Blockchain Industries Discussion (former Bitcoin Brothers)


#1

Hi i just recived this news letter, sounds horribel for homemining. Any thoughts?

(Bitcoin Brothers Logo)

Newsletter #1
Berlin, 04 FEB 2015

Hello Everyone - from Bitcoin Brothers in Berlin!
Thank you for subscribing to our newsletter or entering your interest in mining capacity in our database after our first press release in November. We were astonished and happy to see over 700 petahash of capacity interest entered in the first week after the press release; by now it stands at over 1.6 exahash, and keeps rising.

This is our first newsletter and update, addressed to both groups, to keep you informed about how things are shaping up – and to give you some assurance some good things are happening, too!

Surely you followed the news about the recent temporary drop in Bitcoin value and its impact on mining operations on the blockchain around the globe. While it led to various shutdowns of pools and cloud miners, it also painfully illustrates the increasing need for efficient platforms still running profitably even at low margins and Bitcoin values well under $200.
Common sense has suggested it for a while: current mining hardware running the blockchain and their makers are a temporary solution, and will be replaced sooner rather than later. The demise of two more well-known 1st-generation mining hardware makers of standalone home-mining boxes confirms this trend, as well as the exit of various cloud mining operators.

Mining has now become a market for long-term investments in infrastructure, which benefits both miners and provides a scalable platform for the transaction growth of the blockchain — be it for Bitcoin, Internet-of-Things (IoT) authentication and communication, smart contracts, or many other applications.
We feel the current developments are an affirmation of where we are going with our MSEMs (Massive Super-Efficient Machines), their use, and our plans.
The blockchain needs reliable engines to sustain growth, and this infrastructure needs to run efficiently, meaning: lots of hashing power at low cost. We are building this infrastructure, and have a long-term vision for it.
We also believe in transparency, and not in “cloak & dagger” or “stealth modes” – as much as it is prudent for a business relying on breakthrough technology and a leadership gap in hardware solutions and business concepts. Both Bitcoin and the blockchain profit from open source and transparency – it is one of their main advantages, so we follow the same objective.
The services running on our MSEM supercomputers will bring you the best of two worlds: the cost advantage of the economies of scale (running huge machines in large datacenters sucking hundreds of megawatts), while also bringing true decentralization back to miners, without having to run their own equipment: you have full control over your slice of the blockchain!
We use a proven and reliable manufacturing process of large volume: think German Engineering and Efficiency, paired with the cost-efficient production in Asia. We apply the same concept to high-tech operations to run the business in daily operations.
We build our supercomputers, ASICs, and complimenting hardware with a well-established, successful global production line (of over 16 years) from design to full products, used by most German automakers for complex CPUs in their high-tech cars, by global players in the medical field (such as Siemens and GE), and others, producing over 275 million ASICs per year (i.e. over 5 million every week). The millions of our ASICs just add on top of that (256,000 per each MSEM). The same applies to the supporting hardware and components to make our supercomputers.
The lower the cost for us to build and provide the infrastructure, the lower the cost of mining is to you.
While we feel it is too early to announce any pricing or terms, yet, we can give you a ball-park number: you will be able to mine each Bitcoin for well under $100 each, and we are able to sustain this advantage against rising difficulty. More details to come as we get nearer to launch.
We continue to pursue our goals without distraction, and are well on our way:

  • to be the first company with 1 exahash on the blockchain,
  • making hashing a scalable and affordable commodity for rapid growth,
  • providing a solid, banking-grade secure, global blockchain infrastructure,
  • and distributing the control layer to millions of miners, pools, and transaction operators.

On the long run, we will provide you with “Tier-1” infrastructure for the blockchain, and expand into various crypto-security uses with our specialized ASICs.

In the short term: giving you by far the best deal for Bitcoin Mining without the risk of having to buy, own, and operate any hardware yourself.

Stay tuned for our next newsletter!
Many regards from Berlin,
Maik Welle
CEO
www.BitcoinBrothers.de
@BitcoinBrothers on Twitter

Read this Newsletter on our Web Site:
http://bitcoinbrothers.de/press-redirect/newsletter/newsletter-1


Official Bitmain & HashNest Thread
Official Bitmain & HashNest Thread
#2

Looking forward how this is going to work out. If they come through with this it would basically mean that they would take over the entire block-chain and shoot difficulty through the roof rendering all other hardware obsolete.


#3

(each Bitcoin for well under $100 each,)

So this means actually 3Ths mines 1 btc per month without electricity.
Actualy price of 3 ths is 900$

So they will offer 3ths for under 100$ that is crazy or?

Will this company kill bitcoin with they’re centralization?


#4

Are they selling yet? I’m on their mailing list and didn’t get anything.


#5

No not at the moment, but i belive in the next 1-2 monts they will start selling.
I just registered last month or so


#6

IF they are all they hype themselves, they will essentially make millions form their tech, because it will cost them next to nothing to mine BTC, and they will make the difficulty sky high, while reselling their hashing at a cost that can at best be said to be “calculated” at 66% of mining cost.

Currently you can mine a single BTC at around $155 if you have great hardware and cheap electricity. If what they say is true, its going to be interesting.

I don’t think they will just unleash all their power onto the network instantly, as it will destroy the coin and essentially make their millions of dollars of potential profit turn to nothing.


#7

KNC also announced they are coming out with a super efficient chip. From what I’ve read, both are getting it produced by TMSC. Apparently it’s the FINFET 16 and was supposed delayed. However, KNC has reached tape out.
http://www.creandum.com/accel-partners-invests-in-kncminer-16nm-tape-out-completed/


#8

nice for KNC but they don’t sell any more they’re hardware, and they’re cloud is just for non EU citizens,or i am wrong?


#9

I don’t know if KNC’s cloud is just for non EU citizens or everyone. I am a N. American and haven’t bought anything from KNC ever because my calculator always says there’s no ROI with them…i mean for hardware in the past and cloud mining now.

The problem i see is they and Bitcoin BROS will be adding heavy downward pressure on btc value when their new hardware comes online.


#10

Yepp, for some reason their cloud is not open to residents of the EU.

[quote=“ATCkit, post:9, topic:1003”]
The problem i see is they and Bitcoin BROS will be adding heavy downward pressure on btc value when their new hardware comes online.[/quote]

When and if… Right now they are closing in on missing the initial Q1 deadline announced in Q4 2014.


#11

Exactly. Also, Someone else pointed out in another thread that TMSC is quite delayed with the FIN FET16 chip. Apparently, Qualcomm went to a competitor as a result.
So i was quite confused with KNC’s latest announcement about tapeout and Bitcoin Bros saying they are on track. My bet is that we don’t see anything from either of them until Autumn if not later. So i felt safe to go ahead and buy some Get Hashing mining shares. I have not bought cloud mining from anyone else since early December. I feel the Get Hashing deal is the safest one right now.


#12

I still hope that these things will not come true. If they do I am really afraid that everything will be over… :open_mouth:


#13

It really depends imho. The immediate impact would be certainly absolutely insane and there is 1,000 things to consider that are immediately affected. Bringing so much power online is not like forking the coin or a 51% attack, it’s more like a hostile take-over LOL.

I’m still not confident that I have a grasp on the effect it would have on bitcoin as a whole. It’s obvious would it would mean to mining, manufacturers that can’t compete and other parts of the industry but the actual effect it would have on BTC isn’t clear to me yet. I’m also not sure yet what it would mean for the altcoin world and other algos. There is just so much to consider.

6 PH per super-computer is just crazy.


#14

I just love the Germans and how they go about things in general. :smiley: I lived over 8.5 years in Germany, and loved every second of it. I only hope to return there permanently one day. I hope their venture comes online soon, as BTC can surely use the power on the blockchain. What most Bitcoiners will argue is that BBs will be an inherent threat to the decentralized nature of Bitcoin. I agree that hashing power is the key component to a 51% issue, and they will surely have a sizable percentage of the overall Bitcoin hashing base, but with all of the other “First Gen” DCs going offline, this was eventually going to happen anyway. The inherent nature of Bitcoin precludes continued profitability based on the ever-increasing difficulty rate.

As I have stated in the past, mining the last Bitcoin will be economically improbable, because the value of the coin against the cost to produce will be economically disadvantageous.

I should really check out their website again, as it has been a while.

Good post.


#15

It will have the effect of industrializing the coin. I believe, under the current environment, that it will be a good thing for BTC. There needs to be a change in how this coin is created and how it is used. The present creation methodology is too inefficient, making the process increasingly more expensive. In my opinion, the wildcat days of mining by the little miners are invariably over. I think we were seeing that on Zencloud with the Genesis miners. The value of hosting hardware, when it actually exists, brings a greater degree of efficiencies to mining, utilizing economies of scale that reduce per unit power costs. Since the main industry has failed to produce ultra-low power consumption mining units, mitigating the main cost of mining, electricity costs, the only path left is the industrial approach. When they sell mining capacity on their system, BBs, they are accelerating their own cost recovery process, while leaving a significant portion of the system to mine strictly for their own benefit.

The concern for BTC valuation effects is realistic. But what should the real value of BTC be? I personally do not believe that BTC should be worth $1,000 because there is no broad adoption of the coin as yet developed. Until there can be a real-world application of the coin, that would generate broad-based adoption, the current values are still probably over-inflated.


#16

Until they actually have some H/W and can deliver hashing power I’d mark them as interesting. No way would I buy any hashing power until they prove themselves in the marketplace.


#17

In the long term yes, what means this for the long term, we play now with bitcoins our uhr uhr enkel will play with satoshis.

Sorry for my gramatic :smile::v:


#18

I recently spoke to one of the manufacturers and asked him what is take was on Bitcoin Brothers since I wanted to know if any of the other manufacturers has any concerns about BB and how their advertised super-miners would affect them. His reply was:

What can I say about Bitcoin Brothers? Building a Bitcoin mining rig requires capital and excellent engineering. Very few companies were able to acquire both and execute properly within schedule. Whether they have all three or not is anyone’s guess, I can just say that there’s no magic here, just good old fashion engineering.

I other words. Bitcoin Brothers are not the only ones that will bring next generation hardware to the market, they just seem to be the most vocal ones about it. Since the company has an “Investors” section on their website my guess would be that the other companies are on the same level or not far behind.


#19

It is always worth what you, me and antothers belive it should be worth in relation to fiat.

But 1 btc is 1 btc…

But Finaly it depends on in which currency, you collect you’re egg’s :stuck_out_tongue_winking_eye::stuck_out_tongue_winking_eye::stuck_out_tongue_winking_eye:

It is always, from the point of view, as an miner you want to breake evean or to reach an good profit. Investment value is always in fiat but you earn btc so chicken and egg problem , for exampel.

If somebody told the poor guy which spent over 10k btc for 1 simple pizza, that his action is crazy, from actual fiat value, maybe, he wouldn’t order this expensive pizzaa? Or?
It is always the point of view.
At that time i am 100% sure that guy was amazing/ fascinated for the possibility/option to buy an pizza with crypto currency. For him, and the brc movement, it was an big step for adoption, and surely he and other belivers was exited about the forward step and adoption posibiltiy, to be an part of something big- somthing bigger than an human person could be.

Also the biggest blockchain transaction was over
500 000 bitcoins, at that time it had an value of
50k$ , today it would be worth 133 000 000$.

As i said before, it is always the point of view.

We play today with btc, next generation will play with satoshis :wink:

Just think about it.

Sorry for my grammer and thank you :smiley::v:


#20

No problem. Uhr uhr Enkel = Great great grandson. :wink: