[Chugalug] "Supplying the Mining World" -- Re: ButterFly ASIC Single

Lynn Dixon boodaddy at gmail.com
Tue Sep 3 01:57:12 UTC 2013

I have seen buttcoin, and I stay away from that site as there have been
metric crap tons of mis-information spewed from that piece of trash.  Its
like theonion.com, its fun to read, but has zero valuable content for
anything other than entertainment.

It's been hard to tie difficulty to price, but there are some die hard
investors that beleve there is actually a direct relationship.  So long as
my mining rigs are producing more revenue than their variable and fixed
costs I will consider them to be profitable. I typically don't "cash out"
my BTC to USD since I actually use the currency, but I can understand why
some folks do.

Here are some great links:
ROI calculator that lets you include fixed and varible costs (electricity,
etc).  It also lets you input an average difficulty increase percentage so
you can adjust your ROI for the increase in difficulty.

Great markets sites if you want to get in on investing in BTC.  Should you
use this as your primary means of retirement? Absolutely not.  Then again,
I advise against using gold as a primary source in your investment
portfolio.  A good investor diversifies their portfolio and that includes
some high risk / high returns investments. I think its a good idea to have
some btc in your mix, as its extremely profitable right now.

Gives you a good idea of network hashing power, current difficulty, next
estimated difficulty, market cap, number of transactions, and a buch of
other good info.

Usually have some good news articles (actual, un biased, and factual news)
unlike buttcoin.

I have been mining and trading Bitcoin for about 2 years now, and it has
been very profitable for me.  For the last 2 years, all the nay-sayers have
been yelling "scam!!" and "Bubbles!!!" but I have yet to see this happen.
 There have also been a metric crap ton of threads on the Lug that have
dithered off into silliness when it comes to Bitcoin, so I am a bit
reluctant to share on here, as you might imagine.  To many closed minds for
an open source community hehe.

I am happy to discuss and debate as long as it stays, decent.

On Mon, Sep 2, 2013 at 4:53 PM, James Nylen <jnylen at gmail.com> wrote:

> Lynn,
> Have you seen Buttcoin?  http://buttcoin.org/what-are-buttcoins |
> http://buttcoin.org/why-should-i-invest-in-bitcoins
> Also, I would think that an increase in difficulty would in general lead
> to an increase in price, which would serve to keep mining reasonably
> profitable unless newer devices come out that are much more efficient.
>  Your thoughts?
> On Mon, Sep 2, 2013 at 1:26 PM, Lynn Dixon <boodaddy at gmail.com> wrote:
>> Mike,
>> I am doing quite well with my mining operations. After 2 days of opeating
>> my ASIC, I have managed to collect around 1 BTC which is selling for around
>> $145 right now. Say what you what you will about "Bit-Con" (Love these
>> silly names by the way), but I don't know of any way where I can generate
>> $60 to $70 per day doing absolutely zero labor.
>> John,
>> To answer your question about what happens once the supply of bitcoins
>> are "mined up".  The algorith gets increasingly difficult as we approach
>> the end of the supply.  Likewise, the reward for each block decreases
>> making it even less rewarding.  But, since each transaction of bitcoins is
>> recording into the blocks, the miners will then have the option of charging
>> a transaction fee.  The option is there now, but since the reward for
>> finding blocks is so profitable right now, most miners and users are not
>> including transaction fees.   You can read more about transaction fees
>> here: https://en.bitcoin.it/wiki/Transaction_fees
>> On Mon, Sep 2, 2013 at 9:13 AM, Mike Robinson <miker at sundialservices.com>wrote:
>>> On Sep 2, 2013, at 7:00 AM, chugalug-request at chugalug.org wrote:
>>> Re: ButterFly ASIC Single
>>> In my library I have an excellent book, "Supplying the Mining World."
>>>  which to me neatly sums-up how "Bit-con" actually works.  The people who
>>> really made a fortune during the California Gold Rush days were
>>> hardware-store proprietors, like Leland Stanford and Mark Crocker (who went
>>> on to do quite well with the transcontinental railroad), and photographers.
>>>  Nearly all of the hopefuls never made a dime, but they all bought shovels
>>> and sluice-pans in the big city, and they all wanted to have their pictures
>>> taken.
>>> As long as this device works as advertised ... it will accelerate the
>>> task of solving this computationally-difficult yet-solvable problem ...
>>> then it is in the eyes of the law as legitimate a thing to sell as any one
>>> of P. T. Barnum's tickets to see "the amazing egress."
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