Bitcoin Forum

I've been looking around at having some of my miners hosted and realized I'm paying less than most hosting facilities.  I'm only on a standard commercial rate and am paying $.0751/kwh after all fees and taxes are added. Industrial rates would be even cheaper.

I know I'd have to partner with the technical folks to get one going and maintained, but are they really worthwhile?  Btw, this is in Missouri near the nuclear power plant.

Thoughts?  Suggested reading?

It's a pretty good price.  If you could get industrial chances are you could do hosting.   

Only thing is there is a lot of upfront costs.  Especially with summer coming.  You will have electrical and exhaust set up cost for sure.  The hard part is you factor that in you will have to charge higher electricity.  If it's not under 10 cents chances are people will not pay.

Thanks.  I guess I need to look into it then. I've got a lot of spare concrete walled warehouses on site that could be modified pretty easily.  Interesting thought. 

How many watts do you need to be considered to be industrial?  If you can hit that is probley the magic number to shoot for. 

We're also in Missouri, probably a bit south of you though. We've been hosting machines fairly small-time (50KW, with a 100KW upgrade in the works) since about last August.

Me my self think a lot to offer hosting here in my country (Sudan).

I can offer 50$/Kw per month.

But the problem with me is how to make people to trust provider from Sudan.

I've been looking at providers a little in US.  I can't decide if I want to spend some more in exhust and electrical wire, or use hosting, or no growing during summer (which is no fun at all).

I would agree it will be a hard battle to start off in Sudan.  I think US and China is most popular.   

We have other idea, we will start working on it with the next Antimer product.

The idea is to buy a bulk gears from Antimer and we ship it to our warehouse here and then we will sell it and host it on our own warehouse for the buyers. Just like what Lee did in his group buy.

Do you have any thoughts about what kind of guarantee we can offer to the buyers if we decide to go with this project?

The hard part is your going after a business already out there.  Mr. Lee has set up good reputation and for it has many customers.   One thing I think your forgeting is his operation is in same country as Bitmain.  So I doubt you can beet him on pricing with delivery.  Also he will have a few days before you.

You would need to prove a lot.  People will want many pictures and information about you.  Also I think you would have to go very cheap to get buyers.  

Make sure you have enough capital to keep running incase no one buy's and you end up owning them all.

Thank you notlist3d.

We have a good fund and also we have cheap power rate 1.83 c/kw.

When Bitmain release their new gears, we will decide if we will go with the new product or buy old gears in the $/Th is very low for old gears like S4.

We have a 1.5 MVA transformer ready now.

We may ended running those gears for our self, and if we find a selling opportunity we will take it.

I think its worth it as long you do the comparison of cost, but you can usually offset the cost based on your service fee.

The question is, how are you supposed to migrate most users from their cloudmining accounts unless its just for everyone who only has hardware.

I think doing  a hosting and not "cloud" option is best.  There just have been to many cloud scams at this point.

I think if OP goes into cloud mining it's not going to be a good long term business.  If true hosting it's possible long term business option.

Is there a current list of hosting services?  I am looking for one that is in close to the middle of the US.  Would be nice to be drive-able to save money on shipping costs.

Thanks!

You need to remember that electricity is not going to be your only cost when hosting other people's miners. You will need to use up realestate that you could otherwise rent/sell (so you need to account for effective rent of the space). You will need to pay for marketing and salaries of employees who maintain your facility.

Also just because you have a certain cost per kWH does not mean that is your effective cost per kWH that your customers use as you will need to pay for cooling which can use up a lot of electricity depending on where exactly you are located.

Even if you had a 1 MW facility, and could charge your customers .05 per kWh above what you pay, you would only make $50 per hour or $1,200 per day before all of the above expenses. You would also need to incur the costs of the electricial infrastructure within your building 

Not that I know of sorry, I mean you can check the services section, but most have just adopted the cloudmining concept. Which I dont recommend anyone to do unless they have a way to exit out if shit hits the fan.

I would just try to network with a friend that lives in the mid west, and then have a small hosting going before doing it bigger.

I think cloud mining in all but a few is a horrible idea.  I personally  think cloud mining is just to easy for them to build a site that looks like it's mining and give back money you paid them, and one day they disappear.

If you own the equipment and its hosted in same country as you then you have a much better chance of legal action if something goes wrong.  Being on a true farm that has cows and crops I can say the mid west is not horrible for electricity.  But you can find better if you have a friend in Washington state or some other places.

I agree, cloudmining is really bad.

I mean you see it so often now, that most are bad operators that actually just leave and screw most buyers out. If you need to bother with that nonsense you might as well just try buying bitcoin instead and hold or just not be in the mining scene.

For most we have no option, like here california its a pain to mine, so I just buy.

I think there are very few good ones.  I did a VERY small amount on hashnest and had no problems.  It was just for learning.

The thing that surprises me is how many shady cloud mining sites still get funding.  You look at ltcgear they did not have a single picture of a data center, they had a little lcd looking device that was like a chip, and they sold massive amounts.  They did give some "free" to people in it.  Sounded to good to be true... yet people kept believing.   And last I knew they ran off with profits.

Look at it was like ninjaminers.  I actually met them at a conference.  They did many batches of cloud mining.  And surprise surprise they cut communication on last ones.   And were not heard from again (to my knowlege).

Perhaps the biggest Gaw miners.  They had it here you could buy hashlets that were suppose to mine for a very long time.  Eventually efficiency of miners put it where people made no money with fees.

Those are just 3.  I wish people would buy miners and go with a good hosting service.

Don't forget reliable Internet access, some kind of cooling for your facility, unless it's in a truly cold climate. Even the coldest parts of the US will require some kind of continuous heat exhaust, if not more active cooling. You might also have to spend some money on security and fire warning/suppression. Cheap electricity is required, but you still won't want to locate your facility in Houston TX (because of the heat).

they are still better than buying your equipment, because of no maintanance(some charge very little amount, see bit-x) and bill to pay, the roi is also the same as the best miner available

but besides this we will never roi anyway


they should build some hosting in alaska or antarctica, at least the heat problem would annihilated

depending on how expensive electricity is hosting might be profitable or at least allow u to break even :P