Joel already repeated the main argument against this, it doesnt really help Pirate to have a large fund of BTC, he needs to convert fiat in to BTC anyway.
The other thing Id like to add, is that his fund is what, almost 6 months old now? I havent heard anyone being told they need to take their coins out of the fund because Pirate has no more need for it. Has he not made a dime of profit all that time while paying out ridiculously high interest rates? I think now is a good time to start worrying if you werent already.
As I said in my post, Pirate can be handling both sides of the exchange. Some people need coins and have dollars, others might have coins and need dollars. Assuming reasonable balance, he could easily be skimming off both sides of the exchange, paying us some of the bitcoin proceeds, and keeping the USD proceeds for himself. If he wanted to start covering all the coins himself, he'd probably need to move some some of the (allegedly large) USD profits into bitcoin, which would require a large bank movement, paperwork, and other stuff he probably doesn't want to do right now. One of the risks to consider, under this model, is the chance that his local sellers/buyers find each other, and stop paying Pirate the huge premium for effectively letting them trade with each other. I doubt that he is handling both sides, because i dont believe that there are so much interested in btc in Texas, and I think that they would find them each other long time a go) May be they got the system all over the world, then it would be possible, but in short term i think that it is one way) |
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How about that, some one is willing to send money to payback, he is OK to over pay for doing it, he buys this amount from pirate with rate about(7 or even 10).
This is reasonable when you want to send BIG sum(over 300k$), because when you will buy it on gox the prise will go up(see gox chart) to unknown plus gox has limits and likes to ask questions,and then you dont know how to handle it on the other side. And then pirate just buys the mined BTC for this money, slowly, over a month, taking in to account BTC inflation this shouldnt be a problem. It can work all over the world, all what u need is BTC enough to fulfill the request, because now you can buy e-money for cash everywhere and the rates are flat .
The price will go up no matter what, because Pirate needs to refund the lenders and the miners with BTC and he got paid in fiat. He has no alternative to buying at an exchange. Lending money from investors can delay that, but it doesnt solve the problem, in the long run, it exacerbates it. GPUmax is the same, assuming Pirate is the main buyer, again he can not possibly mine as many BTC as he needs to pay the miners (let alone his customers), and he does pay them in BTC, not fiat, so he again must convert fiat to btc at some point. He needs to convert considerably more than the initial deal was to pay back both his lenders and miners. So it doesnt help, it makes it worse. Stop, he needs to refund 30% of deposit a month (i think that BTC inflation rate is about 35%/year or 3%/month?), everything else can be done when some one(I assume that the person who receive the BTCs will want to spend them) will be selling his btc. Have no Idea about GPUMax, because hashing is only applicable if you want to brute-force some ones RSA key or smlr. That`s the only thing that comes to my mind. |
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Oh, I certainly think it's very risky business (did I ever claim otherwise?), not so much because pirate is dishonest (although there's obviously a chance of that, too; I've just spoken to him a lot more than most have so feel more comfortable there) but because of the nature of what he appears to be doing. So what is the nature of what he appears to be doing? Selling bitcoins? Also, in general, internet discussions proceed more fruitfully if you don't dismiss people who disagree with you with belittling things like "Next."
Okay, I apologize. Its just that Ive read a gazillion posters dismissing the possibility of Pirate running a ponzi by arguing things that make no sense. Ive yet to read a credible explanation for either his trust, or gpumax, let alone one that explains both, other than it being a elaborate scam. Perhaps Ill be proven wrong one day, but until I hear a better explanation, Occam's Razor applies. How about that, some one is willing to send money to payback, he is OK to over pay for doing it, he buys this amount from pirate with rate about(7 or even 10). This is reasonable when you want to send BIG sum(over 300k$), because when you will buy it on gox the prise will go up(see gox chart) to unknown plus gox has limits and likes to ask questions,and then you dont know how to handle it on the other side. And then pirate just buys the mined BTC for this money, slowly, over a month, taking in to account BTC inflation this shouldnt be a problem. It can work all over the world, all what u need is BTC enough to fulfill the request, because now you can buy e-money for cash everywhere and the rates are flat . |
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Waiting for 2 level authorization and personal withdrawal).
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I just think that to draw some real money you need to have a reasonable percentage. For bitcoin where you can loose half of your investments becouse of a rate drop there is not a big deal to pay 30% a month, just to keep money with you, because who would invest 20k $ if with in a month you can end up with 5? I do think that percentages from 8-30 a month are reasonable, for bitcoins(it all depends on btc\$ rates). Just think about a fact that some people in real life are ok to pay 1% a day for money they take, then why should rates be lover here when you dont give any identity, only your history matters?
The main idea of any ponzi should be easiness of investing...
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I would like to toss my hat in the ring while we are all speculating wildly on what Pirate does with the funds. I think Pirate funds a private army of Somalian pirates who capture oil tankers. Pirate's pirates then hold the crews hostage while holding back oil shipments. Part of the money made off the ransom of the oil tanker crews is used to pay the pirates for their services with bonuses given when oil tankers are held for extended periods of time.
Pirate's real business is running the US petroleum refining industry. Because his pirates are holding back shipments of oil, supply is held artificially low and demand has maintained or increased. Pirate has a side venture that is run through GPUMAX that, instead of hashing bitcoin hashes, he has found a way to run oil exploration simulations in a distributed manner through bitcoin clients to search for undiscovered oil deposits in Texas. He then uses the remaining funds from his pirates' ransoms to purchase the mineral rights to the oil deposits that he has discovered. Pirate then extracts this oil, refines it at his refineries and, due to having a cheap source of oil, he is able to undercut his competitors for massive profits. Pirate then returns part of the profits to depositors of First Pirate Savings and Trust so as to keep anyone from asking questions.
In the end, Pirate is a high seas pirate and an oil baron/pirate. Don't ask too many questions or his new venture in "protection" services might add you to the list.
I doubt hashing is suitable for finding oil, but liked your version  |
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Just tell me, why would you trust him more than Pirate?)
If everything will be fine, he loose nothing, but whats stops him from running away if you give him huge sum of money?)
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Deposit for juggalodarkclow.
Deposit Address: 1YwtLjdnURKC5cbaHdx2g5f9gHToLgZzV
Pay back address: 168R4wEn3ECzsC9UiPMnthSi5wWFiDgQGE
Continuous Deposit for one week 2.5%/w.
Funds received 4.05.12 (5BTC)
Payments on 30.06.12 (+7 days) (0.125BTC)
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Updated header to make it all clear, where are your funds held, and what are the risks.
So I`m backing 10% of your deposits in case something happens with BS&T.
If there would be more deposited amount and with time I will increase this percentage and total BTC mining power backing it.
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Deposit for Krakonos. Deposit Address: 1Ch78ap9bbSLemF4oVHGeLbQc3s4YLAJv6 Pay back address: 16hXrcxYwKihjEdyhhKabHMPTL58unTUXz One time Deposit for one week 2.5%/w. Funds received 1.05.12 (5BTC) Payback on 9.05.12 (5.125BTC) PayedContinuous Deposit for one month 12%/m. Funds received 9.05.12 (10BTC) 9.06.12Payments on 8.08.12 (+30 days) (1.2BTC) |
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Deposit for conspirosphere.tk. Deposit Address: 1MTPVgCaDyvsGv7tgumokfQAA79mFWLTCv Pay back address: 1Ld2nYnJUn1qYSCLyrLUaUh1tq3xP4YtNo Continuous Deposit for one month 12%/m. Funds received 28.04.12 (10BTC) 29.05.12 Deposit withdrawal 10+1.2BTC |
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For starters, there would have to be energy costs of <USD$0.08/kWh and periodic coin investment at a return-generating depository.
Well,I was talking about a fact that person will take all energy cost. So the main idea right now is that there is all most no point in building GPU mining system with current hardware.So are investors ready to invest in system in order to maintain it. Or we could get even hashing power down in near future. Because FPGA\ASIC are not widespread, there is all most no warranty for them + they win only in power efficiently and scalability, which suits for big mining farms, but this doesnt seems to be rights for the system. So ordinary people could get interesting in building farms, paying for cpu,psu,so on, if they would get GPU free after some time. And they will maintain network in good condition,using p2p pool. Are there some one interested in it. Or this is pointless? |
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I've just finished writing some optimized assembly code for the ARM11. Here are the results for scrypt on my iPhone-3G, running at 412 MHz:
C implementation* (cpuminer 2.2): 103 h/s
New hand-optimized assembly: 160 h/s
Of course a 55% speedup is not bad at all, but still if we assume that hash rate scales linearly with CPU clock speed, we can only expect the Raspberry Pi to do about 270 h/s.
I still have to do some testing to make sure that the code behaves well on more recent ARM processors like the Cortex-A8, but I'm pretty sure this new code will get included in the next release of cpuminer, which will probably be out in a week or two.
* The C implementation was compiled with gcc 4.2.1; I know that's not exactly recent, but it's all I can get on this device. It is possible that more recent versions of gcc produce faster code.
This might not be the case for rbp, but are you planing to use neon instruction set? |
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Payed one interest and one deposit with interest.
Update: Added some my own warranty, which will be covered using hashing power,so from now on, In case of something 10% will be covered by me.
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I`m not talking about my self right now, i`m talking about the idea.
Will people with btc be interested in investing people having technical knowledge to run their farm with probably no interest in future.
I`m not talking about trustworthiness right now.
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Are lenders interested in investing btc(up to 500btc) for making small private farms(up to 3ghs)??
So person provide configuration and costs, and if it suits to you you give him the money. He mines for you(paying back to your wallet) for some period(a year probably).
All accompanying costs are taken by the miner.
So this would increase network stability, invite some new people in the system, and will make it more decentralized.
Or is it just better to buy some mining shares in GLBSE?
This is not about profit, but about making system more reliable and secure.
So now we are talking probably about 7970(600mhs) or 7990(1200mhs),wich would cost about 100-130btc or 200-250btc for a single. And given you 0.35\0.70 a day. Which would give you 130\260 btc a year in current rates(which would probably get worser). Period could be increased, but i`m not sure this would help a lot.
What are your thoughts about it?
I`m not talking about my self right now, i`m talking about the idea.
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Are you interested in investing funds with low interest for building private mining farms(3ghs avg)?
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I sent the BTC to that address (1GdWQhRxPfPyrhw8xdYvDu94cDiDGmb757), txID aecd845b2de1837bb0c3dacb28adad91412c01ac728bec3308d1d807aca9421a
Just verifying for all to see.
Ugh god why! What`s wrong? |
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Another scenario. You have 1M btc. You want to be a millonare. You cant sell them,because its price will be less than a dollar.So you get Aprox 1mln$. You lend money from people at very good percent, you pay them for it. You get price growth to very high value(20$), you spend about 250k btc for it. Now BTC you can sell your BTC and you get 7.5mln $. Profit. $) That`s all are average values, but i think that you got the point  . |
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