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Author Topic: Butterfly Labs  (Read 9797 times)
bitcoinminer
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April 26, 2013, 02:46:27 PM
 #61

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yeah hes a fat bastard but he is the most mellow cat ever.  It makes me forget how aggravating people can be.  I think when this whole thing blows up, I shall refer to them as Larvae Labs since a beautiful butterfly emerging just isn't going to happen.

How do I make wagers against it happening?

I will not wager for something terrible to happen to a community I love. I truly hope I am wrong about BFL.

Good.  Please place a wager that they WILL deliver.  It ups the odds Smiley

Be fearful when others are greedy, and greedy when others are fearful.

-Warren Buffett
bitcoinminer
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April 26, 2013, 02:48:09 PM
 #62

Let's see... 1500 Gigahashes divided by 350 megahashes... You need 4286 of my 5870 graphics cards, drawing 300 watts each? That's 1,285,800 watts, or... ahem... 1.21 Gigawatts if you round properly Wink
I think mega comes before giga.   you are talking about the output of a nuclear reactor when you "round" like that.   you are not correct.
plus he was asking about what a minirig would require and the answer to that is about 9 kilowatts or more than a typical american house uses

You missed the entire point of this post, but that's OK.  I want you to experience this joy for yourself.  Go legally acquire a copy of Back to the Future and watch it.

Be fearful when others are greedy, and greedy when others are fearful.

-Warren Buffett
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April 26, 2013, 05:26:32 PM
 #63

After much discussion on this forum regarding the business practices of Butterfly labs [BFL], it has become clear to me that there are several unanswered questions. Should BFL not commit to a ship date for their ASICs by the end of April and independent members of this community verify that they have received the product they ordered, I will draft an open letter to BFL. Its purpose is to determine the following:

  • Will BFL consent to an independent audit of their corporation accounts?
  • Did BFL finance (in part or fully) the development of their product line from preorders?
  • Who is currently fabricating the chips within their products and can BFL produce on demand the contract signed with said fabricator?
  • Has BFL engaged in mining and if so for how long and to what extent?


These are by far the most important points. I doubt they will consent to an audit, though that would GREATLY clear the air. Also, an audit would clear up the second point I quoted. If they DID finance with preorder money, which I guarantee they did, they are violating at least one regulation since they are not regulate as a security. I would almost guarantee this and this is the reason the will not consent to an audit
bitcoinminer
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April 26, 2013, 06:29:20 PM
 #64

Why would they consent to an audit in any case?

Some points:

1.) They already have your money, they don't need your trust or good will
2.) BitCoin is supposed to be all about independence and security and anonymity.  Why would they open up their books?
3.) The best case scenario for them allowing an audit, would be some people on a forum would trust them more.

They'll either deliver or they won't.

Be fearful when others are greedy, and greedy when others are fearful.

-Warren Buffett
charleshoskinson (OP)
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April 27, 2013, 02:58:25 AM
 #65

An Audit would occur only if an open letter and lingering questions result in a significant cancellation of preorders. As long as the questions are legitimate and fair. The preorder shipping continues to either be non-existent or very slow. And they do not provide a tangible explanation about the 1500 GH/s minirigs. The pressure will continue to build.   

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April 27, 2013, 03:18:40 AM
 #66

Are you under the mistaken impression that BFL is a publicly traded company? They are not compelled to answer any of your questions.  The questions you listed are ridiculous.  I challenge you to take the questions that haven't already been answered hundreds of times on this forum to any corporation in America and see what they say.  Be sure to wear some heavily padded clothes for when you get tossed out of the building on your butt.


If you're searching these lines for a point, you've probably missed it.  There was never anything there in the first place.
charleshoskinson (OP)
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April 27, 2013, 03:23:49 AM
 #67

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Are you under the mistaken impression that BFL is a publicly traded company? They are not compelled to answer any of your questions.  The questions you listed are ridiculous.  I challenge you to take the questions that haven't already been answered hundreds of times on this forum to any corporation in America and see what they say.  Be sure to wear some heavily padded clothes for when you get tossed out of the building on your butt.

I am aware of your position and opinion about BFL. And no they are under no legal obligation to answer to me. I feel the questions are quite legitimate and can be structured in a way not to expose trade secrets of BFL. Frankly, answering them would dramatically improve their perception in the community and also their order volume. I'm on hold until orders ship and we will go from there.

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Inaba
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April 27, 2013, 03:52:16 AM
Last edit: April 27, 2013, 04:17:19 AM by Inaba
 #68

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Are you under the mistaken impression that BFL is a publicly traded company? They are not compelled to answer any of your questions.  The questions you listed are ridiculous.  I challenge you to take the questions that haven't already been answered hundreds of times on this forum to any corporation in America and see what they say.  Be sure to wear some heavily padded clothes for when you get tossed out of the building on your butt.

I am aware of your position and opinion about BFL. And no they are under no legal obligation to answer to me. I feel the questions are quite legitimate and can be structured in a way not to expose trade secrets of BFL. Frankly, answering them would dramatically improve their perception in the community and also their order volume. I'm on hold until orders ship and we will go from there.

I know you "feel" the questions are legitimate, but they aren't.  Can you give a single compelling reason that BFL would open their financial books to anyone other than the tax man?  Just because you "want to know" and "feel" that you deserve to know does not make it a legitimate reason.  The entire premise is ludicrous.  How about this: You post your last 3 years of tax returns, and your last twelve paystubs, as well as your marriage license if you're married, unredacted, on this forum.  Are you willing to do that?  No?  Why not?

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Did BFL finance (in part or fully) the development of their product line from preorders?

This question has been answered countless times.  The answer has always been no.

Quote
Who is currently fabricating the chips within their products and can BFL produce on demand the contract signed with said fabricator?

This question is ludicrous, even more so than the audit question.  Why does it matter who is fabricating the chips and how could revealing that NOT reveal a trade secret?  Why would BFL be compelled to post a contract between one vendor and BFL to satisfy your curiosity?  How is this a legitimate question?  What company reveals this sort of information?  None.

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Has BFL engaged in mining and if so for how long and to what extent?

Another question that has been answered countless times on this forum.  This is what I'm talking about.  Your questions are either already answered or completely ridiculous.  This entire thread is basically an exercise in mental masturbation, resulting in blue balls for those involved.  You are deluding yourself if you think the questions are legitimate and the chances of you getting answers to your unreasonable and completely ludicrous questions is so close to zero that it can't be measured with any instruments known to man.


If you're searching these lines for a point, you've probably missed it.  There was never anything there in the first place.
bitcoinminer
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April 27, 2013, 04:09:38 AM
 #69

+1.  You got a vote equal to the amount of your order.  If you are 1 of 100 customers, you get a 1% say in things.  If you haven't placed an order, well, that puts you in the 0% range.  (Like myself)

I'm going to wait and see if they ship anything, and decide from there.

If they ship all their systems, and it means I have to buy a 50 GH/s rig to mine $1 a day worth of bitcoins, I'm probably not going to buy one.

Now put down the pitchfork, snuff the torch, and:

1.) Ask for your money back if you purchased
2.) Don't ask for your money back if you didn't purchase
3.) Wait and buy
4.) Wait and don't buy

Think that just about covers it.  This forum is starting to get the Glenn Beck tendency of "This is my crazy conspiracy theory, if you don't prove me wrong, it must be right".

Everybody else is just like "Meh, I'm not going to both with this nonsense".

Be fearful when others are greedy, and greedy when others are fearful.

-Warren Buffett
charleshoskinson (OP)
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April 27, 2013, 04:17:32 AM
 #70

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This question is ludicrous, even more so than the audit question.  Why does it matter who is fabricating the chips and how could revealing that NOT reveal a trade secret?

http://hothardware.com/Articles/An-Introduction-To-Global-Foundries/
http://www.xbitlabs.com/news/graphics/display/2012120230059_TSMC_Set_to_Produce_Nvidia_Maxwell_Graphics_Chips_Using_20nm_Process_Technology.html

I guess AMD and Nvidia disagree. Also, a vendor can confirm the order volume without revealing anything else. That would go a long way to prove BFL didn't dip into preorder money for R&D.

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This question has been answered countless times.  The answer has always been no.

And has this ever been verified by any outside party? I understand Josh that you can say no. You have the books. I can't comment on it.  

Quote
Another question that has been answered countless times on this forum.  This is what I'm talking about.  Your questions are either already answered or completely ridiculous.  This entire thread is basically an exercise in mental masturbation, resulting in blue balls for those involved.  You are deluding yourself if you think the questions are legitimate and the chances of you getting answers to your unreasonable and completely ludicrous questions is so close to zero that it can't be measured with any known instruments known to man.

You ok? You seem a little red in the face? Don't you think asking if BFL has mined with their own product and to what extent is a little legitimate? You guys presold the units yet are holding on to them. Thus you can double dip by using them to mine until the margins lower and then ship the queue. I'm not saying you did that, but it is definitely an option and something the community would love to know. Also how did you do any form of reliability testing without mining for some window of time with the units?

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I know you "feel" the questions are legitimate, but they aren't.  Can you give a single compelling reason that BFL would open their financial books to anyone other than the tax man?  Just because you "want to know" and "feel" that you deserve to know does not make it a legitimate reason.  The entire premise is ludicrous.

I have no power to compel BFL to open their books. A court of law and a government agency can do that. And they will do that if your corporation continues to delay its shipments while still taking preorders. What I say and do has no impact on that reality. You can deny it, but it doesn't make it any less true.  

Quote
How about this: You post your last 3 years of tax returns, and your last twelve paystubs, as well as your marriage license if you're married, unredacted, on this forum.  Are you willing to do that?  No?  Why not?

Well Josh, I for one never accepted millions of dollars of other people's money off of a promise to deliver something and then spent months delaying until I eventually delivered something that is an order of magnitude outside of spec. Also how exactly are you able to build a minirig running at 1500 GH/s with that kind of TDP? Didn't you sell a few of those over the last year? Surely that meant you guys had a working prototype that allowed you to infer a reasonable TDP for the size.

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bitcoinminer
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April 27, 2013, 04:28:16 AM
 #71

OMG the dumb hertz my eyes!

Charles, how much, exactly, have you spent on hardware at BFL

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-Warren Buffett
charleshoskinson (OP)
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April 27, 2013, 04:31:20 AM
 #72

Look, there is a lot of passion in this argument because people have invested a great deal of money on blind faith your corp will deliver a good ASIC miner to the market. I commend you for the hard work and dedication of your engineers and the efforts of BFL to do something as difficult as designing an ASIC that has to run 24/7 reliably while doing billions of hash computations a second. That isn't easy and no one is trying to claim it isn't an accomplishment.

The primary issue I have and many people in the community as well is that we feel you guys made promises without the facts to back them up. If I claim an ASIC will run on 5 watts and I'm off by nearly an order of magnitude, then that is a big issue. Not for small scale miners, but certain when we want to increase to something like a 1500 GH/s rig. We wouldn't be having this conversation if the only product in the queue was a 5 GH/s rig. But you have presold 1500 GH/s rigs that I'm fundamentally skeptical can exist with what you have demonstrated in the marketplace.

Your response is to use personal attacks. How about you grow up and be a real CEO. Issue a press release thanking your customers for their patience and loyalty and give a heartfelt and concise explanation why you didn't reach your benchmarks- remember the ones you set. Then give a reasonable roadmap and shipping schedule. That's how my friend Elon Musk did it when he missed his benchmarks last year at Tesla. That's how a good leader does it. You only get a pass because you are in a small market. Once bitcoin becomes mainstream. Your company will not survive if you continue to manage like this.  

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April 27, 2013, 04:32:51 AM
 #73

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This question is ludicrous, even more so than the audit question.  Why does it matter who is fabricating the chips and how could revealing that NOT reveal a trade secret?

http://hothardware.com/Articles/An-Introduction-To-Global-Foundries/
http://www.xbitlabs.com/news/graphics/display/2012120230059_TSMC_Set_to_Produce_Nvidia_Maxwell_Graphics_Chips_Using_20nm_Process_Technology.html

I guess AMD and Nvidia disagree. Also, a vendor can confirm the order volume without revealing anything else. That would go a long way to prove BFL didn't dip into preorder money for R&D.

They disagree with what?  They choose to reveal trade secrets and that is somehow evidence of disagreement?  This doesn't even make sense.  Do you even know what you're talking about?

Quote
Quote
This question has been answered countless times.  The answer has always been no.

And has this ever been verified by any outside party? I understand Josh that you can say no. You have the books. I can't comment on it.  

Again, what compulsion does BFL have to open their books?  I ask this again.  Post your tax returns and paystubs.  Why are you evading the question?  Why are not posting them?

Quote
Quote
Another question that has been answered countless times on this forum.  This is what I'm talking about.  Your questions are either already answered or completely ridiculous.  This entire thread is basically an exercise in mental masturbation, resulting in blue balls for those involved.  You are deluding yourself if you think the questions are legitimate and the chances of you getting answers to your unreasonable and completely ludicrous questions is so close to zero that it can't be measured with any known instruments known to man.

You ok? You seem a little red in the face? Don't you think asking if BFL has mined with their own product and to what extent is a little legitimate? You guys presold the units yet are holding on to them. Thus you can double dip by using them to mine until the margins lower and then ship the queue. I'm not saying you did that, but it is definitely an option and something the community would love to know. Also how did you do any form of reliability testing without mining for some window of time with the units?

So disagreeing with you and explaining why your questions are stupid = "red in the face" ... right.  So basically this conversation is already over, you've given up after two posts and moved on to "Nya nya nya, it's this way because I say it is and your logic and common sense have no effect on me!"  GG!

Your statement that "You guys presold the units and yet are holding on to this" is utter garbage.  Do you have proof, or hell, even any EVIDENCE of this?  No?  Why not?  Because it's idiotic, that's why.  This whole question has been answered, ad naseum, on the forum.  You failed to do you due diligence and now you're flailing around trying to justify your stupid questions.

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Quote
I know you "feel" the questions are legitimate, but they aren't.  Can you give a single compelling reason that BFL would open their financial books to anyone other than the tax man?  Just because you "want to know" and "feel" that you deserve to know does not make it a legitimate reason.  The entire premise is ludicrous.

I have no power to compel BFL to open their books. A court of law and a government agency can do that. And they will do that if your corporation continues to delay its shipments while still taking preorders. What I say and do has no impact on that reality. You can deny it, but it doesn't make it any less true.  

That's right, you have no power to compel BFL to open their books.  A court of law and government agency will laugh in your face when you try to get them to compel BFL to open the books.  Here's the way that conversation will go:

Charles: There's this company, Butterfly Labs, that has taken preorders for a product and hasn't shipped mine yet.  I want you to force them to publicly post an audit of their books.
Court: On what grounds do you request we compel an audit?
Charles: I think they are using preorder funds to develop their product.
Court: What evidence do you have for this?  
Charles: Well, I don't have any evidence.
Court: So why do you think they are doing this, have they said they were?  When did you make your preorder?
Charles: No, they said they wern't doing it.  I made a preorder in January.  I think they are a scam and a ponzi scheme.
Court: I see... So you ordered in January, when did you ask for a refund?
Charles: I've haven't asked for a refund.
Court: So, you think they are a scam, but you haven't requested a refund?  Why not?  Has anyone else requested a refund?
Charles: Well, I don't really have a good answer as to why I haven't requested a refund.  Yes, other people have requested refunds.
Court: How many refunds were requested?  How many were denied?
Charles: Well, I'm sure lots were requested.  I haven't heard of any being denied.
Court: So... people have requested refunds and been given them.  You have an order with the company and you haven't canceled it and requested a refund.  You say they are scam, but have no evidence, no one has ever been denied a refund and they are a privately held company. Is that correct?
Charles: Well, yes, basically. But... they haven't shipped my order yet!
Court: Baliff, please escort this man off the premises.  If he resists, I recommend holding him for psychiatric evaluation.

I'd wager that's a fairly accurate representation of what a court of law would say.

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How about this: You post your last 3 years of tax returns, and your last twelve paystubs, as well as your marriage license if you're married, unredacted, on this forum.  Are you willing to do that?  No?  Why not?

Well Josh, I for one never accepted millions of dollars of other people's money off of a promise to deliver something and then spent months delaying until I eventually delivered something that is an order of magnitude outside of spec. Also how exactly are you able to build a minirig running at 1500 GH/s with that kind of TDP? Didn't you sell a few of those over the last year? Surely that meant you guys had a working prototype that allowed you to infer a reasonable TDP for the size.

No, you've just made unfounded accusations and made ludicrous demands.  I suggest you look up what "order of magnitude" means, since you clearly don't understand it.  I have NFC what you are talking about with regards to building a 1.5 TH machine last year, are you insane, delusional or just confused?


If you're searching these lines for a point, you've probably missed it.  There was never anything there in the first place.
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April 27, 2013, 04:34:57 AM
 #74

Alright we are done here. Moderator could you close this thread. Nothing more can be accomplished in this format.

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bitcoinminer
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April 27, 2013, 04:36:07 AM
 #75

Alright we are done here. Moderator could you close this thread. Nothing more can be accomplished in this format.

You still haven't answered my question - how much money do you have invested in this?

Be fearful when others are greedy, and greedy when others are fearful.

-Warren Buffett
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April 27, 2013, 04:38:18 AM
 #76

Answering any further questions is pointless. We can't have a conversation in this format. I will wait and see what happens.

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April 27, 2013, 04:39:06 AM
 #77

I think we should do an audit of whether or not you spent any money, or are just bellyachin' for free.

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April 27, 2013, 04:42:36 AM
 #78

yes I have spent money at BFL. I don't care if it is a lost investment or not as it is sub-500 dollars. I can live. My issue is that their response to any question has always been with personal attacks to both intelligence and character. This is not how you run a company and when bitcoins enter the mainstream, they will be crushed. No one wants to do business with a company that feels it can have long delays without any legitimate excuse while the customer watches other making money with a competitor's products. But again this format has lost its ability to accomplish anything. I request that the thread be closed. 

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April 27, 2013, 04:44:35 AM
 #79

In your experience designing and testing electronics requiring new chips to be designed, what is the average time to market?  What kind of delays do you usually experience, and what reasons/excuses have you found to be valid?

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April 27, 2013, 04:54:48 AM
 #80

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In your experience designing and testing electronics requiring new chips to be designed, what is the average time to market?  What kind of delays do you usually experience, and what reasons/excuses have you found to be valid?

As a disclaimer, my only experience in VLSI is with some projects in the aerospace industry. IMHO, usually the last thing you make a comment on is power consumption. It can take months of fine tuning and hard work, which is why Nvidia and AMD for example almost never comment on power consumption for their new graphics cards until they start shipping review units. Reliability testing and turn around time from the fabricator also has a lot to do with the schedule you live on and your relationship with the fabricator. Generally speaking it depends on the volume you ordered and how much time you have allocated for quality control. Firmware can take a great deal of time as well.

ASIC development is hard and the people who do it well are few and far between. Which is why it is a terrible idea to announce any release date until you have a working prototype in your lab and you're doing things like quality and firmware. Even then small factors can result in delays for several months. For many larger companies, some projects simply die because the internal benchmarks are just simply unobtainable for example Intel's larrabee project: http://blogs.intel.com/technology/2010/05/an_update_on_our_graphics-rela/. Here we have probably the most advanced and respected chip designer in the market admitting defeat for a very public and well financed project. This should give you an idea how hard developing a product can be. I commend BFL for taking on the project and dealing with the delays.

Another example of problems: http://www.pcper.com/news/Graphics-Cards/UPDATE-NVIDIA-Fermi-continues-have-problems-according-multiple-sources

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