Unfortunately, scams are still fairly common in the digital currency space, as those with a little bit of knowledge, armed with fancy terminology, can take advantage of those just looking to get rich quick. The most recent example of a claim that seems very farfetched and should be considered cautiously is from BitHull, who promises that anyone can run a profitable transaction processing operation from home with their specialized hardware.
In a press release dated April 17, BitHull advertises their BH Miner and BH Miners Box. Using technology called Field Programmable Gate Array (FPGA), they promise their machines require lower power consumption, and produce high hash rates.
Advertised as offering 2160 terahash per second (TH/S) when mining BTC, they note that the BG Miners Box can bring in $7951.95 profit per month. If used on Monero, that can be as much as “$29.06k profit per month,” they state.
With numbers like that, they promise profits that seem too good to be true. “Assuming power cost of $0.12/kWh, the monthly power expense for BH Miners Box comes to $285 only,” they note. “Based on figures shared above, BH Miners Box users can break-even and start making profits within a month. To further enhance the profitability of its customers, BitHull S.A. covers the delivery and custom fees for them.”
The press release concludes that potential customers can do all of this from home, giving the company the widest potential customer base.
Problem is, when an offer like this seems to be too good to be true, it almost always is. Experienced mining experts in the digital currency space have already started to call out this alleged scam.
I don't know who needs to hear this, but: you can't *profitably* mine Bitcoin with an FPGA. Ever. Period.
Disclaimer: You can technically mine Bitcoin with an FPGA, but why the fuck would you.
— Kristy-Leigh Minehan (@OhGodAGirl) April 19, 2020
The simple truth is that if this hardware was able to produce the results BitHull claims, everyone and their cousin would use it.
Comparing a legitimate piece of hardware to the BH Miners box starts to prove this point. At $3,900 per unit, the MicroBT Whatsminer M30S++, capable of 112 TH/s±5%, is only a third as profitable as what BitHull is promising with their $20,000 Miners Box. But the difference is that MicroBTs hardware is proven to work, whereas BitHull is offering to sell ocean front property in Kansas.
Another warning sign to potential buyers is the lack of information provided on BitHull’s website. They only accept payment in digital currencies, and offer no information on the company’s founders or current team. All they note is a headquarters in Denmark and: “The company is run by a team of experts with a track record of delivering world-class tech components such as FPGA CHIPS to numerous industry heavyweights such as Samsung, IBM, Microsoft, etc.”
The thing about FPGA is that it has applications in the world, just not to mining. It’s used in the telecom industry, but also in world militaries, where its flexibility allows developers like Intel and Xilinx to develop the hardware well before its final use is determined. But for something like digital currency mining, nothing has approached the power of a dedicated ASIC machine.
With price tags of $4,500 at the low end, and $20,000 for their Miners box, hopefully BitHull won’t be able to convince too many digital currency enthusiasts into parting with their money. But if there are any who are considering the purchase, don’t say we didn’t warn you.
New to Bitcoin? Check out CoinGeek’s Bitcoin for Beginners section, the ultimate resource guide to learn more about Bitcoin—as originally envisioned by Satoshi Nakamoto—and blockchain.