The Bitcoin MINING PONZI SCHEME

[donate2me]

READ THIS!  Ok sorry to be the one to break it to you guys, but you guys a part of one of the best PONZI schemes ever.  Mining companies such as KNC, Cointerra, Hashfast, and Butterfly labs promise high hashing power for thousands up front with no guarantee on results.  Case in point....1.7 ths and 2000Watts for the terraminer that was going to be 2.0 and 1200 watts.  Not to mention the difficulty of bitcoin has made everything obsolete that isnt being used by one of these companies.  Next, KNC that now says if you bought a NEPTUNE they will hash it for you for free when they are done.  Mean while "Plan B" consists of building a the most powerful bitcoin lab in the world and giving bitcoin to the buyers of the computers....However, with the difficulty rising, the mining rigs will obsolete.  tWhat a great idea sell MILLIONS worth the computers, then use the money to build them.  And instead of sending them to you, why not mine them for a month or 2 and make a few thousand bitcoins (http://eligius.st/~wizkid057/newstats/userstats.php/1Nbq2XZaRsKknf5fcT2wTXvBS31PaUWSeX) then send them to the rightful owners once they are just expensive paperweights.  And since most of you paid in bitcoin for these miners......its not traceable, nor can you prove the fund were sent.

Dont you all see a resemblance between all of these companies that sell mining rigs? None can produce anything to keep up with the difficulty of mining bit coins. If you are asking why....You should just give me all of your money, because you dont deserve it. They use your nonrefundable deposit to build these computers, then use them to mine coins, then pass them off to you as a nice expensive PAPERWEIGHT.

PLEASE, PLEASE just donate bitcoin to me at: 18aNxNC7gA1foAAS9gd8E6Co14PyUqgsYH. Why? Because i would hope that some of you that read this will save some money and not get wrapped up in a scam. You are better off just buying bitcoin and holding it. STOP WASTING MONEY AND ELECTRICITY!

AGAIN, donate to: 18aNxNC7gA1foAAS9gd8E6Co14PyUqgsYH ............my college education depends on it. THANKS!

[timk225]

I have been telling people for months to not buy ASICs, but they aren't listening to me, as can be seen by the climbing difficulty rate.  It edged up to 2.6 BILLION today!  I have even explained how the ASIC manufacturers are using the machines for a while before shipping them, and they'd be idiots not to.

But as far as donating money to a no post count noob like you.... NO WAY!

[Zangy]

I have been telling people for months to not buy ASICs, but they aren't listening to me, as can be seen by the climbing difficulty rate.  It edged up to 2.6 BILLION today!  I have even explained how the ASIC manufacturers are using the machines for a while before shipping them, and they'd be idiots not to.

But as far as donating money to a no post count noob like you.... NO WAY!

As a self confessed low post count noob, I decided to buy some asics/block erupter/cube/bitfury's to work out everything above. Its been a good (well, ok) investment from a learning angle anyway, but absolutely not from a ROI point of view.

Sadly, I have to concur, I think the greed of the human race will be ultimately destructive for the bitcoin (and cryptocurrency) concept. Fun while it lasts though!

[asfbhero]

What about all the people who have been making money the whole time, and have approached mining as a business.  Economists, experts in currencies and central banking... People who truly understand what bitcoin is, and how important and revolutionary it will be.  My college education (paid for by predicting the crash in 2008, then buying gold with those profits), over a decade of profitable forex trading, and a few years spent as a trader for a hedge fund, are telling you to do more research and try to really understand what bitcoin is, and the mining isn't a money printing machine.  It is a business.  Not everyone will win.  Those who understand that mining is one facet of a profitable business model used to get in on the ground floor of the most revolutionary innovation since the internet.

Remember, no one was ever going to have use for a PC in the home, and the internet was dismissed as something for silly hobbyists.

[_Miracle]

What about all the people who have been making money the whole time, and have approached mining as a business.  Economists, experts in currencies and central banking... People who truly understand what bitcoin is, and how important and revolutionary it will be.  My college education (paid for by predicting the crash in 2008, then buying gold with those profits), over a decade of profitable forex trading, and a few years spent as a trader for a hedge fund, are telling you to do more research and try to really understand what bitcoin is, and the mining isn't a money printing machine.  It is a business.  Not everyone will win.  Those who understand that mining is one facet of a profitable business model used to get in on the ground floor of the most revolutionary innovation since the internet.

Remember, no one was ever going to have use for a PC in the home, and the internet was dismissed as something for silly hobbyists.

As an undereducated average person it is not difficult for even me to grasp the significance of bitcoin. It may be my Silicon Valley roots? Everyone is excited about the currency aspect (so am I) but there is something more to this, that not only has the potential to change the way we use money but they way we do business (colored coins; attached/referencing contracts?). Public ledgers, peer to peer, instant notarizations ?
We have been advancing in many ways but our financial systems are far behind in innovation. We keep trying to patch up failing systems? This may be a bridge OR it fails.
In my old business (real estate) my goal was to incorporate tech into my business at every opportunity, it didn't always go well with agents still hooked on cumbersome ways. If an agent had gone into the business during a time when listings were kept in a file ( in a real physical friggen file cabinet y'all ;-) They were frequently befuddled by our MLS (The MLS Multiple Listing Service is the online database to properties for sale, tells what is for sale, what is in contract for sale and everything  that had sold for 10 years)
"Radical change" is not always greeted easily but we're overdue and it's here.

[asfbhero]

Well, that just makes the other people who haven't dedicated their lives to learning about econ and ccy systems look extra silly.  I was trying to let 'em down easy lol

[krodmandoon]

how many bitcoins are there? how many will there be in the end? will it be a currency or a store of value? who knows? not you. not me. all I know is that my machines are cranking out fractions of btc. if it's worth lots or not a bunch who cares this is fun and also i don't like the idea of a private entity being responsible for the valuation of the currency i elect to use. this is as close to a free market as I will see in my lifetime.

significance of bitcoin, people are aware it exists perceive it cannot be tracked or regulated and majority of users assume it cannot be double spent.

also, economics=supply and demand i.e. I want that, it must be valuable in some way to me. Learned that trading jello for cookies when i was 5, hope you didn't pay a college for that one. if you did you fell victim to an imagined need, congrats on falling victim to the economics of education.

[Operatr]

Unfounded, unresearched FUD followed by begging for Bitcoin, classy OP

[Omikifuse]

READ THIS!  Ok sorry to be the one to break it to you guys, but you guys a part of one of the best PONZI schemes ever.  Mining companies such as KNC, Cointerra, Hashfast, and Butterfly labs promise high hashing power for thousands up front with no guarantee on results.  Case in point....1.7 ths and 2000Watts for the terraminer that was going to be 2.0 and 1200 watts.  Not to mention the difficulty of bitcoin has made everything obsolete that isnt being used by one of these companies.  Next, KNC that now says if you bought a NEPTUNE they will hash it for you for free when they are done.  Mean while "Plan B" consists of building a the most powerful bitcoin lab in the world and giving bitcoin to the buyers of the computers....However, with the difficulty rising, the mining rigs will obsolete.  tWhat a great idea sell MILLIONS worth the computers, then use the money to build them.  And instead of sending them to you, why not mine them for a month or 2 and make a few thousand bitcoins (http://eligius.st/~wizkid057/newstats/userstats.php/1Nbq2XZaRsKknf5fcT2wTXvBS31PaUWSeX) then send them to the rightful owners once they are just expensive paperweights.  And since most of you paid in bitcoin for these miners......its not traceable, nor can you prove the fund were sent.

Dont you all see a resemblance between all of these companies that sell mining rigs? None can produce anything to keep up with the difficulty of mining bit coins. If you are asking why....You should just give me all of your money, because you dont deserve it. They use your nonrefundable deposit to build these computers, then use them to mine coins, then pass them off to you as a nice expensive PAPERWEIGHT.

PLEASE, PLEASE just donate bitcoin to me at: 18aNxNC7gA1foAAS9gd8E6Co14PyUqgsYH. Why? Because i would hope that some of you that read this will save some money and not get wrapped up in a scam. You are better off just buying bitcoin and holding it. STOP WASTING MONEY AND ELECTRICITY!

AGAIN, donate to: 18aNxNC7gA1foAAS9gd8E6Co14PyUqgsYH ............my college education depends on it. THANKS!

Time to tell people again that buying BTC itself is a better investment....

[masterfu678]

well, back to using the gambling and faucet site then.

[djtriggz]

seen about 100 of these threads its getting a bit boring now

[kkaspar]

I don't think that it's a ponzi, it's more of an bubble and an abomination on the original idea behind bitcoin.
The original idea was to keep the bitcoin network spread out because everyone who has a computer, can be involved with mining bitcoin with their existing CPUs. That means that no additional resources need to be wasted to create machinery that supports the bitcoin network and only electricity is used. ASICs ruined the entire concept and actually started to reward those who contribute most to unnecessary wasting.

The idea should be not to build faster and faster hashrate, but to keep the hashrate down and the network spread out as much as possible. The network doesn't gain anything with increased hasrate, no speed, no security, no anything. People are just buying ASICs, so they could get a piece of the bitcoin hype pie, while actually not realizing that their ASICs contribute to absolutely nothing that could be considered relevant.

Scrypt is better, because it uses the existing GPUs and therefor no new hardware has to be created to chase a worthless goal. Primecoin is also very interesting because it can still be run only by CPU. A lot of people who aren't into gaming don't have good GPUs for other uses, but everyone has a decent enough CPU, and so it's easier to keep the network more spread out. But the price isn't currently set by how good is the quality of the coin, but hype is the thing that sets the price. And Bitcoin has almost all the hype.

[Omen1855]

I don't think that it's a ponzi, it's more of an bubble and an abomination on the original idea behind bitcoin.
The original idea was to keep the bitcoin network spread out because everyone who has a computer, can be involved with mining bitcoin with their existing CPUs. That means that no additional resources need to be wasted to create machinery that supports the bitcoin network and only electricity is used. ASICs ruined the entire concept and actually started to reward those who contribute most to unnecessary wasting.

I agree completely

The idea should be not to build faster and faster hashrate, but to keep the hashrate down and the network spread out as much as possible. The network doesn't gain anything with increased hasrate, no speed, no security, no anything. People are just buying ASICs, so they could get a piece of the bitcoin hype pie, while actually not realizing that their ASICs contribute to absolutely nothing that could be considered relevant.

Again I don't see any advantage of an ever growing and centralising mining industry. The upside of the ASICs is that they cannot be used for anything but Bitcoin mining, so if we find an equilibrium, where it is unprofitable to run a professional and profitable mining operation (Server space is expensive and the cost of something going wrong, hiring extra personal etc. is very risky). So why would you turn off your ASICs then, as they cost you a lot of money, and will at some point stabilise until the next big thing comes along. So the upside is that thanks to ASICs, even if BTC prices drop for a while, the network will not die. And once there's a lot of money involved in this industry, they will also do everything in their power to keep Bitcoin alive.

Not to say that I lost a lot of money on batch #3 Avalons, but made a good deal more than ROI with my KnC Jupiterss (I must've been very lucky if I read all the negativity).

First of all we need to get rid of this pre-order nonsense. An ordinary company seeks investors, works unbearable hours as not to dilute to the investors, and brings a product onto the market directly for sale. That's how Bitmain operates and that's why I think they're one of the few with still a good reputation. I never went below ROI on a Bitmain, as I could calculate with less error margin when I would ROI and what my expected profit would be.

Scrypt is better, because it uses the existing GPUs and therefor no new hardware has to be created to chase a worthless goal. Primecoin is also very interesting because it can still be run only by CPU. A lot of people who aren't into gaming don't have good GPUs for other uses, but everyone has a decent enough CPU, and so it's easier to keep the network more spread out. But the price isn't currently set by how good is the quality of the coin, but hype is the thing that sets the price. And Bitcoin has almost all the hype.

I disagree on several points.
- If I recall correctly, scrypt was intended to be GPU proof as well. But correct me if am wrong.
- Scrypt ASICs are hitting the markets, and are in my opinion a bad investment for those just a little late to the party, since the developers of the scrypt coins one of their ambitions was to keep ASICs out, and so I think is the reasoning of most miners. Also the difference in hash rate is not spectacular, just the power consumption. So if majority chooses to alter the algorithm, your scrypt ASIC miner is worthless.
- Bitcoin introduced lots of innovation and solved the problem of making digital items scarce, through the use of a public ledger. It was the first to market and revolutionary. Other coins might be better, I certainly hope so after all those years, but they evolutionary.
- It's all about market cap and money, why would any business switch to a coin with a lower market cap. A 5 year hype is a feat by itself, I honestly think it's more than that.

But from a miner's point of view, I agree GPUs were fantastic, you could sell the hardware and upgrade with minimal loss, since it has other purposes. The companies behind them are mature enough to ship massive quantities and the mining sector comprised only a small part of the use case. Just trying to look at it from many angles, and not intending to disagree with you totally.

[cloverme]

I certainly didn't like when KNC announced Plan B, that was a bit of a shock and many of the business practices from ASIC companies can be a little worrisome. That being said, the bitcoin mining process is not a ponzi scheme.  As an investment, bitcoin is very high risk, I don't think you'll find anyone who will say that bitcoin is a safe investment with promised returns of profit and no risk.  In my opinion, KNC and Avalon are safe buys, I've purchased from both, received hardware, mined, and have had a return.

Also, bad form for the OP to beg for donations from something he/she is bashing on.

[bitndx]

Wait are you a shill for Ripple(XRP) ? 

[jimmothy]

Bitcoin mining is bad mkay...

plz donate money

thanks

[DrG]

Wait are you a shill for Ripple(XRP) ? 

Ripple is long since dead.

[iglasses]

Here's what I just saw....

1) Bitcoin is a scam.
2) Please give me Bitcoin.

hmmmmm......

[nopedope89]

I can see a trend - the number  of people who ask for donations, who actually beg for donations, is rising. That's actully threatend me.  

[herebittybittybitty]

It seems to me that it will always be possible to Bitcoin mining slightly profitably if you have free or dirt-cheap electricity... but with standard computer hardware, the reward isn't worth the time exertion of doing it, and ASIC hardware costs more than it can recoup through mining.

So I think Bitcoin mining is dead. If you find enjoyment just from running a mining operation, I say you might as well go solo and treat it as a lotto ticket.