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Addressing the many concerns related to Obelisk
Why make ASICs at all?
Our blog has a longer post on the subject, but the ultimate answer is that GPU mining is very insecure. For the vast majority of GPU mined coins out there (including Sia), it is the case that there are multiple, if not many, individuals who operate enough GPUs to execute a 51% attack against the coin all by themselves. There are some very large Ethereum GPU farms out there, and they are a threat to all small GPU-mined coins. (our market cap is a factor of 50 smaller than Ethereum - we are a small coin). And it's not just Ethereum farms to be afraid of, there are massive GPU farms dedicated to machine learning as well, and other big-data related use cases. All of those are potential sources for a 51% attack. Even worse, if the price of the coin tanks following such an attack, the attacker has nothing to lose, because the core purpose of their hardware is unrelated to Sia, and unaffected by a change in price. Though it sounds terrible and unintuitive, a single centralized entity running ASICs would be a much more secure situation than this. Because with a single central ASIC entity, you get two huge advantages:
There's only 1 entity capable of performing a 51% attack. This is much better than having multiple entities that are each individually capable of performing a 51% attack.
If the price of the coin falls, the entity that has all of the hardware loses a lot of money. That hardware isn't good for anything besides Sia mining, so that entity is quite invested in propping up the siacoin price.
We chose ASICs over GPUs because even the worst case scenario is more secure and better for the coin than the situation with GPU mining. But we also did not want a single entity owning and operating all of the ASICs. That's when we realized, if we were ASIC manufacturers ourselves, we could guarantee that at least one entity is selling chips to the larger community. The unfortunate fact is that either way, there is going to be a small number of chip manufacturers who have the power to sell chips to the community. Even so, this is a better situation than what you get with GPU mining. We are making ASICs so that we can guarantee the first batch of ASICs will make it to the Sia community. Without that, we have no idea if the first batch of ASICs will be sold to the public or hoarded by some greedy investors who were able to pay the full price of manufacturing up-front.
Why are you doing the presale so early?
We, put simply, don't have enough cash even to do the early development of the chips. We need financing to pay for chip development. Traditionally, we would find some private investors, have them front some millions, and in return promise them a very good deal on some hardware. The private investors would get the first stab at buying ASICs, they'd get a huge chunk, and they'd get them at an exclusive deal for taking on the risk early. We actually had private investors come forward offering this to us, with enough money to fund the full development and manufacture of the first batch of chips - this isn't a hypothetical, it's a real offer that the Sia team received. This didn't seem fair to us. When we finally did get to the point where the miners were ready to be sold to the community, we would have to offer the community a worse deal. Less risky, but ultimately it would mean that the community was excluded from the opportunity of participating early, and the result is a huge chunk of the chips going to some private investors. Such a situation is still better than GPU mining, but it didn't seem like the best that we could do. We felt that we could do better by opening the early presale to everyone.
Why not accept credit cards?
Payment processors are not friendly to Bitcoin products. We contacted Stripe and were told point-blank that they would not process payments for cryptocurrency miners. We appreciate everyone who pointed us towards Stripe as a bitcoin-friendly company, but they gave us a direct no. Paypal has a long history of freezing merchant accounts with little warning, and when they do so they freeze your existing money in addition to freezing incoming payments - we would be unable to pay our bills if Paypal did this to us, and it would unquestionably cause delays. Visa and MasterCard are not much better in terms of track record. Losing access to our accounts would unquestionably cause delays. ASIC hardware is already well known to suffer from serious delays, and we need to limit our exposure to delays. We are in an industry that is unfortunately fraught with fraud. With revenue-generated devices such as miners, criminals are much more likely to try to target these devices as a way to cash in on stolen credit cards, stolen identities, hacked bank accounts, etc. The fraud rates are staggering, and as a result most payment processors outright refuse to deal with it. We are aware that Bitmain is partnered with Paypal, though we don't know the details behind how that came to be.
Why not accept Siacoin?
This was a harder decision. We could quite easily choose to accept siacoin, however we fear that Siacoin is not ready to handle such a massive presale. The market cap and daily volume of Bitcoin is a factor of 100 times as large as the Siacoin market cap and volume. Moving millions or tens of millions of dollars through Bitcoin is not likely to make much of a dent. Siacoin on the other hand, a sudden sell order for millions of dollars would likely tank the price. That not only means the ecosystem is unhappy with us, it also means that we might only be able to sell $2499 of siacoin for $2200. A lot of people have accused us of not having confidence in our own coin. Unfortunately, this is true. Even at a $500 million market cap, Sia is not ready to handle a presale of this size. It's a pragmatic decision based on the fact that we don't want to dump our own coin. We know that people will be selling siacoin to buy the miners anyway, but we still feel that this situation is much better than us accepting siacoin directly. This decision was a disappointment for us as well. We would love to accept siacoin, and if we weren't talking about processing millions of dollars in a single day, we absolutely would be accepting siacoin. And, as Sia continues growing up, the concerns above will become less and less.
What about this 5% gains/losses stuff?
Our intention was never to play fishy financial games with our users, and honestly this isn't even something that crossed our minds as a potential problem point. I think a big part of the issue was that people did not realize we will be converting to US dollars as fast as possible - we will be doing the conversion in minutes or hours as long as we can keep up with the order volume. The rationale is very simple. If the price plummets before we are able to convert the Bitcoin, we won't have enough money to create the hardware. We really don't expect this to matter, because we don't expect the price to swing by more than $100 (which is what would be required) in the few hours that we're going to be sitting on the BTC. If it does, we'll need more coins or we can't produce the hardware - our costs are in dollars, which means we need to end up with the right amount of dollars in our account at the end of the day. The original stance on not returning gains was also very simple. There's no transparency into when we sell the coins. If we sell the coins within 60 minutes of receiving them, and then 4 hours later there's a huge surge in the price, we will almost certainly have users emailing us and posting about how we owe them a refund. We won't have that refund, because we'll have sold the coins before the price rise. There's not much we can do to provide transparency into this either. And we're likely to get requests for refunds even if it takes 3 months for Bitcoin to rise by 5%. This promise of returning gains that we've put forward is going to be a massive headache, because we're not expecting to have any gains, even if the price goes up by that much we'll have likely converted to USD faster than that. Our whole goal is to convert to USD as fast as possible. We're sorry that we have to go through this headache at all. If we could get set up with a processor like Stripe, we could accept both Bitcoin and USD and let them deal with the conversion process, slippage risk, and all the other headache associated with using multiple currencies.
Why shipping a full 12 months away?
Before we set out to make Sia miners, we did a study of companies who had previously sold and pre-sold Bitcoin miners. This included talking to both Avalon and Butterfly Labs, and talking to professionals and advisors who have shipped hardware successfully in other industries. The core piece of advice we got was pretty consistent: expect delays. Expect lots of delays, and expect them to come from the most absurd setbacks. (Example: one of the people we talked to had to delay their product because there was a global shortage of power supplies, and they had to wait in line behind billion dollar companies to get some). Our projections indicate that if all goes well, we should be able to ship the miners in 6-8 months. Nothing we are doing is new. Plenty of companies have gone through the process of developing a chip, manufacturing it, putting it in a box, and then shipping it to users. There is almost no innovation risk here. Sia's PoW algorithm is deliberately very ASIC friendly, even more than Bitcoin. We have advisors who have gone through this process before, and the types of challenges facing us are well known. 6-8 months is reasonable, except that every single person we've talked to has told us that unexpected delays is a guarantee, and that by nature of being unexpected, there's not really any way to prevent them by planning around them. Delays are just inherent to shipping hardware. So we chose to set our target at 12 months. We will ship the miners as soon as they are ready. If we are a few months ahead of schedule, and have somehow managed to avoid the foretold delays, we will ship them months ahead of schedule. But we want our users to have a realistic understanding of the expected delays. We've baked a generous amount of time for setbacks into our shipping date. We'll almost certainly need at least some of it.
Making chips is very expensive. We have to sell thousands of units to cover the cost of the chips. A nontrivial percentage of the price is going to go towards chassis, shipping, power supply, control board, fans, etc. Those costs are relatively the same even if we put in fewer chips, which means the total percentage of our budget going towards chips drops significantly. If we cut the price in half, we'll have to sell roughly three times as many units to break even on the cost of the chips. If we cut the price in half again, we'd need to sell a completely unreasonable number of units to break even on the cost of the chips. It's unfortunate, but the fixed costs of chip manufacture means that we really need vast majority of the price of the unit to be spent on chips, otherwise we simply won't be able to sell enough units. There is a second reason as well. As stated in the section above, the industry is plagued by delays an unexpected expenses. We need a healthy budget to plan around potential setbacks, because we've been guaranteed that there will be multiple significant setbacks by those who have gone through this process before. If we bring down the price of the unit, we will also be reducing the amount of wiggle room we have for disaster if suddenly we have to replace parts, re-do designs, or otherwise perform expensive adjustments to our plans.
Are you guys qualified to be working on hardware?
Zach is a mechanical engineer, I've been in the Bitcoin space since before ASICs started shipping, and we have advisors who have successfully shipped hardware before. The team that is designing the chips for the miner has designed chips and shipped chips for Bitcoin miners previously - they are familiar with the whole process, and have done it before. The people in charge of designing the PCB board and other aspects of the miner are also all experienced with their respective tasks. We will be facilitating frequent and strong communications between everyone working on the various components of the miner. The ultimate answer is that the Sia development team is not qualified to be making this type of hardware. However, the Sia development team is not the team working on the hardware. Most of the heavy lifting is being performed by teams with lots of experience in this industry, including experience that is directly related to cryptocurrency miners. What we are doing is not new. Dozens of cryptocurrency miners have been created and shipped in the past, and we are not starting from day zero. We have many advantages over the previous rounds of pre-sale cryptocurrency miners, but the biggest is that it's no longer the wild west of hardware design. There is a standard, and there are tried-and-true methods for making reliable cryptocurrency miners. We get to fall back on the mistakes and successes of the many miners that have been built previously, and we will be leaning heavily on teams and people that have direct experience in this field as opposed to doing everything ourselves.
Does this mean that Sia is getting less attention from the developers?
Sia right now has four full time employees. Myself, Zach, Luke, and Johnathan. Zach was hired in June 2017, less than one month ago. He is not a programmer. Luke and Johnathan will continue with the same responsibilities that they've always had. They helped out a little bit in setting up the website, and in setting up a secure database to process orders + payment information, however the majority of their time has been focused on Sia even as we set up this presale. Going forward, they will be almost entirely uninvolved in Obelisk. I have had to allocate about 25% of my time to Obelisk. Slightly more this week, due to the PR meltdown we had from the initial announcement. But most of my time is still going towards Sia. Most people know I work over 100 hours per week (some weeks will eclipse 120), and that a quarter of my time is not a small amount. Zach is closer to 50% Sia, 50% Obelisk at this point. We're expecting that to tone down once the presale is over - much of this time has been spent with banks, with lawyers, with payment processors, and we won't have to do that beyond the initial setup phase. Zach and myself will still be having weekly conversations with every part of the Obelisk supply chain, including the chip designers, chip manufacturers, control board designers, the miner assembly teams, and the fulfillment centers, so even after the presale there will be effort going towards Obelisk. But nobody on the Sia team is doing chip design, nobody is doing control board design, most of the really heavy work is being done by experienced teams and suppliers that we've found and already spent weeks vetting and verifying. We incorporated Obelisk as a separate company precisely so that Obelisk would eventually have a completely separate team. And finally, as Obelisk is wholly owned by Nebulous, a successful hardware company does mean revenue and income for the Sia team. Cryptocurrency mining tends to be low margin, so tens of millions in revenue for Obelisk does not necessarily millions in funding for the Sia team. But it is something, and it will give us more time to get the storage platform to the next levels of maturity.
I know that a lot of you are concerned about the miner presale that we are conducting. I hope that this post has helped to alleviate those concerns. I hope it makes sense why we are doing a public presale, instead of seeking private investment until we have a full prototype. I hope this post has clarified our decisions around payment methods, and around our price point. I hope you feel more confident that this is something we will be able to pull off. And finally, I hope I've reassured you guys that Sia is still our primary focus, and that we haven't suddenly pivoted into being a hardware company. We are ultimately doing this to provide better security to the Sia network. GPU mined coins are frighteningly insecure, and Sia is now large enough where there is serious money on the line. We are doing this to gain security, and also to ensure as much decentralization as possible when it comes to chip manufacture. We are typically viewed as one of the most reputable teams in cryptocurrency, and I know it's why a lot of you are here. We hope that the Sia ASIC that we are going to be manufacturing and selling strengthens this reputation, but ultimately we will not find out until the miners are actually being shipped. We continue to be excited about this new product. We truly do feel that ASICs are the right direction for Sia, and we also feel that we are doing the right thing by bringing the opportunity to own a Sia ASIC to the broader Sia community. We are sorry for the fallout from our sloppy original announcement, and we hope that we have since made up for it. Finally, we hope that you are interested in buying a miner. Even if we only sell a small batch, ASICs are going to utterly dominate the hashrate of Sia going forward. This is an egalitarian sale where everyone has equal opportunity to buy a miner - there's no cap, and we will ensure that small buyers are not shut out by larger buyers in any way.
Final version 1.3.0 of the core software was released bringing all the enhancements reported last month to the rest of the community. The groundwork for SPV (simplified payment verification) is complete, another reduction of fees is being deployed, and performance stepped up once again with a 50% reduction in startup time, 20% increased sync speed and more than 3x faster peer delivery of block headers (a key update for SPV). Decrediton's integrations of SPV and Politeia are open for testing by experienced users. Read the full release notes and get the downloads on GitHub. As always, don't forget to verify signatures. dcrd: completed several steps towards multipeer downloads, improved introduction to the software in the main README, continued porting cleanups and refactoring from upstream btcd. Currently in review are initial release of smart fee estimator and a change to UTXO set semantics. The latter is a large and important change that provides simpler handling, and resolves various issues with the previous approach. A lot of testing and careful review is needed so help is welcome. Educational series for new Decred developers by @matheusd added two episodes: 02 Simnet Setup shows how to automate simnet management with tmux and 03 Miner Reward Invalidation explains block validity rules. Finally, a pull request template with a list of checks was added to help guide the contributors to dcrd. dcrwallet: bugfixes and RPC improvements to support desktop and mobile wallets. Developers are welcome to comment on this idea to derive stakepool keys from the HD wallet seed. This would eliminate the need to backup and restore redeem scripts, thus greatly improving wallet UX. (missed in July issue) Decrediton: bugfixes, refactoring to make the sync process more robust, new loading animations, design polishing. Politeia: multiple improvements to the CLI client (security conscious users with more funds at risk might prefer CLI) and security hardening. A feature to deprecate or timeout proposals was identified as necessary for initial release and the work started. A privacy enhancement to not leak metadata of ticket holders was merged. Android: update from @collins: "Second test release for dcrandroid is out. Major bugs have been fixed since last test. Latest code from SPV sync has been integrated. Once again, bug reports are welcome and issues can be opened on GitHub". Ask in #dev room for the APK to join testing. A new security page was added that allows one to validate addresses and to sign/verify messages, similar to Decrediton's Security Center. Work on translations is beginning. Overall the app is quite stable and accepting more testers. Next milestone is getting the test app on the app store. iOS: the app started accepting testers last week. @macsleven: "the test version of Decred Wallet for iOS is available, we have a link for installing the app but the builds currently require your UDID. Contact either @macsleven or @raedah with your UDID if you would like to help test.". Nearest goal is to make the app crash free. Both mobile apps received new design themes. dcrdata: v3.0 was released for mainnet! Highlights: charts, "merged debits" view, agendas page, Insight API support, side chain tracking, Go 1.11 support with module builds, numerous backend improvements. Full release notes here. This release featured 9 contributors and development lead @chappjc noted: "This collaboration with @raedahgroup on our own block explorer and web API for @decredproject has been super productive.". Up next is supporting dynamic page widths site wide and deploying new visual blocks home page. Trezor: proof of concept implementation for Trezor Model T firmware is in the works (previous work was for Model One). Ticket splitting: updated to use Go modules and added simnet support, several fixes. docs: beginner's guide overhaul, multiple fixes and cleanups. decred.org: added 3rd party wallets, removed inactive PoW pools and removed web wallet. @Richard-Red is building a curated list of Decred-related GitHub repositories. Welcome to new people contributing for the first time: @klebe, @s_ben, @victorguedes, and PrimeDominus! Dev activity stats for September: 219 active PRs, 197 commits, 28.7k added and 18.8k deleted lines spread across 6 repositories. Contributions came from 4-10 developers per repository. (chart)
Hashrate: started and ended the month around 75 PH/s, hitting a low of 60.5 and a new high of 110 PH/s. BeePool is again the leader with their share varying between 23-54%, followed by F2Pool 13-30%, Coinmine 4-6% and Luxor 3-5%. As in previous months, there were multiple spikes of unidentified hashrate. Staking: 30-day average ticket price is 98 DCR (+2.4). The price varied between 95.7 and 101.9 DCR. Locked DCR amount was 3.86-3.96 million DCR, or 45.7-46.5% of the supply. Nodes: there are 201 public listening nodes and 325 normal nodes per dcred.eu. Version distribution: 5% are v1.4.0(pre) dev builds (+3%), 30% on v1.3.0 (+25%), 42% on v1.2.0 (-20%), 15% on v1.1.2 (-7%), 6% on v1.1.0. More than 76% of nodes run v1.2.0 and higher and therefore support client filters. Data as of Oct 1.
Obelisk posted two updates on their mailing list. 70% of Batch 1 units are shipped, an extensive user guide is available, Obelisk Scanner application was released that allows one to automatically update firmware. First firmware update was released and bumped SC1 hashrate by 10-20%, added new pools and fixed multiple bugs. Next update will focus on DCR1. It is worth a special mention that the firmware source code is now open! Let us hope more manufacturers will follow this example. A few details about Whatsminer surfaced this month. The manufacturer is MicroBT, also known as Bitwei and commonly misspelled as Bitewei. Pangolinminer is a reseller, and the model name is Whatsminer D1. Bitmain has finally entered Decred ASIC space with their Antminer DR3. Hash rate is 7.8 TH/s while pulling 1410 W, at the price of $673. These specs mean it has the best GH/W and GH/USD of currently sold miners until the Whatsminer or others come out, although its GH/USD of 11.6 already competes with Whatsminer's 10.5. Discussed on Reddit and bitcointalk, unboxing video here.
@matheusd started tests on testnet several months ago. I contacted him so we could integrate with the pool in June this year. We set up the machine in July and bought the first split ticket on mainnet, using the decredbrasil pool, on July 19. It was voted on July 30. After this first vote on mainnet, we opened the tests to selected users (with more technical background) on the pool. In August we opened the tests to everyone, and would call people who want to join to the #ticket_splitting channel, or to our own Slack (in Portuguese, so mostly Brazilian users). We have 28 split tickets already voted, and 16 are live. So little more than 40 split tickets total were bought on decredbrasil pool. (@girino in #pos-voting)
KuCoin exchange listed DCBTC and DCETH pairs. To celebrate their anniversary they had a 99% trading fees discount on DCR pairs for 2 weeks. Three more wallets integrated Decred in September:
Atomic desktop wallet added Decred in version 0.1.31. The team answered many questions on Reddit.
AnyBit wallet added Decred. It features built-in price and news tracking. Notably, the source code is open for their Android and iOS wallets.
Coboadded Decred support into their Android and iOS wallets.
ChangeNow announced Decred addition to their Android app that allows accountless swaps between 150+ assets. Coinbase launched informational asset pages for top 50 coins by market cap, including Decred. First the pages started showing in the Coinbase app for a small group of testers, and later the web price dashboard went live.
The birth of a Brazilian girl was registered on the Decred blockchain using OriginalMy, a blockchain proof of authenticity services provider. Read the full story in Portuguese and in English.
Advertising report for September is ready. Next month the graphics for all the ads will be changing.
Marketing might seem quiet right now, but a ton is actually going on behind the scenes to put the right foundation in place for the future. Discovery data are being analyzed to generate a positioning strategy, as well as a messaging hierarchy that can guide how to talk about Decred. This will all be agreed upon via consensus of the community in the work channels, and materials will be distributed. Next, work is being done to identify the right PR partner to help with media relations, media training, and coordination at events. While all of this is coming up to speed, we believe the website needs a refresher reflecting the soon to be agreed upon messaging, plus a more intuitive architecture to make it easier to navigate. (@Dustorf)
Raedah Group went on the streets of Portland, USA with a pretty blue tent. (photos)
Meetup at Binzantin Cafe in Taipei, Taiwan. @morphymore: "There were 20-ish attendees, and about half of them have joined the Chinese FB group. Most of them don't hear about Decred before, but have expressed the interest in learning more about it after the event. Overall, it's a good exposure for Decred in the Taiwan community.". A report with photos was posted on Facebook, more photos are here and here.
@joshuam made a Decred Jacket appearance at Singapore Grand Prix. (photos)
NewTech PDX meetup in Portland, USA. Raedah Group presented Decred and reported "lots of new converts". (photos)
North Shore Bitcoin & Blockchain in Glenview, USA. @dustorf gave a five minute overview of Decred and noted: "There were only about 25 people, but about 1/3 of them were aware of Decred prior. (...) Our simple presence and explanation of the project moved opinion from 'another shitcoin they sold after mining' to 'an interesting and viable project worthy of further investigation'.". (photos: 12)
Bitcoin Meetup CDMX in Mexico City on Oct 6. @elian will be talking about Decred at the oldest Bitcoin meetup in Mexico.
SF Blockchain Week in San Francisco, USA on Oct 9. @lukebp will discuss DPoS vs PoS on a panel 9:30a-10:15a at the Titans of Tech Stage, Hilton Union Square.
Decred Meetup in Casablanca, Morocco on Oct 27. @butterfly will host the event and talk about Decred in French.
Texas Bitcoin Conference Austin, USA on Oct 27-28. @BAB: "The great thing about this is that it will also be a Decred Summit. We will have half of the conference dedicated to Decred topics, updates, etc."
Websummit in Lisbon, Portugal on Nov 5-8. @moo31337 will be on a panel discussing "2018: A Rollercoaster Year for Cryptocurrencies"
We'll begin shortly reviewing conferences and events planned for the first half of 2019. Highlights are sure to include The North American Bitcoin Conference in Miami (Jan 16-18) and Consensus in NYC (May 14-16). If you have suggestions of events or conferences Decred should attend, please share them in #event_planning. In 2019, we would like to expand our presence in Europe, Asia, and South America, and we're looking for community members to help identify and staff those events. (@Dustorf)
August issue of Decred Journal was translated to Russian. Many thanks to @DZ! Rency cryptocurrency ratings published a report on Decred and incorporated a lot of feedback from the community on Reddit. September issue of Chinese CCID ratings was published (snapshot), Decred is still at the bottom. Videos:
The underbelly of blockchain Governance - fiat licensing and our code with Marco Peerboom and Chris DeRose (youtube, tweet, decred, missed in August issue) Insightful dialogue about men's underwear, licenses, subtleties of GPL, BSD wars, tiling window managers and much more.
Introduction to Decred (Korean, youtube) @Killawhale collected a lot of feedback from the community and produced this video to spread the word in Korea.
Perspectives on Governance from Nathan Wilcox, Jonathan Zeppettini, Vitalik Buterin (z.cash)
Decred - an example of governance (Portuguese, youtube)
Decred, the crypto that wants to compete with Bitcoin (French, youtube)
Exodus.io Live with Marco from Decred! (youtube) Marco joins Exodus.io to discuss what makes DCR an asset that will stand the test of time.
Building Decred With Systems Development Lead Marco Peereboom - Governance, Politeia, Lightning (youtube) Topics: early days, Politeia, the structure of Decred, dcrtime, Lightning Network, attracting users and developers, future plans (DEX, Schnorr signatures, privacy, DAEs).
Decentralized autonomous funding of blockchain projects by @Richard-Red (medium, discussion on decred and dashpay)
The trouble with infrastructure, "thin" protocols in particular, is that someone has to build them at a cost. e.g. LN takes a ton of work, doesn't necessarily generate value itself, but it magnifies the value of BTC or whatever coin that uses it. I see the DEX in a similar light - whoever creates it is not going to make a bunch of money from it, but it will magnify the value of the underlying asset(s) that end up having a deep order book on the DEX. (@jy-p in #dex)
Twitter: why decentralized governance and funding are necessary for network survival and the power of controlling the narrative; learning about governance more broadly by watching its evolution in cryptocurrency space, importance of community consensus and communications infrastructure. Reddit: yet another strong pitch by @solar; question about buyer protections; dcrtime internals; a proposal to sponsor hoodies in the University of Cape Town; Lightning Network support for altcoins. Chats: skills to operate a stakepool; voting details: 2 of 3 votes can approve a block, what votes really approve are regular tx, etc; scriptless script atomic swaps using Schnorr adaptor signatures; dev dashboard, choosing work, people do best when working on what interests them most; opportunities for governments and enterprise for anchoring legal data to blockchain; terminology: DAO vs DAE; human-friendly payments, sharing xpub vs payment protocols; funding btcsuite development; Politeia vote types: approval vote, sentiment vote and a defund vote, also linking proposals and financial statements; algo trading and programming languages (yes, on #trading!); alternative implementation, C/C++/Go/Rust; HFTs, algo trading, fake volume and slippage; offline wallets, usb/write-only media/optical scanners vs auditing traffic between dcrd and dcrwallet; Proof of Activity did not inspire Decred but spurred Decred to get moving, Wikipedia page hurdles; how stakeholders could veto blocks; how many votes are needed to approve a proposal; why Decrediton uses Electron; CVE-2018-17144 and over-dependence on single Bitcoin implementation, btcsuite, fuzz testing; tracking proposal progress after voting and funding; why the wallet does not store the seed at all; power connectors, electricity, wiring and fire safety; reasonable spendings from project fund; ways to measure sync progress better than block height; using Politeia without email address; concurrency in Go, locks vs channels. #support is not often mentioned, but it must be noted that every day on this channel people get high quality support. (@bee: To my surprise, even those poor souls running Windows 10. My greatest respect to the support team!)
In September DCR was trading in the range of USD 34-45 / BTC 0.0054-0.0063. On Sep 6, DCR revisited the bottom of USD 34 / BTC 0.0054 when BTC quickly dropped from USD 7,300 to 6,400. On Sep 14, a small price rise coincided with both the start of KuCoin trading and hashrate spike to 104 PH/s. Looking at coinmarketcap charts, the trading volume is a bit lower than in July and August. As of Oct 4, Decred is #18 by the number of daily transactions with 3,200 tx, and #9 by the USD value of daily issuance with $230k. (source: onchainfx) Interesting observation by @ImacallyouJawdy: while we sit at 2018 price lows the amount locked in tickets is testing 2018 high.
ASIC for Lyra2REv2 was spotted on the web. Vertcoin team is preparing a new PoW algorithm. This would be the 3rd fork after two previous forks to change the algorithm in 2014 and 2015. A report titled The Positive Externalities of Bitcoin Mining discusses the benefits of PoW mining that are often overlooked by the critics of its energy use. A Brief Study of Cryptonetwork Forks by Alex Evans of Placeholder studies the behavior of users, developers and miners after the fork, and makes the cases that it is hard for child chains to attract users and developers from their parent chains. New research on private atomic swaps: the paper "Anonymous Atomic Swaps Using Homomorphic Hashing" attempts to break the public link between two transactions. (bitcointalk, decred) On Sep 18 Poloniex announced delisting of 8 more assets. That day they took a 12-80% dive showing their dependence on this one exchange. Circle introduced USDC markets on Poloniex: "USDC is a fully collateralized US dollar stablecoin using the ERC-20 standard that provides detailed financial and operational transparency, operates within the regulated framework of US money transmission laws, and is reinforced by established banking partners and auditors.". Coinbase announced new asset listing process and is accepting submissions on their listing portal. (decred) The New York State Office of the Attorney General posted a study of 13 exchanges that contains many insights. A critical vulnerability was discovered and fixed in Bitcoin Core. Few days later a full disclosure was posted revealing the severity of the bug. In a bitcointalk thread btcd was called 'amateur' despite not being vulnerable, and some Core developers voiced their concerns about multiple implementations. The Bitcoin Unlimited developer who found the bug shared his perspective in a blog post. Decred's vision so far is that more full node implementations is a strength, just like for any Internet protocol.
About This Issue
This is the 6th issue of Decred Journal. It is mirrored on GitHub, Medium and Reddit. Past issues are available here. Most information from third parties is relayed directly from source after a minimal sanity check. The authors of Decred Journal have no ability to verify all claims. Please beware of scams and do your own research. Feedback is appreciated: please comment on Reddit, GitHub or #writers_room on Matrix or Slack. Contributions are also welcome: some areas are adding content, pre-release review or translations to other languages. Credits (Slack names, alphabetical order): bee, Dustorf, jz, Haon, oregonisaac, raedah and Richard-Red.
The 21.co "computer" certainly deserves a place in the VC world, along with the other products consisting of wild promises and inane use cases. For the price of 4 Raspberry Pi computer kits, you get the following:
A Raspberry Pi. You can do a lot with this. One thing you can't do, however, is reliably run a Bitcoin node: the single gigabyte of RAM gets crowded with the bitcoin memory pool (normally up to 100 megabytes, or more when a "stress test" is taking place).
A 128 GB micro-SD card. Used to store the block chain, which is about 32 gigabytes in size right now, and growing at about 144 megabytes per day. Unfortunately, the copy of the block chain 21 Inc. includes is obsolete the second they ship the product, so you have to wait a few hours for the block chain to synchronize. This uses those valuable limited write cycles you have on your SD card.
(If you have a remote desire to develop applications that use bitcoin, stop here. Go through that list and buy just those items above. You don't need anything else. If you're looking for comedy, or if you're a sucker with too much money, read on...)
Is that all I get for my money?
Those products alone don't allow you to make Bitcoin applications, apparently. You need these things, too:
An ASIC chip and a giant fan. Bitcoin mining hardware has a propensity for running hot, so you need a fan. Unfortunately, the Raspberry Pi can't power those two items. The Pi uses a standard 5 volt mini-USB connector for power, and draws at most 2 amps. The fan alone uses three times the maximum current that the Raspberry Pi can handle. Also, a tiny fan like this emits lots of noise, so you may want to include some earplugs in your Amazon.com shopping cart. Free up another outlet for you to use, because there are two power supplies!
It's difficult to justify developing a $400 computer that can't do much. So, to entice some customers, 21 Inc. included demos that try really hard to make customers feel inspired. Here are just a few things that 21 Inc. claims were totally impossible before their product existed:
Web proxies, but with bitcoin! Gone are the days where you would pay a small fee (normally, no more than $9 per month) to access a wide array of private proxies. Now you can build your own service where you charge customers 1 cent per request to use a single public proxy. If that doesn't seem absurd yet, consider the following: loading this page probably used 60 requests for images, fonts, and various code to make the page work.
Online SMS gateways, but with bitcoin! Don't pay your phone company fifteen cents to send a single short message, and definitely don't pay a monthly fee to send unlimited messages! Be your own phone company and lure people into using your gateway. Granted, developers can use the same third-party messaging API for free, but that isn't the bitcoin way. Also, you may want to make sure you're legally a company and not an individual, just in case people want to use your message service for sending death threats to those who defame Satoshi and a few three-letter agencies charge you as being responsible.
Breaking! KnCMiner Refund Queue is COMPLETELY FAKE! These guys engaging in, without doubt, criminal activity. Please do not ignore this!
As most of you know, I have been keeping the community updated with the latest KnCMiner.com under handed practices and tricks. If you need to catch up read the following posts: Post A - Lies to keep customers from refund, only to backtrack on the promise Post B - Censoring customers who are pointing out that the units they are getting for used Post C - Sends out old used and broken units to customers Post D - Scamming Customers out of 2 for 1 and Plan B Most recently was how they screwed hundred and thousands of their customers out of Plan B and/or their 2 for 1 Neptune. Over the course of the last few months I have created many contacts within the community and received messages from others who have also been victims of KnCMiner. In the last 24 hours, I received a message from someone that works for KnCMiner, informing me that the claim of processing refunds taking so long because of the number of request, is completely false! The tipster provided me with evidence to prove that he works for them, and as promised, I can not jeopardize his job by revealing anything about his identity, but I can tell you that there was absolutely no doubt he works for them The tipster indicated to me that an executive decision was made to stop processing refunds, because Bitcoins had reached a low value, and handing out refunds would be too costly. As a result of this, the company started to claim that was there was a long queue for processing refunds and as a result, refunds will take much longer. They are intentionally hold back refunds, waiting for BTC to go up, before they start processing them. These guys are Criminals. The tipster told me I will find all the evidence I need online and through the forms; he told me just look at the chart of BTC Value and when Refund orders stop being processed. Here is what I found for evidence: Take a look at the when the price of BTC Drops to a long time low: BTC Chart You will notice that BTC takes a dive the start of April. Now Take a look at just a few the customers, who to this day still haven't received a refund. What you will notice, few if any refunds get processed after the BTC Crash:
"All refunds will be refunded in dollars and you can refund up to shipment".
Here is the evidence KnCMiner deleted and tried to hide: Evidence Link Everyone was under the impression and rightfully so, that you could cancel your order, as long as they had not shipped your order yet. However, that was another underhanded trick by KnCMiner. KnCMiner is refusing all Refunds, even orders whose status is Paid, and are no where near being shipped. Thirdly A lot of people, did not cancel their orders because of the two incentives KnCMiner offered. It was only After they had started their Processing and shipping phase, did they state that you can only pick one or the other. Here is evidence that customers were mislead:
bullish on USD. it is clear USD is increasingly popular with past hodlers of the deprecated bit-Coin. USD has gone up hugely in just the past day against the b.t.C!! in the future it is posible with enough imagination that the US economy could run on USD ! in conclusion you should get into currency (186 points, 26 comments)
FUCKING SCUM ASS PIECES OF SHIT KnCMiner.com tried to swindle customers out of their Free Neptune with a very dirty trick. Forget the law, these fuckers need a serving of raw street justice.
Guys a week ago, I told you I came across a tip letting us know that the Free Second Neptune might be a scam. It was partly right. Take a look at this POST warning about second neptune and the fake Hash While you wait. Here is a histroy of these pieces of shit fucking people over, left and right Post A Post B Post C A few people messaged me stating that this morning KnCMiner sent out an email with the following content to all of their customers:
Dear Customer, As you are a Neptune customer, you are entitled to take up our Plan B offer to “Hash While You >Wait”, or to convert your Neptune order to a KnC Titan. To activate your account please click the following URL/Link where you can choose your option >and setup your KnCCloud account. Your hashing will begin on Monday the 23rd of June from 9am UTC, provided you’ve made that >choice on the Neptune Order Options. To ensure you receive all the power you've paid for, please ensure that your account is up to date >with your wallet address to receive your Plan B mined Bitcoins. Hashing will stop as soon as your unit ships out from our factory. If you have any questions please contact: [email protected] Thanks KnC Miner Team
Here was their original statement about Hash While you wait
Hash while you wait. First it’s important to note that we don’t expect to be late at all everything is on track. It’s just always good to have a backup plan. Second our mega-data centre in the north of Sweden is nearing completion so we can give out some more details. All customers of Neptune’s will be able to use completely free of charge our data centre to hash for them at 3TH either on our pool or a pool of their choice while they wait for their product to be shipped. The first customers (batch 1) are expected to be hashing in our data centre in early June and the last customer will hash in our data centre around the last week of June. All the customers will be able to hash in that data centre for as long as we are late in shipping your Neptune product, this service will be provided on a best effort basis. We have a 24/7 operations teams in place with multiple redundant internet and power connections and we will aim to have as close to 0 down time as possible.
Neptune Two For One Program It has come to our attention that not everyone has been fully informed on our Neptune Two For One program so we'd like to include information on that topic in this newsletter too: We understand that the math's involved in ASIC product deployment has to make financial sense in an ever-increasing hash rate race. In order to increase value for KnC customers we are adding one extra Neptune miner to each pre-ordered Neptune in batch one and batch two. These bonus machines will be sourced from our batch three production run which is scheduled to ship in August. If you're a pre-order Neptune batch one or two customer you don't need to take any extra action to receive these additional miners and we are covering all shipping costs as well. You’ll receive info on when and how those bonus miners will be delivered well before the shipment date.
Link to the about statement However, after all that, today, in their ToS, they had sneaked in a condition that if a customer accepted their offer of "free" Hash While You Wait, you would give up your free Neptune, and any future request for compensation. Moreover, the ToS state that the service might never even go online or if it does, no guarantee it work properly. Large number of customers unknowingly agreed to these condition and as a result, lost their 2 for 1 compensation. This was exactly what KnCMiner wanted to happen Here are links showing customers catching on to it, and calling KnCMiner out on them:
After their shitty trick was out of their box, they changed the page to state that Free Hash While you wait would cost you your Second Neptune. These mother fuckers are just scum bags, waiting to fuck over as many Joes as possible. Guys, you need to get this type of information out there, not only to the Bitcoin Community, but others as well, like Litecoin, Dogecoin. etc. Please, for the love of justice, do not let these things go unheard.
The $22,484.00 Butterfly Labs Mini Rig bitcoin miner is a huge, broken, unstable piece of shit.
(This was a rather controversial article posted on Buttcoin.org and became quite popular, even moving to the top of /bitcoin. It's since been mysteriously edited on the site [maybe by g-g-g-ghosts!] so it's being reposted here for posterity's sake. Some numbers may be off by now, but it was all accurate at the time of posting.) Butterfly Labs has a long and horrible history with their mining rigs. They started taking pre-orders over a year ago, with a ship time sometime in late July. After numerous delays in production, shipping problems and general incompetence, the only thing they’ve managed to get out the door are some of their tiniest miners, the Jalapenos. And those mainly ended up in the hands of reviewers and blogs in order to keep pumping the Butterfly Labs hype train and securing millions of dollars of pre-orders still in limbo.Lucky BFL forums user Luke-JR however scored a sweet Mini Rig from Butterfly Labs (it’s just a coincidence he’s a driver developer for them I’m sure). This rig was originally promised to produce 1500 GH/s hashing power at 1500 watts for $30,000, but has since seen it’s hashing power slashed to a third of what was promised and it’s power consumption increased 75%, now just offer 500 GH/s at 2400 watts. They’ve promised to make good on pre-order buy sending out 3 rigs to match the initial hashing rate, so now it’s only 1500 GH/s at 6900 watts, a reduction in GH/Watt by a factor of 5. So what does $22,484 buy you? Take a look!
Minirig is here! Today, my Minirig arrived. http://i.imgur.com/Yp0WPvE.jpg FedEx apparently dropped it somewhere along the way, and the weakest part of the case, the thin metal part around the back of the PSU, broke. http://i.imgur.com/lFcOHxP.jpg I’m not sure how sturdy the back side was supposed to be, but its two pieces aren’t quite together either. http://i.imgur.com/AVttcOt.jpg The power supplies (EVGA 1500W) also created havoc interfering with the neutral on the power line. This disrupted X10 communication significantly enough that the pool overflowed because the system controlling it was unable to turn off the pump. Workaround: This PSU supports 240V, so we rewired the outlet. 240V does not use neutral, so now all should be okay. Edit: 240V workaround is only partial. Still having problems But the good news is, it all seems to be working for the most part. Next up, installing it in the window so the heat goes outside
A twenty two thousand dollar box of electronics that is broken out of the box, that required the guy to do a sketchy electrical workaround to get partially working, that he is going to install in a window… and he’s happy about it? In case you didn’t notice it, the delivered unit is different than the picture on the website. They had to install 2 power supplies instead of 1 and had to modify the case to fit. Also, if you didn’t notice, the LCD/Phone thingy in the front has been replaced by … a piece of cardboard spray painted black. Wonderful. You could maybe chalk this up to a careless Fedex postman, but when you’re shipping something that costs as much as a mid-sized sedan, how bought putting a little more effort into packing? Dell and HP can ship bigger and heavier servers across the world without this kind of problem. The unit had to hit its huge power draw increase by putting dual EVGA consumer grade power supplies in the unit. We’re talking almost a 75 amp load (6*1500/120), disregarding power factor. He could very well overload the circuit panel and trip the main breaker for the house. Let’s take a look inside this guy. This is from an earlier version of the Minirig (note the single power supply) This is apparently from an earlier FPGA but it will give you a good glimpse at what kind of craftsmanship you can expect from a computer that is half the average household income in the United States. Consumer grade PSU and cheap USB hubs glued to the inside case. Electrical tape and random velcro glued to the insides A closer look at the USB hubs. Plugs are hot glued to stay secured. Electrical tape everywhere, splices and voided hardware are the theme. You can view the entire album here. Despite all that, this thing can still mine bitcoins and it should be profitable. Keep in ind that many people jumped in on the preorders a year ago when bitcoins were still hovering around $6.50 per. Meaning customers paid 1562 bitcoins for that particular piece of shit, which at today’s value is $156,200. Aston martin money. How long will it take them to make their money back (as apposed to just hanging on to them)? If the difficulty didn’t change, they would make 37 bitcoins a day and recoup the initial investment in 124 days. Difficulty is jumping pretty much 20% every 12 days or so, so in the next week before adjustment, they’ll make 259, the next 12 days 369, the next 12 days 312, then 256, then 213, etc. So by day 127, they’ll be halfway to breaking even, but by day 151 they’ll be making less than 5 bitcoins a day, and even if difficulty stopped rising at that point(which it won’t), it would take another 435 days for a total of 586 days to break even. If difficulty kept rising at the same pace, by day 200 they’d be making 2.4 bitcoins per day, and it would take 1024 days to break even with no difficulty increase. Assuming 25 cents per kw/h, and $100 a bitcoin, it would cost 0.43 of a bitcoin per day in electricity which means the unit would no longer be profitable on a power usage basis by day 307, at which point it will have produced 2620 bitcoins. Bear in mind this is only for the first few units, and that’s running 24/7 pumping out around 24,000 BTU, so yes, medical bills from heat stroke will be on top of that. But Alas, the chips don’t run nearly as well as they’re supposed to, frequently running too hot and giving multiple hardware failures. Coindesk noted in one of the first ever runs of the Minirig by hosting provide gigavps that it was running much too hot and erroring out.
At the time of posting, gigavps warned that the unit would be repeatedly shut down while ckolivas, who was assisting, modified the machine’s software to optimise performance. After some tweaking, the device was said to have been left to run continuously for two hours, and was shown to have an average hash rate of 478.1 GH/s. As you can see in the table below, ASIC number four (of a total of eight hashing chips) ran significantly hotter (86 degrees) and consequently gave the highest hardware (HW) error rate. http://i.imgur.com/q3iGrnb.jpg
So, what happens if you just decide you don’t want this, you don’t want to wait over a year to get a $22,000 broken piece of shit? Nothing, because BFL won’t let you cancel your preorder because they’re now “shipping”, i.e. they sent out one unit to their own company shill. http://i.imgur.com/0p3Up03.jpg Which is of course illegal regardless of what Butterfly Labs may say. So in summary: Don’t buy anything from Butterfly Labs … ever.
Minted our first bitcoin this morning! Took about 18 hours (Butterfly Labs Mini Rig SC 500 GH/s)
http://i.imgur.com/LvDPIjY.png We're using the Butterfly Labs 500 GH/s Mini Rig. Might as well do a small review -- the hardware itself is temperamental. For example, ours showed up with the unresponsive Nexus tablet on the front panel. Dealing with Butterfly is a total shit sandwich given the rip-and-run state of the overall business, so I had to figure out how to bypass the internal routing and have a laptop be the brains of the operation. After a couple of days of messing with usb drivers, which refused to stand up on Windows 7, I finally got the laptop to recognize all 8 modules. However, I could not start mining due to an error starting the bfg miner task from the inside of their Easy Miner application. I tried to force bfg via the command line, and it finally worked, although the hash rate was atrocious. Another day or so, and I had the rig mining. The hardware recognition issue was due to me not giving the laptop enough time to kick ALL modules on. It takes a good 2-3 minutes for all usb notifications to stop bleep-blooping. The hash rate was in the 470 GH/s area, which was perfect, but then the modules started to shut themselves off due to overheating at 83 C. The log would show how the unit was taking down hot modules and then kicking them back on non-stop. The ambient temp in the room is around 75. I played with positioning, fan speeds, to no avail. The hash rate at that point dropped into the 400s, and my 15 amp circuit breakers started to get tripped. This went on for a little, and then I permanently blew one of them and had to pick some up at the Home Depot. But hey, it only took a single trip :) So then I got a 5200 BTU A/C unit, mounted it in the window, and positioned the rig in front of it. That seemed to fix the breaker-tripping and overheating issues. It runs at low 70s C during the day and low 60s C at night. I am now making custom funnels out of thermal foam board to vent exhaust heat outside and also connect the 11" AC opening to the 16"x16" intake area of the rig (looks something like this). The unit generates a lot of heat, no joke. I bet when the weather gets colder, it can serve as a furnace for this side of the house. If you're wondering why I'm talking about it still not being cold outside in November, I'm in Texas. It's really beautiful right now, high of 75 and sunny. Also, the noise ... how could I forget about the noise. It sounds like a server room. There's 18 fans, plus PSU fans, and they are quite loud. Don't expect to inconspicuously set this rig in the corner of your living room. It's been on for over 24 hours now, uninterrupted. To the moon! Timestamp,Core Temp,AC ON/OFF,Total Mined (BTC) 11/1/2013 12:00 PM,80 C,OFF,0.00 11/3/2013 3:30 PM,73 C,OFF,1.78 11/4/2013 2:05 PM,75 C,ON,2.28 11/5/2013 11:00 AM,75 C,ON,2.74 11/6/2013 5:00 PM,70 C,OFF,3.18 11/7/2013 12:00 PM,79 C,OFF,3.53 11/8/2013 5:00 PM,70 C,OFF,4.03 11/13/2013 11:00 PM,68 C,OFF,6.01 11/18/2013 5:00 PM,78 C,OFF,7.69 11/23/2013 11:00 AM,66 C,OFF,9.21 11/26/2013 8:00 PM, 62 C,OFF,10.41
I'm not sure if this is the appropriate place, but even as a PSA, I think this post will serve its purpose. I used to have miners running at GAW, and after 4 months they gave me the choice to "upgrade" to their latest scam "hashlets" or to get a payout of 0,5x Bitcoins. I agreed to this sum, and when I went back and looked at the ticket, they changed the sum to 0,21 BTC and paid this sum out. This is not to mention that the original contract claimed that they would host my miner for 12 months free of charge, and that they would ship my miner for free after this period. I'm pretty sure this is first class fraud - Are there other people out there who ran into issues with this company? If so, share your story here or PM me, I live in Europe but if there are more people out there that have been fucked over, maybe there is some action we can take. I for one am submitting complaints at pretty much every Internet Fraud organisation I can find. How and why did the FBI get involved with Butterfly labs? How can I make GAW Miners appear on their radar? cheers!
Stability of the difficulty. A weakness you may not be aware of.
EDIT: Here's a TL;DR Sorry if I rambled on a bit there. I'll try to make my point a bit more concise here. TL;DR: If bitcoin starts to gain mainstream success, eventually a large percentage of the miners will be in it for the profit and not for the good of bitcoin. My fear is a crash in bitcoin's value after achieving general acceptance as a form of payment could cause a crash in hash rate from miners shutting down when the boss sees a drop in profitability. A crash in hash rate could possibly destroy bitcoin's usefulness as a form of exchange, driving the price down further, killing the currency. In my post I describe a possible solution to make scaling down difficulty to match a sudden drop in hash rate smother. If this interests you, then please read my post and share your thoughts. I feel like this is an obvious flaw in the protocol that was overlooked. Am I wrong? If so, please tell me because I'd like to have my worries eased. ASIC miners and the rapid increase in difficulty have created a new point of failure in the bitcoin network that was never that large of a problem before. No, I’m not talking about the increased centralisation of mining that you see so many people complaining about. I’m talking about the rising difficulty itself and the way the network scales the difficulty. It allows for smooth transitions in the upward direction, but a sharp decline in hash rate could kill bitcoin completely. The readjusting of the difficulty doesn’t really happen every two weeks, it’s really every 2,016 blocks which should be about two weeks in theory. If we were to lose a large chunk of the hash rate, lets say 66%, block discovery time will increase to 30 minutes per block. Maybe that’s not a huge deal, but it definitely impacts the convenience and usability of bitcoin as a means of exchange and would certainly impact the price negatively. Also, it’s possible that we would be stuck at this slow confirmation rate for 6 weeks in this example. Perhaps it is an unlikely scenario that such a large amount of hash rate is lost within a short span, but think about it this way. Imagine a point in the future where ASIC miners account for over 98% of the hash rate. Maybe bitcoin is well on it’s way into mainstream acceptance in this future. There may be large corporations that own large mining farms. These corporations may be publicly traded companies with a responsibility to maximize profits for their shareholders. If the value of bitcoin were to crash, there’s a good chance that some of these corporations may shut down their mining operations because it no longer has a good ROI in the opinion of their CEO. Maybe the next reward halving is coming up soon, that could also cause miners to shut down. This would slow down transaction confirmations, impacting it’s usefulness as a means of exchange and driving the price down even lower, driving even more miners to shut down. This would continue exponentially until the only remaining hashing power is us, the early adopters, true believers, and ASIC manufacturers. We could very easily end up in a situation with hour long confirmation times or longer, and the next difficulty adjustment being months away. That would essentially completely kill off bitcoin. It’s not logical to assume there will never be a large drop in hash rate between now and 2140. It’s not possible to predict political events that far into the future. Maybe world war 3 happens and China decides to unplug their whole country from the outside internet. Maybe Butterfly Labs successfully ships out 1,000,000 terahash miners that run on sunshine dust and unicorn farts and they quickly become the defacto standard, and then it’s discovered that they are a fire hazard. Many people are killed, homes are lost, and people just start turning them off out of fear. You just don't know what will happen that far into the future. I have an idea about how the protocol could be modified to protect against this sort of scenario and allow for a sharp decrease in hash rate without losing its usefulness as a means of exchange. There should be an emergency mode that drastically cuts the difficulty rate. This emergency mode can be requested by any node in the network but will only occur if the network has consensus from the nodes. The request could be triggered by two possible events. The first trigger event should be if no blocks are discovered for a certain span of time, lets say an hour and a half. The second event should be if a certain number of consecutive blocks take over 25 minutes to discover. The reason for using 25 minutes as the trigger is because that would require a loss of 55% so in theory a single person couldn't trigger it without having over 50% and in that scenario we have worse problems than the falling hash rate. Once the event is triggered, the difficulty should be slashed by a factor of 10x and reduce the block reward to 0. If it’s impossible to have no reward blocks, then use a dust amount of bitcoin like a few Satoshies. If the event was triggered by 25 minute confirmation times then the new emergency block discovery time will be 2.5 minutes. This will have the immediate effect of speeding up transactions that have possibly been waiting awhile for confirmations. The rapid block time will have the secondary effect of quickly and more accurately calculating the new hash rate of the network. (More data points over a shorter spread of time.) The removal of the block reward serves to disincentivize miners with lots of hashing power from trying to trigger the event on purpose so they could make more bitcoins at a lower difficulty rate and also prevents the creation of large amount of bitcoins since it would be moving into an unknown block discovery rate. This emergency event should not last long because miners would just shut down even faster with no block reward. Lets say it only lasts 96 blocks. Assuming 2.5 minute confirmation times, 96 blocks would take 4 hours to mine but that number could vary depending on how much hash rate was lost. Lets put this in perspective. A sudden loss of 55% of the hash rate would result in a loss of 4 hours of block rewards. A loss of 90% would be 16 hours with no block rewards. After 96 blocks have been mined, the network can make an estimation on the new hash rate based on the speed those blocks took, and generate a new difficulty to resume normal 10 minute confirmation times and normal block rewards. However, such a short span of time may not be enough to generate an accurate difficulty for the network. The network should recalculate the difficulty again after 432 blocks (3 days), and then resume the normal 2 week schedule. Each time an emergency event is triggered, the next scheduled halving of the block reward should be moved back by 96 blocks. That way these events have no effect on the mathematical total of bitcoins that can possibly be mined by 2140. Even if these events are very unlikely and it’s possible that this scenario will never play out, it would be added security to the value of bitcoin to have fail safes in place in the event of huge losses in hash rate. It could only add to the strength of bitcoin. It gives it the robustness it needs to survive a crash in price in a world where the miners are mostly interested in profits and ROI, not the good of bitcoin. EDIT: Here's another TL;DR of my proposed solution Basicly the nodes can request an emergency drop in hash rate if it notices block confirmation times rise above 25 minutes. This would require a loss of 55% of the hash rate. If the nodes have consensus on this request then the difficulty gets slashed by a factor of 10 and the network will mine 96 blocks with no block reward. That will take 4 hours with a 55% hash rate loss and 16 hours at a 90% hash rate loss. After the 96 blocks are mined, the network will calculate the appropriate difficulty based on the discovery rate that those blocks were mined. Normal block confirmations and block rewards will then resume at that point. What makes it nice is it will only be triggered by extreme cases. Also, mining for 4 to 16 hours for the good of bitcoin is an easier pill to swallow than just keep mining indefinitely into a possibly dying system for the good of bitcoin.
Best way to enter the cryptocurrency playing field?
Just to clarify, this unfortunately is a "how doz I do the bitcoin" newbie kind of post although I initially thought it wasn't I'm debating getting back into mining and can't decide whether I should invest in a butterfly labs miner or build a mining rig or do some combination of the two. The things I'm considering are: A) Butterfly labs miner that I can use as a standalone to mine a small amount, but my question is how competitive will a single 5 GH/s miner be when others will be making similar investments into the same product and the more powerful ones? B) Building a mining rig and mining BTC until the dedicated miners come out then switch to LTC at that point or C) Some combination of these options or something I haven't considered yet. Note: My budget isn't tremendous but it's enough to make a decent investment into a rig or two. My internet and power are free (and no not in the sense of I live with parents so I don't pay for it) which significantly increases my ROI and could make some of these options more profitable than typical cases. I'm not a complete noobie to mining and cryptocurrency but I definitely am not an expert and have room to expand my knowledge and learn if anyone see's anything I'm saying that is incorrect or could be corrected/clarified for me. I would appreciate any input or advice any miners or investors could offer, thank you ahead of time for anything anyone can offer. Edit: I'm more newb than I though
Hi there, Before I ask you guys some questions, I wanna tell you how I got into crypto and how I've perceived the landscape so far: Following the news about the Winkelvoss twins investing in Bitcoin in 2013, I've been looking into it. At the time, I've been contemplating to invest 10k in a mining rig from Butterfly labs, but concluded that they were scammers and moved on with my studies without having acquired any Bitcoin after all. Fast forward a few years, and I hear news about Bitcoin again and seeing how much money went into this, I realized Bitcoin was here to stay. So, after it hit 5k, I've finally decided to actually invest some of my savings. But due to bank verification issues with Coinbase, I narrowly missed the China dip in mid-September. Still, I was immediately in profit, and by the time it was October, the media was all over Bitcoin. I've tried day-trading for a bit, but ended up losing as much as 30% of my portfolio until I've discovered that trading alt coins was far more profitable, than just selling and re-buying Bitcoin with fiat currency. Within weeks, I had not only re-gained my original amount of Bitcoins, but also tripled it. Then came the Segwit2X-FUD with the aim of replacing Bitcoin, which was more about firing the core devs, so Roger Ver and his friends could shape Bitcoin to their own liking. After they had failed, they devoted all their resources to Bitcoin Cash. Up until that point I hadn't even taken the coin seriously but seeing how much it ate away from BTC's market share got me thinking it that it might have a future at some point. However the ensuing dump to below $1'000 made it difficult for me to believe that it was more than a pump&dump coin like Bitcoin Gold and Diamond, so I've been hesitant in investing in BCH. Roger's rage quit in his recent interview didn't help to restore my confidence in the coin either. I'm sick of both Bitcoin camps fighting each other (especially on reddit), and both subs just feel like religious cults which won't accept anything other than their own opinion (Bitcoin is much worse in that regard). I'm not loyal to any coin, though I believe in the future of digital assets. Even though I've only invested with what I could spare, having to deal with all this FUD and daily swings of thousands of dollars gives me anxiety. Honestly, both camps have a good approach to scaling and I don't really care about which one ends up winning. What kills me is the back-and-forth, and having to constantly be up-to-date about what both camps are doing. I'm just longing for a piece of mind at this point. So, on to this post's purpose: How are you guys convinced Bitcoin will become the 'real Bitcoin'. How do you imagine this would happen? Do you just expect every exchange and website to list BCH as Bitcoin without dragging their feet for years or decades? Or do you expect Bitcoin Cash to remain under the BCH ticker and be permanently referred to as Bitcoin Cash? How do you think the public will address it? Currently, the average Joe has no idea about Ethereum, Bitcoin Cash, Ripple, Neo, IOTA or other alt coins. And the market seems to think BCH is just another alt-coin, given that it tanks much more during BTC crashes. How are you convinced that's gonna change? Have you even thought this through? Also, what do you have to say about Dr. Craig Wright, who's claiming to be Satoshi and seems to have a good relationship with Roger Ver and Calvin Ayre? He's a pretty smart guy, who's spent all of his life in academia, and as a scientist myself, I can appreciate that, but even Gavin Andresen thinks he can be a douche at times. He seems to have a pretty different idea on how Bitcoin should work than what it is now. According to a few interviews he's given, he wants Terrabyte blocks and believes that centralization of miners in 'hubs' was the idea all along. I'm not sure what I should believe. Vitalin's signaling theory argument is totally plausible to me. If he is Satoshi, then why make the proof of his identity so convoluted? But watching all the interviews and presentations in which Wright appeared and looking at his posts, gives me the impression that he is a brilliant mind and that he could have played a role in the inception of Bitcoin. Does it even matter anymore what the 'original vision' of Satoshi was? Other coins, such as Ethereum are much more useful than either Bitcoin or Bitcoin Cash right now. Having 30x more developers than the next blockchain and more transactions than all other coins combined, I think it's here to stay. I like to think of Bitcoin as being the early Apple, which was then overtaken by Microsoft. I agree that Bitcoin Cash is closer to the 'original vision' of Satoshi, but what makes you think that there aren't any better alternatives already out there now? Convince me why you think that Bitcoin Cash will be the coin to rule them all. If you've come this far, thanks for reading all of my concerns. Please be nice, I'd love to know what you guys think.
I have been getting into the bitcoin frenzy finally and started looking into ways in which I can start out. I'm not the usual n00b since I have everything up and working. Only thing that I am having problems with are the performance issues. I have my Catalyst drivers installed and running and the Radeon is working like it should but at a lower speed than I expected from what I have read about others using this same card series. When I use guiminer with the slush pool, I get at least 80 kH/s, when mining litecoin with guiminer scrypt, I get more performance at 200 kH/s. both less than what I had expected. This is all in windows. When I give it a go in Linux with cgminer, the program doesn't even see the card, apparently it seems to be checking the usb hub instead of rhe PCI and PCI express ports. Is there a way to make cgminer look into the pci slots instead of only checking the usb ports. I can always use a USB asic miner from a company like butterfly labs but I have heard not only negative feedback about not only the performance but also the price in which they are sold for and how it's time consuming to get it to pay you back the extremely large amount of money that you spent on them in the first place. Can I get my Radeon card to mine faster in windows, and how can I get it recognized in Linux by cgminer. This is getting really frustrating, and bitcoin jobs are more competitive than actual jobs. If it's relavent, I only get internet bandwith at 2Mb/s which i think is a major contributing factor but I've been told it isn't.
So you're sick of just mining on your GPU, and not a fan of the electric bill after a month of mining? There has to be a better option out there than your loud GPU in your gaming computer. There is! Shortly after GPUs became popular for bitcoin mining, enterprising folks started looking at other things they can re-purpose to mine bitcoins more efficiently. Around mid-year 2011, the first devices sprang up that are called FPGAs or Field Programmable Gate Arrays. These are nothing new to the hobbyist community, they've been around for a while for crackers and other security-conscious folks looking at ways to defeat cryptographic locks. Hey! I know something that uses cryptographic calculations to secure its network! BITCOINS! Yep, so some miners developed their own boards and slapped some FPGA chips on them (most commonly the Spartan-6), and wrote specific firmware and "bitstreams" to more efficiently calculate bitcoin hashes. The first generations were sort of slow, but still they had better efficiency than a GPU. Some of the latest generation included the Icarus boards, Cairnsmore, x6500, and ModMiner Quad. In early 2012(i think my timeline is right), Butterfly Labs(BFL) was selling their own FPGA miner that hashed at 800 Mhash/s using 80 watts and only cost US$600 amazing! These grew very popular, but people could see that FPGAs still weren't the most efficient way to hash their shares. BFL then announced that they would be designing their own chips that would be orders of magnitude faster than anything ever seen. These would be the ASICs (or Application Specific Integrated Circuit)everyone is raving about. ASICs are--as the name implies--specifically designed for one thing, and one thing only. Bitcoins. This is all it can do, and can't really be repurposed like an FPGA to other applications. Who wouldn't want a US$150 "Jalapeno" that hashes at 3.5 GIGAhashes/s using only power from a USB port?? Crazy! So summer 2012, BFL says they will ship before Christmas. Various things happen and we now still don't have any confirmed ship dates from BFL. A few other companies have sprouted up, ASICminer which I believe is developing their own chips to mine themselves, but in a responsible way as to not threaten the network with a sudden influx of hashing. bASIC was a fiasco that was developed by the creator of the ModMiner Quad(which is actually a fantastic miner, I own one, and love it.) where he took many preorders, promised lots of people amazing ASIC performance, but in early 2013 the stress of the whole endeavour got to him and he gave up, refunded money(I think it's still being refunded now, or maybe it's been cleared up already.) Avalon is the only company we know has ASIC mining hardware in the wild. It is not certain exactly how many are out there, but they have been confirmed by independent sources. The Avalon units are expensive(75 BTC) and have been in limited production runs (or batches) of a few hundred units that were pre-sold out very quickly. All of this info is gleaned from the Custom Hardware forum over at bitcointalk.org over the past year or so I've been involved in bitcoin. I may have some facts wrong, but this is the gist of the situation and hopefully gives you an insight on the state of the hardware war against bitcoin Thanks for reading!
I'm new to bitcoin mining and have some expendable income I'd like to use to get some ASIC hardware. What are your recommendations for the best sub $500 ASIC miner. From what I gather around this thread stay away from Butterfly Labs. Although this Ars Technica article peaked my interest regarding Butterfly Labs (as with the writer I own a Macbook Pro which also interested me). As I said this is expendable income and I understand investments are for the long haul not the quick buck. I'd like to have a expandable system if possible as the difficulty will increase. I do plan on joining a pool. TL;DR: So lay it on me /BitcoinMining what is the best ASIC option to get into mining for under $500 and possibly expand/upgrade from initial investment. Thanks for all your help and look forward to your responses.
I have been accused by your Lead Mod HighBeamHater, to be making up stuff. He decided to come over to /bitcoin and act like he was in touch with the state of affairs concerning KnCMiner. His callousness, showed he was indifferent to the victims of criminals over at KnCMiner, who lost large sums of money. Calling them, "Sour grapes." I have come to you, to make my case, and after I do, you can decide who is right and who is wrong. A few things to clear up right away. First off -Batch 0 Neptunes where $10,000 USD -Batch 1 Neptunes where $13,000 USD Secondly -The No Refund Policy was quietly implemented, prior to this, their refund policy was, I quote:
"All refunds will be refunded in dollars and you can refund up to shipment".
Here is the evidence KnCMiner deleted and tried to hide: Evidence Link Everyone was under the impression and rightfully so, that you could cancel your order, as long as they had not shipped your order yet. However, that was another underhanded trick by KnCMiner. KnCMiner is refusing all Refunds, even orders whose status is Paid, and are no where near being shipped. Thirdly A lot of people, did not cancel their orders because of the two incentives KnCMiner offered. It was only After they had started their Processing and shipping phase, did they state that you can only pick one or the other. Here is evidence that customers were mislead:
Hey all, I am one of many of you who have been screwed by these two companies, I am at a great loss on what to do since I invested my whole savings of $5000+ between diy chips and boards and ButterflyLabs miners that I will not receive for another two months right before being layed off my job. I have requested refunds with BFL in desperation and they refuse to refund even after they promised me 90 days back in May. I also requested a refund from Steve (steamboat) with his groupbuy and have been denied a refund because I am a cutoff customer. After spending my savings and losing my job I am at risk of losing all my utilities and wont be able to afford internet nor electricity to even use these miners. At the time I could have afforded to lose what I invested and had what I thought was a stable job where I had worked for 5 years. At the time I wasn't that worried because I was supposedly going to get these miners a month ago that would have more than helped me and my baby daughter depending on me, how foolish I turned out to be.. Now I am seeking advice on what I can do to recover my losses and get some bills paid before November 1st. I have posted a few questions on bitcointalk regarding suing bfl in small claims with no good advice. I paid in bitcoin and don't have the comfort of PayPal refunding me. Will I be able to sue them in Pennsylvania or will I need to fly to Kansas? Does anyone here know josh or steve(steamboat) and could help me with a refund? Any advice or assistance would be appreciated. Thankyou Bitcoin Community
I'm quite interested in Bitcoin mining, I've been researching it for a few months now and I've known of it for nearly a year now. I saw the bubble inflate and then burst, but I'm quite conservative with my money so I didn't get bitten by the bubble bursting and pulled out at $170, earning me a tidy profit. Anyway I've come across Butterfly Labs, they're selling an ASIC Miner running at 5GH/s for $247 + $88 shipping (shipping is expensive because I'm in the UK). I have the funds to purchase it, however I am curious as to whether it would be a wise investment? I realised that the Difficulty is just getting higher and higher and the BTC/USD price is prone to fluctuate, still, will I get a good return on my investment? Oh, and I used that bitcoin calculator everyone's been recommending and it worked out that I'd break even at 12 days and earn a net daily profit of ~$27. Of course, I know I'd be wise to get into a mining pool (Even I'm not that lucky). In fact I experimented with my laptop to see how the system works. I ran it on the Eclipse Mining Consortium and got an average Hash Rate of 0.46 MH/s (low, as was expected) earning me 0.000007BTC in 2 hours. Based on that I should be earning in excess of $40000/year (not accounting for electricity costs and assuming Difficulty & exchange rates stay constant) with a 5GH/s machine. Forgive me if I'm being pessimistic, but that sounds too good to be true. So should I take the plunge and buy the 5GH/s miner? Or is it not worth it?
received my butterfly labs 5GH/s usb miner..... and thats when it started.
Well I received my Butterfly labs bitcoin miner today. Which was weird, delivery on a Saturday doesn't normally happen. Has been a looong wait, zero communication from the company. A couple of weeks ago I received an email from a shipping company advising my miner was being shipped and quoting a tracking number that turned out to be delivered months prior to placing the order. At least my email query back to the shipping company received a response "oh, sorry about the wrong tracking number", but no useful information such as a correct tracking number or advice on what date to expect delivery. Unpacked the box, no instructions, just a card referring to the butterfly labs forum pages. Attempting to download easyminer isn't working, repeated failures to download the file. (download starts but stops before the 54MB file is complete). Have to say, I've not been impressed by the customer service, would have been happy to pay an extra $5-$10 for some actual communication. I was close to telling my credit card supplier to reverse the charges. Will be running on my laptop (windows 7 home premium) initially, to check it works, then moving to my ubuntu server. any suggestions on how to get the easyminer download? (or should I start with the BFG miner?)
When I decided to write this guide, I was throwing cryptocurrencies around like they were nothing. I was foolish in the fact that I disregarded the exchange fees that are attached with the services that those exchanges provided. I'm in by no means a cryptocurrency genius, and I'm still not extremely seasoned at it, but I've learned enough about cryptocurrencies in the past month that I feel confident to pass on the knowledge I have learned and to help those who are overwhelmed on where to start. So what exactly is a cryptocurrency? According to technopedia (n.d.) a Cryptocurrency is a type of digital currency that is based on cryptography. Cryptocurrency uses cryptography for security, making it difficult to counterfeit. Public and private keys are often used to transfer the currency from one person to another. When mining cryptocurrencies, one important concept needs to be established, and that's hash rate. Hash rate is simply a unit of measurement of processing power. The more your hash rate is, the more profitable mining becomes. This guide uses specific sites and software, chosen by myself, as a great springboard into the cryptocurrency world. These sites and software are extremely flexible, easy to use, and integrate very well together. The mining pools I've chosen are multiple currency pools, designed to consolidate a major of the cryptocurrencies together, and instead of using several mining pools, you use three. These are the things you'll need to get started: MultiMiner Accounts at Coinotron, The Mining Pool Co., and BitMinter Accounts at Cryptsy and Coinbase There are a few different ways to mine for cryptocurrencies, the common of which are using your Central Processing Unit (CPU), Graphics Processing Unit (GPU), and Application Specific Integrated Circuit (ASIC) devices. CPU based mining is not profitable any longer, and will cost you money in the end by increasing electricity costs. GPU based mining is still popular, but losing steam against ASIC based mining. If you choose to use your GPU for mining, AMD/ATI based graphics cards (especially the Radeon HD 79xx series of cards), are the most efficient. If you have an nVidia based graphics card, I'm sorry. You can still mine on nVidia cards, but your hash rates are going to be much slower when compared to their AMD/ATI counterparts. If you chose to use GPU mining, Black Friday or Cyber Monday are you best bets for upgrading your equipment. ASIC based mining is quickly losing value with the changing difficulty on all networks, but it's the most cost effective way to increase your hash rate, and see a positive return on any equipment purchases. If my math is correct, using the methods in this guide, in order for any ASIC device to yield a positive cash flow, you've got to get a device that has at least a 5Gh/s rate (such as the Butterfly Labs Jalapeno). Now for the fun part, explaining how everything in this well greased machine is going to work. Patience plays a big part in the cryptocurrency world, and when I first started, I had none. I was so eager to see the amount of Bitcoin go up, regardless of how much I was getting penalized in fees from trading. So, that's the first step on your journey. PATIENCE. I CANNOT emphasize this enough. Sometimes, you've just got to hurry up and wait, the effects of waiting things out on the cryptocurrency market WILL PAY OFF. Step one of this machine is signing up for all three pools (BitMinter, Coinotron, and Mining Pool Co.). This is so that you can actually get server addresses to plug into MultiMiner, after signing up for these services though, you've still got a ways to go. Step two is sign up for Cryptsy. I chose Cryptsy because of the features they're going to offer at a later time, as well as support for 60 cryptocurrencies (which covers all but one of which we can mine). When your Cryptsy account is setup, you will need to go into the Balances portion of Cryptsy, and find all of the currencies in which you will be mining from the pools. Once Balances are loaded up, you will need to click on the Actions button next to the currency, and click Deposit / Autosell, and then Generate Address. There's a small clipboard near the address it generated, and that will copy the address for pasting in the mining pool websites. You will want to copy, and paste all of them to a text document, along with which currency it belongs to. Not only does this keep you from juggling back and forth trying to figure out things, but it helps for reference and setting up MultiMiner. Once you have those accounts setup, you'll want to sign up for Coinbase. A WORD OF WARNING FOR THOSE WHO ARE PARANOID... Coinbase will want to link to a bank account, this is mandatory if you want to trade your currencies for cash. If you want to trade currencies, just for the sake of trading, then you can skip Coinbase altogether. You can transfer your Bitcoins from Cryptsy straight into Coinbase, and then sell the Bitcoins from Coinbase, and straight into your designated bank account. MultiMiner, oh how amazing you are. For every cryptocurrency available in all pools, you will need to add these coins, along with server addresses, log-ins and passwords. To do so, click on the drop down next to the Settings button, and click Coins. From there, click on Add Coin, and choose each coin from a pool. This will list it in the box to the left, and give you the ability to add information on the right. You can add multiple servers as well, in case the current server you're mining on goes down. After all your coins are setup, you'll need to setup your Strategies. Click the drop down next to Settings, and chose Strategies. Check the Enable Strategies check box, choosing Straight Profitability from the drop down, and checking the Strategy every five minutes (that way you're not losing money by mining something that has dropped in price). This aggressive price checking makes it to where you're always on top with whatever you're mining. Also make sure you have Mine the Single Most Profitable Coin selected. Stick with CoinChoose as your price source (under Settings), as CoinWarz charges for there services beyond a certain point. Click Start, and take a vacation. Reading the charts on Cryptsy can be a little tricky, and scary if you've never saw those types of graphs before. Those graphs are called Candlestick Charts, and are used primarily in the stock market. I won't go in to great detail on this, however, you can find a nice cheat sheet on the subject here. I hope everyone enjoyed the guide, sorry for being punctual and brief, but there isn't anything too elaborate of complicated about searching for cryptocurrencies. I love mining as a hobby, mining's fun, and if there is any money to be made off of mining from my end, great, if not, I had fun mining. While compiling a spreadsheet of the minable currencies in this guide, if everything is set up correctly (and assuming servers aren't down), you should be able to mine the following:
And while Mining Pool Co. offers ASICcoin and Unobtainium, ASICcoin isn't supported in MultiMiner, and Unobtanium isn't supported in Cryptsy. I still mine for Unobtanium in hopes that Cryptsy will include it one day. References Cryptocurrency. (n.d.). In technopedia. Retrieved from http://www.technopedia.com/
I've been mining on my 6850 for a few months and I've decided that it's pathetic. I understand that "when ASICs arrive" it will change the entire mining ecosystem, but given the perpetual delays in shipping (at least from Butterfly Labs), I want to build my own GPU powered miner. I have about $4k USD to put into a system (or multiple systems if that's a better idea) and I'd like it to hit at least 3.5 Gigahash/s. So here's my questions: 1) To keep the machine viable as long as possible, it needs to be power efficient. The numbers I've seen on the new 7990 put it at about 1.2 Ghash for 375 watts of consumption (https://en.bitcoin.it/wiki/Mining_hardware_comparison and http://www.tomshardware.com/reviews/radeon-hd-7990-review-benchmark,3486.html) - 3.2 Mhash/watt. Would I see better efficiency numbers from a different card? 2) I understand that mining does not require the card to be in a full speed PCIe slot to get optimal hashing power. If I use a 7990, is the fact that it is a Dual-GPU card going to require more than a 1x PCIe slot? Or, more specifically, how much bandwidth does hashing require per Mhash/s? The answer to that question leads to the last question - 3) If I build a setup with a backplane for additional PCIe slots, how many slots could I realistically add before Windows 7 Ultimate x64 fails to recognize the devices or otherwise derps out? I'm not against setting up with a Linux based system, I just haven't seen appropriate drivers available on that platform. (Side note - do I NEED Catalyst drivers to run an OpenCL miner?) Any advice or information on suggested builds would be appreciated, and I'll tip helpful people. Thanks!
Can I use a butterfly-labs miner to mine any crypto-currency? asic mining-hardware butterfly-labs mining-technical-details. share improve this question follow edited Mar 11 '16 at 13:13. Murch ♦ 43.6k 30 30 gold badges 132 132 silver badges 388 388 bronze badges. asked Dec 15 '13 at 14:15. oshirowanen oshirowanen. 65 2 2 gold badges 9 9 silver badges 29 29 bronze badges. add a ... The later models were pretty pricey, we’re talking low to mid thousands of dollars a unit, for a Butterfly Labs bitcoin miner. The problems involved the delayed shipment of miners ordered by customers of BFL. It is pretty outrageous if you stop to think about it and soak it in. You send your money over to Butterfly Labs to the tune of hundreds, even thousands of dollars expecting a ... When it comes to the devices, one can use Drillbit Thumb and Eight, Ztex’s FPGA boards, and Twinfury USB stick miner for mining Bitcoin. 6. Miner-Server img source: vectorstock.com. One thing that usually worries new users is the funds they have to invest in hardware. If you are not ready to make this commitment or simply do not have enough ... Bitcoin mining has pushed the cost of some of the critical hardware components, like graphics cards, through the roof. This has made it all the more important to carefully calculate whether your rig will be turning profit any time soon, especially for new miners. Lack of experience and planning can put a stop to your mining operation before it even starts. To find additional information on ... Butterfly Labs — the US-based company that has been promising a low-powered, low-cost ASIC mining rig for months now — has finally shipped one to a US blogger and bitcoin specialist.
Introduction to the Butterfly Labs Monarch bitcoin miner ...
Butterfly Labs 5 GH/s ASIC Bitcoin Miner (Jalapeno) Review - Duration: 11:42. andrewesquivel 22,205 views. 11:42. ASICMiner USB Block Erupter Unboxing - Duration: 10:48. ... Check out my latest Raspberry Pi project using a Butterfly labs Jalapeno 5 Gh/s Bitcoin miner and a Raspberry Pi Model B running Raspbian. Buy a bitcoin mine... The Butterfly Labs 5 GH/s Jalapeno. This is the small ASIC miner from Butterfly Labs. Butterfly Labs Monarch bitcoin miner information on power connections and more. Butterfly Labs 5 GH/s ASIC Bitcoin Miner (Jalapeno) Review - Duration: 11:42. andrewesquivel 22,125 views. 11:42. The incredible ibex defies gravity and climbs a dam Forces of Nature with Brian ...