25

EDIT: My original answer may have made sense back when the question was asked, but now it is clear that Butterfly Labs cannot be trusted. As they say, "fool me once, shame on you; fool me twice, shame on me". After all the delays and controversies with their FPGA line, they have given their word that with the experience gained they really will be able to ...


18

They are choosing a less risky option. By selling now, they get the price of the machine no matter what happens to the BitCoin economy. They are defining their core competency as being in the hardware business not the cryptocurrency business. The same could be said for people selling pickaxes during the Gold Rush. Why not use the pickaxes to mine gold? ...


9

Beyond the concerns about BL's ability to deliver, should they be successful it's very questionable what kind of return you'll be able to get as an individual user even with the substantial increases in efficiency they promise. With Bitcoin mining, the number of coins dispensed in a given time period is fixed and self adjusting to the relative strength ...


7

Investing in expensive mining equipment hedges a bet that the return on investment, in the form of Bitcoin, will eventually pay off the initial investment and continue paying a return for some time before becoming obsolete (like CPU mining has and GPU mining shortly will) or breaking down. It may be possible operate this as a business, writing off expenses ...


6

I agree with RentFree's answer, but another part of the answer is the cost of capital. ButterflyLabs did not have the cash on hand to build its ASIC design or to manufacture all of the rigs. That's why they had their pre-order process: collecting the money up front was the only way they could afford to build the rigs. (Once they had built them, of course, ...


5

I have sent Butterfly several emails inquiring about delivery dates, and etc after pre-ordering the Jalapeno. I have yet to get a response back now 4 weeks later, I have sent them another request...this time asking for a refund. I think they should of put a lot more info out there about how long it would take to get our orders. I don't want my Miner next ...


4

I preordered 3 jalapenos. I made a calculation about the net profit with them. If right now a ATI card of about 150 USD gives about 350MH/s and produces about 0.125 BTC/day, a new Jalapeno costs is 150 USD with 3.5GH/s, so it should produce about 1.25BTC/day, and be like having 10x ATI cards. Maybe it will deliver a little less, because the cost of energy ...


4

I don't know whether EasyMiner will be ported to Mac. But there will be several other miners supporting the BitForce Jalapeno and other BFL ASIC products. If you want a user-friendly alternative you may want to try out BitMinter client. It has been thoroughly tested with BFL FPGAs mining on Macs. Support for BFL ASICs will be added as soon as possible. This ...


4

OK, the question here is worthless anyway for 2 reasons. Getting 51% hashing power over the network doesn't give you all of the Bitcoins. All that does is allow you to spend Bitcoins, and then later roll back the blockchain and spend them again.. If you've let the blockchain commit 6 blocks to get a "real" transaction committed, then it's going to take you ...


4

It uses ~70W @ 12V of external power. The stock power brick is cheaply made, giant, and inefficient (PF=.5,efficiency~.8). Fortunately, the power brick can run on 240V. Many people make their own cables to use an ATX or bench PSU (with higher powerfactor and efficiency) source: https://bitcointalk.org/index.php?topic=67819.msg796852#msg796852


3

Look at http://dustcoin.com/mining. The currencies designated as having SHA-256 algorithms (e.g., Bitcoins, PPCoins, Namecoins, and Devcoins) stand a good chance of being mined with BFL-like ASIC mining hardware. Remember, some currencies support merged mining - mine once and get paid in multiple currencies. Either your centralized pool supports merged ...


3

In my opinion trading BTC has a higher potential of profit when compared to mining because of the sheer difficulty. If you do decide to go for an ASIC. I would recommend Coin Terra GoldStrike1 2TH/s ASIC miners.They are expensive at 6,000 USD.But their Break Even time on January Batch is 4 Days.If they deliver through this is the only miner I feel could ...


3

The only reason it looks economical to perform a 51% attack is because no substantial amount of ASIC hardware has started mining on the network yet. Once the existing ASIC orders are shipped out, the total network hash power will be much higher. Further to that, the ASIC harder suppliers would not ship such a large amount of hardware to a single buyer if ...


3

For $2800 (the price of Monarch 500GH/s, as of 23 Dec 2013), and $4680 (the price of Monarch 600GH/s, same date), you might as well purchase a 1TH/s mining hardware, such as from VMC, or CoinTerra. The other alternative is to use these mining hardware to mine some other altcoin, instead of Bitcoin, and hope that the other altcoin would come to prominence ...


3

Right now, it's not profitable to mine Bitcoins on anything that isn't an ASIC. GPUs still pay off if you mine Litecoins, but then the mining scene over there is getting crowded as well - so you may end up just recovering your costs. There are plenty other crypto-coins, some of which are much more profitable to be mined with a graphics card than others. At ...


3

If you can hold your hand on the Bitcoin Miner for an extended period of time without burning it, I doubt the cube is consuming 270 Watts. What does your mining software indicate the temperature is? My two cubes run at temperatures between upper 30s and low 50s Celsius. (These cubes do make nice winter hand warmers for cold typing hands:-) Once you rule ...


3

No, the Jalapeño is a Bitcoin miner, it solves the SHA-256d hash function. On the other hand, Dogecoin uses the Scrypt hash function. The two are not compatible, and as far as I know there is no Scrypt ASIC being sold, yet.


2

It has now been confirmed by ngzhang that BFL is using Altera Stratix III EP3SL150 FPGAs in their singles. Since Altera has made product reliability data available, we now at least have the appropriate info available for the chips themselves. The EP3SL150 testing gives it a FIT rating of 15.1 which corresponds to roughly one failure per 66,226,166 hours or ~...


2

Playing by the rules, doing the right thing is of the utmost importance. This often times causes situations that are much harder to deal with or endure, as well more expensive. Understanding that when we buy from a company we advocate for them, through the purchase from them, we as consumers empower them to grow and proceed. It is critical that we ensure the ...


2

I think this is a subjective question. Just because we are bullish and are expecting growth in users, does this mean we will see a rise in price? Not necessarily from my view as I dont think price always indicates a rise in popularity and usage. Price indicates there are more users buying than selling, however a price decline indicates more users willing ...


2

I Would not be surprised if they collect cash up front for many orders, create a production run which takes 30 days, mine the units for 30 days, and then deliver. That's how I would maximize profit. They take no risk, but having the consumers pay for the costs (and more), they then have many many machines to mine or "perform QA (Quality Analysis) to make ...


2

There are reports online that Butterfly Labs and Avalon were both doing this as some customers have received dusty equipment with mining pool information set, however it is just as likely that the equipment was shipped out with preset pools and customers plugged them in and didn't reconfigure settings. https://bitcointalk.org/index.php?topic=236348.0 is an ...


2

In my experience, every time I've bought a miner, by the time I received it, if I had just spent my money buying BTC, I would have made a bigger profit. That being said, I'm a bit of a nerd so I look at mining as a hobby and if I can get my money back eventually (always have) while having fun nerding-out, I look at that as a win.


2

This is not possible. ASIC mining devices like those sold by Butterfly contain hardware that is capable of computing SHA256 hashes at high speed, but nothing else. They are not general purpose CPUs and cannot be reprogrammed to run other code. They might contain a simple microprocessor or microcontroller to control the ASICs and interface with the host ...


2

Unfortunately, this is one of the problems with Bitcoin mining hardware, it cannot be repurposed to do anything else. It's not like a GPU where you can just use it to render graphics in a game. ASICs are Application Specific Integrated Circuits. The "Application Specific" part is the key word here, they are specific to being used for mining only.


1

The Butterfly Labs miners definitely work for Bitcoin, I have one, it works as advertised (better in my case) and mines successfully.


1

I had one Jalapeno power supply die on me, perhaps you can source a replacement? 12V seems OK, but make sure it's rated for the amps.


1

I bought a couple of Butterfly labs a 25GH/s and a 7.5GH/s in april. I got them in november, when complexity was too high already. So I sold them. I'm using cexio now. It is more expensive in terms of cost per GH/s but it is more flexible. And you get access to one of the best private mining pool, GHash.io.


1

Gather too much hashing power in your hands, and you compromise the security of the Bitcoin network. If security of the network is compromised, the price of bitcoin falls through the floor, and no matter how much you can mine (or manipulate the network into giving you) you end up with millions of worthless bitcoins. It's much smarter to distribute the ...


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