Investigative Reporting, or just being an douche?

[The_PHA]

Mixed feelings on this. Micon looks to be a douche by approaching this booth for no reason, but that ensemble of equipment looks to be a fucking piece of shit. Tough call. Not seeing the equipment firsthand its tough to make a firm judgment.

Not sure why people go around unshaven in public wearing metal coins, but that is not relevant in the grand scheme of things.

Que to 2:20 if you don't want to see the prelude. A little douchy the whole quarter thing, although not sure what led up to it.

[anonamoose]

that first guy gets all the internets

[vegas1369]

What was that you were saying about "no interest threads" just last week?

In case you need a reminder.

http://pokerfraudalert.com/forum/sho...l=1#post118491

Douche.

[BetCheckBet]

Micon incapable of being objective. Its so LOL that he is trying to portray the image of bitcoin sheriff. Theguy is one of the biggest slimeballs in poker and well known for his shadiness.

Funny enough I came across about a thread Micon is making and somebody referenced PFA LOL

https://bitcointalk.org/index.php?PH...topic=136392.0

from the thread

Top 10 Reasons why Bryan Micon is a Piece of Shit Scumbag (link to PFA thread)

found that while on Google

[RichardBrodiesCombover.]

So you have posted on The PHA/ The_PHA/ Riboflavin/ Robbiebensonfan/ Bottomset/ Bottomset316/ and Bottomset69. Did you get drunk and forget your passwords again?

[Muck Ficon]

So you have posted on The PHA/ The_PHA/ Riboflavin/ Robbiebensonfan/ Bottomset/ Bottomset316/ and Bottomset69. Did you get drunk and forget your passwords again?

Todd, how many accounts are you going to let this faggot have?

[WillieMcFML]

https://bitcointalk.org/index.php?to...237#msg1453237

hof comment

This thread would have much more traction if you'd stop plastering your name all over it like you're a telemarketer announcing the newest "TV Shopping Bitcoin Minirigs for YOUR HomeTM Buy one, get none."

sftrue, this was the title of the thread"

Bryan Micon's Butterfly Labs Scammer Investigation including Josh Zerlan


he really is the shamwow guy

[Mad Dad]

I checked into this a bit. Here's how I figured it.

Apprently bitcoins - which are actually nothing more than bits and bytes on a computer are created by running a computer program called a mining program and apparently bitcoins that are created in this way have value and can be used to buy stuff and to gamble. You can run the mining program on pretty much any computer and every once in a while, out pops a bitcoin. But what it you run the program on a super computer? So now, some clever people are designing very special purpose computers (ASICS) to do the mining. The special custom chips are being manufactured in China - you know - where they make the Apple iPhones and such. Now a bunch of people can't wait to get their hands on these printing presses for digital money, and some people have pre-ordered / pre-paid for these machines and are somewhat patiently waiting for them to be delivered - having paid anywhere from $1,299 to $30,000 - depending on the size of the machine. The $1,299 machine is about the size of Mac Mini (if you remember these) or a Boxxee Box, Roku Box (6 x 6 x 2in), and the $30K machine is about the size of a mini bar fridge. None have actually delivered yet, but one of the three companies says they will be delivering in the next few days. This other company BFL, the company that is the subject of this video, with the black box with fans, said they were going to deliver months ago and people are still waiting.

The interesting thing I found is how the cost of electricity factors into this. You see it takes electricity to run these special computer machines, and they run 7é24 and they run hot and consume a significant amount of electricity. Also, apparently, it gets harder to mine bitcoins, the more mining capacity exists. So there is a formula for determining how profitable / ROI of these machines, based on the initial cost, the cost of electricity per kW hour, and the time it takes to create a new bitcoin.

[The_PHA]

I checked into this a bit. Here's how I figured it.

Apprently bitcoins - which are actually nothing more than bits and bytes on a computer are created by running a computer program called a mining program and apparently bitcoins that are created in this way have value and can be used to buy stuff and to gamble. You can run the mining program on pretty much any computer and every once in a while, out pops a bitcoin. But what it you run the program on a super computer? So now, some clever people are designing very special purpose computers (ASICS) to do the mining. The special custom chips are being manufactured in China - you know - where they make the Apple iPhones and such. Now a bunch of people can't wait to get their hands on these printing presses for digital money, and some people have pre-ordered / pre-paid for these machines and are somewhat patiently waiting for them to be delivered - having paid anywhere from $1,299 to $30,000 - depending on the size of the machine. The $1,299 machine is about the size of Mac Mini (if you remember these) or a Boxxee Box, Roku Box (6 x 6 x 2in), and the $30K machine is about the size of a mini bar fridge. None have actually delivered yet, but one of the three companies says they will be delivering in the next few days. This other company BFL, the company that is the subject of this video, with the black box with fans, said they were going to deliver months ago and people are still waiting.

The interesting thing I found is how the cost of electricity factors into this. You see it takes electricity to run these special computer machines, and they run 7é24 and they run hot and consume a significant amount of electricity. Also, apparently, it gets harder to mine bitcoins, the more mining capacity exists. So there is a formula for determining how profitable / ROI of these machines, based on the initial cost, the cost of electricity per kW hour, and the time it takes to create a new bitcoin.

Micon does have a pretty ballin set up below, and the transfer technology is very cool, the below video is actually pretty cool. I just don't get the bitcoin technology. Micon says in the video that 1 bitcoin is worth $13. However since the bitcoin is not backed by any government, I can't see how it has any intrinsic value. Plus, are bitcoins even legal, I don't think the Federal Reserve or Treasury, wants USD traded openly for currency not backed by a government. It sounds to be some type of electronic counterfeiting scheme.

[simpdog]

I checked into this a bit. Here's how I figured it.

Apprently bitcoins - which are actually nothing more than bits and bytes on a computer are created by running a computer program called a mining program and apparently bitcoins that are created in this way have value and can be used to buy stuff and to gamble. You can run the mining program on pretty much any computer and every once in a while, out pops a bitcoin. But what it you run the program on a super computer? So now, some clever people are designing very special purpose computers (ASICS) to do the mining. The special custom chips are being manufactured in China - you know - where they make the Apple iPhones and such. Now a bunch of people can't wait to get their hands on these printing presses for digital money, and some people have pre-ordered / pre-paid for these machines and are somewhat patiently waiting for them to be delivered - having paid anywhere from $1,299 to $30,000 - depending on the size of the machine. The $1,299 machine is about the size of Mac Mini (if you remember these) or a Boxxee Box, Roku Box (6 x 6 x 2in), and the $30K machine is about the size of a mini bar fridge. None have actually delivered yet, but one of the three companies says they will be delivering in the next few days. This other company BFL, the company that is the subject of this video, with the black box with fans, said they were going to deliver months ago and people are still waiting.

The interesting thing I found is how the cost of electricity factors into this. You see it takes electricity to run these special computer machines, and they run 7é24 and they run hot and consume a significant amount of electricity. Also, apparently, it gets harder to mine bitcoins, the more mining capacity exists. So there is a formula for determining how profitable / ROI of these machines, based on the initial cost, the cost of electricity per kW hour, and the time it takes to create a new bitcoin.

Micon does have a pretty ballin set up below, and the transfer technology is very cool, the below video is actually pretty cool. I just don't get the bitcoin technology. Micon says in the video that 1 bitcoin is worth $13. However since the bitcoin is not backed by any government, I can't see how it has any intrinsic value. Plus, are bitcoins even legal, I don't think the Federal Reserve or Treasury, wants USD traded openly for currency not backed by a government. It sounds to be some type of electronic counterfeiting scheme.

I agree with this. There's a lot of nice things about SwC or even that Video Poker site is pretty neat.

Problem is bottom line is it's illegal. Whether you're taking in USD, bitcoins or whatever...at the end of the day running a poker site, video poker site, etc. is illegal.

Perhaps he can run it up nicely and earn some nice coin while doing it. But it will not last forever and if it does generate enough $$ then the gov't is going to find a way to bust you regardless of how anonymous you think the bitcoin transactions are. (ie some conspiracy charge or money laundering or tax evasion or just anything to get you to stop).

[The_PHA]

Simp,

My point exactly. You cannot measure a currency value against itself. For instance, you measure the USD versus the Yen. A value for each currency is determined, and a lot goes into that value such as government stability, trade, debt ratio to GDP, military, leaders, economic growth of the country, etc...

However, it this case of the Bitcoin Micon says the current market value is $13 for 1 Bitcoin. However, one is backed by the Government, the other is backed by a group of traders, its not apples to apples. One is a government backed currency, the other is not.

It is impossible to establish a value for a bitcoin, because it has no government backstop and in theory no value. It's pegging its value against the dollar, the problem is the Treasury does not recognize bitcoins, therefore they have no value.

Basically, everything is pegged to the dollar, and the dollar must recognize the other currency otherwise its worthless. This is why worldwide Oil is pegged to the dollar. Whatever the cost of a barrel of oil in USD is the price. And since you cannot convert bitcoins to buy oil, it has no real value.

[DRK Star]

Thanks for that Mad Dad.


Question...they seem to be valuing the bitcoin against the dollar in the sense that its valued against what dollars can buy you. However, I was under the assumption that there are a LIMITED AMOUNT of Bitcoins available.

If you have a machine that can print unlimited amounts of bitcoins, would that not bring down the value of bitcoins?

[SrslySirius]

Thanks for that Mad Dad.


Question...they seem to be valuing the bitcoin against the dollar in the sense that its valued against what dollars can buy you. However, I was under the assumption that there are a LIMITED AMOUNT of Bitcoins available.

If you have a machine that can print unlimited amounts of bitcoins, would that not bring down the value of bitcoins?

As more coins get "mined", the computational power required to mine additional coins increases. So if the value of bitcoin were to remain the same over a period of time, eventually it would no longer be feasible to mine any more coins because electricity costs would be prohibitive.

[The_PHA]

Thanks for that Mad Dad.


Question...they seem to be valuing the bitcoin against the dollar in the sense that its valued against what dollars can buy you. However, I was under the assumption that there are a LIMITED AMOUNT of Bitcoins available.

If you have a machine that can print unlimited amounts of bitcoins, would that not bring down the value of bitcoins?

As more coins get "mined", the computational power required to mine additional coins increases. So if the value of bitcoin were to remain the same over a period of time, eventually it would no longer be feasible to mine any more coins because electricity costs would be prohibitive.

This has to be the most ridiculous concept for "currency" ever developed. Mining bitcoins directly correlated to electricity costs.

It seems like those that trade bitcoins are those engaged in shit that is shady.

This has all the makings of a pyramid scheme or laundering. Why have a rogue currency? It's not because you want another avenue to buy a washing machine.

[SrslySirius]

This has to be the most ridiculous concept for "currency" ever developed. Mining bitcoins directly correlated to electricity costs.

It seems like those that trade bitcoins are those engaged in shit that is shady.

This has all the makings of a pyramid scheme or laundering. Why have a rogue currency? It's not because you want another avenue to buy a washing machine.

How is it any more ridiculous than fiat currency? Sincere question, I don't really know what makes a currency sensible.

Anyway, it's not directly correlated to electricity costs. If the cost of bitcoin plummets today, the computational power required to mine coins will remain the same. The idea (I believe, I'm certainly no expert) is to prevent inflation and to control production so that mining only substantially increases along with demand.

[The_PHA]

This has to be the most ridiculous concept for "currency" ever developed. Mining bitcoins directly correlated to electricity costs.

It seems like those that trade bitcoins are those engaged in shit that is shady.

This has all the makings of a pyramid scheme or laundering. Why have a rogue currency? It's not because you want another avenue to buy a washing machine.

How is it any more ridiculous than fiat currency? Anyway, it's not directly correlated to electricity costs. If the cost of bitcoin plummets today, the computational power required to mine coins will remain the same. The idea (I believe, I'm certainly no expert) is to prevent inflation and to control production so that mining only substantially increases along with demand.

The reason its ridiculous is because a fiat currency does not value its currency based on a bitcoin. Only bitcoin values it against the US$, but the US$ does not value its currency on the bitcoin. The value is based upon traders, who are purchasing essentially black market shit to mask their identity.

Currency as I stated before, it based on a variety of factors, and its value is enhanced by the country backing it. In this situation, a bitcoin in based on nothing other than some type of implicit trust between its members. There is no value, because its not backed by anything, which makes it doomed to failure.

My guess is before it collapses under its own weight, the Feds will close it.

[Sloppy Joe]

How is it any more ridiculous than fiat currency? Anyway, it's not directly correlated to electricity costs. If the cost of bitcoin plummets today, the computational power required to mine coins will remain the same. The idea (I believe, I'm certainly no expert) is to prevent inflation and to control production so that mining only substantially increases along with demand.

The reason its ridiculous is because a fiat currency does not value its currency based on a bitcoin. Only bitcoin values it against the US$, but the US$ does not value its currency on the bitcoin. The value is based upon traders, who are purchasing essentially black market shit to mask their identity.

Currency as I stated before, it based on a variety of factors, and its value is enhanced by the country backing it. In this situation, a bitcoin in based on nothing other than some type of implicit trust between its members. There is no value, because its not backed by anything, which makes it doomed to failure.

My guess is before it collapses under its own weight, the Feds will close it.

What are your thoughts on KYD currency? Take a minute to Google it and get back to us.

[DRK Star]

I just cant get my hands around the fact that you have to use electricity to create something that is a code. You are "Mining" something that should essentially be created with 0's and 1's.

So this guy's magic box has fans that spin and out pops a mined code that has "worth" compared to something in which it cant theoretically be weighed against, but rather things you can buy with dollars.

Maybe im just lost. This is the hokiest, shit I have heard, and anyone trying to bring legitimacy to this "industry" has to be shady as well, for they know its uses and liabilities.

And who would invest their imaginary coins with other people, where you cant get your investment back because you dont know them and cant find them, EVER?

[The_PHA]

The reason its ridiculous is because a fiat currency does not value its currency based on a bitcoin. Only bitcoin values it against the US$, but the US$ does not value its currency on the bitcoin. The value is based upon traders, who are purchasing essentially black market shit to mask their identity.

Currency as I stated before, it based on a variety of factors, and its value is enhanced by the country backing it. In this situation, a bitcoin in based on nothing other than some type of implicit trust between its members. There is no value, because its not backed by anything, which makes it doomed to failure.

My guess is before it collapses under its own weight, the Feds will close it.

What are your thoughts on KYD currency? Take a minute to Google it and get back to us.

I glanced at it, did not investigate it. Caymans is ruled by the Brits. Their currency is backed by the pound.

Fuck you are stupid.

[The_PHA]

I just cant get my hands around the fact that you have to use electricity to create something that is a code. You are "Mining" something that should essentially be created with 0's and 1's.

So this guy's magic box has fans that spin and out pops a mined code that has "worth" compared to something in which it cant theoretically be weighed against, but rather things you can buy with dollars.

Maybe im just lost. This is the hokiest, shit I have heard, and anyone trying to bring legitimacy to this "industry" has to be shady as well, for they know its uses and liabilities.

And who would invest their imaginary coins with other people, where you cant get your investment back because you dont know them and cant find them, EVER?

I don't know about this mining shit either, but its clearly a payment method to be tendered for shit you want to be anonymous about. Look at Micon's video where he is playing video poker. He boasts he is completely anonymous on the site, which is bullshit, everything can be tracked.

But the point is, if you are involved in a "currency" that labels you completely anonymous, you are doing so because you want your activity concealed. Is that something you want to be identified with?

I've never met Micon, nor do I have any desire, but he looks to be a pretty bright guy, especially with devices as you can clearly see in his video. Not sure why he is fucking with a payment channel which looks to be essentially against the law and black market. Not that he would be a target, he is probably too small. The guys hawking that crap at the trade show booths might want to find a different career though.