I am selling 60GHps Butterfly Labs Singles. I have a large amount in stock. These units are in hand and hashing. Units will be shipped USPS priority mail and will include the power supply that is currently powering that unit, but the power supply may not be an official BFL custom power supply. No international shipping.

Payment by bitcoin only. Escrow is fine but you will pay the fee. I am a well respected and trusted trader in this community.

Sold 22 of 22.

I have one more, but I'm going to mine with it.

[do not]

Hi,


  I have for sale four 60GHps Butterfly Labs Single SCs. I was just now emailed by BFL that these items are being shipped. These units do not have power supplies. These units are opened and I have been mining with them. They are all consistently above 59.5 GHps.

  I am asking for 98BTC each. You should have the payment to me or in escrow before 3pm or I may ship the next day.

  Price includes priority shipping. If you want express, you will have to pay extra. If you want me to go to FedEx or UPS and use your account, that's fine. I've done that before and it's not a problem.

  I am a highly trusted member and previous reseller of BFL products. You can see a previous sale thread here. Yochdog has vouched for me below.

Thanks,
Fjordbit

I would like warn potential pre-order sellers to be aware of my interactions with user avantopia. This user claims to be an agent of Texas Atlantic Capital named Richard Kowalski acting attempting to acquire ASIC technology on behalf of Denton Jones. He uses a Google Voice phone number of 213-290-5887. I also received a call from a person claiming to be Denton Jones from 214-927-6604.

I will start by saying that I am not certain this is a scam, but there are aspects of this that appear strange. This post should serve to document any other experiences that people may have with this buyer.

Basically, the buyer wanted to transact by bank wire. I agreed to this. The buyer wanted to verify my preorders by logging into my account. This I refused, but attempted to get BFL to confirm to him by email. After quite a bit of back and forth that resulted in a public posting by myself on their forum, someone noted that there is a read only guest login on their site. When I sent the details of this to them to verify the order, there was little response from them and I called Richard and he verified by phone that he had gotten the email and saw it checked out and that they would have a meeting on it later. The next morning, I requested an update, to which he responded that they didn't have enough information to move forward and they were retracting their bid.

It's not really clear what is going on here. It could be a complicated phishing attempt, or it could just be a floundering buyer. What I will say is be very aware of this buyer. I opened a separate account to accept the bank wire (took me minutes and was free), and I would suggest the same for you.

In addition, this has personally set me back by two weeks in my desire to sell my preorders, and has occupied a small amount of my personal time. I am also concerned because the BFL system does give the delivery address when a person uses to verify, so there is some additional physical risk there.

I have 5 Butterfly lab preorders made January 4th with order # 158xx. These can be bought individually or as a pair. I accept bitcoin and paypal, but with paypal payments you will need to sign and notarize a contract regarding this sale. For all sales, I will send a contract detailing my responsibilities.

As expected, this is for the preorder spot. Once I receive the unit(s) from Butterfly labs from this order, I will remail them within one mail day* using USPS it-fits-it-ships packaging. If you want other shipping, you can arrange it with me, FedEx and UPS are pretty convenient for me. I will send to you whatever is in the box, which means if it's 65 GHps, then good for you and if it's less then this is an issue to take to Butterfly labs. I am not offering a warantee on these units, but BFL has given them a lifetime warantee and I will not operate or modify the units in any way except as to repackage them into the shipping container for remailing.

I am a highly trusted member and previous reseller of BFL products. You can see a previous sale thread here.

* if it becomes apparent to me that some of the units will arrive while I am out of town and cannot remail the units within 24 hours I will send in advance one of my earlier orders for you to use until I get back home. At that time, you can choose to keep that unit, or we can mail swap the units. This will be done in a way so that you will have at least the same amount of days mining, but some of them a few days earlier than expected, and I would pay all shipping for this.

Is there an easy place to get a list of the 1000 vendors that BitPay does processing for?

I want to sell some bitcoins for a $500 visa or mastercard gift card (not greendot nor other reloadable debit). I have good rep in the marketplace, but if you want to use escrow (btcrow) that's fine but you pay the escrow fee.

You can get these by going here
https://walletbit.giftcards.com/shopping/order.html?product_id=37985
and ordering it to my address

Coins will be sent once the card arrives. Shipping should be set to USPS Delivery Confirmation 2-5 Days.

I want to talk a little bit about what gives Bitcoin it's exchange rate. The simple answer is the meeting of the supply/demand curve, but it is important to look beyond this and figure out what exactly drives the demand for purchasing Bitcoins from a fiat currency, and where the supply of coins comes from as well.

First, I'd like to simplify in order to exaggerate some of the effects of different actors in the Bitcoin economy. Imagine a Bitcoin economy that has only one buyer, one seller, and one miner. The buyer wants something, the sellers produces something with some fixed costs (say $30) and sells it for another price (say $50), and the miner keeps the network running. The buyer regularly buys from the seller by putting his fiat in an exchange and the seller always sells his Bitcoin for fiat at the same exchange. Let's call each buy-sell a "cycle". The miner also uses his rewards to buy from the seller.

We can see here that if the miner is making more than $20 per cycle then the seller will go bankrupt, because only $20 of value is being injected into the economy every cycle. In fact, even at $20, the seller would close up shop and sell elsewhere because they would be making no profit. So this is the first complexity: how much of the sellers profit are they willing to turn over to the miners. Because of credit card fees, we know that sellers can be willing to turn over 3% gross, which can be up to 10% net to a processing company. This tolerance for sharing profit is part of where the value comes from. So let's say the seller will tolerate 3% of $50. This means that the miner should be earning only $1.50 per cycle.

Bringing it back to reality, there are many buyers and many sellers, and different people have different tolerances on their transactions, and people aren't even very aware of what is happening so it smooths out over time. But the overall thing that you need to look at is how much is being traded per block (hard to know but can be deduced from the blockchain), and how much people are willing to give up to the miners (impossible to know. but we can guess at 3% gross).

Finally, you have to factor in how much is being net saved (also impossible to know, but blockchain analysis might give an order of magnitude). If a miner makes 50 btc on a block but saves 25 of them, then this, over time, will factor into the price going up. Similarly, if someone decides to take 100 btc out of savings and buy something, the price will get a pushed down. Putting it all together, let

E = exchange rate of bitcoin
m = average amount in dollars being exchanged in a block
t = average tolerance of sellers to give to processing fees (percentage)
R = average block reward
S = average net saving per block

At equilibrium, we would expect this to be:
E = t * m / (R - S)

So for example, if t = .03, m = $5625/block, R = 50 btx/block, S = 25 btc/block, then we get E= $6.75/btc.

This highlights that the most important thing when considering price is the amount of money being truly exchanged in an average block.

I would like to borrow 40 BTC for 2 weeks. At the end of the 2 weeks, I will repay 45 BTC. I may repay early, in which case I will still pay 45 BTC. I have good trading rep in the marketplace thread.

40 Bitcoin borrowed from [name withheld upon request].

Am sold out of the BitForce Singles I had for sale. These were delivered to me last week. I actually ordered 30, and I've unboxed all of them, want to keep 17, and have sold 13.
 
I am selling each of these for $799 in bitcoin. It is an additional $20 in shipping (US only), and I can fit 3 in a box. They will be sent priority mail. This will get them to you in 3-4 business days as opposed to 2 months or more waiting for Butterfly to fullfill your order. These took 75 days to fulfill and in that time at the current difficulty, one of these units will produce 36.351 bitcoins (about $243).

In addition, Butterfly has announced that you will be able to use these units for a $599 trade in for their upcoming ASIC units. Mine now at the lower difficulty rates and then trade in when the next generation is available:
http://news.yahoo.com/butterfly-labs-announces-next-generation-asic-lineup-054626776.html
http://www.butterflylabs.com/bitforce-sc-release-notes/

Thanks,
Fjordbit

All of these are tested running the 832 flash with no throttling. I will wrap them back up into the bubble wrap that came with them and send them priority mail with tracking.

Images at http://imgur.com/a/Qw3Xs

Edit: I decided to keep 17 instead of 10. Sorry to change this (I did say originally that I might want to keep more), but this will work out the best for me.

Am sold out of the BitForce Singles I had for sale. These were delivered to me last week. I actually ordered 30, and I've unboxed all of them, want to keep 17, and have sold 13.
 
I am selling each of these for $799 in bitcoin. It is an additional $20 in shipping (US only), and I can fit 3 in a box. They will be sent priority mail. This will get them to you in 3-4 business days as opposed to 2 months or more waiting for Butterfly to fullfill your order. These took 75 days to fulfill and in that time at the current difficulty, one of these units will produce 36.351 bitcoins (about $243).

In addition, Butterfly has announced that you will be able to use these units for a $599 trade in for their upcoming ASIC units. Mine now at the lower difficulty rates and then trade in when the next generation is available:
http://news.yahoo.com/butterfly-labs-announces-next-generation-asic-lineup-054626776.html
http://www.butterflylabs.com/bitforce-sc-release-notes/

Thanks,
Fjordbit

All of these are tested running the 832 flash with no throttling. I will wrap them back up into the bubble wrap that came with them and send them priority mail with tracking.

Images at http://imgur.com/a/Qw3Xs

Edit: I decided to keep 17 instead of 10. Sorry to change this (I did say originally that I might want to keep more), but this will work out the best for me.

By my Killawatt, I'm running at 530 Watts for 800 MHps. Is this reasonable, or is this out of wack?

[If the rate of difficulty change goes above this amount and all other things stay equal]

(Crossposted from newbies, since I could only post there before)

Like many here, I'm trying to get a handle around the bitcoin economy, and where it is going. One of the important factors driving price is the difficulty level. This is an indication of how long it will take a computer or pool to find a block of bitcoins. The difficulty level is set every 2016 blocks to set the rate of finding this amount to be 2 weeks. Thus if there is more computing power coming online, the difficulty rate will increase.

This gives another comparison point: the cost of entry. Many people are seeing that bitcoin mining is profitable and are purchasing their own rigs. In fact, with a modest investment, someone can suddenly get a passive income of a few hundred dollars/month. However, it's actually not the case that you get dollars/month and instead you get btc/month.

Add into this that you can, through an exchange like Mt. Gox, instead purchase btc, there is an interesting equilibrium that can be found, showing the relationship between bitcoin trade price, MH/s price, and difficulty level.

I'm going to pick specific values, because it illustrates this much better. Let's assume that
Cost of a bitcoin = 17 USD
Cost of 1000 MH/s = 900 USD

Therefore 1000 MH/s is about 53 btc

At the current difficulty, 1000 MH/s gives about 1.3759203893 btc. So now what we try to figure out is at what difficulty change rate will this pay back 53btc? This isn't easy (I don't know the closed form for it), but it can be found by finding how much one would earn in this difficulty period, and then the next period, and so on and so forth. One key aspect is that you have to adjust the size of the period to the assumed difficulty change. Thus if you assume the difficulty change is 25%, then you have to adjust the period to be 11.2 days. When putting this into a spreadsheet and extending out several periods, it is easy to find the bounds of this.

In this case, we end up with an average change of around 36.2%. At that rate of change, purchasing the 1000 MH/s system will yield about 53 bitcoins over its lifetime.

Now this does simplify a lot out. For example, it doesn't take into consideration the cost of electricity, space, infrastructure, etc. For another, it assumes a perfectly barrier-less entry into bitmining which is close to true, but there are still capital requirements and risk management that can act as barriers.

However, 36.2% represents almost an upper bound when assessing the difficulty change (given the exchange rate stays the same).

So what can we draw from this?

If the rate of difficulty change goes above this amount and all other things stay equal, then it will stop making sense to purchase systems and instead it makes more sense to buy bitcoins. This will drive up the price of bitcoins, lowering the btc per MH/s cost for a mining rig. It is possible the difficulty could fall if people come offline, but this is doubtful as it will still make sense to run an existing system.

If the rate of difficulty change goes below this point and all other things stay equal, then it will stop making sense to buy bitcoins and instead it makes more sense to buy a system. With more people coming online, this will push up the difficulty level.

If the exchange rate of usd to btc goes up and all other things stay equal, then the btc cost of MH/s goes down, and it makes more sense to mine than buy. With more people coming online, this will push up the difficulty level.

If the exchange rate of usd to btc goes down and all other things stay equal, then the btc cost of MH/s goes down, and it makes more sense to buy than mine. This will slow the difficulty rate.

If the dollar cost of a mining rig goes down, it makes more sense to mine than buy. This could have the effect of lowering the btc exchange rate or increasing difficulty or both.


This is just the basic analysis for now. There are some more interesting things that come out of this equilibrium relationship that I'll post on if there's any interest.

[If the rate of difficulty change goes above this amount and all other things stay equal]

Like many here, I'm trying to get a handle around the bitcoin economy, and where it is going. One of the important factors driving price is the difficulty level. This is an indication of how long it will take a computer or pool to find a block of bitcoins. The difficulty level is set every 2016 blocks to set the rate of finding this amount to be 2 weeks. Thus if there is more computing power coming online, the difficulty rate will increase.

This gives another comparison point: the cost of entry. Many people are seeing that bitcoin mining is profitable and are purchasing their own rigs. In fact, with a modest investment, someone can suddenly get a passive income of a few hundred dollars/month. However, it's actually not the case that you get dollars/month and instead you get btc/month.

Add into this that you can, through an exchange like Mt. Gox, instead purchase btc, there is an interesting equilibrium that can be found, showing the relationship between bitcoin trade price, MH/s price, and difficulty level.

I'm going to pick specific values, because it illustrates this much better. Let's assume that
Cost of a bitcoin = 17 USD
Cost of 1000 MH/s = 900 USD

Therefore 1000 MH/s is about 53 btc

At the current difficulty, 1000 MH/s gives about 1.3759203893 btc. So now what we try to figure out is at what difficulty change rate will this pay back 53btc? This isn't easy (I don't know the closed form for it), but it can be found by finding how much one would earn in this difficulty period, and then the next period, and so on and so forth. One key aspect is that you have to adjust the size of the period to the assumed difficulty change. Thus if you assume the difficulty change is 25%, then you have to adjust the period to be 11.2 days. When putting this into a spreadsheet and extending out several periods, it is easy to find the bounds of this.

In this case, we end up with an average change of around 36.2%. At that rate of change, purchasing the 1000 MH/s system will yield about 53 bitcoins over its lifetime.

Now this does simplify a lot out. For example, it doesn't take into consideration the cost of electricity, space, infrastructure, etc. For another, it assumes a perfectly barrier-less entry into bitmining which is close to true, but there are still capital requirements and risk management that can act as barriers.

However, 36.2% represents almost an upper bound when assessing the difficulty change (given the exchange rate stays the same).

So what can we draw from this?

If the rate of difficulty change goes above this amount and all other things stay equal, then it will stop making sense to purchase systems and instead it makes more sense to buy bitcoins. This will drive up the price of bitcoins, lowering the btc per MH/s cost for a mining rig. It is possible the difficulty could fall if people come offline, but this is doubtful as it will still make sense to run an existing system.

If the rate of difficulty change goes below this point and all other things stay equal, then it will stop making sense to buy bitcoins and instead it makes more sense to buy a system. With more people coming online, this will push up the difficulty level.

If the exchange rate of usd to btc goes up and all other things stay equal, then the btc cost of MH/s goes down, and it makes more sense to mine than buy. With more people coming online, this will push up the difficulty level.

If the exchange rate of usd to btc goes down and all other things stay equal, then the btc cost of MH/s goes down, and it makes more sense to buy than mine. This will slow the difficulty rate.

If the dollar cost of a mining rig goes down, it makes more sense to mine than buy. This could have the effect of lowering the btc exchange rate or increasing difficulty or both.


This is just the basic analysis for now. There are some more interesting things that come out of this equilibrium relationship that I'll post on if there's any interest.