Then OPEC must be carrying this illegal activity for several decades. And FED is the banking alliance to control and fix the price of the dollar for more than 100 years

How is that illegal?  It is just a consensus (if it ever can be reached). Even pools can be allied together to protect against a faulty fork in 2013, and against potential 51% attack if it ever happens

Imagine a vendor that have leading semi-conductor process 10nm, he can limit his production scale at a certain level so that the network hash rate increase slowly. He then could start a cloud mining service and sell the hash power at market rate, which leaves him large margin to deal with market volatility. I think that is what Bitfury means

Mainly because 2 factors:

1. The end of QE. In fact the price of almost any commody has been in a long downward trend since the QE slowed down and eventually stopped during 2014




2. The mining cost is still lower than coin's exchange rate during most of 2014


For no.1, FED still keep their previous projection of raising the interest on later part this year. But I think if USD liquidity become a much severe problem sooner than they can imagine, eventually they have to start QE again

For no.2, now the cost is already higher than exchange rate at some place, so some of the miner will just shutdown rig and buy bitcoins instead, that will give some support in the near future

Have you ever considered in forming an alliance like OPEC to limit the hash rate race?    I just saw Bitfury said that their cloud service would only add hardware based on demand, is this a trend towards more cloud based service?

Nice video. That forecast did not include the bitcoin exchange rate, which is the most uncertain variable for mining as a business: Racks of machine can become paperweight when bitcoin price dive below $100

Home mining however are not affected as much since many of them are not profit oriented

They would just make average Joe more difficult to access outside world, the experts will always find a way as long as encrypted package can be sent

Actually the higher level officers need access to outside internet to get some insider government info which they seldom can acquire domestically

Rubble can have 20% interest rate but it in fact erased your purchase power by 50%. Same for CHF that preserve your purchasing power much better than Euro

Good point. In fact there are many types of "money" and most of them are not real, but now most of the people have no idea what is real money, and they usually talk about some money that is not real

Just like a user's bitcoin in an exchange, he would also call them bitcoin and he can exchange them with others on exchange, so for him and for exchange, those numbers in his account indeed represent bitcoin. And the exchange can even do some statistics about their bitcoin transaction volume in their database and make a M1 supply analysis of bitcoin ecosystem. However, they are just numbers in exchange's database, they are not on blockchain. The exchange might have already lost those bitcoins long time ago before the client experience a withdraw problem, since the coins in their hot wallet might be able to deal with any kind of withdraw for years unless a crisis hit (MTGOX)

The bank settlement network can be regarded as a giant exchange that almost everything is exchanged on this platform. People trade against each other with their money and cause the numbers in their account increase or decrease. Exactly the same way bitcoin traders doing in an exchange. So anything happened on this giant exchange has nothing to do with real money

To see the real money, people must get out of this giant exchange, as long as they stay in this exchange and keep trading, they will always be playing with numbers, not real money. And those numbers can not exist without real money

When MTGOX lost all of the customer coins in cold storage, all the accounts were wiped out, although the numbers in those accounts are still intact, the value behind them is gone. This is similar to many bank failure that when their last piece of real money has been exhausted, all the other numbers in their database are useless


In my opinion, real money only comes from FED (and notes and coins made by treasury). But the ownership of those real money is little bit confusing: In a traditoinal RBD model, if I have some valuable asset, I can issue money of same value, backed by this asset. But the ownership is: I have ownership of the money and I also have the ownership of the asset

Then I start to spend money, giving up the ownership of those money and get some valuable things in return. Notice that I still have the ownership of my asset, as long as no one come back to me to redeem the money

Government have the ownership of some asset, then they issue some money based on this asset. From a similar reasoning, the asset ownership and money ownership will all belong to government, as long as no one come to government to redeem the money. However, the reality is: Newly issued money belongs to government, but their asset now belongs to FED, which is not owned by government

I have never been able to understand how this kind of ownership shift can happen without any resistance from mainstream economists, have they been playing on exchanges for too long and forget about the real world totally  

Of course, if everyone from birth to death are playing on this exchange forever, then the numbers on exchanges will be more important than reality, but that is a kind of abstraction I still can not command now, maybe just like Keynes said, we are all dead long term wise

There is no standard unit of value, it is all subjective, but you can make a rough compare of things with different value: a $10 bill has 10 times larger value than a $1 bill

Can not trust a source that comes from the bank itself, because this involves the ownership of trillions of money, they will try to hide it as much as possible and give others as much misleading info as possible

There are 2 facts that do not support the theory that commercial banks can create money:

1. Federal reserve act of 1913. It gave FED exclusive rights in creating USD. If commercial banks are doing that, they are braking the law

2. There were many bank failure in financial crisis: If commercial banks could create money by just issuing a loan, then they would just simply loan to each other and create trillions and trillions of dollar and they will never need FED. The fact that they went bankrupt is because they don't have money and they can not create it by themselves, they must turn to FED to borrow money

However, since majority of the financial activities are settlements between different bank's database with very little movement of real money. From bank's point of view those virtual money are more important for daily operation. Real money (e.g. reserve) only become a problem when there is a liquidity crisis. Just like an exchange only have problem when customer withdraw their bitcoin. And today's banks limit the withdraw strictly to prevent a bank run

Thanks, but that is after the money creation. What I want to understand is the ownership change during the money creation by FED

I don't think commercial banks create money, they only register a loan in their database, similar to some exchanges do with your bitcoins on their platform, no real money/bitcoin is involved, only numbers in their database, and bank's ability to generate check book numbers are limited by the reserve requirement. They can not loan out money that they don't have (even they have the asset), but they can loan out the same money again and again to generate large balance numbers in their database


I have not thought about forex, I just mean the value of the money domestically

To be more precise, there are two different theories: One is Real Bills Doctrine, which states the money's value depends on the value of the asset that back them, so more money = more wealth (since every dollar is backed by assets of corresponding value). And the quantity theory of money: MV=PQ, where money's value is subject to change depends on the money supply, flow speed, and productivity of the country

Money is just a certificate of value, and there is a consensus for that value among a group of people

I guess those money were used to pay the license fees for each state so that they could start the operation in US with a big coverage

That is a good point. In fact Real Bills Doctrine explains much better why FED had printed 6x more money and there is still no big change in dollars value: These dollars are all backed by assets of similar value, thus people's trust in dollar's value has not changed

You two might have missed my questions before, I write them here again:

1. Who get the ownership of every newly created fiat money?

2. Is money's value decided by supply and demand?

Please share your thoughts

Thanks for pointing out my error. I had this question because I guess that you could just use 3V as ground and get 9V input for S5 to reach super high efficiency less than 0.3W/GH, is that possible with such high load on 3V rail?

Another way is to chain 3x12V output together to reach 36V, and then divided them into 4 chains of ASICs on S5, in this way you will also get 9V for the rig

Unfortunately I have no S5 at hand to test with

From my limited experience SP20 is really quiet and efficient at low settings

S5 have that 9V capability to reach amazing efficiency, but just not practical without a special PSU or some kind of cable work

I found out that many users have their DC temp more than 70c degree and still hashing happily, so I decided to raise the temp by partly close the window of the room. As a result, the maximum achievable hash rate increased at 0.61V

Now 485W on wall, 1051GH ------> 0.46W/GH   See how long it lasts

I don't think 1700GH is practical unless you have free electricity, you could just buy coins instead of exchange electricity, heat and noise for it  

Delta fans are very good for server usage, previous king of high CFM fan
http://www.xtremesystems.org/forums/showthread.php?261778-120mm-Fan-Testing-on-an-MCR120-Radiator-Round-6

Would it negatively affect the PSU since now it is under a strange load on different rails? Maybe for a fan it is ok, but will that introduce extra load for the rail of lower voltage?

Normally the current flows from 12V/5V/3V rail to the ground, but now the current flows from 12V back into 3V rail. If you connect some heavy load between 12V and 3V, and 12V is loaded by 20A, then 3V rail will have a negative current of 80A, is that safe? Usually PSU provide very little current for 3V rail, but that is for positive load

The resource has been occupied, that's the main problem now

Imagine on an island that have only 100 people, where all of them is extremely productive and occupied all of the island, what should their children do? They don't need to work, since their parents already can produce everything they need. They could only consume until there is nothing to consume, which might never happen due to their parents' improving productivity

Or another extreme, in a world that most of the worker has been replaced by robots, how could people get their income?