Why Butterfly Labs (BFL) might be a Ponzi scheme

rograz

hero member

Activity: 575

Merit: 500

Quote from: Vexual on April 27, 2013, 08:21:53 AM

Quote from: MPOE-PR on April 27, 2013, 04:38:57 AM

Quote from: darkmule on April 26, 2013, 07:34:31 PM

It's idiotic. A Ponzi is a very specific kind of scam. People keep just randomly calling every goddamn thing they think is shady a Ponzi. Words have meanings, people.

At least it marks someone as a person whose opinion can safely be ignored when they cluelessly throw around words like that.

Warning, this may be a ponzi post.

Wow I want in too! Warning, this may be a ponzi post.

Vexual

full member

Activity: 196

Merit: 100

Quote from: MPOE-PR on April 27, 2013, 04:38:57 AM

Quote from: darkmule on April 26, 2013, 07:34:31 PM

It's idiotic. A Ponzi is a very specific kind of scam. People keep just randomly calling every goddamn thing they think is shady a Ponzi. Words have meanings, people.

At least it marks someone as a person whose opinion can safely be ignored when they cluelessly throw around words like that.

Warning, this may be a ponzi post.

MPOE-PR

hero member

Activity: 756

Merit: 522

Quote from: darkmule on April 26, 2013, 07:34:31 PM

It's idiotic. A Ponzi is a very specific kind of scam. People keep just randomly calling every goddamn thing they think is shady a Ponzi. Words have meanings, people.

At least it marks someone as a person whose opinion can safely be ignored when they cluelessly throw around words like that.

Warning, this may be a ponzi post.

darkmule

legendary

Activity: 1176

Merit: 1005

It's idiotic. A Ponzi is a very specific kind of scam. People keep just randomly calling every goddamn thing they think is shady a Ponzi. Words have meanings, people.

At least it marks someone as a person whose opinion can safely be ignored when they cluelessly throw around words like that.

odolvlobo

legendary

Activity: 4438

Merit: 3387

Again somebody calling something a Ponzi scheme without even knowing what a Ponzi scheme is.

It annoys me.

MPOE-PR

hero member

Activity: 756

Merit: 522

Quote from: Minor Miner on April 26, 2013, 10:01:23 AM

Quote from: MPOE-PR on April 26, 2013, 08:24:27 AM

Quote from: Minor Miner on April 25, 2013, 02:32:47 PM

Well they sent one over to Wired for him to review, why not just email the reporter all your concerns and let him do the job he is paid to do and investigate?

Paid by whom?

The reporter that is reviewing the product is on WIRED's (it is a magazine) payroll. He is not a freelancer.

Cool story bro.

Minor Miner

legendary

Activity: 2380

Merit: 1019

Be A Digital Miner

Quote from: MPOE-PR on April 26, 2013, 08:24:27 AM

Quote from: Minor Miner on April 25, 2013, 02:32:47 PM

Well they sent one over to Wired for him to review, why not just email the reporter all your concerns and let him do the job he is paid to do and investigate?

Paid by whom?

The reporter that is reviewing the product is on WIRED's (it is a magazine) payroll. He is not a freelancer.

MPOE-PR

hero member

Activity: 756

Merit: 522

Quote from: Minor Miner on April 25, 2013, 02:32:47 PM

Well they sent one over to Wired for him to review, why not just email the reporter all your concerns and let him do the job he is paid to do and investigate?

Paid by whom?

Minor Miner

legendary

Activity: 2380

Merit: 1019

Be A Digital Miner

Quote from: Phinnaeus Gage on April 24, 2013, 10:52:23 PM

Quote from: Luno on April 24, 2013, 04:06:08 PM

Their latest picture of the Jalapeño boxes on a trolley is sad in the sense that they have wasted time and money putting nice graphics on them. Like taking an expensive empty machined housing with fans to an electronics fair!

I'm willing to bet that the graphics on the boxes for the now defunct MiniRigs is totally awesome.

I'm curious as to what the content consist of on the Jalapeno's boxes.

I'm also curious as to what the UL, FCC, and CE labels look like attached to machines not sent out as dev units. I'm sure those look awesome as hell.

I just checked again the FCC website, and still nothing resembling BFL, or the like, has grace their labs.

Amazing how I can get an SR22 for three years because a woman falsely claims I pulled out in front her, yet a felon is able to continue breaking the law without suffering any repercussions.

Well they sent one over to Wired for him to review, why not just email the reporter all your concerns and let him do the job he is paid to do and investigate?

mojod

newbie

Activity: 15

Merit: 0

Quote from: Phinnaeus Gage on April 25, 2013, 05:23:48 AM

Quote from: mojod on April 25, 2013, 12:16:47 AM

Quote from: Phinnaeus Gage on April 24, 2013, 10:52:23 PM

Quote from: Luno on April 24, 2013, 04:06:08 PM

Their latest picture of the Jalapeño boxes on a trolley is sad in the sense that they have wasted time and money putting nice graphics on them. Like taking an expensive empty machined housing with fans to an electronics fair!

I'm willing to bet that the graphics on the boxes for the now defunct MiniRigs is totally awesome.

I'm curious as to what the content consist of on the Jalapeno's boxes.

I'm also curious as to what the UL, FCC, and CE labels look like attached to machines not sent out as dev units. I'm sure those look awesome as hell.

I just checked again the FCC website, and still nothing resembling BFL, or the like, has grace their labs.

Amazing how I can get an SR22 for three years because a woman falsely claims I pulled out in front her, yet a felon is able to continue breaking the law without suffering any repercussions.

https://plus.google.com/u/0/photos/110174663470490530041/albums/5870611557972117729

Completely absent. Now you can call the FCC ID police on them.

To be fair, I'll consider the dev units may not need them, albeit possibly a grey area in the eyes of the FCC, but nevertheless.

But as soon as one regular customer shows similar images of their unit sans labels, I'll make contact with the FCC and show the best proof possible that I did such.

And on that day I will call you a boner biter.

Phinnaeus Gage

legendary

Activity: 1918

Merit: 1570

Bitcoin: An Idea Worth Spending

Quote from: mojod on April 25, 2013, 12:16:47 AM

Quote from: Phinnaeus Gage on April 24, 2013, 10:52:23 PM

Quote from: Luno on April 24, 2013, 04:06:08 PM

Their latest picture of the Jalapeño boxes on a trolley is sad in the sense that they have wasted time and money putting nice graphics on them. Like taking an expensive empty machined housing with fans to an electronics fair!

I'm willing to bet that the graphics on the boxes for the now defunct MiniRigs is totally awesome.

I'm curious as to what the content consist of on the Jalapeno's boxes.

I'm also curious as to what the UL, FCC, and CE labels look like attached to machines not sent out as dev units. I'm sure those look awesome as hell.

I just checked again the FCC website, and still nothing resembling BFL, or the like, has grace their labs.

Amazing how I can get an SR22 for three years because a woman falsely claims I pulled out in front her, yet a felon is able to continue breaking the law without suffering any repercussions.

https://plus.google.com/u/0/photos/110174663470490530041/albums/5870611557972117729

Completely absent. Now you can call the FCC ID police on them.

To be fair, I'll consider the dev units may not need them, albeit possibly a grey area in the eyes of the FCC, but nevertheless.

But as soon as one regular customer shows similar images of their unit sans labels, I'll make contact with the FCC and show the best proof possible that I did such.

mojod

newbie

Activity: 15

Merit: 0

Quote from: Phinnaeus Gage on April 24, 2013, 10:52:23 PM

Quote from: Luno on April 24, 2013, 04:06:08 PM

Their latest picture of the Jalapeño boxes on a trolley is sad in the sense that they have wasted time and money putting nice graphics on them. Like taking an expensive empty machined housing with fans to an electronics fair!

I'm willing to bet that the graphics on the boxes for the now defunct MiniRigs is totally awesome.

I'm curious as to what the content consist of on the Jalapeno's boxes.

I'm also curious as to what the UL, FCC, and CE labels look like attached to machines not sent out as dev units. I'm sure those look awesome as hell.

I just checked again the FCC website, and still nothing resembling BFL, or the like, has grace their labs.

Amazing how I can get an SR22 for three years because a woman falsely claims I pulled out in front her, yet a felon is able to continue breaking the law without suffering any repercussions.

https://plus.google.com/u/0/photos/110174663470490530041/albums/5870611557972117729

Completely absent. Now you can call the FCC ID police on them.

Phinnaeus Gage

legendary

Activity: 1918

Merit: 1570

Bitcoin: An Idea Worth Spending

Quote from: Luno on April 24, 2013, 04:06:08 PM

Their latest picture of the Jalapeño boxes on a trolley is sad in the sense that they have wasted time and money putting nice graphics on them. Like taking an expensive empty machined housing with fans to an electronics fair!

I'm willing to bet that the graphics on the boxes for the now defunct MiniRigs is totally awesome.

I'm curious as to what the content consist of on the Jalapeno's boxes.

I'm also curious as to what the UL, FCC, and CE labels look like attached to machines not sent out as dev units. I'm sure those look awesome as hell.

I just checked again the FCC website, and still nothing resembling BFL, or the like, has grace their labs.

Amazing how I can get an SR22 for three years because a woman falsely claims I pulled out in front her, yet a felon is able to continue breaking the law without suffering any repercussions.

Luno

sr. member

Activity: 504

Merit: 250

Their latest picture of the Jalapeño boxes on a trolley is sad in the sense that they have wasted time and money putting nice graphics on them. Like taking an expensive empty machined housing with fans to an electronics fair!

Phinnaeus Gage

legendary

Activity: 1918

Merit: 1570

Bitcoin: An Idea Worth Spending

Quote from: minternj on April 24, 2013, 11:11:28 AM

When i woke up i said to myself i wish someone would post another bfl is a scam thread. And hey i got my wish.

It's called "Keeping up with the Avalons".

Which begs the question, how long before BFL starts selling only the chips?

centove

full member

Activity: 194

Merit: 100

Quote from: minternj on April 24, 2013, 11:11:28 AM

When i woke up i said to myself i wish someone would post another bfl is a scam thread. And hey i got my wish.

Kinda a no brainer? Other easily fulfilled wishes.. I wish someone would post yet another 'bit coin is gonna crash' or 'Bitcoin is flawed!'

minternj

sr. member

Activity: 434

Merit: 250

When i woke up i said to myself i wish someone would post another bfl is a scam thread. And hey i got my wish.

maqifrnswa

sr. member

Activity: 454

Merit: 252

Quote from: crazyquark on April 24, 2013, 09:39:33 AM

Understood. But do you think they will be able to cover their production costs while shipping all the requested units?
Can you link that wired article?

It think your estimates are a bit off in the original post:

The marginal cost of each chip is probably ~$1-5. They PCB boards, assembled, are probably $20-30. Enclosures, $10-20. Power supply, fans = $10-20. Box = $1-5.

So a Jally cost around $60 to make (marginal cost, probably throw some assembly labor on that as well). They are selling for $274. Their profit margin might be around 400-500% per jally. The cost of making the little single/single is only slightly more (orders of 10s to 200 dollars but they charge 1000 more) - so you can see close to 1000% profit margins. That's what they can use the recoup their initial investment

Wepp

newbie

Activity: 48

Merit: 0

Quote from: crazyquark on April 24, 2013, 09:39:33 AM

Understood. But do you think they will be able to cover their production costs while shipping all the requested units?

No idea beyond speculation at this point.

Quote from: crazyquark on April 24, 2013, 09:39:33 AM

Can you link that wired article?

Sure! Here it is:
http://www.wired.com/wiredenterprise/2013/04/bitcoin-mining-rigs/

crazyquark

newbie

Activity: 13

Merit: 0

Understood. But do you think they will be able to cover their production costs while shipping all the requested units?
Can you link that wired article?

Topic: Why Butterfly Labs (BFL) might be a Ponzi scheme (Read 6837 times)