Are Butterfly Labs One Big Scam (Bitcoin Miners)?

Are Butterfly Labs A Scam?

  • Yes

    Votes: 20 74.1%

  • No

    Votes: 7 25.9%
  • Total voters
    27
swiftmoney

swiftmoney

∞
Sep 14, 2011
999
8
0
OK, by now everyone on here has probably been in the Bitcoin threads recently or read about them in a recent publication.

If you are looking to get into mining you will most definitely have come across ButterflyLabs. BF Labs have been selling "pre-orders" since June 2012 and have yet to ship one fucking machine. To me this seems like complete bullshit but people are still buying them.
The thing that really gets me is the fact that the earliest shipping date that they ever provide is 3 months in the future, meaning if you paid via Paypal you cannot dispute the transaction. If you are unlucky enough to buy via Bank transfer or BTC then you are well and truly fucked.
Last but not least. If these guys had the capabilities to manufacture these machines, why would they release them to the public. One of their old 60GH/s miner would produce $30k/month and yet they were selling it for just $1300, WTF???!!!
To top it all off with a nice big fat cheery on top, the fuckers and dipped the spec of the machines and doubled the price. All this without even shipping a single fucking thing!! :thefinger:

I think a better question would be, is there anyone out there that doesn't think that this is a scam?

Thoughts please.
 


From what I read about what you posted it does sound like a scam. I don't get the whole bitcoin mining thing but that's probably for a different post. Where are they based out if?
 
10770 El Monte, Leawood, KS 66211 United States of America

Thats the address that they provide. Don't know if thats legit or not.
 
SHGDigitalMedia said:
If they are at the address you listed then they could be subject to both criminal and civil lawsuits
Click to expand...

After reading a few forums apparently the owner has been in prison for similar offences. Again I cannot verify this but I believe it to be true based on all of the evidence that is available.
 
Kinda OT, but I'm looking at the Avalon units and they're 72.36 BTC. To me that's just funny. I wouldn't pay $14k USD for a btc mining rig.
 
mx=headroom said:
Didn't lukep live in Kansas prior to heading overseas?
Click to expand...

It all makes sense now.

Lukep creates bitcoin. Gets in on the ground floor. Starts Silk Road for the fast/easy money and to create early adoption. Starts gambling sites. Starts bitcoin forum.

Creates MTGox.

Begins widespread promotion of bitcoin. Manipulates public into artificial buying frenzy. Creates demand for mining hardware. Takes pre-orders. Flees to Thailand.

Hosts bitcoin blog on Wordpress.com to throw us off his trail.

He's created his own artificially inflated money supply, a drug cartel, a casino empire, a currency exchange and an entire market for overpriced computer hardware.

Mother of God.

Lukep owns the internet.

Waiting for enlightened members thread/WSO.
 
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Build your own parallel computing processing rigs.

If you can mine @ 2ghps+, you can mine profitably.

BitMinter - Bitcoin made easy! - Install this miner and run it on your computer. A decent gaming desktop should mine with GPU at around 1-500 mhps. Now get 4-5 of your local friends mining on the same account, you can reach 2 ghps easily and mine .10-.30 BTC per day. Daily payout.
 
I will not confirm nor deny any accusations of me owning the internet at this time.


I will say that I had a friend who still lives in KS drive by BFL HQ and he said it looks completely legit from the outside... They spent a lot on a Neon sign in the lobby.

I still think they are scamming, however. WAY too many fishy chunks of evidence about them, such as one of the founders having a history of trouble with the law, (Scamming) and their "working model" that they "Shipped" was never a finished model and never actually shipped... Although they did get a bigtime Dev there (named Luke-Jr, no relation) to vouch for them and say that he has it. (When he was in Australia and only saw it when visiting Kansas, choosing to leave it behind and connect to it remotely.)

If I were still in town, I'd drive by and give them a surprise visit... Perhaps bring a cop with me if they don't want to show me their production.
 
(O_o) said:
Build your own parallel computing processing rigs.

If you can mine @ 2ghps+, you can mine profitably.

BitMinter - Bitcoin made easy! - Install this miner and run it on your computer. A decent gaming desktop should mine with GPU at around 1-500 mhps. Now get 4-5 of your local friends mining on the same account, you can reach 2 ghps easily and mine .10-.30 BTC per day. Daily payout.
Click to expand...

As a matter of fact. I am going to install this and see what my trading computer can do. I dropped some serious dollars for its components. I'll post results later guess.
 
They had major die problems with their ASICs.

I talked to a guy who actually designs them and he said that when you build a ASIC system like BFL and Avalon, one screwup in the design phase will require completely new die fabs. This is what has happened to BFL and they are having MAJOR die problems right now.

Some people have got their systems, not too many though and they are also reporting that their systems are much slower than BFL stated they would be (Along with higher power consumption).
 
6RDr4d4.png


:(

Fuck this shit. At current market price is almost $4 per day. lol
 
lukep said:
Step up yo game son:

m4IBQGY.jpg



^I made this one rig from scratch with about $1400 worth of parts.
Click to expand...

What are the other 2 cards there Luke?

I just installed after seeing MGruninn's shot out of curiosity. I'm doing about 150mhs on my GPU. I've got room for more cards though. At $20+ a day it'd be worth leaving on.

Edit: Just Googled. Found $3,600 GPU's. Yikes.
 
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