Butterfly Crash

[mccorvic]

I don't say this often, nor lightly but...

Cool story, bro.

Yeah, that's exactly what people said when the thinking minority warned them about Pirate.

Not what you said, but totally the ranting, hard to follow, no evidence for claims way you said it.

[the_thing]

Not what you said, but totally the ranting, hard to follow, no evidence for claims way you said it.

hard to follow? well, let me sum it up for you then.
1, BFL is likely a scam
2, thus its bankrupcy is only a matter of time
3, if it goes bankrupt, the price is bound to fall rapidly

As for evidence, the burden of proof is on BFL, as they were originally supposed to deliver in November.
Price going down after a major scam is a common knowledge. Go to your local library and ask for a university textbook on economics.

[lucif]

Pics of bfl "rigs" from CES

http://codinginmysleep.com/coding-in-my-sleep-goes-to-ces/

But chips... Are there any chips?

[the_thing]

Pics of bfl "rigs" from CES

http://codinginmysleep.com/coding-in-my-sleep-goes-to-ces/

But chips... Are there any chips?

Wow. Three plastic boxes. Must be an ASIC without a doubt.

[lucif]

Not sure if there are chips in these, but they appear to be cases and heat sinks for the new asic line.

[kokojie]

How far will the price fall when Butterfly Labs stops "customer service" and leaves the country?  Will we see the same magnitude as the Pirate Crash?

Please explain why it would crash.

Speculators dumped coins when the Pirate scam was confirmed so it seems plausible this might happen when this scam is confirmed.

Let's see how they are similar:
1. BTCST was operated by one unidentified unknown person. BFL has nearly 20 employees and we know exactly who their CEO is or where he's located at.

2. BTCST promised something that was mathematically impossible to sustain for any extended period of time. BFL promises something that is very possible by utilizing known technology, and the same product is being worked on by several other companies.

[johnwhitestar]

Although I shouldn't be saying this, because I'm holding mah btcs, I have to say : guys, you're fucking stupid.

Some of the you claim to not see any link between potentional BFL failure scam and a price crash. You obviously don't understand how markets work. Trust is the single most important thing on financial markets. If people are upset that they got scammed (again!), they quickly get the feeling that bitcoin is doomed. Yes, it is strongly exaggerated, but investors tend to exaggerate. Also, since bitcoin is an emerging market it needs new investments. Bad publicity = close to no new investments.

And before you start saying : 'hurr durr, real life scams don't make dollar price fall' let me say that you can't compare bitcoin to dollar.

Also, for those of you who say that bad news in 2012 didn't affect the price at all, please go see a doctor. There's something wrong either with your memory or eyes.

If When BFL managers hit the road with gullible people's money in their pockets, the price is going to go down for at least a few days. The only reason why I'm holding btcs right now is to exploit the recent discrepancy between Bitstamp and MtGox prices.

Your point of view make sense as well. But the qualities of BTC are above this little scammers. See the situation with pirateat40, which caused the market to go down for some months and now we are near to have recovered the highest point before pirateat40 default. The people who invested into BFL are much less than into pirateat40 and after pirateat40 there was a huge default of GLBSE and still we are up. The BFL default could give some impulse downstairs, but in the same time the impulse upstairs it would give should be much more powerful.
Of course someone might be turned down, by his loss from the BFL investment, but going away those people the market will became more mature. I wouldn't paragon BTC market with the standard joins-stock exchange market or forex market, because there are a lot of political and macroeconomical manipulation there, while BTC market being smaller in a way is much healthy (personal opinion).

[the_thing]

Let's see how they are similar:
1. BTCST was operated by one unidentified unknown person. BFL has nearly 20 employees and we know exactly who their CEO is or where he's located at.

2. BTCST promised something that was mathematically impossible to sustain for any extended period of time. BFL promises something that is very possible by utilizing known technology, and the same product is being worked on by several other companies.

1. wrong. people knew his name, face and address. he even personally met with his victims prior to the scam. regarding BFL, yes, we know their management. we also know that prominent members of BFL were convicted for a multi-million scam in the past.

2. feasibility of scammer's promises has nothing to do with his willingness to fulfill them.

it seems that Pirate and BFL guys have more in common than you previously thought, right?

[kokojie]

Let's see how they are similar:
1. BTCST was operated by one unidentified unknown person. BFL has nearly 20 employees and we know exactly who their CEO is or where he's located at.

2. BTCST promised something that was mathematically impossible to sustain for any extended period of time. BFL promises something that is very possible by utilizing known technology, and the same product is being worked on by several other companies.

1. wrong. people knew his name, face and address. he even personally met with his victims prior to the scam. regarding BFL, yes, we know their management. we also know that prominent members of BFL were convicted for a multi-million scam in the past.

2. feasibility of scammer's promises has nothing to do with his willingness to fulfill them.

it seems that Pirate and BFL guys have more in common than you previously thought, right?

Which victim did pirateat40 personally meet? also I thought we only have pirateat40's suspected name and address, not a confirmed one. Maybe I'm wrong about that.

True, feasibility does not guarantee it's not a scam, but non-feasible business is a guarantee that it is a scam. So BTCST = 100% scam. BFL = scam possible, but unlikely. Btw BFL just showcased their ASIC miner at CES:
http://bitcoinmagazine.com/asic-mining-updates-asicminer-deploying-butterfly-demonstrating-at-ces/

[lucif]

Btw BFL just showcased their ASIC miner at CES:
http://bitcoinmagazine.com/asic-mining-updates-asicminer-deploying-butterfly-demonstrating-at-ces/

blah-blah-blah, blah-blah-blah... Where are the fucking chips? Does it able to mine right there?

[the_thing]

[quote author=kokojie link=topic=135295.msg1442371#msg1442371 date=1357680963
Which victim did pirateat40 personally meet? also I thought we only have pirateat40's suspected name and address, not a confirmed one. Maybe I'm wrong about that.
[/quote]
uhh.. I can't believe I have to do this, but just for the sake of the argument. Behold :


A photo from Las Vegas. (I couldn't find the original one without captions, but whatever)
I don't know who is who, but the one next to Pirate looks a bit like Stephen Hawking  


Pirate himself

source : https://bitcointalk.org/index.php?topic=91252.60  (you could have found it in 5 second if you wanted to)..

BFL = scam possible, but unlikely.

Let me repeat it for you, in case you didn't understand : BFL managers were convicted of a huge scam in past. They took several million dollars.

[the_thing]

I don't know who is who, but the one next to Pirate looks a bit like Stephen Hawking  

That's Goat!

Well, that explains a lot.

[myself]

https://www.btcfpga.com/forum/index.php?topic=954.0 

[lucif]

First ASIC arrived! BUUUUUUUUUUUYYYYYYY!

http://youtu.be/e4wFkhafEdA

[lebing]

First ASIC arrived! BUUUUUUUUUUUYYYYYYY!

http://youtu.be/e4wFkhafEdA

You sound irl just like I imagined

[gimme_bottles]

First ASIC arrived! BUUUUUUUUUUUYYYYYYY!

http://youtu.be/e4wFkhafEdA

sure...

[the_thing]

First ASIC arrived! BUUUUUUUUUUUYYYYYYY!

http://youtu.be/e4wFkhafEdA

gigakhashes

[lucif]

Hehe. I pleased you like my Iranian emphasis

[johnwhitestar]

Please what is your BTC address? I want to buy it so badly!

[gimme_bottles]

so you called your chinese friend and told him what?

"i want the latest ASIC technology, a chip layout for mining bitcoin and a dev kit so i can hook it up to my laptop?"

i want that guys phone number