This is exponential win.

Nothing like this has ever occurred in distributed computing in history, and before any complaining about mining ROI, think about what that means. Bitcoin's network is becoming a processing monster, and with dedicated ASIC core at it's heart is ready for a bigger world and a ton of transaction traffic. In the end, the network is quickly becoming larger, more distributed, and secure.

Really having a highly secure and robust network in place before Bitcoin takes its next giant leap forward is a really good thing. Not to equate GOX to mining directly, but we saw what it looks like when the infrastructure fails under the weight of a rapid push. Having a solid distributed net with multi-million dollar mining businesses involved should inspire further confidence in Bitcoin as a real currency.

What is more interesting however, is that despite soul-crushing ROI figures with the current crop of ASIC hardware, hashrate is still skyrocketing   Many mine operators aren't in it for the money, The Erupter USB's arn't selling because it will make anyone rich. I wonder if the simple need for economic change is driving it forward more than the profit incentive. Bitcoin mining would not be a multi-million dollar business right now (as a hardware maker or hardware user) without some level of belief in Bitcoin and what it means to the world.

So, being a miner at the moment sucks, but the end result is extremely good for Bitcoin.

Paper wallet is the best way to go, preferably in some durable format if you intend to store them long term.


Your coins are just as vulnerable on your PC or a USB stick as they are an online wallet. One drive crash or Bitcoin sniffing virus and you are SOL. An offline paper wallet (preferably stored in a real firesafe or off site) is the safest way to store Bitcoins. Best practice is to keep most of your stash offline until needed, and keeping some online as a hot fund for purchases. Keeping all of your coin hot is inviting problems. They can't steal from the blockchain itself, but they certainly can use security holes to wipe out wallet accounts.

https://bitcoinpaperwallet.com/

http://piper.pw/

http://bitcoinity.org/markets

the chikun rises 

I would say primarily it is because:

A. ASICMiner is not the only game in town anymore. A literal boat load of chips is starting to drop from a variety of new producers, with actual competition ASICMiner must respond to stay competitive. There are now many more IPOs to invest into and speculate on.

B. Skyrocketing hashrate/difficulty is likely turning off potential miners to the market as a whole, a lower price for the gear combats this with a better ROI potential (though not much of one)

Here is my take with your design goals in mind -







Stop threadjacking

It is tough at the moment as BTC market price has not risen quick enough to offset the dramatic rise in network hashpower.

Though the ASIC market is quickly being saturated by competition, which will help drive hardware prices down at least. Hopefully Bitcoin will rally again soon, and all will be well. And at some point ASICs will reach a market saturation point which will be marked by the power curve flattening out a bit, though it doesn't seem it will for some time yet as all of this new ASIC hardware ships out over the next few months.

Mining is in a state of extreme flux at the moment and in the middle of a technical revolution to 4th gen hardware, which means it will just have to be messy and uncertain for now. Though long term, I suspect the playing field will level itself out in time.

It is possible to ROI in a decent time frame with enough starting capital, but those looking to mine professionally need to understand once they take the plunge they are in for the long haul now.

I think Jefferson would approve of Bitcoin wholeheartedly, as it represents exactly his views and his fight against private banks having anything to do with currency creation. Bitcoin is at its core the People's Money.


To go deeper into this colossal boondoggle

https://www.youtube.com/watch?v=1gKX9TWRyfs


I watch the fiat world very carefully as what it does directly affects Bitcoin, all I can say is buckle up and prepare, we are about to watch the world as we know it end.

It depends on your personal goals with mining, really.

If you just want to be a part of it but not a serious mining operation, units like the USB Erupters are perfect for this. However for the current price, and difficulty, you would likely not see the device pay for itself anytime soon, but you would still generate a sliver of Bitcoin with it and help the overall network. And since you just have to plug it into an available USB slot and start mining, setup and maintenance is almost non existent.  

If you want to get into it with a more serious eye, it takes a lot of planning, projecting, and money to buy enough gear to see ROI quickly at this point.


However either way, Bitcoin's market price has simply not risen enough to offset the rush of ASICs coming online. Though at some point I think we will see a fresh Bitcoin rally, in which seeing ROI with even a USB Erupter could be realistic again. Either that or ASICs reach saturation, and the hashpower/difficulty increase would plateau a bit, though it doesn't appear this will be the case anytime soon.


I would say if you want to start out with something simple, a USB ASIC would be a good choice for mining Bitcoin. You could also buy a few decent graphics cards and mine Litecoins also, which has a low barrier to entry as graphics cards are plentiful.

A good place to get ROI figures would be mining.thegenesisblock.com

244.83 for 144 Gh/s ? Where do I sign? 

I believe the meatworld economy is really the thing to watch in terms of BTC price. The rapid rise and fall seen in April was driven largely by a bank failure and subsequent "bail-in" by Cypriot banks, a fancy term that basically means the bank robbed itself to save its own skin by extracting funds from their own customer accounts. BTC's price shot up as Cyprus depositors fled to Bitcoin, the one place banks cannot touch. The sudden surge then got speculators and investors involved as well to ride the wave up, gaining Bitcoin a heap of exposure to the general public in the process.

I am waiting for the next one to fail, and we shall see what Bitcoin has in store for us next. Bitcoin isn't done yet, and as the fiat economy continues to bleed out I believe we shall see a big rally again pretty soon.

Inaba why don't you answer for your companies actions instead of deflecting legitimate questions. You are the ultimate sock puppet in your own actions, up to and including calling your customers idiots and being a defensive penile douche.

How does it feel to have Butterfly Labs be the laughing/hating stock of the entire mining industry? Since there are many more vendors to choose from up and coming, I hope you and your scammer CEO get your fill before your order books suddenly go empty.

Very interesting, I like that it has a mining aspect to it, will be watching the project for sure

Thanks! It's one of those things that we just wouldn't know until it was tried, but the journey continues 

Nothing is wrong with zipties and milk crates, aside looking like a fire waiting for a place to happen


I think given current market valuation it will be some time before there are Scrypt ASICs, but who knows. It is possible that Scrypt coins could go a different path than Bitcoin did entirely, as Litecoin would not get the benefits of ASIC the same way Bitcoin has. If FPGAs are unable to give ROI, it is anyone's guess where it goes from here as Litecoin and Bitcoin become fully divergent into their own established mining networks.


Much appreciated!

 I leave any releases of the code up to Zalfrin as I did not develop it, last I knew he was working on the blockmix.

Hopefully your implementation can be improved upon, though ultimately this is why the viability of FPGA for the future of Scrypt mining is being called into question, either way good work 



I am pretty sure our implementation was farther along than yours. Why you insist on crapping up this thread with your negatons is beyond me.

 I did everything I said I would, have taken no funding from anyone, have not lied or misled anyone, and at least tried to get something together that improves the Scrypt network. I fail to see what your issue with us has been exactly beyond trying to get attention for yourself.

__

Moving onward I have begun the hunt for funding the construction of a proper farm and supporting infrastructure. So far BlockBurner does have a few local investors that I believe can be expanded without too much effort.

I've been working up a proper action plan and crushing ROI figures, hopefully this in combination with showing the business is generating income between a growing asset fund and re-built GPU miner (parts are inbound to build a more optimal setup) will grease the wheels to more investors and funding sources. Starting off the primary directive will be based in Scrypt mining and moving into SHA in time.

I will do what I can with what I have to start this from the ground up, which unfortunately isn't much in reality. Though I think many my age know this struggle well in having way more ambition than working capital to see those aspirations come to life as victims of central banks and criminal run governments. Though BlockBurner has failed in its first effort I am not deterred in being a part of this new industry, as I have never felt more at home in it. This is not just a business to me, in a way it is really my protest against a banking system that has destroyed the lives of many, including my own. I don't care if I ever make a dime as long as I can say I helped bury a system of rampant corruption and exploitation using our digital steam shovels. Plus, bitcoin is simply too damn cool to not be a part of

I'm also taking local action with MBEX to be the Bitcoin social hub of my area. I am looking forward to conducting our first ever meeting to introduce my town to Bitcoin and begin running information campaigns in the very near future. The best place to start the revolution is in your backyard  The first initiative that makes sense is the establishment of the first Bitcoin ATM.

Though I won't ask for it, if anyone has been following BlockBurner and would be interested in being an investor to this new direction, please PM me. 

Unto the breach

Operatr

There are some correlations going on that might just be the start of a fresh rally.

http://www.google.com/trends/explore#geo&q=bitcoin&cmpt=q

Search trends for "bitcoin" and other related phrases have bounced off the floor, an indication of renewed interest potentially to find out more. Searches related to mining actually surprised me.

We're seeing trade volume increase again and Bitcoin is up a bit so far.


http://www.zerohedge.com/news/2013-08-20/18-signs-global-financial-markets-are-entering-vicious-circle

Coincidentally this is occurring at a time when I imagine faith in the fiat markets and paper currency in general are being erased quickly as things begin to finally slide completely out of control.


Bitcoin has also been in the news a lot more lately as governments start to respond to Bitcoin, either for better or worse so far.

These factors could very well drive the next wave up, just like they did in April. Only the next one might just be a mass exodus to Bitcoin while the USS Bernake sinks to the ocean floor.

Sonny is a convicted scammer, Josh Zerlan is an absolute douche, if you want to know why this company will go down in infamy in histories eye as the most hated company in the coin mining industry, look no further than these two clowns.

It was entirely self inflicted by a rash of lies, excuses, patronizing potential or actual customers, inconsistent policies, customer support desk from Hell, and other highly unbusinesslike and unprofessional behavior. They earned that F.

https://bitcointalk.org/index.php?topic=176262.0

I no longer update it but there are some resources available. I never had self-moderation on this, only updated the OP with new info.

The best one however is your brain: take a look at the company before diving right into a pre-order that is predicated by non-existent hardware and get scammed or roped into the next BFL.


Other than that, I am still not entirely what this is about?

Announcement

Today our embedded developer Cheshyr officially has resigned from BlockBurner due to personal reasons. I personally thank Cheshyr for his effort and support of the project since BlockBurner's formation and wish him the best in his own endeavors, as should we all.

Quite frankly some of this was due to a certain lack of development progress, and I myself had begun to question this.

As it appears, FPGA may not be an effective solution for Scrypt mining, as the proof from Alpha Technologies explains. This document did raise in us serious questions about viability as we approached our own proof. Though FPGA's can certainly hash in Scrypt, the question is more in cost and efficiency of the resulting hardware. Our early projections pointed toward needing a device with multiple FPGAs to hash at a reasonable rate, though the cost of this would destroy ROI with the current valuation of Scrypt coins like Litecoin. So, while it can be done, it is not seeming worthwhile to do at this point in time.

Scrypt is a very different animal compared to SHA, and at this juncture we may see Litecoin mining evolve on a unique path to Bitcoin moving to Gen 3 and Gen 4 devices, which overall is probably a good thing as it moves toward its own unique economy of specialized Scrypt hardware and becomes fully divergent to Bitcoin mining in no longer parts of the same mining networks.

As of this moment, this project is standing still while the remaining members decide if it is still worthwhile to pursue.

What does that mean for BlockBurner?

Though the project we began with is nearing death, this is not the end.

Disappointing as this announcement may be, I do not consider it a waste of effort by any degree. As one of the first to begin trying to create a Generation 3 scrypt mining device, we have still helped to guide the industry where it needs to go by possibly eliminating an unreasonable hardware option. In a business we are literally making up as we go along, this is to be expected as new technology and solutions are investigated and ultimately put into practice or scrapped as unworkable or "not good enough". Hopefully on that note, BlockBurner remains a part of crypto-currency history, and I am proud of our accomplishments despite not delivering the product we had hoped to.

Regardless of where it goes from here, I still thank our followers for your support so far, the response has been mind blowing.

Where it goes from here

As BlockBurner is fully established legally and socially as is, I intend to begin moving it another direction. The mining world is rife with opportunity.

I have been laying down the ground work and crunching the numbers to move primarily into mining itself

Initial motives being researched-

• Mining of Bitcoin and Litecoin, possibly others as seen fit
• Hosting of mining devices for third parties
• Release of BlockBurner bond IPOs for hardware funding and operational expenditures. This would possibly include IPOs for core mining as well as specialized private pools.
• Operating investment funds in the form of combined mining bonds (it is not unusual in the traditional business world for companies to take ownership or stocks of other companies). I hold personal mining bonds that will be invested into BlockBurner officially to get started. This fund has in 3 weeks returned about 10% of the initial investment so far, and not all of them are generating returns just yet as their farms come online pending hardware shipments between August-November.
• Resale of mining equipment as a distributor
• Creation of production GPU based Scrypt miners based on existing hardware (in other words, industrial GPU rigs utilizing proper server hardware, possibly smaller units with the same features and redundancy). Since the hardware is already out there, the barrier to entry would be low aside sheer cost for the initial hardware. Whatever is built for our own mining operation may also be sold as complete units (not doing the breadrack with GPUs ziptied to it thing, this is not an acceptable setup to me)
• Other ideas to be determined

For those who would whine about mining ROI these days, I believe diversification of services is the key to a successful mining business.


Overall I find myself more comfortable with this direction personally, as noted FPGA and hardware dev is not my area of expertise professionally. However, operating and constructing large computer infrastructure in a datacenter setting is something I have much experience with, along with business consulting and strategy when it comes to doing business on the Internet. To that, mining would be right at home with my own tech skill sets, aspiring to create a highly secure and redundant mining farm along with other offerings to diversify the core business. Much of this is simply a matter of connecting with funding sources that I am also actively engaged in. Currently BlockBurner would have 3 main backers locally including myself, and will be seeking additional local investors.

Additionally, I have established an organization in my home state called Montana Bitcoin Exchange, or MBEX, as a local driver to spur the Bitcoin economy locally which can only be good for BlockBurner at the local level as what is the first business of its kind and scope here as far as I am aware, and a launch platform for local investors to take part in the business and push local adoption of digital currencies overall.

So, BlockBurner will live on, but likely in a different form completely or at least working toward fleshing out other aspects of the business along with hardware development.


Again thank you all for your continued support as the gears are shifted, and sorry to disappoint those hopeful of better Scrypt hardware (though not entirely off the table just yet).


Adam Kares
Operations
BlockBurner LLC

Mining was designed to be a marginal undertaking, and for ROI to return is simply a matter of network power tapering off and/or a rise of BTC market value.

There is no "solution" other than the mining business evening itself out, which I think it will in time as ASICs reach a saturation point and hopefully a fresh BTC rally when the next big bank goes down in flames like Cyprus did.

The little Erupters and smaller miners are perfect for those not wanting to be a power player in the mining world, but more just still want to participate and help the network, making a sliver of BTC on the side (and who knows, even a small amount could be worth a lot some day). I figure by plugging in an USB Erupter to your computer it is at least paying for your computer's power needs. Prices on them are finally falling to where they really should be, so the ROI isn't quite as bad.

If you want to mine as a real business, be prepared to drop $1000s on the gear. That is the reality now and is not going away. It IS profitable, but you also have to know what you are doing.

Sorry OP but you don't seem to have a clue about mining or the business of mining.

Yeah I think a lot of people are in for a big surprise with Bitcoin, I hope they thank Satoshi when he is done saving our economies bloated dead ass.