There is an alternate way to address volatility in bitcoins. That is to use it as a promissory note.
For example, I may work at the local food co-op. I will sell bitcoins to our customers at a certain price, such as $750 / BTC. I know which of the bitcoins I sold to them, and they will of course segregate those bitcoins into an "account" with the name "food co-op"
When they come in to purchase, if they pay from an address that had our address as the input, that coin is credited at $750 / BTC in the purchase.
Everywhere else, this bitcoin is just an ordinary bitcoin. If the price starts to rise, our customer can spend the bitcoins where-ever they wish. If the price falls, they are protected from the volatility. We are also protected, since we sold them at that price in the first place.
This is exactly what my company does, except for an initial fee. Thus people are protected against negative volatility, we make a modest profit (we also offer many other things, most of which are also modestly profitable), and the world is happy. What is your good/service area? Have you modified a client to help you with tracking this? All purpose financial services, kind of like a bank, but like a bank was back when their purpose was to safeguard assets from loss. In 2014 I include "manipulation and unnatural devaluation" in "loss". It's been thus far somewhat of a private deal, in that it was exclusively word of mouth. I keep meaning to take it further but I have been too busy with my research. (That may be changing; I just committed to a project not two hours ago, so the recruiting effort begins shortly.) Anyway, yeah, actual insured asset vault storage like art and gold bullion, as well as an automated "fiat-decoupled" bitcoin exchange (not like Coinbase, but not real-time either; all funds are in cold storage), secured loans, etc. On the promissory-like functionality side, we promise your funds will never be worth less than the 5-day EMA. There are a couple other "account" types but that's the most popular. My modified client is really a protocol-compliant custom client that runs on a board comprised of mostly an old Stratix III. One here, and a duplicate cloaked in Japan with a special sync method and a dead man switch to release funds if I croak or something. At one point last year I'd developed a "hardware exchange" after that NY startup (I think) started talking about developing a "millisecond" exchange. Figured I'd beat them by writing everything in hardware on FPGAs, and then also be basically impervious to normal hacking, but around 85% I got dragged into the real world for a while. Did you have some insight / ideas? What is your specialty, btw? The new project I mentioned is going to require some software skills, and I'm mainly a HW guy. I can't do all this realistically on an FPGA. I'm a semi-retired analytical chemistry professor. This means I have worked a bit in electronics design, repair, troubleshooting, and day-to-day usage. I have also worked a long time with some "early adopter" software, primarily the N. Wirth languages. I have programmed embedded systems where everything in the system was software that I wrote. I have looked at some of N. Wirth's hardware languages for programming FPGAs, but I never have bought a board and done anything hands on with it. At this point, I'm trying to figure out what it will mean for bitcoin to be adopted as a currency, and produce some software or systems that will be needed then. I am especially trying to figure out what this would mean in the small town of Morris, MN, where there are 1,800 full time college students in a town of about 5,000 population. I think if I can define a healthy bitcoin ecosystem here, the lessons learned will be very helpful to bitcoin everywhere. I especially want to know how to make income from bitcoin separate from mining, or trading on price volatility. |
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I don't get it. You buy bitcoin from the market let's say at $950, then you sell at your customer for $1000.
Your customer can spend their bitcoin freely or spend them to your "store" for a $1000 value.
Let's say the price goes down to $500, customers see an advantage now at spending $1000 in your "store" and you get the BTC back.
Now, are you protected from the volatility?
My customers are protected from the volatility. I am not. From my point of view, it is the same as if I held them in a cold wallet. I also don't pre-load any fees. Here's the timeline: 0. I borrow $2500 from somewhere. 1. I pay $970 for inventory, lights, and labor (grocery stores operate on about 3% margin) 2. I pay $1000 for 1 BTC. status: <$2,500>; $530 cash on hand, operations stocked, 1 BTC held (exchange value $950) 3. They pay me $1,000 for 1 BTC. 4. Bitcoin drops to $500 5. They buy a whole winter's supply of granola, yogurt, and roasted almonds, their retail bill comes to $1,000 6. They pay me in the store BTC. status: <$2,500 in debt>, $1,530 on hand, no inventory, 1 BTC (exchange value $500) 7. I pay $970 for inventory, lights, and labor status: <$2,500 in debt> $560 cash on hand, operations stocked, 1 BTC held (exchange value $500) |
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The correct unit is J/GH you may also say W/(GH/s)
But the pedantry doesn't extend to correcting $/GH? Or do your miners only perform a fixed number of hash operations during their lives?  I think that $/GH or BTC/GH are well formed units. |
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There is an alternate way to address volatility in bitcoins. That is to use it as a promissory note.
For example, I may work at the local food co-op. I will sell bitcoins to our customers at a certain price, such as $750 / BTC. I know which of the bitcoins I sold to them, and they will of course segregate those bitcoins into an "account" with the name "food co-op"
When they come in to purchase, if they pay from an address that had our address as the input, that coin is credited at $750 / BTC in the purchase.
Everywhere else, this bitcoin is just an ordinary bitcoin. If the price starts to rise, our customer can spend the bitcoins where-ever they wish. If the price falls, they are protected from the volatility. We are also protected, since we sold them at that price in the first place.
This is exactly what my company does, except for an initial fee. Thus people are protected against negative volatility, we make a modest profit (we also offer many other things, most of which are also modestly profitable), and the world is happy. What is your good/service area? Have you modified a client to help you with tracking this? |
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You guys have successfully convinced me to find some more in depth economics books and classes locally. Thanks. I think education can never be too good when dealing with money.
Fixed that for you. -- Prof Mac |
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There is an alternate way to address volatility in bitcoins. That is to use it as a promissory note.
For example, I may work at the local food co-op. I will sell bitcoins to our customers at a certain price, such as $750 / BTC. I know which of the bitcoins I sold to them, and they will of course segregate those bitcoins into an "account" with the name "food co-op"
When they come in to purchase, if they pay from an address that had our address as the input, that coin is credited at $750 / BTC in the purchase.
Everywhere else, this bitcoin is just an ordinary bitcoin. If the price starts to rise, our customer can spend the bitcoins where-ever they wish. If the price falls, they are protected from the volatility. We are also protected, since we sold them at that price in the first place.
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It's not just the size that counts.
The numbers you should care about are delivery time, BTC/GH, and W/GH. Technical details are interesting, but if they don't improve those three numbers they're not really relevant.
The correct unit is J/GH you may also say W/(GH/s) |
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Hi All, This is a screen grab from my 4 module. Is the miner count correct at 24?  Thanks! No, for 4 modules, it should be 32. Set it in the configuration tab. |
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So does the error indicate only 1 section of 10 chips is not working?
Where do I see that? From your log file. [match_work_count29] => 0 Looks like 1 sub unit not working. I assume the other 31 sub units show some hash count other that zero. I get that, but does it mean that count29 is on the 4th module or does it mean it a random sub, meaning I will have to pull out all the modules!? It is the 5th one from the left on module 4, the one with the smudged stuff on it. |
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It looks like block 36604 pays directory to the miners in the generated coins block. Who is this pool?
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At the moment, their BTE mining pool shows as "dead"
stratum+tcp://stratum.coinex.pw:9022
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I had two bitcoin ads. One auction and one with fixed price. One of them (auction) was closed saying it violates their policy. They said it should be classified ad format in informational products. Which means you cant get access to feedback or reputation. I can also see there are lots of bitcoin ads there. So what really is e-bay policy with bitcoin. I find it confusing.
EDIT: And now they suspended my account. I had a couple of bitcoin sales and positive feedback from them all. It is better to stay away from e-bay if you want to sell bitcoins.
I suspect that eBay and PayPal have a lot of similarity in their policies. I received this email from PayPal on March 24, 2013: Thank you for contacting PayPal.
You are correct. Per our current Acceptable Use Policy for Money Service Businesses, PayPal may not be used to operate an e-currency exchange, bureau de change or check cashing business including the sale of Bitcoins.
If you have any further questions, please feel free to contact us again.
Sincerely,
Nan
PayPal Compliance Department
PayPal, an eBay Company
Please do not reply to this email address as it is not monitored and we will not receive your response. You can get in touch with us by clicking "Contact Us" at the bottom of any PayPal page.
Copyright © 1999-2013 PayPal. All rights reserved.
Original Message Follows: ------------------------
Greetings,
The Bitcoin community has a persistent idea that PayPal prohibits the purchase or sale of bitcoins with PayPal. &####;I cannot find any PayPal web pages that back up that claim.
&####;
I would like to set up a web site&####;that accepts bitcoin and sends payments to verified PayPal accounts. &####;Is this an acceptable use of PayPal?
&####; |
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Fasmax,
That's about what I was guessing. ProfMac, now that I have an additional person saying it's a 3.3v LDO I feel fine replacing the part and seeing if it gets me down the road. Heck, the worst thing that could happen is .... nothing. I'll take pics of my adventure when the part arrives from mouser so you can see my AWESOME solder work (Meh ....)
H@shKrker
Thanks. I was about to eat, then shovel snow, then get the multimeter from the car, then see if we have the same controller board. This way is easier. |
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As a side note I *THINK* I've found the part I seek. Even so ProfMac if you could get me a multi-meter reading on that output voltage for that part It'd be GREAT. I *BELIEVE* it's mouser.com part# 701-SPX3940T-L-3-3 and I *THINK* the part is a 1.5A Low Dropout Positive Regulators, 3-pin package TO-263. Time to lean into this pitch and order said part. YIPPIEE  H@shKraker I do have a multi-meter. I have the batch #2 Avalon. I don't know what hardware version for the controller board, I'll have to shut down a miner and open it up to see. Can you post a photo of your board, and indicate which part, or especially where a test point is that you'd like me to measure? |
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Hey .... I got me another thought. Since the part on the controller board that is getting HELLA hot is what appears to be a voltage regulator how about I just do a little reflow work and replace that part for my buddy? As I see it that controller board isn't working now and the very worst thing that can happen is it still won't work. What you folks think?
H@shKraker
Please try it and report back. We like to learn without risk. If you document it with lots of photographs, you may establish for yourself an Avalon reflow work business. |
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Would it work for you to open a gmail account, just for this one issue? |
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I'll bid 1 BTC for any hashing complete Avalon unit.
You may wish to place a 1 BTC payment to the auction address. My misunderstanding. I'll be holding off for now then I have several offers out there and don't want to tie anything up. I get it though you want to keep out the noise and keep it pure. No harm no foul. I don't mind the discussion. I actually encourage people to discuss how much they might bid, or how much they might require to sell. |
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