The question that continues to come to mind is, why is Bitcoin in a stagnant holding pattern? Has fear, uncertainty and doubt clouded the financial super highway? At BTC World News we’ve taken a step back to look at these concerns from a personal perspective considering,
- Is it still worth it?
- What will the future be?
- Is the Government going to make Bitcoin unbearable to utilize and are we going to allow that to happen?
All these questions lead up to one definitive answer which is, not a chance.
It seems that Bitcoin is in this current holding pattern to show continuity and stability and we ask, why and for what reason? We’ve found that there are a number of good reasons for this starting with the following,
- Ability to mine Bitcoins has become unprofitable.
- The Government is floudering on how to regulate Bitcoin in a positive and effective way.
- Public interest
Let’s start at the top here…
It’s shameful when major miner vendors such as Butterfly Labs drops the ball on consumer invested millions to deliver their flagship product, the Monarch. We recall reading about Butterfly Labs push on “Pre-Order” mining rigs starting as far back as mid-year 2013.
To-date, not one shipment of Monarchs has left the building where only blurbs of countless delays with vague innuendos of future production runs are mentioned sporadically, if no less you are even able to find a comment buried deep in their forums. In a recent post by “Josh”, BFL spokesman, he responds to a customer inquiry who asks if by October will he receive the miner(s) he ordered in September 2013. (Read the Thread)
BFL spokesperson responds, “At the risk of speculating incorrectly again, I would say that’s a very safe bet at this point.”
The statement is appalling at best when you think about it. These aren’t your average 100 dollar pieces of hardware, hard working people have laid out thousands per unit equaling millions of dollars in “Pre-Orders” that have never seen the light of day.
To further reflect on this atrocity, Butterfly Labs have mastered the means of collecting start-up capital without paying a penny in interest for the global based loan.
In our evaluations of the current Monarch miner set and based on today’s Bitcoin difficulty of 19,729,645,941, (data provided by http://www.bitcoinx.com/profit/)
|Coins per 24h at these conditions||0.0255 BTC|
|Power cost per 24h||0.36 USD|
|Revenue per day||13.88 USD|
A Monach miner currently costs $2,196 USD for a 600Gh miner.
The chart provided above is based on a 1000Gh miner which you can pay an up-charge at Butterfly Labs for $700.00 USD more. This is a grand total nearly $3000.00 for a 1000GH miner. Now lets quickly calculate the math to understand the ROI and how long this will take to break even.
Base Investment: $3000.00
Daily Income: $13.88
Total days to break even: 216 Days or 7 months respectively.
Return on Investment: $689.00
This of course doesn’t include monthly power costs, additional hardware to run the miner, difficulty rate increases, etc.. etc.. etc..
Realistic Return on Investment: $-970.00 (yes, that’s minus 970.00 in one year)
This is without a doubt, a total and complete investment failure for anyone who hasn’t been lucky enough to have their investment returned by Butterfly Labs. Where as we said prior, it’s brilliant on the company’s part as they received a huge amount of start-up capital just on the “Pre-Orders” concept and that they have not had to pay a single penny in interest on borrowing multi-millions from their base of consumers.
Buyer Beware is all we can say.
The government has failed in its efforts to spread the endless scare tactics it has publicly released on the future of Bitcoin. Having issued wide-spread confusion as to it being an asset, property or currency is still the great unknown answer. We’ve seen a number of Bitcoin tax calculators pop up in the wild which would make anyone want to veer away from the accounting nightmare that is plaguing adoption of this future financial mechanism.
It’s safe to say that anything good or decent, the government has a long history of making it bad, immoral or flat out illegal. Generally speaking, if the government can’t regulate something by means of turning a profit, then it is instantly considered illegal. In the case of Bitcoin, the governments hands are tied because it’s world-wide and outside the broad reach of any single government control. Therefore, the government has resorted to spreading fear, uncertainty and doubt as hard and fast as it can in hope that Bitcoin will fail.
Let’s look at health care for a moment, and the big secret you may not be aware of. The healthcare industry is in a nutshell, a piggy bank for the medical industry. It is a direct revenue stream for this industry. Healthcare acts as a middleman to acquire your money and turns around and pays it out however it deems fit.
Even if you have an HSA or similar type of savings account managed by Healthcare, they will spend your money without your consent as to which fee’s you are paying for. It’s further defined as benefits and they blanket it with how they negotiate a lower cost on your behalf all under the name of Healthcare. But the fact is, it is a dedicated income stream that powers the medical industry.
Now think about that for a minute and ask yourself who else out there operates like that and has a guaranteed income stream? Oh yea, the government does, its called taxes for example. You pay a considerable amount of money each paycheck and the government does what it wants with the money. For example, funding 850 Million Dollars on Heathcare.gov and it still doesn’t operate correctly.
Did you know that Facebook only cost a few thousand dollars when they had their first couple million users? And that has been steadily and regularly used since its inception. Healthcare.gov is a once in a while website. You go there for minimal if no reason once your account is setup, if it is set up.
Though the fact remains, you as a citizen have zero say how your tax dollars are spent or what it is spent on. Granted in America, we have our few thousand elected officials to manage 70 Trillion worth of debt, but hey who’s counting any more.
Do the two sound familiar, of course they do.
Every other entity out there has to earn money traditionally such as Bobs fish store. Bobs fish store earns money from its customers. They buy their fish from fisherman or other similar entity that obtains it from the source and turns around and resells it to John Q. Public. They don’t have the luxury of sending a billing code to a massive slush fund piggy bank of cash and await a huge payday on a per customer basis such as the Healthcare industry does or the government.
Recently we had the divine experience of dealing with the healthcare industry with a set of claims paid for from an HSA account. Noticing a reasonable disputable charge, the healthcare company was contacted and the issue explained. Healthcare responded, “Take it up with the doctor if you want a refund“. Taken back by the response, the blinders began to come off and we started to see the real picture here.
We responded that they paid the doctor with our personal money and on our behalf which constitutes a fiduciary trust. After an hour of bickering with the Healthcare agent, they said they would send my inquiry to a complaint department.
We further asked, “How would we be able to follow up on this?”
Healthcare responded, “You can’t“.
We further inquired, “How will we know the status of our complaint or know what gets resolved?”
Healthcare responded, “You wont“.
It was clearly a proverbial dead end, which sounds allot like the government in similar financial matters. (Healthcare.gov and where did those emails go anyways?)
Low and behold, we received an email a day or two later that detailed the fee’s paid in question had been refunded to the HSA account. Though funny enough, the email was signed with Healthcare Agent. On the next line it read, “Go You“.
Sitting back to digest this interesting post scriptum, we pondered if this was their motto, slogan or similar. Per our further investigation, we found nothing else utilizing the phrase, “Go You“.
To help tie the point together, we’re certain you’ve heard how medical providers across the board are screaming over Obama care and healthcare regulation. Do you know why? The answer is simple, it’s because the government has learned how to put its hand right square into the middle of this massive piggy bank slush fund and take their traditional 40 percent for themselves to once again, do what it wants, however it see’s fit.
The truth is, the government may be questioned but they won’t be forced to operate differently. Further, we’ve learned that anyone who is signed up for Obama care and doesn’t use all its premiums in a year is able to receive a refund of the unused amounts.
“What, give money back, no way.”
Technically speaking, they will forward that money into the next year’s premiums, though ultimately its less money in that big fat piggy bank slush fund.
DISCLAIMER: Of course, this is simply a 30,000 foot view of the two mega giants and there are many variables that aren’t expressed here, but the underlined point is that the government operates on allot of money and certainly does not support the idea of something as powerful as Bitcoin stepping in and compromising the dollar. If you think about it, what is more powerful than both of these entities and the answer is money and we all know that governments around the world would endure hardship if an entity like Bitcoin took root.
The basic fact is, Bitcoin is money, no matter how you shake a stick at it and try to label it as whatever. A great analogy of this is Apple recently released a new “Programming language” called Swift. It is the new and improved version of Objective C.
You are likely saying what is that? Well, it doesn’t really matter what it is, except understanding its the stuff under the hood that creates how your phone, games and similar works. Without a “Programming language”, there would be none of the above. The analogy here is, it doesn’t matter if it’s Objective C, Swift, Visual Basic, C#, etc, they all create software, no different than Bitcoin enables you to go and obtain goods, services and similar that you did not have previously, the same as the many variations of cash does.
If it walks like a duck and quacks like a duck, it’s pretty much fact that it’s a duck. Bitcoin is a form of cash and it’s designed to work everywhere in the entire world and change the dynamics of how this world turns.
We mentioned Public interest and if you’ve made it this far through the article then you still have an interest or what we’ve said has sparked an interest. Either way, you are the public and interested in understanding what is going on in whole or in part. Of course we cannot explain everything in a single article and perhaps its our failure that we have been on hiatus lately, but we are back and here again to help guide the way to a great global future.
It is interesting having the opportunity to take a deeper look at the complexities of money as a whole. Our opinion is that the current way the world turns is a scam. It’s a scam to take money from me to give to you and three others to turn again and have that same money split with a dozen others to make ends meet. We live in a world of meetings ends.
You hear on TV how public leaders have created jobs based on the latest stats. Look at it like Bitcoin, right now it’s worth about $537.00 USD per Bitcoin. Today would not be the day to report job increase if we measured it by Bitcoin value. Though, if earlier last week, when it was $620.00 per Bitcoin, all types of articles were being published noting the highs which is no different than the inflated job stats.
Scam is the name of the game.
The way the world operates today is a big scam, one scam after another and is countless. To fix this an entity like Bitocin has to be able to grow and be adopted. It’s not just the value of Bitcon that is important, it’s the dynamics of how it works for the people around the world. How it can resolve the economic turmoil of the world is countless.
Ask yourself this. Do you think people steal because they want to or do they steal because they have to and / or its all they know how to do? We are being robbed every day we continue to turn our heads and allow the government to control the economy. We are being robbed by a person who has more or even less day by day. Have you asked yourself why?
The answer is simple, it’s because the world is so far out of balance that we need another great flood or meteor to hit the planet and start fresh. Or we need to wise up and realize that we need to work together as a whole and entire body. Bitcoin is designed to accomplish this task. Will it accomplish this in its current state, absolutely not. Every day it evolves more and more and it will take all of us to step up and become part of the future.
For the record, we appreciate many of the liberties that the government enables us as well, we appreciate the fact that when major illness sets in and the hospital bill is picked up by insurance we’re appreciative. It’s not the best way of handling the world as a whole.
For example, let’s think about the Ebola outbreak in Africa. America is sitting on the proposed cure for this, but are we sending it fast and quick to Africa?
The answer is NO.
What will happen here is one of two things. Either we will come to the rescue and cure this in Africa or a small genocide will take place. Let’s look at the definition for a moment.
Genocide: the deliberate killing of a large group of people, especially those of a particular ethnic group or nation.
Sound painfully familiar?
There is no middle-medium here, they will either live or they will die in Africa. This is a clear cut case of how broken the world really is and the question we ask you is, are you going to part of that world that turns its head or be part of the new world that will find a way to extend a cure?
Bitcon is starting point of a new cure for the world. And in the case of Africa, they don’t have the money or resources to produce their own cure. Imagine if this was happening in a balanced world where money and resources are plentiful everywhere. This probably wouldn’t even make local headlines.
It’s time each of you start to think outside of the extremely close quartered box you’re living in and realize there is a huge world around you. Taking a step forward with Bitcoin is the start of creating a new way of thinking, a new way of managing the world as a whole and not separated.
Public interest is important to the growth of Bitcoin and if your senses have been dulled on the idea of Bitcoin, it’s time to take another look and water test what is written here.
Remember, nothing good in life comes easy.
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