Why Butterfly Labs (BFL) might be a Ponzi scheme

rograz

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Quote from: Vexual on April 27, 2013, 07:21:53 AM

Quote from: MPOE-PR on April 27, 2013, 03:38:57 AM

Quote from: darkmule on April 26, 2013, 06:34:31 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

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Quote from: MPOE-PR on April 27, 2013, 03:38:57 AM

Quote from: darkmule on April 26, 2013, 06:34:31 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

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Quote from: darkmule on April 26, 2013, 06:34:31 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

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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

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

It annoys me.

MPOE-PR

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Quote from: Minor Miner on April 26, 2013, 09:01:23 AM

Quote from: MPOE-PR on April 26, 2013, 07:24:27 AM

Quote from: Minor Miner on April 25, 2013, 01:32:47 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

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Quote from: MPOE-PR on April 26, 2013, 07:24:27 AM

Quote from: Minor Miner on April 25, 2013, 01:32:47 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

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Quote from: Minor Miner on April 25, 2013, 01:32:47 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

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Be A Digital Miner

Quote from: Phinnaeus Gage on April 24, 2013, 09:52:23 PM

Quote from: Luno on April 24, 2013, 03:06:08 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

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Quote from: Phinnaeus Gage on April 25, 2013, 04:23:48 AM

Quote from: mojod on April 24, 2013, 11:16:47 PM

Quote from: Phinnaeus Gage on April 24, 2013, 09:52:23 PM

Quote from: Luno on April 24, 2013, 03:06:08 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

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Quote from: mojod on April 24, 2013, 11:16:47 PM

Quote from: Phinnaeus Gage on April 24, 2013, 09:52:23 PM

Quote from: Luno on April 24, 2013, 03:06:08 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

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Quote from: Phinnaeus Gage on April 24, 2013, 09:52:23 PM

Quote from: Luno on April 24, 2013, 03:06:08 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

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Activity: 1918

Merit: 1570

Bitcoin: An Idea Worth Spending

Quote from: Luno on April 24, 2013, 03:06:08 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

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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

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Bitcoin: An Idea Worth Spending

Quote from: minternj on April 24, 2013, 10:11:28 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

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Quote from: minternj on April 24, 2013, 10:11:28 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

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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

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Quote from: crazyquark on April 24, 2013, 08:39:33 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

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Quote from: crazyquark on April 24, 2013, 08:39:33 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, 08:39:33 AM

Can you link that wired article?

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

crazyquark

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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 6846 times)