[796.com] RedStarMining.com - the oldest public mining security [15.0(TH/s)]

[matthewh3]

What are the current finances?

x3 BFL-SC-Singles plus a BTC10.00 Pyramining ASIC deposit.

hargax - https://bitcointalk.org/index.php?action=profile;u=63429 - may be coming to work for us for another of the 1% of profits Salaries to help Evolex plus more.  This doesn't effect accounts as 5% of all profits after hosting cost's is being taken for wages anyway.  Although no salaries will be paid until we have our third ASIC hashing for a month.  Both employees can be sacked by motions but only major investors can call motions.  Or groups of small shareholders with a total of at least 5% of stock.

[1714307010]

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[1714307010]

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[1714307010]

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[matthewh3]

What are the current finances?

x3 BFL-SC-Singles plus a BTC10.00 Pyramining ASIC deposit.

hargax - https://bitcointalk.org/index.php?action=profile;u=63429 - may be coming to work for us for another of the 1% of profits Salaries to help Evolex plus more.  This doesn't effect accounts as 5% of all profits after hosting cost's is being taken for wages anyway.  Although no salaries will be paid until we have our third ASIC hashing for a month.  Both employees can be sacked by motions but only major investors can call motions.  Or groups of small shareholders with a total of at least 5% of stock.

We ordered our first BFL-SC-Single just after two weeks of pre-sales started in early July.  I know that seems like a joke but I have faith for BFL to ship eventually just like they did with there FPGA.  Also due to the chip 'fab' size our ASIC's should hold there value much longer than Avalon's in this race to the bottom.  The reason as bitcoin mining is a race to the bottom is why we're reinvesting 90% of profits into more ASIC's to increase our (MH/s)per share rate faster than the growth in network difficulty.

[BitcoinMint.US]

matthewh3,

What was your relationship with Tom that allowed you to order his FPGAs before the product was announced?  What are your thoughts on him not paying ASIC preorders back after ending the project? 

[matthewh3]

matthewh3,

What was your relationship with Tom that allowed you to order his FPGAs before the product was announced?  What are your thoughts on him not paying ASIC preorders back after ending the project? 

Tom stopped answering my emails since he started bASIC also CoinConnect (what I put a lot of work into) has been offline the same amount of time.  It was the fact I worked on CoinConnect and BFL-FPGA orders were taking so long that we went with Tom.  There was a time we was thinking of switching to bASIC but after our FPGA delays and investor advice we stuck out with BFL like we should have from the very beginning as we'd have FPGA's mining now.  Tho we did get full resale value for our FPGA's from Tom devices.

Have a lot of people lost out?

[BitcoinMint.US]

matthewh3,

What was your relationship with Tom that allowed you to order his FPGAs before the product was announced?  What are your thoughts on him not paying ASIC preorders back after ending the project? 

Tom stopped answering my emails since he started bASIC also CoinConnect (what I put a lot of work into) has been offline the same amount of time.  It was the fact I worked on CoinConnect and BFL-FPGA orders were taking so long that we went with Tom.  There was a time we was thinking of switching to bASIC but after our FPGA delays and investor advice we stuck out with BFL like we should have from the very beginning as we'd have FPGA's mining now.  Tho we did get full resale value for our FPGA's from Tom devices.

Have a lot of people lost out?

That doesn't answer either of my questions.

[matthewh3]

matthewh3,

What was your relationship with Tom that allowed you to order his FPGAs before the product was announced?  What are your thoughts on him not paying ASIC preorders back after ending the project? 

Tom stopped answering my emails since he started bASIC also CoinConnect (what I put a lot of work into) has been offline the same amount of time.  It was the fact I worked on CoinConnect and BFL-FPGA orders were taking so long that we went with Tom.  There was a time we was thinking of switching to bASIC but after our FPGA delays and investor advice we stuck out with BFL like we should have from the very beginning as we'd have FPGA's mining now.  Tho we did get full resale value for our FPGA's from Tom devices.

Have a lot of people lost out?

That doesn't answer either of my questions.

My relationship with Tom was I worked on CoinConnect for him.  He gave me a 10% stake to work on CoinConnect.  He knew of my RSM project and promised to beat BFL's delivery time with a better device and we took his promise.  Which didn't turn out true.  By the time we got our FPGA's off Tom BFL announced their ASIC.  So we sold our FPGA's some unboxed to guy in Germany for full value as he had no 20% VAT to pay.

Can you either pm me or start a new thread unless this affects RSM future.  Unless your trying to blow me as a scammer?  If so just double check with Inaba AKA Josh@BFL that he has three SC-Singles paid for to be hosted by him and anyone can check our BTC10.00 Pyramining ASIC deposit.

I've tried to contact Tom many times as he promised to hand over CoinConnect to me for all my work.  Which he didn't so I helped start - http://bitcoinhub.org/ - with another UK bitcoiner.  Again with the other party doing all the deving work with me doing everything else.

[BitcoinMint.US]

Unless your trying to blow me as a scammer?

It's "you're" and I'm definitely not trying to blow you.

[matthewh3]

Unless your trying to blow me as a scammer?

It's "you're" and I'm definitely not trying to blow you.

Yes I'm dyslexic and hard of hearing so have language problems that even spell-checkers don't pick up.  This is the RSM thread, either pm me or start a new thread and link me.  I've been on these forums over eighteen months and will reply.  To be true yes I'm also angry with Tom as I sweated my back out on CoinConnect for F-All and he won't even speak to me.  I've got his assistant Dave Carlson on my Gtalk if that helps and his hosting idea was actually mine.  To beat Josh@BFL as he also wouldn't answer emails or offer us P2Pool and/or merged-mining.  Tho either pm me or start a new thread as this is just spam.  I'm very close to most of the major investors in RSM and we are friends so they know plus can ask anything.

[matthewh3]

Unless your trying to blow me as a scammer?

It's "you're" and I'm definitely not trying to blow you.

Yes I'm dyslexic and hard of hearing so have language problems that even spell-checkers don't pick up.  This is the RSM thread, either pm me or start a new thread and link me.  I've been on these forums over eighteen months and will reply.  To be true yes I'm also angry with Tom as I sweated my back out on CoinConnect for F-All and he won't even speak to me.  I've got his assistant Dave Carlson on my Gtalk if that helps and his hosting idea was actually mine.  To beat Josh@BFL as he also wouldn't answer emails or offer us P2Pool and/or merged-mining.  Tho either pm me or start a new thread as this is just spam.  I'm very close to most of the major investors in RSM and we are friends so they know plus can ask anything.

I gave myself just over 3% of the initial share issue to run RSM and through my own investment I'm now the largest investor in this project with the most coins put in to loose.  I'm not going to throw my coins away and am hoping to build RSM into me making a full time living.  With the possible relocation to Iceland due to them having cheap 100% green renewable electricity plus good internet laws.  Or New Zealand (where its much sunnier) as they also have geothermal electricity.

[matthewh3]

http://bitcoinmagazine.com/bitcoin-developer-receives-first-butterfly-labs-asic

Bitcoin Developer Receives First Butterfly Labs ASIC



Bitcoin developer Luke Dashjr has reported that he received the first Butterfly Labs ASIC to reach the hands of consumers. The device is still far from full capacity, pushing out only 25 GH/s at a power consumption of 180 watts, but this is nevertheless the first definitive proof that Butterfly Labs is producing a legitimate product, and is not too far from finally releasing its first batch.

Butterfly Labs’ Josh Zerlan also recently provided updates on the state of Butterfly Labs’ production in an IRC channel. The core of the conversation is this:

BFL_Josh: Well guys, I had planned on updating everyone with a video of a board hashing here in KC tonight, but I haven’t been able to get that together yet, so I’m probably going to have to push it off until tomorrow. We are targeting a start of shipment next week, but I’m not quite ready to commit to that at the moment, given our past estimates. It’s imminent, though.
Lab_Rat: It hashes?
BFL_Josh: Yes, it hashes

Further down in the conversation, Zerlan provides the main reasons for the current delay. Zerlan writes: “We may miss our power targets, that’s been part of the hold up… we think there’s a problem with the power consumption and we’re trying to figure out where it’s having an issue … What’s causing even more consternation is the fact that the wafer we burned for tests runs at far less power than a second wafer we mounted on the BGA package… so it may be a wafer by wafer thing, and since we only have two datapoints, it’s hard to nail down the issue.” To many in the field, these difficulties are unsurprising; in mid-January, Avalon founder Yifu Guo wrote on the topic “recently they changed it to 1.2W, but they won’t even reach that. We ran 65nm simulations and they should be around 3W.” But to many of Butterfly Labs’ customers, who have now suffered from six months of delays, power consumption does not even matter; given that every extra day represents a lost opportunity for profit that will never come back, almost any level of power consumption is acceptable if it means that the devices will ship faster.

Butterfly Labs’ shipment has been awaited by the community for nearly ten months; the company was in fact the first to start accepting pre-orders in June 2012. Although the original shipping date was scheduled for October, the company suffered a number of delays that changed their expected shipping date first to late November, then early January, then mid-February and finally where it is today. In the meantime two other major ASIC producers, Avalon and ASICMiner, have also started hashing, and are partially responsible for raising the network hashpower from 20 TH/s to 55 TH/s over the past three months (the other contributing factor being the rapidly increasing BTC price). However, the community is still watching Butterfly Labs intently for one key reason: its potential hashpower. Although the output of Avalon and ASICMiner has been small, with Avalon’s first release being 20 TH/s and ASICMiner’s launch 12 TH/s, Butterfly Labs’ preorders altogether make up over 60 TH/s – more than is currently on the entire Bitcoin network.

For the security of the Bitcoin network, it is arguably quite fortunate that Butterfly Labs has been delayed by so much; if their machines had come any earlier, or even today, the company would have had access to more hashpower than the rest of the entire Bitcoin network put together, fundamentally compromising a key assumption of Bitcoin’s security. This threat was a major reason why Avalon founder Yifu Guo decided to go ahead with his project; “that was our main goal – we wanted to prevent this potential monopoly,” Guo wrote in a recent interview. However, it turned out that the major providers released in just the right order; Avalon started shipping their first, 20 TH/s, batch first on Jan 19, although all but two of their devices were delayed by many weeks after that date. ASICMiner started hashing on Feb 14, starting off with 2 TH/s and slowly ramping up over the past two months, and over these past two months hundreds of anonymous GPU miners turned on their hardware because of the increased mining profitability from Bitcoin’s rapidly growing price.

The rapidly rising Bitcoin price has been a massive boon to the Bitcoin mining industry in general. Since the beginning of the year, the Bitcoin price has risen from $13.3 to over $100, making mining extremely profitable for those lucky enough to have the hardware to do it. The fact that Bitcoin mining is now so heavily focused on specialized hardware compounds the advantage; while in 2010 or 2011 such price increases were quickly met with large numbers of off-the-shelf GPUs joining the network, now the most powerful miners are all specialized devices, and production takes months to compensate for the increased demand. When Jeff Garzik received Avalon’s first ASIC at the end of January, the device paid for itself in nine days, and its profitability since then has only increased. As a result, Avalon has raised the price on their third batch to 75 BTC, or $7,500, and has nevertheless sold a significant number of units. Because ASICMiner is not selling their hardware, instead selling shares and doing mining in-house, they can benefit from the increased value of their revenues directly. Notably, Butterfly Labs has not increased their prices, but even if they continue to keep their prices the same they will still benefit massively from increased sales.

In the next few months, Bitcoin network hashpower will only continue to increase. Avalon’s three shipments altogether will make up a total of 1500 units, or over 75 TH/s, and ASICMiner is planning 50 TH/s by the end of April, and 200 TH/s soon after. By the end of the year, ASICMiner’s friedcat writes on Bitcointalk, ASICMiner’s total hashpower may be as high as 1000 TH/s, and friedcat even adds that “some may say that 1,000TH/s at the end of this year is too conservative.”

http://bitcoinmagazine.com/bitcoin-developer-receives-first-butterfly-labs-asic

[filharvey]

So what are your bfl order numbers? Do you expect them in the first batch or months later? I very much doubt that they are coming for weeks, so u are still holding.

Phil

[matthewh3]

So what are your bfl order numbers? Do you expect them in the first batch or months later? I very much doubt that they are coming for weeks, so u are still holding.

Phil

Our first order was below 3,000 and our third order was below 10,000.  As Josh@BFL is hosting our ASIC's I believe we should be hashing pretty quick once they start shipping.  The first dividend no deductions will be taken for the reinvestment plan.  Plus the staff wages are not going to be deducted until after a full months hashing on all three boards.

I have bought into and increased my holdings with me now personally hold around ~25% of all tradable shares.  I plan on increasing my holdings further and will be using most if not all of my dividends to buy more shares in RSM.

BFL stated that everyone will receive the hashrate they ordered meaning we will get our 180(GH/s) even if it means they ship us more than the three units ordered.  I don't know if the increased electrical power usage will effect our hosting fees ($20 a SC-Single per month) or not.  Even at the increased power usage our boards will still be more efficient then Avalons.  Therefore we should get more life out of them.  Plus they have a lifetime warranty and again with our boards being hosted by Josh@BFL any problems should be sorted quickly.  As we don't have to wait for international shipping on receiving or possibly returning any faulty boards.

[bziubek]

Is there any expected date when the BFL should start shipping?

[matthewh3]

Is there any expected date when the BFL should start shipping?

They've stated they are going to start shipping Jalapeno's next week and maybe even a few to developers this week.  As that is the only model they have boards for that they can power ATM.  They state they will have the boards for the SC soon and they should start start shipping in a couple of weeks IIRC.  The chips are now rated to use a lot more electricity.  As Josh@BFL quoted us $20 a month for hosting each SC I don't know if he has revised this figure.  He has not stated so or contacted me about it.

[matthewh3]

What are investors ideas on selling our first pre-ordered SC for >BTC160.00.  Then we could pre-order another ten SC's and we'd still have two pre-orders from last summer coming.  Taking our hash rate to be delivered from 180(GH/s) to 680(GH/s).  With each share raising from 2.691991326(MH/s)per share to 10.169745009(MH/s)per share of pre-ordered ASIC's.  I've seen pre-order #1799 being offered for BTC190.00 and our first pre-order is within one-thousand of that.  Or should we hold out for our early pre-order.  As both ways have there advantages.

[arsenische]

What are investors ideas on selling our first pre-ordered SC for >BTC160.00.  Then we could pre-order another ten SC's and we'd still have two pre-orders from last summer coming.  Taking our hash rate to be delivered from 180(GH/s) to 680(GH/s).  With each share raising from 2.691991326(MH/s)per share to 10.169745009(MH/s)per share of pre-ordered ASIC's.  I've seen pre-order #1799 being offered for BTC190.00 and our first pre-order is within one-thousand of that.  Or should we hold out for our early pre-order.  As both ways have there advantages.

Probably a quote from bylaws answers your question:

Red Star Mining, a mining stock with strong +<90% reinvestment of profits into growth until such a time we are greater than 51% of the network and/or company staff can make a living wage off their RSM wages solely.

So it is not about taking short-term bucks while it is super-profitable. It is about establishing a long-term mining venture with as much mining power as possible. So probably the right way is to sell the pre-order and order more devices if possible.

[TheSwede75]

What are investors ideas on selling our first pre-ordered SC for >BTC160.00.  Then we could pre-order another ten SC's and we'd still have two pre-orders from last summer coming.  Taking our hash rate to be delivered from 180(GH/s) to 680(GH/s).  With each share raising from 2.691991326(MH/s)per share to 10.169745009(MH/s)per share of pre-ordered ASIC's.  I've seen pre-order #1799 being offered for BTC190.00 and our first pre-order is within one-thousand of that.  Or should we hold out for our early pre-order.  As both ways have there advantages.

I would even rather see you selling the pre order for BTC160.00 if give the chance and holding the money until you can order actual deliverables from ASICMINER (their blades in next auction or USB devices when available, should be any day).

[matthewh3]

What are investors ideas on selling our first pre-ordered SC for >BTC160.00.  Then we could pre-order another ten SC's and we'd still have two pre-orders from last summer coming.  Taking our hash rate to be delivered from 180(GH/s) to 680(GH/s).  With each share raising from 2.691991326(MH/s)per share to 10.169745009(MH/s)per share of pre-ordered ASIC's.  I've seen pre-order #1799 being offered for BTC190.00 and our first pre-order is within one-thousand of that.  Or should we hold out for our early pre-order.  As both ways have there advantages.

I would even rather see you selling the pre order for BTC160.00 if give the chance and holding the money until you can order actual deliverables from ASICMINER (their blades in next auction or USB devices when available, should be any day).

Yeah holding out for other hardware that will ship fast is a good idea.  Although once BFL start shipping SC's the lead time should start to come right down and we probably wont sell it until there shipping.  Doesn't BFL use the lowest 'nm' chip size, making them the lowest theoretical power usage and therefore longest usable life.  Plus aren't BFL the best (GH/s)/$ and they offer hosting.  So we don't have to worry about EU import taxes and space in my apartment.  Plus electricity is cheaper than the UK in the US even tho the UK probably has the cheapest electricity in the EU. 

BFL is the most efficient (GH/s)/W and the 50(GH/s) SC will need about 300W.  Meaning each SC will need its own wall plug socket.  You couldn't run a load on a plug board it would not be safe.  I can not get extra plug sockets fitted in my apartment.  This operation is going to be too big to run out of just my apartment.  We need them in a data centre.  It'd be good in the long term if we could get them in a data centre in Iceland.  As all there electricity is renewable and very cheap.  Iceland also has good Internet laws from what I can gather is and is/was where the Wikileaks server run/ran.  Although as we grow using multiple different data centres would be best from a downtime and other problems point of view.   

All investors ideas on the matter welcome.

[Dorpsgek]

I am all for selling, however the first miner will make most quick profit, I think once BFL will start shipping regularly they will ship out orders fast so the early start does not seem to make up for the hashing power * 9/10 in the long run.

For example:
Two months of mining @ 50gh/s at difficulty 14.000.000 = $14.500
Two months of mining @ 450gh/s at difficulty 140.000.000 = $13.000

Twelve months of mining @ 50gh/s at (average difficulty guesstimate) 50.000.000 = $ 21.000
Twelve months of mining @ 450gh/s at (average difficulty guesstimate) 140.000.000 = $ 64.000

[TheSwede75]

I am all for selling, however the first miner will make most quick profit, I think once BFL will start shipping regularly they will ship out orders fast so the early start does not seem to make up for the hashing power * 9/10 in the long run.

For example:
Two months of mining @ 50gh/s at difficulty 14.000.000 = $14.500
Two months of mining @ 450gh/s at difficulty 140.000.000 = $13.000

Twelve months of mining @ 50gh/s at (average difficulty guesstimate) 50.000.000 = $ 21.000
Twelve months of mining @ 450gh/s at (average difficulty guesstimate) 140.000.000 = $ 64.000

BFL will eventually ship, but ASICMINER are promising new ASICS (they delivered first batch) within the next 5 DAYS! Not sure if blades or USB miners but investing BTC160 in ASICMINER Asics that actually ship (and fast. Last batch had people reporting miners in hand in 4 days after auction close) will have us up and running much quicker. I also think that once BFL starts shipping SC's being order nr 1000 or 3000 won't matter THAT much when they get production ramped up.

Lets sell the first order for anything over BTC150 and invest in NOW delivery hash rate and bring on the 2 other SC when they deliver.