A Look into America's Largest BTC Mining Facility

[FSP-Rebel]

[phill4paul]

is right.

[torchbearer]

wow

[torchbearer]

I hate to be in a pool with that guy.

[muh_roads]

1000TH. What a jerk. lol

Looks like he is running all Bitfury...he might be one of the founders. I wanted to hear how much that hardware cost him initially.

What you won't hear is that a month or two from now it will be $4m per month instead of $8m he's generating at the rate the network is growing. It only made sense if you were one of the first to get in.

If he put all that hardware investment into buying coins offline away from exchanges he woulds till probably have got more coins.

[muh_roads]

I hate to be in a pool with that guy.

You actually do better on a faster pool. Even though your share per block is less as more pile in, you are all tearing through blocks faster and it feels less like a lottery.

[squarepusher]

wow $8 mil a month!

[torchbearer]

You actually do better on a faster pool. Even though your share per block is less as more pile in, you are all tearing through blocks faster and it feels less like a lottery.

That hasn't been my experience.
I was in fast-pool.com
they hit a block every 9 minutes, my payout not so much.
I moved over to nonstopmine.com where they hit a block every 9 hours, and I get 4 times the coins.
I run a rig with two 6870's because that was my gaming rig. so, i'm no big timer.
I'm pushing them at 615 kH/s combined.

at fast-pool.com i was making about 700 doges a day
at nonstopmine.com , a smaller pool, I'm making 2400 doges a day.

[muh_roads]

That hasn't been my experience.
I was in fast-pool.com
they hit a block every 9 minutes, my payout not so much.
I moved over to nonstopmine.com where they hit a block every 9 hours, and I get 4 times the coins.
I run a rig with two 6870's because that was my gaming rig. so, i'm no big timer.
I'm pushing them at 615 kH/s combined.

at fast-pool.com i was making about 700 doges a day
at nonstopmine.com , a smaller pool, I'm making 2400 doges a day.

Yeah I was just referring to BTC and the 2016 blocks that each take roughly 10 minutes to solve. Doge I don't understand because the difficulty changes so fast. I think each block is only 1 minute and the diff adjusts after just a few blocks. Scrypt mining is a brand new ball game with constant coin switching.

[jbauer]

That hasn't been my experience.
I was in fast-pool.com
they hit a block every 9 minutes, my payout not so much.
I moved over to nonstopmine.com where they hit a block every 9 hours, and I get 4 times the coins.
I run a rig with two 6870's because that was my gaming rig. so, i'm no big timer.
I'm pushing them at 615 kH/s combined.

at fast-pool.com i was making about 700 doges a day
at nonstopmine.com , a smaller pool, I'm making 2400 doges a day.

So what's a doges worth and does it cover your elec output?

[jbauer]

K so Iooked up a doge and it says 700 doge is worth $0.57. There's no way you're even remotely coming close to pay the output cost on that computer.

[torchbearer]

So what's a doges worth and does it cover your elec output?

1000 doges is a bit over a buck- somewhere between 1.10 and 1.25 per 1000doges.
I haven't had a device to record just the electricity used by the mining machine.
this maker isn't going to market. not for awhile.

[torchbearer]

K so Iooked up a doge and it says 700 doge is worth $0.57. There's no way you're even remotely coming close to pay the output cost on that computer.

yeh, i wasn't at that pool very long.
I actually need two more cards to make on it if i sold today.
its a simple miner, no hard drive, no frills.
the only hogs are the gpu's.

my total utilities are $100 a month for everything, not sure how much of that is my miner.
but i ran that computer all day, every day prior to mining... so the cost was already there.

[S.Shorland]

Satoshi worked for the NSA.I knew it of course.Anything to stop Gold.

[muh_roads]

K so Iooked up a doge and it says 700 doge is worth $0.57. There's no way you're even remotely coming close to pay the output cost on that computer.

Not yet. Hold your Doge's. They will be worth a penny each some day soon, IMO.

[amonasro]

K so Iooked up a doge and it says 700 doge is worth $0.57. There's no way you're even remotely coming close to pay the output cost on that computer.

True but you can trade them up for bitcoins or litecoins. Cryptsy has a autosell option for this. Auto-switching pools like Middlecoin make it even easier, paying out ~.01btc (give or take) per Mhash directly.

[PaulConventionWV]

Satoshi worked for the NSA.I knew it of course.Anything to stop Gold.

Wow, I just have to laugh at people who don't understand what bitcoin is and think that the government would ever want to create it.

[idiom]

Wow, I just have to laugh at people who don't understand what bitcoin is and think that the government would ever want to create it.

A way of making all transactions traceable while making it sound like they are untraceable? Definitely don't want that. Lets keep the citizens using anonymous currency.... yeah....

[muh_roads]

Anything to stop Gold.

How could crypto harm gold? That makes no sense. Commodities join forces when fighting debt-based currencies.

The Ron Paul Channel is going to accept BTC as donations soon.

[PRB]

What you won't hear is that a month or two from now it will be $4m per month instead of $8m he's generating at the rate the network is growing.

Even that assumes the demand and price of bitcoin is stable, right?

I hope he's sold enough bitcoins to pay for his facility in cash, I would hate to hear that when bitcoin crashes to a fraction of its current value, that he's in debt rather than simply stuck with equipment.

Exactly, I too am curious what his costs are. Is he an example of a person who might actually have made back his investment (because I keep hearing that mining is never going to make back money when equipment and electricity costs are added up)

[IPSecure]

Does anyone know what numbers or problems are being solved, running these mining programs?

Is it a front for helping out the NSA with breaking encryption?

[idiom]

Even that assumes the demand and price of bitcoin is stable, right?

I hope he's sold enough bitcoins to pay for his facility in cash, I would hate to hear that when bitcoin crashes to a fraction of its current value, that he's in debt rather than simply stuck with equipment.

Exactly, I too am curious what his costs are. Is he an example of a person who might actually have made back his investment (because I keep hearing that mining is never going to make back money when equipment and electricity costs are added up)

Put it this way, if it broke even, Google, Facebook, and Amazon would all be doing it.

[PaulConventionWV]

A way of making all transactions traceable while making it sound like they are untraceable? Definitely don't want that. Lets keep the citizens using anonymous currency.... yeah....

All transactions are traceable... not all people. Also, no inflation? Oh, yeah, big plus. No control? Definitely. Sounds right up the government's alley. Making many of its citizens rich and independent in the process? Why the hell not, right?

[CPUd]

Can Bitfury chips mine other coins or just BTC?

[muh_roads]

Can Bitfury chips mine other coins or just BTC?

Anything that is sha256, but not scrypt.

There are a ton of coins out there, but these listed are considered safe with no problems.
www.coinwarz.com

[kpitcher]

Does anyone know what numbers or problems are being solved, running these mining programs?

Is it a front for helping out the NSA with breaking encryption?

The calculations for bitcoin are all about guessing what combination of 0s are needed for the next block in the blockchain to be added. It does nothing else and can't be used for anything else at the moment.

There are a few alt-coins that try to do something worthwhile with all the computing power yet those are really small time right now.

[PRB]

Can Bitfury chips mine other coins or just BTC?

would be sad if that's all it was designed for, wouldn't it?

[PRB]

All transactions are traceable... not all people.

From a taxation perspective, anybody who intends to legitimize the currency, or advertise their services in exchange for bitcoin, will likely be traceable.

Example : if Overstock & Subway accepted bitcoin, they can't hide how much they've received, the most they can do is quickly send it to the next wallet to avoid getting hacked and stolen, the record of them accepting it is more open for inspection than taking cash.

Also, no inflation? Oh, yeah, big plus.

No inflation in the sense that you can't quickly print more of it, but if the speculative value has been too high for too long, giving illusion of stability, some people can get hurt too, this is true of any commodity.

No control? Definitely. Sounds right up the government's alley. Making many of its citizens rich and independent in the process? Why the hell not, right?

as for making citizens rich, can anybody get rich selling/mining bitcoin on any major scale without their cash getting tracked?

I can see it as an convenient way to spend a few thousand dollars here and there to keep up basic living, but can you actually be a millionaire without the government knowing? I doubt it.

[muh_roads]

1000TH. What a jerk. lol

Looks like he is running all Bitfury...he might be one of the founders. I wanted to hear how much that hardware cost him initially.

What you won't hear is that a month or two from now it will be $4m per month instead of $8m he's generating at the rate the network is growing. It only made sense if you were one of the first to get in.

If he put all that hardware investment into buying coins offline away from exchanges he woulds till probably have got more coins.

Did some research to follow up my post. Yes this is the founder of BitFury & cex.io who goes by the name buzzdave. He doesn't keep all that hashrate for himself. He leases it to people on cex.io for trade. Bless those stupid souls who want to trade hashrate that is ever increasing in supply...lol

btw 1PH currently generates $2.5m per month. I thought that sounded wrong earlier. Not sure where the $8m/mo is coming from unless that actually his take on leasing commissions @ cex.io GH & chips. That's quite a markup if that is what he's doing.

[PaulConventionWV]

From a taxation perspective, anybody who intends to legitimize the currency, or advertise their services in exchange for bitcoin, will likely be traceable.

Example : if Overstock & Subway accepted bitcoin, they can't hide how much they've received, the most they can do is quickly send it to the next wallet to avoid getting hacked and stolen, the record of them accepting it is more open for inspection than taking cash.



No inflation in the sense that you can't quickly print more of it, but if the speculative value has been too high for too long, giving illusion of stability, some people can get hurt too, this is true of any commodity.



as for making citizens rich, can anybody get rich selling/mining bitcoin on any major scale without their cash getting tracked?

I can see it as an convenient way to spend a few thousand dollars here and there to keep up basic living, but can you actually be a millionaire without the government knowing? I doubt it.

I wasn't talking about inflation in the economic sense, I was talking about it in the control sense. Why would the government and the Fed work so hard developing this inflationary fiat debt system that everyone relies on and that they have absolute control over and then turn around and create something that they have absolutely no control over? Sure, you can trace transactions, but tracking people isn't that easy. You talk about businesses, but individual people who use the black market have been important to control to the government, too. what about them (the drug lords, pimps, etc.)? Your assertion makes the assumption that everyone is going to try to be open about their earnings. If the government loses control, it won't matter who declares them and who doesn't because the government will no longer have enough control to be viable. The great thing about cash for the feds is that they can seize it at any time and everything has to go through centralized institutions that can track it way better than bitcoin can be tracked.

The only point I was making about people getting rich was the early adopters who they would allow to hold bitcoins that would quickly appreciate in value. I have never known the government to do things that would allow its citizens to become wealthy and more free as a result. There's a reason they want to keep the poor, poor.