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1  Bitcoin / Press / [2014-03-25] USA Today - IRS: Bitcoin is not currency on: March 25, 2014, 10:31:12 PM
USA Today: http://www.usatoday.com/story/money/business/2014/03/25/irs-says-bitcoin-is-property/6873569/

IRS Guidance: http://www.usatoday.com/story/money/business/2014/03/25/irs-answers-on-bitcoin-tax-guidance/6874925/

 Smiley
2  Bitcoin / Press / [2014-01-20] OpenBSD rescued from unpowered oblivion by $20K bitcoin donation on: January 20, 2014, 09:49:58 PM
OpenBSD rescued from unpowered oblivion by $20K bitcoin donation
Electricity bill will be paid after intervention from the MPEx Bitcoin stock exchange.

http://arstechnica.com/information-technology/2014/01/openbsd-rescued-from-unpowered-oblivion-by-20k-bitcoin-donation/

Good on you, MPEx / Mircea   Smiley
3  Economy / Computer hardware / [WTS] 4 x BFL Single SC 60GH/s -- January 2013 order on: September 20, 2013, 02:33:41 PM
Since BFL seems to be moving along now, I figured it may be worth it to put up one of my company's batches of 4 x Single SCs.

These aren't in hand yet, so the transfer would take place from my Butterfly Labs account to the buyer's. Ordered and paid January 8th, 2013. The 4 Singles are all part of one order, so I'm not sure I can break it up.

I'm fine with escrow, and it can be done through BTCrow.com, or through any number of reputable people here on the forums.

Serious offers only please, and let's try to keep it civil.
4  Bitcoin / Press / 2013-06-28 ArsTechnica: Gold in them bits [BFL] on: June 28, 2013, 01:53:03 PM
ArsTechnica:
http://arstechnica.com/business/2013/06/gold-in-them-bits-inside-the-worlds-most-mysterious-bitcoin-mining-company/

Kinda surprised they interviewed Micon...but at least they gave a decently balanced view of BFL on the whole. Still, I like that the negative side was brought up publicly. Hopefully this puts more pressure on BFL to run their business a bit more professionally.

5  Economy / Service Discussion / Blockchain.info and SatoshiDice on: May 30, 2013, 02:01:36 PM
Has anyone had trouble with transaction confirmations over Blockchain.info to SatoshiDice?
I'm sure this has been brought up before, but I seem to be failing at searching for an answer this morning.

Last night while working on my Blockchain.info account I had (re)discovered the option to send bets to SD, so I figured I'd give it a go just for fun.
I sent BTC0.01 using the 10x option to the "Under 1" address, but only one of the transactions (the first one) is showing as having gone through. The other 9 transactions are still showing unconfirmed, even 12+ hours later. Network propagation started out fine (70%+), but then dropped to showing a propagation of just 2 nodes...but seems to jump every once and a while to 100+ nodes.

As a test this morning to see if it was just a fluke, I sent another 5x BTC0.01, but the results seem to be the same (except no transactions have gone through). I took a look at the logs for the SDice address and it shows the 5 transactions as being unconfirmed as well..but transactions from other addresses (both before and after mine) have confirmed just fine.

To top it off, now it seems my normal transactions (non-SD) are stuck in an 'unconfirmed' state  Undecided

Anybody seen this before?
6  Other / Off-topic / Challenge Accepted on: March 13, 2013, 01:41:55 AM
Reference: https://bitcointalk.org/index.php?topic=152406.msg1618019#msg1618019
7  Economy / Gambling discussion / Bitcoin Gambling Expansion? on: January 04, 2013, 11:00:51 PM
Hey guys, just came across this article on Ars Technica..
Bitcoin Based Gambling to Expand in 2013

I'm impartial to the expansion of gambling and the use of Bitcoin with it, but I do think this will ultimately lead to an increased USD/BTC price overall (obviously not immediately). Thoughts?
8  Bitcoin / Legal / Bitcoin and Money Laundering on: December 20, 2012, 04:29:24 PM
Stumbled across this article on CNNMoney today (though apparently it was featured on Fortune as well)

http://finance.fortune.cnn.com/2012/12/18/bitcoin-money-laundering/

What they're saying makes quite a bit of sense, and I think it's what many of us have said on here all along; in order to grow, we must stabilize.

Thoughts?
9  Other / Off-topic / Random Gaming Thread on: November 06, 2012, 09:56:52 PM
Sooo...

I play games from time to time. Recently Dishonored and Assassins Creed 3 come to mind. Any of you guys game out? Any specific games or consoles?

Oh, and I know Halo 4 just came out as well. I'm not much of a Halo kinda guy, but I've got a few of those Mountain Dew "Double XP" codes if anybody is into them...PM me and I'll send 'em your way.  Cheesy
10  Economy / Securities / [Havelock][KCIM] Korb Investments – Establishing my Investment Firm, part 1 on: October 21, 2012, 05:39:47 PM
Important Update

Noted below is a culmination of several weeks of thought. I've been trying to figure out what the best course of action is in such a turbulent, and slowly centralizing, mining environment. What I've put together represents my thoughts on where we stand and my concerns going forward, but more importantly I'd like to hear from the community.

Formatted PDF Version: https://drive.google.com/file/d/0BxnW49twNMNbZlVRN3Y1WGZXYTQ/edit?usp=sharing


Quote
Previous Thread: https://bitcointalk.org/index.php?topic=112232.0


Ladies and Gentlemen, recently I’ve been seeing that many funds are closing down and liquidating, while others switch to Litecoin mining. With the lack of a prominent exchange and concerns of legality, there’s been a stifling of Funds within our community. It’s a shame to see this all happening just as we began to experience the interesting businesses and creativity that resulted because of a well known Securities Exchange.

I, however, am not normally deterred by such circumstances. I’ve been determined to see my idea through. Instead of letting it fall by the wayside, I’ve reinvigorated my company, changing the corporate structure, writing formal documents for use within my Fund, and updating my old website.

As a result of my persistence, I’m proud to announce my new partnership with Havelock Investments [HavelockInvestments.com] for hosting the renovated, more formal, Korb and Co. Investments Mining Fund [KCIM]!

Most of the posts below this one will be similar to what we saw on my old thread, except now we have formal documents, a website, and greater detail!


NOTE: I figured I should make this clear in the introductory post…this is not an “invest for a perpetual GH/s amount” fund…this is not an “I pay a billion percent per week or month from my Ponzi” fund. This Fund is a “Put money in now, wait 6 months, receive more money back plus monthly interest”. In other words, a short term investment (mostly under 1 year).


!!IMPORTANT!!
After discussing my options with Lightbox (Site Manager of Havelock Investments) and a few of the members on this forum, I have decided to take some advice and limit my Fund a bit. Due to current market conditions and the unease amongst the investing community, I have cut my current market cap from 50,000 to 10,000 Notes, which will allow for the purchase of 2 Mini Rigs. If market conditions improve and the Fund does well over the next two months, I will increase the market cap with another offering.

I have updated all contracts and financials accordingly. Financially, instead of buying back 30% of Notes per month when the time comes, it is actually more feasible to purchase 25% at a time. This means a greater return for investors as they won’t have as many of their Notes purchased back at a time, thus more interest on outstanding principal.

As of 12:00pm (noon) today (October 26th, 2012), my Fund will officially be live! The initial offering has been established for November 1st, 2012 at 9am. This offering will continue until 4pm on December 31st, 2012 or until all Notes are purchased. During this time, all Notes can be purchased for 1.0 BTC each. Interest will begin to be paid to holders on the last day of November.

The sooner investments are made, the sooner I can submit my orders for the mining equipment!
11  Bitcoin / Legal / USA Only: Legality of Bitcoin Securities on: October 13, 2012, 12:11:43 AM
Ladies and Gentlemen, I present to you a paper I wrote on the Legality of Bitcoin Securities in the United States, based on United States Federal and Vermont State laws (where I live). I also consulted with two attorneys, one for Business Law, the other for Securities Law. I included the information they presented me in my paper, as well as research I did on my own.

The result? A long paper, which makes me wonder how many of you have the attention span or interest in reading it Grin
I kid, of course.

The Google Docs version, which is formatted a bit better, is located >>>>>here<<<<<.

This post will now be split into four sections, with this post being the first.



Legality of Bitcoin Securities
Written by: Andrew “Korbman” Korb
Last Updated: October 12, 2012


INDEX

1)  Preface
2)  Notes
3)  Section 1
  a) Bitcoins: Where They Stand with the Law
  b) The Securities and Exchange Commission and Bitcoin
  c) Exemptions
4)  Section 2
  a) Companies
b) Bitcoin Based Funds
  c) Types of Securities and Funds
5)  Section 3
  a) That “What If” Scenario
6)  Conclusion
7)  References
12  Bitcoin / Mining speculation / Stability after ASIC deployment? on: September 29, 2012, 10:45:52 PM
I've been thinking about this for a bit and now I'm wondering what the general public thinks...

After ASIC devices hit the market, we all agree that difficulty is going to increase. Though there isn't a general consensus as to how much, most people think between 5-10x the current difficulty. My thinking has been this: Once it gets to this new number, how often would it increase from there? Wouldn't the difficulty prove to be more stable while people run ASIC devices compared to GPUs or FPGAs?
13  Economy / Securities / [ASICMining.B] ASIC Investments - Establishing my Investment Firm, Part 1 on: September 23, 2012, 03:21:32 PM
We've moved to: https://bitcointalk.org/index.php?topic=119628.0

Hi all! I’ve been working on creating my new Fund, which was completed in August (though hasn’t been posted yet), but I figured it’s time for a brief presentation  Smiley

Also, as a result of the GLBSE fiasco, I'll be moving my fund to another exchange. At this time, I'm currently looking for suggestions on where to move it to.

In a one sentence summary, here’s the overarching idea: Establishment of my Investment Firm.

To reach this goal, I’ve split my idea into two parts.
Part 1) Creation of a Note fund to raise capital for ASIC Equipment.
Part 2) Creation of a Stock IPO to raise capital to establish my company in a small office to hold server equipment (for the pool) and possibly the mining equipment raised by the Notes. The parent company to the online moniker “ASIC Investments” is Korb and Co. Investments, LLC. This LLC is the ‘real world’ company that deals not only in bitcoins, but eventually normal investments as well (and for accounting and tax purposes).

Each requires a substantial amount of work, but the most important part here is the equipment, so I focused my work on the Notes to start. The equipment will allow for a revenue stream until my Stock release, as well as other investment opportunities outside of bitcoin, comes to fruition.

But first, a bit about me.
My name is Andrew Korb, and I currently live in South Burlington, Vermont.
I’m a 23 year old, 2011 college graduate with a Bachelor of Science in Business Administration (and soon to be working on my second degree in Computer Science, with a long term goal of Information Systems Management).

I currently work as a Systems Administrator for a small consulting company called Open Approach, Inc based in Bristol, Vermont, though I work out of Burlington (and we don’t have a website yet). We oversee the deployment and expansion of servers and networks for small businesses (under 500 employees), coupled with standard Help Desk support.

Financial Management and Investing has been a long time hobby of mine (over a decade now). During college I came up with my Investment Firm ‘Korb and Co. Investments’ with a friend of mine with the idea of someday having the capital to establish the company and make meaningful investments. Though the idea has fallen by the wayside for him, it still flourishes in me.

Creation of these funds is a way to help me realize these dreams (or at the very least, put me on the right path), so I’m 100% vested in the success of this venture. I want to do anything I can to make it a ‘Win-Win’ situation for everyone involved.
14  Other / Off-topic / SSDs anyone? on: August 28, 2012, 02:41:33 PM
Hey guys! So my bday is coming up in a few days, and I figured I'd finally splurge for a nice SSD (let's call it a budget of up to $250-275, for 240GB+). As it's my first SSD, I'm done tons of reading up on specs and reviews, but I'm still stuck trying to make a decision.

Here's what I'm currently looking at:
http://www.newegg.com/Product/Product.aspx?Item=N82E16820226226
http://www.newegg.com/Product/Product.aspx?Item=N82E16820227727
http://www.newegg.com/Product/Product.aspx?Item=N82E16820233312
http://www.newegg.com/Product/Product.aspx?Item=N82E16820233343

Thoughts?

Do you guys have any SSD suggestions? Anything you've bought and regretted it later?

NOTE: Since I know some SSDs play differently with various hardware, here's my current desktop setup:
ASRock 770 Extreme AM3 AMD 770 SATA 6Gb/s
RaidMax Hybrid 730W ATX12V
AMD Athlon II X4 635 2.9GHz Quad-Core
2x G.Skill Ripjaws Series 4GB (2 x 2GB) 240-Pin DDR3 1600
HIS Radeon HD 6870 1GB 256-bit GDDR5
500GB 7200RPM SATA 3.0Gb/s HDD

15  Economy / Securities / [GLBSE] [ASIC.Mining-B] ASIC Investments - Mining Equipment Bond on: August 25, 2012, 04:36:15 PM
[Place holder for thread]
DETAILS COMING SOON!  Smiley

EDIT: Ticker should be [ASICMining.B]. And everything is on hold since GLBSE is being overhauled Sad
16  Bitcoin / Mining speculation / Bitcoin and the ASIC Conundrum on: August 21, 2012, 04:10:50 PM
NEW EDIT: Updated my paper to reflect data gathered on January 10th, 2013. You can read my new January Analysis here. The "TL;DR" version is that I increased my minimum from 217TH/s to 260TH/s, with a 12 month cap between 400-500TH/s.


OLD EDIT: Updated my paper to reflect all the new information that's come to light within the past 2 months. As a result, you can read my new October Analysis here. The "TL;DR" version is that I increased my minimum from 147TH/s to 217TH/s, with a 12 month cap between 350-400TH/s.


Over the past day or so, I've been digging into ASIC and what it might mean for Bitcoin and the community. Presented below is a small essay I wrote that sort of sums up my ideas...it was helpful to put words on paper to get a visual aspect on the situation.

Let me know what you guys think, what you'd like to add or change, and anything else. Discuss it! I'm happy to see counterpoints!




As many people know, Butterfly Labs Inc. has been producing custom field-programmable gate arrays (FPGA) specifically designed for the mining of Bitcoins.

The time is coming, however, when they are to be replaced by application-specific integrated circuits (ASIC), which is largely considered to be not only the next iteration in mining technology, but also the final frontier in hashing power before going Quantum.

At first glance, the idea is astounding; eye-opening, to say the least. Mining first began on the CPU, barely breaking into 1 Megahash (1 million hashes) per second (MH/s). Then came the introduction of the GPU and the surprising power that it holds, making Gigahashes per second (GH/s) a reality instead of a dream. And in recent months we’ve seen the push into FPGAs, thrusting us from 1-2GH/s into ranges 5 or more times that.

And we seem surprised that the next transition is to the upper echelons of GH/s and even the breakthrough to Terahashes per second (TH/s). That’s one TRILLION SHA-256 hashes per second. For a year, it seemed only large mining pools had the capability to break this barrier. Now we’re presented with the news that we can own this power on our own.

But is this too much power? How will the Bitcoin network react to such a drastic increase in speed? How will users react? What about the Exchanges and secondary markets?

It’s extremely hard to answer these questions, and as a result all we can do is speculate. Looking toward the past won’t be much of an indicator given the incredible volatility. And we all know looking to the future is nothing more than a best guess.

With a little digging, however, we can unearth some of these best guesses and see where it leads us.


Mining Pools and Their Top Hashers:
At the time of writing, the network hash rate sits at about 20 TH/s (varying by ±2TH/s every so often) and difficulty is 2190866 (set to increase 10.3% to 2416087 soon).

How are we managing to pull off 20TH/s? The top 5 mining pools account for approximately 60% of all hashing power. These pools are:
DeepBit at around 3.7TH/s
EclipseMC -- 2.2TH/s
50BTC -- 2.1TH/s
BTCGuild -- 2.1TH/s
Slush -- 1.5TH/s

NOTE: These rankings change all the time as workers come and go, stop and start. This information was obtained from: http://bitcoincharts.com/bitcoin/

I went through each of these pools trying to get an idea of who contributed the most. I wanted to see if I could figure out (or at least make an educational guess) what percent of miners were really behind the network hash rates we keep seeing fluctuate. To meet the ‘top tier’ requirements in my mind, the miner must be going at a minimum of 4GH/s (though I settle for 3.5GH/s).

DeepBit
There are roughly 7,200 (±500) workers associated with the various teams at DeepBit. 5,800 of these workers were situated in the top 45 teams (out of 750 or so), with the top team having over 1,200 workers alone.
When tallied up, these 45 teams (6% of the total) contributed 1.6TH/s out of the total 3.7TH/s (43%). In each team, roughly the top 3% controlled 70% (±5%) of all hashing power for that team.
TL;DR: 5,800 workers in the top tier of the pool, and 174 of them control 1.12TH/s of power (30% of total pool hash rate).

EclipseMC
Around 1,500 workers seemed to stay constant while I did my research. Out of these workers, the top 40 hashers made up 858GH/s. A nice 39% of the total pool’s rate of 2.2TH/s, yet only 2.6% of all 1,500 workers.

50BTC
A bit more difficult to determine total workers, but my calculations put it around 2,700 (±200). The top 20 (!!) hold 829GH/s of power, compared to the total pool rate of 2.1TH/s. In this case, we’re looking at 0.7% of workers contributing 40% of the pool’s power.

BTCGuild
This pool was nearly impossible to find statistics for. Given their total hash rate of 2.1TH/s, I’m giving my best guess that they have around 2000-2500 workers, so I’ll say 2250 in this case (though please correct me if anybody has a more accurate number). Their top 50 miners (2.2% of total) still manage to contribute 709GH/s, or 34% of total power.

Slush
Lastly we find ourselves with the immensely variable BitcoinCZ Mining (also known as Slush), which I’ve seen go around 1.2 to 1.7TH/s throughout today. For easier calculations, we’re going to assume 1.5TH/s is relatively accurate.
Although they have a reported 7,700 workers, they don’t have any solid information on top contributing workers or such statistical data.
However, we can average the other 4 pools “top tier” percentages, which comes out to 39%. Meaning, the top 3% of miners (230 here) contribute 585GH/s (or 39% of the total 1.5TH/s).


When condensed, we find that the top 5 mining pools contribute 11.6TH/s (though let’s round to 12TH/s) out of the total network rate of 20TH/s. Out of this 12TH/s, the top 3% of miners work to an astounding rate of 4.5TH/s, nearly 38% of all power.

DON’T FORGET -- These numbers are purely educational guesses based off of data I gathered over the course of 12 hours (or so) on August 20th, 2012. This WILL change over time...probably will be obsolete by next week Tongue


The Network
The thinking goes, if you can get an idea for the top miners, you can get an idea of who will be controlling the network when ASIC mining hits full throttle.

As I noted before, I only touched on the top 5 pools, which was roughly 60% of the total network. So let’s work out some math:
Added together, the top pools are supporting approximately 21,350 workers. At 60%, this would mean the total network is working with around 35,500 workers (I suppose ±2000 at this point).

With the averages above, we’re looking at the top 3% of miners to see how many actually contribute in any substantial manner. At 3%...
DeepBit contributes 216 miners
EclipseMC -- 40
50BTC -- 80
BTCGuild -- 70
Slush -- 230
...for a nice total of 636 ‘top tier’ workers. Added up, these 636 contribute a solid 23% of all network hashes.

If you look toward the network as a whole, the top 3% comes out to about 1065 (out of the total 35500). The theory is...if you’ve invested this much time, effort, and money into achieving the status of “97th percentile”, then the chances are that making the switch to ASIC devices won’t require much thought.


Speculation and My Incoherent Ramblings
Welcome to the final section of my research, where even educational guesses can’t predict the mercuriality of Bitcoin and the future of the network.

Yet I still feel compelled to try because the biggest question is still on my mind; Will Bitcoin still be profitable?
Yes! I mean, no. Maybe? Hopefully?

Let’s hash it out and see where we end up. Let’s assume my previous math was correct, my numbers are solid, and the percentage of top miners was accurate.

When the transition to ASIC devices is fully underway, I entirely expect to see a substantial drop in casual mining (workers going at around 300MH/s and under), which essentially accounts for about 60% of total workers (no math here, just pulled that number out of my ass to suit my idea of “best guess”).
If the top 3% (1,065 workers) are equipped with substantial GPU and FPGA setups, I can only presume they’re going to be the ones purchasing BFL SC Singles and “Mini-Rigs”. This leaves 34,435 “casual miners” with standard GPUs.

But not all 1,065 workers will be making the BIG purchase to get a Rig. My thoughts for that reside within the Top 5% of this tier, or about 54 workers. So here’s how it looks to me so far:
Normal   34,435
Singles   1,011
Rigs          54


When the transition is made and underway, invested users will stay by purchasing BFL SC ‘Jalapeno’ devices (for the most part, GPU mining is now obsolete). Upon losing 60% of normal workers because they can’t compete with high GH/s and TH/s, we end up looking like:
Normal   13,774
Singles   1,011
Rigs          54


This would mean a vast increase in hashing power and difficulty.
Jalapenos   13,774   3.5GH/s   48,209GH/s   
Singles       1,011    40GH/s    40,440GH/s   
Rigs           54       1000GH/s  54,000GH/s
                                         142.65TH/s Tot.


That’s right, 142.65TH/s. A 7-fold increase in hashing power, accompanied by an equal increase in difficulty to approximately 15,336,055.

And to top it off, we see the reward split to 25BTC per block coming up.

1. Buy Rigs, 2. Huh, 3. Profit
Each BFL SC “Mini-Rig” goes for a flabbergasting $30,274 ($29,899 + $348 Shipping).
With the new difficulty and reward split, the Bitcoin Mining Calculator shows an income of about 1,000 bitcoins per month. And I like to assume that Bitcoins are worth something around $5 (since that was when it was stable for the longest, though I’m willing to entertain the idea that the price will double to $10 during the reward split).

If the Rig pulls down 1,500 watts, you’re looking at a usage of around 1,080KwH. In my area, at $0.147 per KwH this would be more or less $160 a month.

So $5,000 - $160 = $4,840 per month profit. Also known as a 6.25 month payback period, which is an extraordinary time (in a good way, I was expecting longer when I did my calculations).

Feasible? Seems that way. Practical? Not too shabby if you’ve got the money. Profitable? Eventually.

But if anything...nothing will change. The top miners will stay in their upper percentile as the majority of us fall to the wayside or buy up singles and Jalapenos to make up for our now lacking GPUs. It completes the cycle from MH/s to GH/s and moves us further into the world of Bitcoins. There will be turbulence to begin with of course, but when the market and network stabilize I imagine nothing will appear different.

Then again, I suppose that’s just wishful thinking Smiley



Here's a link to my original paper:
https://docs.google.com/document/d/1L8hKZinune9Cc7tWY9Pmx8J17BOxor7QNQAV03xROOc/edit
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