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Bitfury 400 GH/s Bitcoin Mining Rig Hits US Shores

thegenesisblock.com

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Re: Bitfury 400 GH/s Bitcoin Mining Rig Hits US Shores

#51

Post by icelancer »

oscargrouch wrote: post #41
icelancer wrote: post #39

Earlier quoted context omitted.

Put up a few million dollars as the prize to solve said problems and I bet you get a fair share of applicants. What are you waiting for?

you are just reinforcing what hes saying.. those things shouldnt need to have prizes in Money to people start working on it.. the point being maded by ultimoo (and i agree with it) is that WE need to change the way we think about things.. the way we are.. we need to change our prizes, and become happy with other sort of payments.. (like be happy to help others to have a better life) if we get to manage to have a inco…

>doesnt it say something about us all?

That we're utilitarian in nature? This isn't exactly Nobel-prize winning stuff.

The idea that we collect money and this is greedy or inherently bad is a highly personal view. Besides, what about Bill Gates and others who are donating their fortunes to do EXACTLY what you two ask?

You're also ignoring the fact that "getting richer" is not the enemy of "doing good."

Re: Bitfury 400 GH/s Bitcoin Mining Rig Hits US Shores

#53

Post by anigbrowl »

tbrownaw wrote: post #46
ultimoo wrote: post #36

How does investing engineering effort in designing mining ASICs and spending dollars to purchase what is essentially a currency generating machine help us as a community? I wish we were just as enthusiastic and race to solve other problems too -- like spreading education, finding out ways to purify water, or maximizing agriculture throughput in famine, or predicting when the next hurricane, tsunami, or earthquake is…

How does investing engineering effort in designing mining ASICs and spending dollars to purchase what is essentially a currency generating machine help us as a community? It's supposed to help said currency become more solidly established, and therefore more useful to more people. I wish we were just as enthusiastic and race to solve other problems too -- like spreading education, finding out ways to purify water, or…

It's supposed to help said currency become more solidly established, and therefore more useful to more people.

I don't think you're going to find people flocking to a currency where it turns out that they have zero change of a big score. At least during the gold rush there was the possibility that a small miner could get lucky.

Re: Bitfury 400 GH/s Bitcoin Mining Rig Hits US Shores

#54

Post by sliverstorm »

maxerickson wrote: post #48
sliverstorm wrote: post #38

Earlier quoted context omitted.

Oh shit, so what you are saying is once the R&D is paid for, they can just stop selling them and manufacture as many $15 400GHash units as they please. At that point they would have virtually zero worry about "breaking even", it's pretty much pure profit as soon as they plug in the device.

At the moment, those $15 (or so) units are 1.7 (or whatever it was) GHash/sec. They integrate a bunch of them to get to 400. In the long term, the mining rigs should barely be paying for the electricity required to operate them.

Yup, and that is the great irony of Bitcoin in my eyes. In the long term, the value of Bitcoin will probably continue to stabilize around the price of electricity, which is of course defined in US dollars.

In other words, Bitcoin will be anchored to the value of USD (with some factor comprised of average rig efficiency and prices per watt)

Re: Bitfury 400 GH/s Bitcoin Mining Rig Hits US Shores

#55

Post by skore »

cgi_man wrote: post #13
9ac345a5509a wrote: post #6

According to this calculator [0], in one month, you can expect to earn $20,724.53 dollars (ignoring price changes, difficulty changes, and operating costs). This seems too good to be true, however. Invoking the old adage, "In a gold rush, sell shovels." I wonder what effect all this has on the Bitcoin economy. If everyone begins doing this, then it will become extremely difficult to mine any Bitcoin without any sort…

I like the calculator at http://mining.thegenesisblock.com/ better. Using the defaults for network and all that it seems to give around $23,000 profit for the year.

What amazed me about that: Within 9 months, your profit drops below $1k/m. Barely three more months later and you're down to $250/m. So after a year, you're fast approaching the point at which the energy you put into the device costs more than the bitcoin money you get out of it.

Play with the knobs some more and you realize: If you purchase the 400 GH/s August device in December, you will never make back the 7.5k that the thing costs. Wait "only" until November and you barely get a 60% ROI.

That's some fast, fast market right there.

Re: Bitfury 400 GH/s Bitcoin Mining Rig Hits US Shores

#56

Post by Tuna-Fish »

sliverstorm wrote: post #54
maxerickson wrote: post #48

Earlier quoted context omitted.

At the moment, those $15 (or so) units are 1.7 (or whatever it was) GHash/sec. They integrate a bunch of them to get to 400. In the long term, the mining rigs should barely be paying for the electricity required to operate them.

Yup, and that is the great irony of Bitcoin in my eyes. In the long term, the value of Bitcoin will probably continue to stabilize around the price of electricity, which is of course defined in US dollars. In other words, Bitcoin will be anchored to the value of USD (with some factor comprised of average rig efficiency and prices per watt)

> Yup, and that is the great irony of Bitcoin in my eyes. In the long term, the value of Bitcoin will probably continue to stabilize around the price of electricity, which is of course defined in US dollars.

No, you have completely misunderstood how bitcoin mining works. The bitcoin value won't ever stabilize to electricity, the rewards of mining will. The effective reward per Ghash can go up or down independently of the bitcoin price, and tends towards costs (ie, electricity). Electricity costs have no bearing on the actual bitcoin value.

Re: Bitfury 400 GH/s Bitcoin Mining Rig Hits US Shores

#57

Post by GigabyteCoin »

skore wrote: post #55
cgi_man wrote: post #13

Earlier quoted context omitted.

I like the calculator at http://mining.thegenesisblock.com/ better. Using the defaults for network and all that it seems to give around $23,000 profit for the year.

What amazed me about that: Within 9 months, your profit drops below $1k/m. Barely three more months later and you're down to $250/m. So after a year, you're fast approaching the point at which the energy you put into the device costs more than the bitcoin money you get out of it. Play with the knobs some more and you realize: If you purchase the 400 GH/s August device in December, you will never make back the 7.5k th…

You're assuming that the value of Bitcoin stays fixed at $100.

Re: Bitfury 400 GH/s Bitcoin Mining Rig Hits US Shores

#58

Post by eliben »

I wonder when BitCoin will reach the stage at which mining is not economically viable because the expended electricity is more expensive than the amount of BC gained. It is my understanding that such a point should be eventually reached due to the mathematical nature of BCs.

Re: Bitfury 400 GH/s Bitcoin Mining Rig Hits US Shores

#59

Post by skore »

GigabyteCoin wrote: post #57
skore wrote: post #55

Earlier quoted context omitted.

What amazed me about that: Within 9 months, your profit drops below $1k/m. Barely three more months later and you're down to $250/m. So after a year, you're fast approaching the point at which the energy you put into the device costs more than the bitcoin money you get out of it. Play with the knobs some more and you realize: If you purchase the 400 GH/s August device in December, you will never make back the 7.5k th…

You're assuming that the value of Bitcoin stays fixed at $100.

Just like the model probably doesn't include what it means to add a large number of 400Gh/s devices to the playing field.

Re: Bitfury 400 GH/s Bitcoin Mining Rig Hits US Shores

#60

Post by cgi_man »

GigabyteCoin wrote: post #57
skore wrote: post #55

Earlier quoted context omitted.

What amazed me about that: Within 9 months, your profit drops below $1k/m. Barely three more months later and you're down to $250/m. So after a year, you're fast approaching the point at which the energy you put into the device costs more than the bitcoin money you get out of it. Play with the knobs some more and you realize: If you purchase the 400 GH/s August device in December, you will never make back the 7.5k th…

You're assuming that the value of Bitcoin stays fixed at $100.

There's a field to change the bitcoin exchange rate over time.
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