Interested in Bitcoin Mining? Logic of a Group Buy & Escrow Protection

[DyslexicZombei]

Hi,

My name is DyslexicZombei, DZ for short, a Group Buy Escrow Coordinator that serves the Group Buys forum.

I apologize to the mods if this is the wrong section but I *think* this is the right section because this entire forum can be overwhelming to newbies and there's so many ways to get scammed or defrauded.

If you're interested in Bitcoin mining, one way that many miners have hedged their bets is by investing in various Group Buys to spread their bets among strong bets and by also seeking escrow protection when dealing with a new Group Buy Coordinator.

Since many of you may not be aware: the very best values [as far as $ or BTC per GH/s ] only exist at the high end; the most expensive miners in other words, which are out of reach for most buyers. By banding together, miners can *cooperate* and get access to the best tech, the best values, *and* make some friends while doing it. When dealing with a new Group Buy Coordinator they can safely cooperate via an escrow service:

https://bitcointalk.org/index.php?topic=274722.0

Please see my sig for more of my services, which also include ultra low cost Bitcoin Miner Hosting at only 2.5%.

More about me:
https://bitcointalk.org/index.php?topic=280412.msg2997858#msg2997858
Here's why you should trust me: https://bitcointalk.org/index.php?topic=276947.msg2956448#msg2956448
Here's my endorsements: https://bitcointalk.org/index.php?topic=280412.msg2997877#msg2997877

Newbies please feel free to PM me for questions! Don't worry: I don't mind because there's really no stupid questions when it comes to BTC and ASIC pre-orders.

Aloha!
DZ

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[DyslexicZombei]

Thanks for that PM from an anonymous newbie!

Here's the body of my msg. I sent back. Hopefully it holds useful advice for new Bitcoin miners:

"Hi XXXXXXXXX,

You're welcome! They say a fool and his money is soon parted. In the digital world involving Bitcoins, it seems to be twice as fast!

I really think Group Buying is the *only* way us regular miners without giant, deep pockets can keep up with the big boys is to spread your Group Buys around several strong pre-order buys.

Some advice: If possible - don't send *any* BTC to *anyone* unless it's under the protection of an Escrow service. One of the strengths *and* drawbacks of BTC is that there's no chargebacks available which is awesome if you're a merchant; not so awesome if you're the buyer & there's fraud or other problems with your purchase. An Escrow service holds funds for a group so that there's no funny business with the funds. An Escrow service also vets the Sellers and know their ID/address so that there's real world consequences to illegal behavior. So: try to stick to Escrowed Group Buys, when possible.

The exception to this would be the most veteran GBCs such as waldohoover, CanaryInTheMine, and SSB, for example. Even then: accounts can be hacked but these 3 guys are golden & do tons of business.

Please read my posts in the Group Buy Forum for more info & please let me know if you'd like more detail on anything I can help you with.

Cheers!
DZ"

Edit: I would also add user bobsag who is a vetted Group Buyer Coordinator and vetted Miner Host that has agreed to be a client of mine.

Here's an example of the type of advocacy and help I provide for both buyers and sellers (even if my help might hurt or sting a bit):
https://bitcointalk.org/index.php?topic=283441.msg3047942#msg3047942
https://bitcointalk.org/index.php?topic=280167.msg3002252#msg3002252

[DyslexicZombei]

Here's my responses to another anon. message received; hope this is of some use to a few newbies:

Hi XXXXXXXXXX,

You're welcome! They say a fool and his money is soon parted. In the digital world involving Bitcoins, it seems to be twice as fast!

I really think Group Buying is the *only* way us regular miners without giant, deep pockets can keep up with the big boys is to spread your Group Buys around several strong pre-order buys.

Some advice: If possible - don't send *any* BTC to *anyone* unless it's under the protection of an Escrow service. One of the strengths *and* drawbacks of BTC is that there's no chargebacks available which is awesome if you're a merchant; not so awesome if you're the buyer & there's fraud or other problems with your purchase. An Escrow service holds funds for a group so that there's no funny business with the funds. An Escrow service also vets the Sellers and know their ID/address so that there's real world consequences to illegal behavior. So: try to stick to Escrowed Group Buys, when possible.

The exception to this would be the most veteran GBCs such as waldohoover, CanaryInTheMine, and SSB, for example. Even then: accounts can be hacked but these 3 guys are golden & do tons of business.

Please read my posts in the Group Buy Forum for more info & please let me know if you'd like more detail on anything I can help you with.

Cheers!
DZ

Please keep the PMs and questions coming! I'm here to help out both newbies and veterans alike.

[DyslexicZombei]

Reply from another PM question:

"Hey XXXXXXXXX,

Thank you for respecting my opinion! At the end of the day, we all have to do our own homework & come to our own conclusions that we're comfortable with. I haven't done enough research to tell you whether bitfunder is better then doing a Group Buy but I can tell you that the things you see on bitfunder tend to be shares that are marked up unless you're looking at getting IPO shares.

I can tell you that IMHO spreading your bets among several strong Group Buy Coordinators & manufacturers that you consider to be the best & most trustworthy has paid off well for some Buyers, not so well for others that went into BFL or Avalon Group Buys which have been hit or miss due to slow delivery.

It's all a risk. Your (relatively) safest best in all of this is to actually just buy & hold BTC (esp. doing dollar cost averaging). It's not as exciting but it seems to yield the best returns. If that's too boring, hedge your bets 2 or 3 ways. Just my 2 satoshis.  

FWIW, I'm currently invested in AM shares, 1/4th of a HashFast Baby Jet I'm administrating, and just holding some BTC I intend to add to a little bit at a time via Coinbase @ 1% fees.

Take care!
DZ"

I may or may not join another GB or two in the near future but for now I'm here just to help others complete their group buys & do miner host matchmaking if they ask for my help.

[b!z]

interesting thread. i probably will not join the group buy but it explains a lot on how they work.