If they are buying Antminers (I thought you said S2, it was my mistake) they are unprofitable at your 7 cents a watt in 5 months.  Then they need to buy something else to support the rest of the five year contract that people paid for.

The Antminer prices just fell anyway, and they'd arrive there in a week maybe.  So these estimates aren't even realistic.  PBMining is dropping their prices dynamically based on the current Bitcoin price and allowing people to earn based on time. 

The margins for the Antminer to profit are extremely small.  Do they just have free Internet, AC and a staff to handle the hosting of all these miners with no defective units to stay under these tight margins?

Think about it.  They have a website that basically says that if you purchase from them, you ALWAYS PROFIT more Bitcoin than you spent.  Forget FIAT for a moment.  They are saying that if you spend 1 Bitcoin you're ALWAYS going to get back 1.1 Bitcoin.  (Example estimate, not exact by any means.)

You think that is possible?  Nobody else is able to do it.  Nobody.  Just these guys.  Who have no identities, no proof of miners, who laundry their coins, and flat out don't exist anywhere except for an EBay account which is basically useless.

All they have to do is point to their mining address, or take a picture of their hardware.  Everyone else does.  They don't. 

Black Arrow ships this week.  Today possibly.  They also shipped off a bunch of chips to third parties.

BFL is in their two-weeks mode but I think it's a safe bet they ship soon.  They are just down to software optimization now.  

Activemining's chips were sent to Rockminer and they are shipping now.

And then, you know, KNC before the sun burns out...  

So I wouldn't think a plateau.  I think it's about to spike.  

It's not even close to that cheap for an S1.  Bitmain has them for $2.59 per GH as of right now.  PBMining is mining at $2.20 per GH.  You're saying that PBMining worked out some kind of deal that got them a price lower than that, that factored in the 1100watts per unit power charge and somehow gives them a profit that pays for the management of this operation for a bunch of full time workers? 

Use your head.  It's a scam.

If you believe it'll rise above that share value, buy the shares.

Really?  Where?

What he's saying is that the amount of Bitcoin earned is not based on anything but time.  You get instant payout by the second, simply by refreshing your browser.

And that there isn't cheap-enough hardware available, custom or otherwise, to allow them to provide the rates they are giving. 

Everything points to this being a scam. 

Greed blinds people. 

From what I gather David, you and Bobsag3 are not the guys in China working on the miners.  I know Bobsag3 is a reseller and is currently out there (Or on his way) to find out information.  I think David that you're in Europe?  At least you were.  I'm sure you can get more info than we can, but given that you make maybe one post a day, I dunno how useful that has been to quell the arguing and confusion that has spread since the last power announcement.  Hopefully Bobsag3 can make heads or tails of it.

If however, Bobsag3 is captured, I've heard that Bobsag4 will be activated and sent in.  The David models have a higher degree of failure based on their current activation number.

All of this arguing is just mental masturbation.  Until Black Arrow gives us final specs, shipping date, and final compensation plan, there is nothing new.

I think people try to post in here thinking BA is reading the threads and are going to say, "Yeah, you know, this guy makes a good point we should probably double the hash rate, give everyone free shipping and PSU's, give the single X1 owners a free extra unit, improve the compensation to the batch 2 users so they don't feel left out, and provide free chocolates in the box for their significant others who are neglected."  

When in reality, they are busy working and trying to get people the miners and aren't reading this thread.  They want to get us these things so they can sell MORE of these things and start making money.  Hopefully soon Bobsag or whatever will be there and will tell us the state-of-affairs and how things are going, or he'll be asking us for ransom money so he can be set free.  Either way, it's better to wait for those things than to just sit and argue don't you think?

I suggest doing something fun or nice.  Considering taking your Mom out for Mother's Day or go visit her grave/tomb/urn/sea burial site/last known whereabouts and enjoy the people around you while you can.  

Nothing is going to change until it changes.

I think BA is providing more information at these last stages than any other outfit I've read has done.  Instead of informing people of each step, they are getting ridiculous negative feedback about all of it.  No wonder ASIC manufacturers stay silent, otherwise they gotta listen to people crying like babies over matters that aren't settled yet.

Nothing they've said about power is final and everyone is taking it as gospel.  They've said what the problems are and what they are doing about it.  Yet people continue to freak out that it's a done deal and their miner is being delayed and then shipping at 150 watts per chip plus a broken LCD screen and no refined compensation.

They've said...

1.  The power problem is part of a bad inductor and they are getting a new one next week.

2.  The LCD screen will be updated later and will not hold up shipping at all

3.  Compensation / Price matching per gh will happen at shipping time.

4.  They have the engineers looking into the power issues further to continue to refine it.

So shipping is delayed until early next week.  By then we'll have real power figures and information on compensation.

I know it screws up everyone's weekend plans that their miner wasn't going to arrive yet from China and a few of you may go bankrupt in the meantime, but everyone else should just pool together the last of your food that you have left and try to weather the storm on these last few days before the bank comes to take the house.

They aren't mining anything in their data center because they don't have a complete board yet, it won't be done until tomorrow for testing.  If you read the update, the manufacturer of the circuit board hadn't started it on time. 

I dunno why you don't just ask for a refund if you're so upset that you don't have your miner yet.

Thanks VCore that explains a lot.

How many chips are on the board?  Would it halve the inefficiency with each chip added?  We're looking at 150watts at the wall for one chip currently, I'm thinking that won't translate to 300watts with two chips on the board.  What do you think?

The website should also take Bitcoin as payment.  I know Ken will take Bitcoin if someone emails him, but it should be straight forward.  Bank Transfer is the real problem.  That and it probably should come with the cooler.  Or have another SKU that includes the cooler with it.  It's easier for people to buy Antminers that are plug and play than it is jumping through the hoops to buy the arguably cheaper boards VMC is selling.

Well since the LCD's aren't in until tomorrow (maybe) we can assume shipping isn't happening today.  I'm a bit confused, if the power supplies showed up than what is the inductor for?  Is it just for the test board or are all the PSU's bad?  And if so, then I imagine shipping will be delayed until all the inductors are replaced.  So +/-  another week to ship.  That's my guess.

They generally update late in the day (my day), so sometime in the next six to eight hours.

Complaining probably won't matter anyway since they are likely buried in other things and not looking at these message threads. 

Go get yourself a delicious drink, make a nice lunch, have a nap, read a good book, take a walk outside, find your inner zen.  Then return and we'll see what we see.

Just suggestions...  At this point it's all guessing until they tell us what is going on.  So don't get upset.  Catch up on a show or spend time with a loved one. 

Everyone has a right to feel the way they feel about the varying circumstances. 

That said, everyone should wait until BA puts out their Thursday update on what the situation is before jumping into a bitch-fest. 

The folks at BA are probably tired and running at top speed to make their deadline, which is today, and they are likely frustrated just as much as everyone here. 

Let's give them a chance to evaluate their situation and inform us of the options. 

Right now, everyone is basically guessing about what is going on. 

Be patient a little longer, and just wait for the update. 

On the BA forums they mention there is an 8% power leak on the current PSU's and sort-of off-handedly said that if you don't like it your order will be delayed until the replacement PSU's are in.  I imagine this is because they are tired and frustrated.  A more official update will hopefully come soon that explains our options and what the final testing results are.

Ha!  I guess so. 

He was saying there that they are NOT investigating him for selling unregistered securities. 

Would be good to know Ken what ARE they investigating you for?  Why do we have to guess?  It would enable us to know whether this is going to drag on for five years or not.

I'd call Ken, if I knew his number and he would agree to answer my questions.  I'm not going to try and hunt the guy down and leave messages and such if he's not interested in having the phone call. 

I trust grnbrg even if he IS anti vowel.  That said, he's not representing Lab Rat.  He's just giving his opinion on the situation.  Considering the guy isn't known to fly off the handle and tends to stay cool even when being attacked, I prefer his perspective on things over a lot of other people's.

That said, I think this whole situation is a big mess and we're all at the mercy of whatever Lab Rat wants to do.