Bitcoin Forum

Hello folks, greetings from Novello Technologies Ltd in the UK.

We'll shortly be launching a funding campaign to finance the development of a family of low cost, high performance mining rigs.

How does $1 per Gigahash/second (or less) sound to you? But before you groan "not another mning asic startup" wait until you see our plan, it's not what you might expect.

Gordon

hello novello :)

And hello to you too, thanks.

You're welcome ;)

Hi,

Sounds interesting as long as you keep communicating well and be honest, to many scammers out here.

Anyhow, good luck!

Couldn't agree more, been following the Hashfast situation for the past few weeks. I honestly don't think they are scammers, just very amateurish in their approach to what is a reasonably complex engineering project. Why, oh why won't they talk to their customers? Someone else on one of the forums, I cant find the post right now, hit the nail on the head by saying that even very pissed off customers would rather be told what's actually happening and what might be done about it rather than hearing nothing and speculating about what's really going on.

It just makes everyone's life unpleasant, especially those that have paid a lot of money in good faith and have nothing to show for it.

You're right that communication is vital, from our point of view (which is of course biased) an awful lot of the previous proposals have been a bit long on style and short on technical substance which is, after all, what makes the project stand or fall. Many of the headline figures simply don't stand up to scrutiny but unless you've got really in depth knowledge it's not obvious that something isn't right.

Thanks for your good wishes.

Hello! :)

Sounds promissing, some questions:
1) Entry price and scale of your product
2) your website mentions already sold high end mining ricks, is there proof for that?  ;D

Hey! Welcome.. I feel like everyone has a great business idea on how to bring BTC to the masses. I wish you the best of luck in your venture! I'm doing something way smaller.. just starting a little news/blog portal for bitcoin (www.thebtcdaily.com).

Hi, thanks for your  interest. I'm unsure of what site you're looking at, ours is still in development. We haven't made an asic yet never mind selling high end rigs!

Entry level pricing for a 250 GH/sec system will be around $349 on average. Higher spec ones, up to 4TH will come in well under $1/GH/sec.

And they won't be available until nearer the end of July 2014, earliest.

Hello there!

And hello to you too, hope you enjoy using the forum.

Hi!

HighNoon? Sounds ominous.....Thanks for your hi, hello to you too. Just avoid any gunfights!

Hello

Hello all

It definitely sounds interesting. One recommendation I would have is to make sure you have things in stock and ready to go before you start accepting orders. Too many companies are accepting pre orders and failing to deliver, or delaying over and over...

Launch it right and you will have many many satisfied customers and word will spread.

Yes, that would be nice but we don't have a spare $3m lying around and the banks won't touch anything related to Bitcoin. We do things a bit differently to the other companies, for a start we have 120+ years collective of experience in actually building complex  electronic systems all the way from consumer through to Mil/Aero. In short - we know how to plan projects so that they're delivered on tome and on budget. We do need some portion of the payment up front - there's no use trying to pretend other wise, but it will be somewhere in the region of 33 - 40% (and of a much smaller payment for equivalent performance)

We're also not going to screw people on price. The margins rig suppliers make are outrageous. To put this in some kind of context, we'll be offering a 4TH rig for well under US$4,000, still be making a fair profit AND paying the development costs out of it.

If we can do it, so can any other company. That is, if they don't pay themselves huge salaries.

Thanks for your post though. Hope we might interest you in our wares at some stage.

Spot on.

But, of course the implication is that other companies not only can , but at some point will do it too. Today they may be charging $10/GH (or $3 in preorders), but thats only because they can, as miners are willing to pay that; in fact, if they dropped much lower, they would be even more unable to satisfy market demand. But that wont last, as difficulty ramps up, even absent any price competition, all these vendors will be competing with difficulty, and thus with themselves.

Its inevitable prices will come down, to the levels you are projecting, and IMO, much, much lower, up to point where they approach marginal profitability. Where that point is, you may be better positioned than me to estimate, but wherever it is, my fear for you is that this will happen faster than what you are projecting. $1/GH sounds like a terrific deal today, but I doubt it will sound good at all in august.

Maybe if nearly all the competitors continue to stumble and are unable to ship really high volumes even by summer, you will have a chance. Otherwise, I fear its either you or your customers who will end up losing money as margins will be too thin to recoup the NRE that all your competitors already recouped.. Maybe you have some trick up your sleeve, but if not, I fear its too late to start another asic.

Good luck anyway :)

Thanks for you good wishes, and for taking the time to explain your thoughts.

I can tell you that we do indeed have some tricks up our collective sleeves and have some truly devious engineers who seem to think that electronic devices - especially asics - have some inate grudge against them and their profession. I would say 'we' but it's really 'they' that have tried to design all unnecessary costs out, I'm sick to the back teeth of endless arguments and debates about heatsinks, for example, just to save a dollar here and there but they seem to view it as some kind of entertainment.

We know prices will keep coming down, and our way to survive will be to become a true volume supplier. We're in this for the long term, not as a one shot deal to make the principals overnight millionaires. I can appreciate your comments about prices coming  down, but if you've set your expectations high, that's going to be very difficult to do. There is a limit to how cheaply you can make rigs profitably, but we're a long way from that point at the moment, I'm glad to say.

I'd also like to point out (as has been pointed out to me many, many times over the past few months) that our strategy is to assume that things will fail and go wrong, and devise ways to ensure that if they do, we have a ready made plan to recover and recover quickly. Better still, try to make sure that the design, procurement and manufacturing systems are engineered to ensure that nothing fails. Unlikely, but you gotta try.

There's no denying that it would be nice if we got funded and brought our products to life, but as you said there's not exactly a great track record of on time delivery by the rig companies, so it's perfectly understandable that buyers might be reluctant to part with their hard earned money to fund yet another start up. That's a very important first lesson to learn. If the project doesn't happen it's not the end of the world for any of us and I know the engineers have already had a huge amount of fun trying to squeeze a quart into a pint pot. It's more like my idea of torture, but each to their own.

welcome

Got a website?

Let's roughly look at the arithmetic:

At the current Bitcoin difficulty today, now, 200GH/s yields about 0.055 BTC, about $46.

So today that is about $46. Obviously $200 for $46/day is a good deal.

It's hard to take 1Gh/s for $1 as being creditable because if it's wildly profitable, there will be "shipping delays" and everything will be sold on top of that.

Very roughly if the BTC difficulty is increased by a factor of 10 by the time you sell your magic miner, then you are looking at a few dollars per day.

In summary, I really find it hard to believe that the average schlub will be able to make any money, because by the time this device is widely available, the ROI will suck, pretty much like every miner on Ebay.

The most interesting thing about your mining is what it will do the the ROI of the current monster installations. If your 1GH/s per $1 is not scam, I wouldn't be surprised if your competition doesn't try to hire away an engineer or 2.

This is a conundrum that I can never understand, If you miner can be this wildly profitable, you should be able to get investors to build this equipment and form a wildly profitable private mining syndicate.

Cynically, a profitable alt coin biz model these days appears to be to build an advanced miner and then market it when its reached about 70% - 80% of it's useful life to an audience that can't do math.

Hi

hello my friend

Thanks for taking the  time to post this. I understand your concerns, particularly with the possible increase in difficulty a $1/Gh miner might bring, but there's an underlying point here - dedicated mining companies already have very cost effective hardware and can deploy said for around $1.5/GH (or less).

That's what you're up against, so like it or not the difficulty is going to keep going up whether or not we make rigs, although not anywhere near as much as some of the more extreme posts would suggest. By August, our behavioral model reckons it to be about 20-22000 MM, about 10x where it is today (or 140,000 TH). At that level a 250GH setup would earn about $150 a month, or $5 per day, and pay for itself in about 8 weeks. If you can get a better return for that on your investment then go for it.

The average schlub who can't even get a seat at the mining table right now might see it as being a rather good deal for his $250.

There's nothing magic about our miner, just good design and a good dose of research. The engineers behind this are all in their 50's and want to do this as a professional challenge, money is not their primary goal and so the notion of a competitor luring one away is unlikely. They already have been offered a stellar deal by a VC group, but turned it down because the VC wanted to keep it 'in -house' and do exactly what you said and use it to mine for their own enrichment. The engineers didn't intend this design to make more money for those who already have it, they genuinely want to democratise the mining process and open it up to everyone.

Ultimately, like every other potential buyer, you pay your money and make your choice. I do hope you might consider us when you get to that point.