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Topic: BFL Labs just like Get-rich-quick-schemes - page 3. (Read 5128 times)

legendary
Activity: 2492
Merit: 1473
LEALANA Bitcoin Grim Reaper
This question of "why dont you just mine instead of selling?" is answered by (paraphrasing) "we don't mine, we are hardware enthusiasts and this is what we do".

I will believe the product when I see it. And if I am wrong and they do deliver, then they are retarded for selling their secret.

Legitimately, these would need to be "burned in" by mining.  So they can do a little of both -- mine some for themselves (while difficulty is low).

Watch for shipments to be timed right at each difficulty adjustment.  (e.g., mine before the difficulty change, then ship, then start the prep for the next batch for shipment 2,106 blocks later).

But they probably could never get the investment funding necessary to design and build these if they weren't pre-selling.  So even though this route does leave potential profit on the table (from not mining themselves), it does allow them to not just remain in the mining hardware vendor space but to remain the leader.



Private funding allows for them to get these manufactured. less people in on the pie means bigger pie for you.

I guess we should be "thankful" they are wanting to "share" their creation(s) with all of us.
legendary
Activity: 2506
Merit: 1010
This question of "why dont you just mine instead of selling?" is answered by (paraphrasing) "we don't mine, we are hardware enthusiasts and this is what we do".

I will believe the product when I see it. And if I am wrong and they do deliver, then they are retarded for selling their secret.

Legitimately, these would need to be "burned in" by mining.  So they can do a little of both -- mine some for themselves (while difficulty is low).

Watch for shipments to be timed right at each difficulty adjustment.  (e.g., mine before the difficulty change, then ship, then start the prep for the next batch for shipment 2,106 blocks later).

But they probably could never get the investment funding necessary to design and build these if they weren't pre-selling.  So even though this route does leave potential profit on the table (from not mining themselves), it does allow them to not just remain in the mining hardware vendor space but to remain the leader.
legendary
Activity: 2492
Merit: 1473
LEALANA Bitcoin Grim Reaper
That makes sense...but still getting private funding without making a public ruckus would still net them a HUGE advantage over the rest of the market.
sr. member
Activity: 336
Merit: 250
I was under the impression that they are only able to afford production because of all the pre-orders.
legendary
Activity: 2492
Merit: 1473
LEALANA Bitcoin Grim Reaper
Butterfly labs are essentially doing the same thing that say day trading "get-rich-quick-schemes" do. They sell a product to help you make more money or in this case "mine more coins" with "1000 GH.s"...when they could easily use it to their advantage and keep a hold on the "secret".

The same question gets asked about forex software trading robots/software that are going to make you a ton of money, yet the creator of the software is selling it to you instead of just using it themselves.

BFL is doing the same. They have claimed to have created a product that can do "1000 GH/s" and are selling it for $30,000 when they could easily keep their secret to themselves and create just 5 rigs like that and make bank on bitcoins for the LONG-TERM!

This question of "why dont you just mine instead of selling?" is answered by (paraphrasing) "we don't mine, we are hardware enthusiasts and this is what we do".

I will believe the product when I see it. And if I am wrong and they do deliver, then they are retarded for selling their secret.

 Grin Grin Grin
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