Its looking awesome. 7000BTC IPO and 1.39 BTC waiting to be paid out in dividends.

Ive been looking in to collocation options. The cheapest electricity anywhere is in Kuwait, but doing business there as a foreigner seems almost impossible.

Iceland seems like a compelling alternative. They have way too much green energy there. Thats not unimportant to me, if bitcoin ever goes mainstream, the amounts of electricity it will use becomes quite scary. At least in iceland your miner wouldnt be burning coal or oil, but tap in to an almost an infinite supply of geothermal energy thats currently unused.  Connectivity in iceland isnt the best, but more than good enough (3 independent fiber connections to UK, Denmark and Greenland) for bitcoin.

Nice side effect of their geothermal energy is that electricity is relatively cheap.  I asked a quote, for a full rack in a level 3+ datacenter, using 14 kW (thats their limit) it costs ~1500 euro per month. It could house and power 17 HF Sierra's (@800W) so thats 88 euro per month per sierra, all in.  Thats cheaper than many EU and US miners would pay for electricity alone and I havent even tried talking the price down or checking elsewhere. I did check if liquid cooling was a concern, and its not.

IM considering renting a few racks there for bitcoin miners.

Hard to believe. Only two days after we broke 2PH,  we break 2.5PH
https://blockchain.info/charts/hash-rate

Next diff 268M +42%

And because the increase in hashrate came so sudden and late, difficulty is lagging well behind actual hashrate. Even if somehow the network remains flat at 2.5PH for the next 2 weeks, the next retargeting end at the end of the month would be ~350M, that much is already deployed. So 450-500M seems much more likely before the first HF machine is turned on.

ANd still not a single picture of their miners let alone some ID of "sam".

Are you guys seriously believing they just brought 1000 of their "invisible-chips-that-no-one-designed-or-taped-out" online in a few minutes?

Or are you just excited that a 7000 BTC IPO might have bought 150 BTC worth of KnC gear?

He's buying time, and he is very good at it. Just check the bitdaytrade thread to see how good he is. More than a year has passed and some people still believe he will pay back:
https://bitcointalk.org/index.php?topic=93445.0

That still values the namecoin chain above 20000 BTC. Id say thats a lot for something thats pretty useless.

minerpart seems confused about the meaning of "=/="
Not everyone finished elementary school math I guess.



Minerpart, it means "does not equal"

BFL customers will still be mining. They will ignore electricity costs and their children and grandchildren will still be mining 50 years from now, still hoping to break even on their ancestor's investment. Or at least on the $1400 "express shipping" fee of their mini rig.

Your bank is indeed doing you a service. Buying bitcoins through ebanking is the 'prefect crime' for a hacker to make a profit from PCs under his control. Untraceable, irreversible.  In all likelyhood the vast majority of such purchases or attempts to purchase are fraudulent, and your bank is acting in the best interest of its customers by not allowing such transactions to go through without checking.

isnt it about time you started asking "where is our money" and "where is the person that ran off with our money" ?

The block reward will halve, but just try to imagine transaction fees if bitcoin were as common as fiat is today.
Either way, even if we ignore tx fees and reward halving will cut down the number I came up with by a factor 8x in 2025, thats still a completely preposterous amount of electricity.

He said "orders of magnitude more" than bitcoin. I was gentle and went with 1 order of magnitude. Here is the math I pulled out of my ass to calculate power consumption of a bitcoin network that replaced the dollar:
https://bitcointalk.org/index.php?topic=297317.msg3338903#msg3338903

So guarding ATMs, banks and gold reserves consumes 10x more electricity than the US produces? Did you even read what you quoted?

Those odds are, lets put it mildly; small.
To stay in the spirit of the unthinkable, lets make some nonsensical assumptions:
- their hardware costs absolutely nothing, zero, nada; the mask set was donated, wafers and packaging are free, PCBs and PSU's are free and they didnt have to spend a dime to develop any of it (in truth they didnt spend much more than 10 BTC so that part is close to true).
- they pay 100% of their mining revenue as dividends
- their chip meets the specified specs of 2.7W/GH and even does so at the wall (using a 130nm process somehow achieving ~4x Avalon's 110nm efficiency and >2x BFL's 65nm efficiency and at higher clockspeeds to boot, no small feat!).
- their electricity cost is only $0.08/KWh, they dont need cooling despite 3-400KW power consumption and the hosting in the datacenter is otherwise free

Under those circumstances they would have to start mining in the next 2 weeks with >100 TH to stand any chance of just breaking even on their IPO price.

Thats true for the individual miner, but the network doesnt care. Inefficient miners that are no longer operationally profitable will shut down, the resulting decrease in difficulty will enable the more efficient miners to add more hashrate profitably to the network. The net result is a higher hashrate, but the same energy consumption, assuming everyone pays the same price per KwH.

The only way to make energy consumption lower is if somehow the hardware would become much more expensive compared to the electricity they consume. That is still the case today, a KnC or HF machine costs way more in purchase than it will likely ever cost in electricity. But thats only for now, in the long run those asic prices will drop dramatically and as the network increasingly stabilizes, miners can invest longer term up to the point where writing off the hardware over 10 years (or whatever) is completely insignificant compared to their electricity bill, and the latter will determine profitability, and therefore equal mining revenue.

Stating that as fact doesnt make for one.

If only the US dollar would be replaced by bitcoin, how much would 1 bitcoin be worth?
Lets assume very conservatively there are only 10 trillion dollar. Divided by 21 million bitcoin gives ~$500K per btc.

So hypothetically, how much energy would be consumed by the bitcoin network once it would have stabilized? As much as it would earn in mining (see https://bitcointalk.org/index.php?topic=297317.msg3338966#msg3338966)

Per year we would mine ~1.3M BTC or $657,000,000,000 worth of bitcoins.
Assume $0.15/KWH that works to  4,380,000,000,000 KWh or 4,380 TWh

Thats 5x more than the US produces in nuclear power. and almost exactly equals the total electricity production in the US (4,300 TWh). Funny coincidence.

Yeah, lets replace the dollar with bitcoin to save the environment

You do have to contrast it to the number of people it serves. Bitcoin is used by like 0.005% of the population and even then perhaps only 1% of the time compared to fiat.  Comparing that with gold or fiat is disingenuous. If bitcoin ever achieves anything close to the popularity of fiat or gold, its value will skyrocket and as a result, so will electricity consumption for mining as the two are linearly correlated.

Out of curiosity, what makes you think the growth will start slowing down next difficulty retargeting?
It will start slowing down at some point, no one doubts that, but so far, its been speeding up (http://bitcoin.sipa.be/growth.png) and all the major roll outs have yet to happen.

Ignoring the actual title and subject of this thread, I think the first post is an interesting one. First of all, OP asks if its a scam, and meanwhile he has put a KnC group buy in his signature. Thats sort of ironic .

More to the point is this observation: " why would they even bother silling (sic)  them, they would make more money mining,"

Most KnC customers probably now understand that statement was  false, even though Jupiter launched at almost double that hashrate. Those that dont understand it yet, perhaps will understand it in 2 days
(here's a hint: http://bitcoin.sipa.be/speed-lin-10k.png)
Or in 2 weeks.

Its the same fallacy that caused the vast majority of BFL customers to lose untold fortunes, and that will cause the same to customers from hashfast, bitmine, activeminer, cointerra, BFL monarch, Black Arrow, BTCgarden, Avalon, Bitburner, cloudhashing and whatever else is on its way. People just dont understand the magnitude of what is being preordered and how it will impact them if those products actually get delivered (or just as bad: dont get delivered).

Doesnt matter anymore. If they get listed on a different exchange, bagholders can continue their game of hot potato.  That game works just as well when there is absolutely nothing and no one backing the share, other than just some rumors, periodic appearance of the scammers behind it and  lots of wishful thinking. Any bagholder that actually believed in this "company" wouldnt really care if it was listed, dividends would be all they need.