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Board Computer hardware
Re: Selling 3TH of BTC (SHA-256) mining Rigs - UK only - Mostly KNC kit.
by
libitum
on 03/04/2014, 11:00:25 UTC
So your asking price is about 4 times all the coins your gear will ever mine.

You should post on eBay. There used to be people buying miners without knowing what is a GHash/s, what is network difficulty, or what are mining profit calculators.

No offense. You should try to sell for as much as people are willing to pay. I dont think you will get those prices in this forum though. Here most people already know about mining and would like to make a profit.
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Topic
Board Mining speculation
Re: Considering buying a bitcoin miner
by
libitum
on 11/03/2014, 09:32:00 UTC
Antminers are ok for now, however you need to check the power consumption as well. If you get a miner for cheap, but it costs you twice the electricity, then it is not a good deal.

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Board Mining speculation
Re: Mining ASICs Technologies B.V. (MAT) Announces 6TH/s TITANIUM ASIC Bitcoin Miner
by
libitum
on 04/03/2014, 13:05:10 UTC
Duplicate thread. Here the original.
https://bitcointalk.org/index.php?topic=484874.0

In summary: stay away from Mining ASIC Technologies. Most likely fishing scam. It's offices are only a PO.BOX. No known investors behind. Its 6TH miner would draw so much electricity that it can not be run at a household.

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Topic
Board Mining speculation
Re: Looking to get into the Mining Game this 2014? It is possible! A must read!
by
libitum
on 03/03/2014, 08:45:43 UTC
I just sold 8 of my 10 miners, 2 left to go.  Im giving up

10 miners! That's quite a rig there!
5 months ago 1 of my Jupiters made 1 BTC per day. Now it does merely 0.085 BTC per day. That means that now I make 8.5% with the very same hardware. Crazy! Difficulty raised so much that just thinking about it is breathtaking.
With current difficulty, my Jupiter makes 14*0.085 = 1.19 BTC. Or assuming another 20% bi-weekly difficulty increase, 2 BTC for the next month.
At current prices ($580 per BTC), that is $ 1160, minus $100 to pay electricity.

So 1 Jupiter still makes quite a bit of money. I will make over thousand bucks next month! Per Jupiter! That is the reason I am still so optimistic and eagerly waiting my next generation miners (Neptunes), and I see difficulty raising as an opportunity to be one of the last standing, once bitcoin mining becomes a stable, low income, low risk business, by the end of this year (according to my calculations).
I dont pretend to reach ROI within a month. Within 6-12 months will work for me, and after that it will be just a second salary. According to my calculations, a stable monthly $500-800 per Neptune (after paying electricity).

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Board Mining speculation
Re: Is bitcoin mining worth it?
by
libitum
on 02/03/2014, 04:27:32 UTC
I still make money from mining, and I am using KNC Jupiters. For this 2014 I am getting 3 Neptunes (already paid) to get some decent hashing power. I know most people in this forum are afraid of jumping into mining and actively discourage people who want to start mining. I guess it is anyone's take. It is a risky business, and at least to the best om my logic, it dont see how can I will lose any money. I expect to end 2014 with double my investment in Neptunes.
Here some extra reading if interested
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Board Mining
Re: Most power efficient asic (that's been confirmed to be shipping)
by
libitum
on 01/03/2014, 12:19:03 UTC
What matters is the asic technology and clock speed.
Cointerra and KNCMiner are the best ones right now because of their 28nm asics. With those you can get 1-1.2 Watts/GH.

BitFury, Bitmain, ASICMiner are using older asics.

KNCMiner will start shipping in 3 months its Neptune (20nm ASIC). That is the only product with 20nm planned for 2014. It aint cheap though. $10k for 3TH @0.6-0.7 Watts/GH.
Here is a review of KNCMiner and their products if interested.


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Board Service Discussion
Re: Important. Gox, have not filed for bankruptcy
by
libitum
on 28/02/2014, 10:43:45 UTC
On a side note, Gox filing for bankruptcy protection has not sent btc prices down. I take it as a good signal. Mt.Gox disaster (for which hopefully many people will end up in jail) was not the nuclear bomb to bitcoin that many people were expecting.
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Board Mining speculation
Re: Looking to get into the Mining Game this 2014? It is possible! A must read!
by
libitum
on 28/02/2014, 09:39:06 UTC

By the end of the year difficulty will be 500-900 Billion.  Put that in the BTC calculator for profit return.  A 30TH unit will make $10 profit a day.

You know better than that. Calculators are not meant to be used for more than 2-3 months in the future. Then you could use the same calculator for the end of next year, and find out that you will need half world electricity to power the trillions bitcoin miners, the surface covered by miners will be 10% of worlds surface, and people mining will pay $100 in electricity for ever $0.01 in BTC they can mine.
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Board Mining speculation
Re: Looking to get into the Mining Game this 2014? It is possible! A must read!
by
libitum
on 28/02/2014, 09:34:44 UTC
I think the retail people like you and us make up less than 5% of the total hashrate.  Those higher up in the foodchain probably get equipment more than 50% cheaper than us so they can continue to mine for awhile and the rate still goes up because there is competition between the suppliers who can make more and faster, wafers, chips, boards, kits, etc. As the margins get squeezed for even the manufacturers, those that are the slowest to develop newer and faster and cost efficient equipment will falter..............  BFL, Black Arrow  and KNC soon.

Yeah the people who in the past would order 20 SC Singles from BFL in 2012 are now contacting the ASIC companies directly and asking for their units to be shipped straight to data centers with lower overhead.  No worries about heat, noise, uptime (short of the unit failing).

That is too expensive. Now that BTC income from mining is 10X-15X the cost of electricity, it can be paid. But eventually running your own hardware in datacenters will be too expensive. At first I ordered more Neptunes that I could run at home, and started contacting datacenters to rent a rack and put those there. Datacenters costs (i put in my first post the cheapest option that I almost took) are no less than 4X the cost of household electricity. Now I canceled the orders that I cannot ran at home (however I am eagerly waiting the 3 Neptunes I can run at home), and I am waiting for the second half 2014, when KNC starts selling hashing power in their mega datacenter. That still will be more expensive that running those at home, but the advantage of no worries (heat,noise,...), plus not being able to run more at home, justifies the price.
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Board Mining speculation
Re: Looking to get into the Mining Game this 2014? It is possible! A must read!
by
libitum
on 28/02/2014, 08:51:01 UTC
I think the retail people like you and us make up less than 5% of the total hashrate.  Those higher up in the foodchain probably get equipment more than 50% cheaper than us so they can continue to mine for awhile and the rate still goes up because there is competition between the suppliers who can make more and faster, wafers, chips, boards, kits, etc. As the margins get squeezed for even the manufacturers, those that are the slowest to develop newer and faster and cost efficient equipment will falter..............  BFL, Black Arrow  and KNC soon.

Which brings the topic of the operational costs. If a vendor gets a miner at $0, then they still need to run it. They will pay electricity (20% cheaper than residential costs on average), cooling, personnel, rent, taxes, etc. From those operational costs, about half is electricity.
If network hashing power goes so high that manufacturers can not run their miners at a profit (eg. Selling the mined bitcoins pays only 2x the electricity costs, which barely cover its costs) then even manufacturers will stop at that point to put more miners in the network. If there is no profit on it, there is no investors money. There is a "cost of opportunity" of money. No investor puts money in a high risk enterprise without expectation of a big return.

Also consider that half the current hashing power is made up of old tech ASICS, which consume 2W/GH.
The other half (1W/GH - 1.2W/GH) started shipping only late 2013 in limited quantities, as there are not many factories worldwide that can produce massive amount of 28nm asics.

The new generation 20nm ASICS (KNC Neptunes, review here), will consume 30% less than 28nm ASICS (according to KNCMiner). That means about 0.7 W/GH. Then 100% of the current network hashing will be obsoleted long before your Neptune is out of business.
28nm ASICS (whichever vendor) are also top of the line, and only bested by the new generation 20nm Neptunes.

Then retail miners like us, if using 20nm-28nm asics, still have a chance against vendors mining themselves. Not like in 2013, but still barely profitable to have it as a second steady income besides our daily jobs.


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Topic
Board Mining speculation
Re: Looking to get into the Mining Game this 2014? It is possible! A must read!
by
libitum
on 27/02/2014, 07:40:58 UTC
Mining will be almost impossible by the end of the year when difficulty is 100 billion.  Companies are having trouble making newer hardware to offset the fast increase in difficulty.


Use it in your advantage. If by the end of the year you are running hardware that has already paid itself, and network difficulty freezes because returns are so low that nobody buy new miners (mining is a risky business, no person nor company buys hardware if they wont reach ROI within 12 months), then you got yourself a steady income until the next technology jump (in 2-3 years). If you multiply it by having not 1, but few miners, you got yourself a fat second salary.

There is nothing more efficient that 20nm. That is already the state of the art. Not even Intel has got smaller than that.
28/20 = 1.4. Neptunes should consume about 30%-40% less electricity than TerraminersIV/Jupiters , if both work at same clock speed. TerraMiners IV will get obsoleted long before Neptunes do.

That's at least my master plan. My Neptunes are fully paid. And I have another bit of coins waiting for buying few TH/s in KNC datacenter (coming second half 2014), however I am more confident in the Neptunes than in just buying hashing power.
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Board Service Discussion
Re: Cheap electricity for mining Bitcoin
by
libitum
on 25/02/2014, 20:26:03 UTC
Running a miner in the Caribbean is far from cost efficient. There is a reason why datacenters are built in the north pole.
Although you save because subsidized electricity, you need to spend twice the electricity due to refrigeration.

Also, Venezuela has blackouts all the time. Miners need steady electricity, not the one that you get during the blackouts. Miners will die in a month. What will you do when your miners dont start up because the blackout damaged the power supplies?
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Board Mining
Re: Mining ASICs Technologies (MAT) Announces 6TH/s Miner And Scrypt Miners
by
libitum
on 25/02/2014, 10:05:54 UTC
Mining ASICs Technologies is most likely SCAM!!! 6TH/s means 6000-7000 Watts. It can not be run at a household.
You would need to run it at a 40A breaker circuit. Households have 10A, 16A, 20A, and few have 1 breaker at 30A (meant for hair dryer).
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Topic
Board Mining speculation
Re: Looking to get into the Mining Game this 2014? It is possible! A must read!
by
libitum
on 24/02/2014, 12:15:40 UTC
No one is questioning whether mining with an ASIC is profitable.  Hell, my SC Single can still make me $ if I had them sitting in my house even though my power is $0.35/KWH.

The thing people debate is whether paying a company to purchase a miner and then mining using your own electricity will put you ahead of flat out buying the coins.  No miner currently available for pre-order seems to be able to recoup BTC opportunity cost.  With BTC prices down to sub $600 now it's pretty much a no-brainer that buying mining hardware does not make sense (unless you get a deal not available to the public).

Fully agree that BTC prices are so low now that it might be more profitable to buy BTC and wait for better prices, than mining yourself. I bought my Neptunes when prices were $800 - $1100, then prices were high enough to make it an easier choice than now.

Price speculation is a 100% different game than mining. In mining you dont care too much about BTC price (as long as range stays higher than $300) because BTC price and network difficulty somehow compensate each other. Buying BTC and holding depends only on BTC price. Mining depends on several factors, then it is more insulated to BTC price. If BTC price goes over $1000, there will be so many more PetaHashes mining that you will mine less BTC than if price would be $500 per BTC.
If you buy a miner now (Neptune costs right now about 20 BTC), and prices plummet to $100, that means that the plateau phase (survival profits) will arrive much faster. Buying a Neptune when BTC prices are $100, means to pay 100 BTC for 1 Neptune. Mission impossible to mine that many BTCs. Then nobody (not even corporations) will invest 100BTC to buy a Neptune that might mine only 40-80 BTC in its lifetime. Therefore the unavoidable plateau phase. But if at that time you are mining with a Neptune that cost you 20 BTC, you will have it working for long long time still, and still mine a lot more than the 20 BTC you paid for it.

I have tried buying/selling BTC a year ago (in MtGox and then in Bitstamp), but I only lost money. Then I dont advice or comment on whether it is good or bad to buy bitcoins. Current prices of $600 looks cheap, but what if you buy and those prices go to $300 (eg. as a result of Mt Gox going bankrupt and stealing their customers funds).
Because I have got profits by mining for many months straight, then I sometimes allow myself to advice people who are thinking about mining. So far, $500 BTC prices and current mining landscape points to a still profitable 2014 (barely profitable as I tried to explain in my first post), but still allowing to recover the investment. It might be more profitable to just buy the bitcoins and wait for a year. But that is a different game than mining which was my only scope in this post.
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Board Service Discussion
Re: Leaked Mt.Gox "feature" to lock all BTC for 6 month
by
libitum
on 23/02/2014, 23:05:20 UTC
I dont know if the poster of that pic is trustable or not.

If the pic would be true and MtGox does lock bitcoin withdrawals for months, but allows only fiat withdrawals during that time, probably bitcoin price in MtGox will plummet. $10 per BTC?

Locking BTC for months in a company that will go bankrupt in weeks is a a recipe for panic selling.

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Topic
Board Mining speculation
Re: Looking to get into the Mining Game this 2014? It is possible! A must read!
by
libitum
on 23/02/2014, 20:22:38 UTC
Your logic is completely flawed, but thats only because you are not attempting logic, but just trying to spam your affiliate link.

In reality, if mining is profitable with typical consumer electricity prices, then it will be far more profitable for large mining enterprises that only pay a fraction of our electricity cost, as low as $0.01 per KwH. The logical conclusion from that is that such entities will continue piling on the hashrate until its no longer lucrative for them, and as a result completely pointless for anyone paying "normal" electricity rates.


I do mine myself, and my logic above is sound enough so that I have bought few Neptunes for mining this 2014 (Although I expect my Jupiters to still being marginally profitable this year, I wanted to step up my mining gear). The reseller's thing is just an extra hobby to make mining more fun, however it is more of a joke than a real income.

US electricity costs for businesses: "The national average was 10.19 cents per kwh."
US electricity costs for households: "The national average was 12.20 cents per kwh."

Datacenters electricity costs are only marginally lower than what households pay. Households have cheap electricity because it is meant for warming up the house, etc. Businesses are, on the other hand, an income for the government.

Mining farms require the exactly same infrastructure than current datacenters. Therefore their running costs are much alike.
There are tens of datacenters in every city, competing in prices to host your miners (or any server).

While running a miner at your own home (Finland) costs you about 0.08 KWH, running it in a datacenter (the cheapest I found in Helsinki) costs you $0.3 KWH + fixed monthly fees ($200 - $1000 for renting the space in the datacenter's rack).
That is because overall datacenter costs are higher than you running a miner at home. Then even though datacenters compete among themselves to try to offer cheaper prices to gain customers, the final price they offer for collocating a miner at their datacenter is still several times higher the costs of running that miner at home. Even though those marginal savings in electricity costs that datacenters achieve due to their volume.

So in summary, mining is still profitable in 2014. You are not going to make 50x electricity costs as last year, but from 10x(right now) to a stable 2x-3x at the end of the year. (with x being the electricity cost).
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Topic
Board Mining speculation
Re: STOP!!! Do not buy that new ASIC ! And here's why...
by
libitum
on 21/02/2014, 10:04:23 UTC
People have been saying that mining will never be profitable. Just check the first post in this thread. In the meantime, I have preordered KNC mining gear since july last year, from every batch they sell.
So far, October delivered Jupiters, have given me about 5x what I paid for them, and I can still resell it half the money I paid for it.
November delivered Jupiters (mine was delivered middle December), has only given me about 1.5x - 2x. I am also still able to sell those for the same price I paid for it.

I wrote quite a long post about this same issue (mining in 2014, the increasing difficulty, expected profits, etc.) that I dont want to repeat it here. If you want to take a look, you find it at: https://bitcointalk.org/index.php?topic=477616.0
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Board Exchanges
Re: MtGox discount oportunity?
by
libitum
on 21/02/2014, 09:50:48 UTC
Obviously MtGox does not have the BTC/Fiat they should. Otherwise they wouldnt shoot themselves in the head by moving their office to a PO.Box, freezing withdrawals, never allowing audits, keeping secrecy about everything inside MtGox, etc.

It is like the film "The Wolf of New York". However this should be named "The Wolf of Tokyo".
Bitcoin is still unregulated, then the biggest scammers are everywhere where bitcoins are handled. Now, obviously, MtGox is one of the biggest scammers out there. I wont be surprised if in 3years there is a Hollywood film about MtGox and their lavish partying, drugs, luxuries, and inside jokes about how easy it is to steal from the morons that trust them their funds.
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Re: MTGOX Public Audit - would solve everything.....
by
libitum
on 21/02/2014, 09:47:51 UTC
Obviously MtGox does not have the BTC/Fiat they should. Otherwise they wouldnt shoot themselves in the head by moving their office to a PO.Box, freezing withdrawals, never allowing audits, keeping secrecy about everything inside MtGox, etc.

It is like the film "The Wolf of New York". However this should be named "The Wolf of Tokyo".
Bitcoin is still unregulated, then the biggest scammers are everywhere where bitcoins are handled. Now, obviously, MtGox is one of the biggest scammers out there. I wont be surprised if in 3years there is a Hollywood film about MtGox and their lavish partying, drugs, luxuries, and inside jokes about how easy it is to steal from the morons that trust them their funds.
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Topic
Board Mining speculation
Re: miner days to profitability? infinite - lol
by
libitum
on 21/02/2014, 09:39:49 UTC
calculators are accurate only for estimating the next 2 months. For any time longer, those are 100% wrong.

For a calculator estimate to be accurate in 2 years, it would require that all the surface of earth is covered with bitcoin miners, 90% of world electricity is dedicated for mining bitcoins, and for every dollar income in mining bitcoin, people pay $100 in electricity.