[Chugalug] ButterFly ASIC Single arrived -- My review

Phil Sieg phil.sieg at gmail.com
Tue Sep 3 23:11:22 UTC 2013


Ok so based on feedback here I bought a "mini" USB ASIC rig:

9 USB ASIC miners @ $30 = $270
1 ANKER USB 3.0 10 port hub $64 (Thanks Eric Wolf, I rather thought they would need a good hub)
1 USB articulating fan to cool the 9 miners $7

So $341 for 3GH/S delivered. That's 2.3 bitcoins, which I HOPE I can mine in a couple of months.

I will get set up and after a week or two calculate whether I was smart, or a fool. If the payback is in line, I will just keep ordering these in blocks of 9 and daisy-chain them.

As long as they pay for themselves and net out, then it's just more blinky lights to sooth me...

Phil Sieg
President
SeniorTech LLC / snapfōn®
www.snapfon.com
phil.sieg at seniortechllc.com

Phone: 423.535.9968
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"The computer is the most remarkable tool that we've ever come up with. It's the equivalent of a bicycle for our minds."

Steve Jobs, 1955-2011




On Sep 3, 2013, at 3:51 PM, Eric Wolf <ebwolf at gmail.com> wrote:

> Dan,
> 
> In a nutshell, you are correct. The economics of mining doesn't make sense. But that's the fundamental lesson of economics over the past couple decades. People don't behave rationally. I like the little USB miners because they make blinky lights and appear to generate something of value. It's a hobby.
> 
> Last year, if you could leverage cheaper electricity with the ability to run lots of high end video cards, you could have an edge. I started down this route but was working form home and didn't want the fan noise in my environment. That was a mistake because it caused me to miss the bubble when the first generation  ASICs hit. I also cashed in my BTC at $7 because I didn't believe there would be a bubble (even though someone on the list, I forget who, accurately predicted it).
> 
> Now, mining has largely become a matter of getting your hands on the newest miners early enough to generate a profit (barring another bubble). There are very few technical barriers to mining other than cash. Right now, that requires a minimum $5K investment and may not deliver returns any time soon (if at all). That is, barring another bubble.
> 
> I probably should sell my USB miners and buy some Raspberry PIs and Arduinos. But that'd make too much sense!
> 
> -Eric
> 
> -=--=---=----=----=---=--=-=--=---=----=---=--=-=-
> Eric B. Wolf                           720-334-7734
> 
> 
> 
> 
> On Tue, Sep 3, 2013 at 1:18 PM, Lynn Dixon <boodaddy at gmail.com> wrote:
> Dan, exactly.  Maybe I did a poor job of explaining it.  After 2000 blocks the network evaluates the time it took to hash those blocks.  If it generated more than the targeted 6 blocks per hour, then the hash difficulty is increased as an efford to make it 'harder" for the network as a whole to "guess" the hash. Currently the reward for finding a block is 25 BTC.  This reward decreases with time.  The larger the difficulty, the longer it will take a machine to guess the hash. 
> The blocks per hour rate never changes, the network will adjust difficulty to always maintain 6 blocks per hour.  
> 
> 
> On Tue, Sep 3, 2013 at 2:36 PM, Dan Lyke <danlyke at flutterby.com> wrote:
> On Tue, Sep 3, 2013 at 10:46 AM, Lynn Dixon <boodaddy at gmail.com> wrote:
> > The supply of bitcoins is controlled by the network to maintain 6 blocks
> > per hour.
> 
> I think I understand blocks vs coins differently. The block supply is
> moderated by the network to handle latency issues, so that processors
> aren't working on the same problem over and over again, but the coin
> supply is moderated by mathematics.
> 
> When block latency is adjusted, what's being changed is how much
> computation information is transmitted in a block, not how many hashes
> per hour the machines are evaluating.
> 
> ie: Hook a gazillion machines up suddenly and even though your
> blocks-per-hour rate gets adjusted down, the number of hashes
> evaluated goes way way up.
> 
> Of course having those gazillion machines then becomes a liability,
> because if the block rate is limited to 6 per hour, there's a much
> higher chance you're repeating calculations done by other machines...
> 
> Dan
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