr. VIP

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    As the meme says, "u mad bro"?

    Monopoly means that only one is allowed to make money. In Bitcoin, everyone can make money.
     
  18. Sprouts

    Sprouts Regular Member

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    He means "monopoly" the game. Like all money, it's just paper which people believe in. When no-one believes in the currency, no-one wants it and the price will crash making it worthless - Just like the money you get in a set of monopoly.
     
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  19. jazzc

    jazzc Moderator Staff Member Moderator Jr. VIP

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    That makes more sense, thanks :)

    On the actual point you 're making though, money (all money) is a commodity. Its value always depends on consumer wishes (just like all commodities). You can't eat gold, you can't burn it to get heat but it 's worth a lot because (for whatever reasons) consumers want it.

    So, monopoly game money doesn't mean anything of lesser value.
     
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  20. Sprouts

    Sprouts Regular Member

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    True that money is also a commodity and the price depends on consumer demand.

    People tend to believe in "real" commodities like metals because it is impossible (possible but hard to) make more of it. You can't just print out a load of gold whereas what do the government do when they're in a deficit... print more money.

    So belief in gold tends to be high as it is hard to fraudulently obtain/produce whereas money can be counterfeited or just printed "legitimately" by a government.

    I guess people could trade in monopoly money as well but all hell would break loose because people could print their own through a printer whereas dollars/pounds etc have security features making it much harder.

    Check the following out:

    Money crashes in the past - http://en.wikipedia.org/wiki/Hyperinflation_in_Zimbabwe
    Quantitative Easing: http://en.wikipedia.org/wiki/Quantitative_easing

    Don't get me wrong, gold and other commodities have also crashed in the past but belief is high in them as they serve purpose (building, jewellery etc) but never seen a really bad crash in gold.
     
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