Bitcoin Forum

Lets start off with introducing myself, my name is Erik Turehult I'm 32 years old. I live in Norway (Nordland fylke)

Background

11 months ago, I sold/rented out a piece of my land to a small electricity company, on this land they built 4 Wind turbines. I wasn't given any money for this, as they cost around 40 million Norweigan kronors each to build (a little over 6 million USD). Instead I was given 690 shares, out of a total of 35600 shares.

Each share is roughly 1,4kw/h a year, (it obviously depends a bit on how strong the wind is, but this is the average so far.)

A part from having a rather insane amount of free electricity for myself, my plan was to sell the "extra electricity". But unknown to me at the time, a norweigan regulation prevents me from selling wind-electricity without having a backup alternative if the consumption is abnormally high. (basically no-one can sell electricity without being an actual power-company with multiple alternatives).

So my options are A: Sell the shares to a power company (at very low price) or B: Use "all" of the electricity myself.

Project

I've got on average, 966 kw/h worth of free electricity. Enough for 7-800 hardcore bitcoin riggs.

I also have a storage shed (used to be an actual house, but emptied out due death of a relative). Which with a little bit of tweaking could serve as the perfect base of operation. In terms of heat, you should realise that we often have -30C, -22F during the winters, and rarely above 20 C, 68 F during the summer. (currently 10 C, 50F)

My idea is that all of us involved should earn from this, as such it would be unfair if I took a fixed USD price, while you had a unstable bitcoin income.

Instead all of the payment will be done with bitcoins.

At the current stage I'm thinking of 2 alternatives for you to be involved.

A: At your budget, we select computer parts fit for a rigg. and then I charge you 9% of your bitcoin profit (as long as it stays operational).

B: (only if enough people are signing up for this) I currently have 13.4ghz, I may rent this out on a 1-3-month basis if you are willing to pay 60% of the estimated income upfront.
obviously the difficulty could vastly increase if so, we'll adjust it so that the amount of bitcoins is exactly 60%

This would help me to expand my operations, while still giving you as an investor a great deal.

I'm a computer wiz, (basically it's my only hobby/intrest) so overclocking/maintaining the computers will be from my point of view, a fun job.

Please help me evolve my idea, how would you do it? assuming you were in my position.

- Erik

Hi there,

Do you have a registered company?

Kind regards

Dox

No,not at all.

I'm not sure if I will register one either, norweigan taxes isn't anything like the ones you have in the states.(far higher)
If a norweigan labels his work as a hobby, he's allowed to earn up to 12k USD a year without paying taxes.

When the farm grows larger than that, the best way for me economically is to either keep the currency as bitcoins, or alternatively change the bitcoins into USD and then buy stocks for it.
The yield from the stocks only have a 20% tax on it (which is about one third of the tax i'd have to pay as a company)

i love free electricity, would you consider just renting kwH's or monthly shares.

That's pretty much my idea, you mean you already have a mining rigg?

I suppose I could make an exception at the start, but from a longterm view I'd like all the riggs to consist of the same parts (in groups of 40-50 or so). In norway we have a 3-year guarantee on electronics, (regardless of brand) so it'll be much easier to exchange dead/low performing parts for new ones if they are all the same.

Thats sounds really interesting. I can be interested in rent some power or put a rig in your farm (but here we can see the prices of components in Norway)

This is totally cool.

For myself I have a 4.5kw PV system up and running (2 years ago - I wish I had started BTCs back then!) to mitigate my electric cost.

Here is yet another way BTC is outside the suicide banker box (apparently in Norway he cannot sell his power BUT of course he can sell his shares to the company Ugh!)

Again the future of BTC is now!

I'm planning on purchasing all of my components from Sweden (cheaper), I'll be able to buy parts from these sites tax-free. (-20% on the price). You can select this option by clicking "Exkl moms"

http://www.komplett.se/k/kl.aspx?bn=10488&mfr=&filter=A03616.K306584.

http://www.inet.se/kategori/168/amd

Currently the ratio between KR and USD is about 6,5:1
Basically a 6950 1GB will cost 233 USD, and a 6990 640 USD.

I wont order until I have a rather large (4-5 riggs) quantity, to make the shipping cost minimal per part.

HI!

Interesting proposal :) Not sure which one is more attractive...
For my understanding, I am advancing bitcoins to you that I get in return through the bitcoins generated at a later time- As of how many bitcoins will you consider B workable?


I will be going to Norway next month for a few weeks.
My initial plan was only to go as far as Sykkylven visit some relatives, you are quite high up there I see- Can I come and visit, make a bitcoin investment? :)

Before leaving I am confident I could gather some funds from friends and investors as well.

hilsen,

Interesting idea.

The price are interesting (a little higher then how I'll pay here in Italy but not too much)
Maybe we can make a deal

I've put a preliminary limit at 800 rigs @ 1.5ghash each.

As of now, the rigs in the first package (first 50) are 109 btc each. They are meant to be run 24/7 for the next two years. (that's the length of the contract).

So far 2 rigs have been ordered and paid, and speculation of another 20ish has begun.

To avoid huge shipping cost's and unnecessary labor, I'm ordering them in batches of 50. Between each batch, there will be a pause of 5-6 days where I assemble and get them operational, I will do that in the same order as they were ordered. Meaning the person who buys the very last of batch NR.1 will have his rig operational last. (If the first batch isn't filled by sunday, I will ship those that are, taking the extra shipping cost myself).


- Erik

There's one advantage with the Swedish/Norwegian market you have a 3 year guarantee minimum.

Which is rather fantastic when it comes to mining, as we push our cards a lot more then the average user.

Hi erik

I might be intrested in investing 3-400 bitcoins. How long time will it take for you to have them up and working?
How do we sort the payment etc?

PM sent  :)

966 kwh of free electricity per year?  Or per day?

You couldn't run a single (high powered) computer on that (if it is per year).  800 watts per hour = 20 kwh per day * 360 days = 7200 kwh per year.

Sorry if my post was confusing, basically it's 966kw/h (on average during a full year). As in, 966kw per hour - as in 966 000 watts.

As it's 4 wind turbines they produce electricity a tad uneven, so on windy days it's abit higher and on calmer days it's abit lower.

The reason they placed them on my property was because I live in a spot where the mountains/hills create a steady and almost ideal wind performance all year round. (If the wind is to slow, obviously it generates less, but also if the wind is to strong they have to shut it down to avoid damage.)

- Erik

You got two options then :)

Either 321 BTC for 3 rigs, or 428 BTC for 4 rigs. @ 1.5ghash each.

I want as many rigs as possible in the same shipment, so the shipment fee is as small as possible. I'll have the first rigs sent here on sunday.

It depends on what number you'll be in the batch, basically count with 2 days of shipping, if you were one of the first 10 I can guarantee it'll be up and running next Wednesday.


The payment info is sorted in PM, each customer/rig will be tagged with your name, address, mail and a photo of your ID. This is to avoid having a person from the same country as you, with the same name being able to claim rightful ownership of the rig etc.

So for 428 btc I would get 6ghash?

That's 1800 dollars a month :O
I'm trying to convince my wife, we might be up are probably up for 8 rigs for 856 btc?

Hell! I could live of the income of that then.

you got pm :p

This is a bit false, you cant calculate your expected income based on the current difficulty. Count on a 100% increase of difficulty in the near future (4-5 months).
I dont want people to think this is a magical gold shower and then get disappointed.

going to check your pm then :)

- Erik

What do the rigs consists of?

How will you be smoothing out the power variability(i.e. net metering, when there is no wind the grid supplies power and when it blows you give an equal amount of power back)?  How many days a year do you have at least 80% of mean generating capacity?  Are you going to automate turning rigs on/off due to available power?  Do you have more than one internet connection?  Cool idea, and hopefully you can put that resource to good use.

Pretty damn interesting, If lets say I purchase two rigs with like 3 x 5870 in each, and you set them up, how would I get my rigs back if I decided that I do not want to play with bitcoins anymore?

Oh yeah and hit me up if you need any help with script and the likes, if you get this interesting idea up and running.

Kind regards
Kris

Just a warning!
This guys does not exist.
I am from Norway, in norway every citizen is recorded in the public tax registry (skattelistene), which are released every year openly on the web. He was not in the list. He also don't show up at all on google, except in this thread ofcourse.
He registered on this forum today.
Worst of all he use google translate to reply back to me in norwegian.


Judge for yourself, but I would not trust this guy with a bitcent.

1.4 kw* 35600 shares = 49840 kw per hour or 49.84 MW

Only 4 wind turbines?  Typically wind turbines are 1.5 MW.   According to wikipedia 10 MW turbines are in development, but it doesn't seem like they are readily available.

Typically you get up to 40% power capacity on wind turbines (maybe up to 45% at a really good spot) at least in the US (according to the west wind and east wind surveys by NREL).

So did some people get owned?

I become suspicius when he says 800rigs: it's about 13  hours/day 365 days/year works to put 1 minute/day of work for every rig. Too much work for a single guy.
And he puts a 12.000$ of roof to his maximum incomes from the farm, but that's make a little 1.25$/month for each rig. With all that rigs he earn 40$/month from each (that is a total of 35.000$/month) and even doubling the difficulty and halves the production is more then 8.000$/month.

I think the kw/h is really a mistake, nobody uses that metric, is always kwh, or kilowatt hours.  So 1.4 kwh x 35600 shares = 49840kwh over an entire year.

49840kwh/(365days x 24hrs/day)= 5.7kw constant free energy.  Using his numbers, this is what the power company is giving him for free.

@ OP

Pm sent.

so is it 966kW or 966kWh? Just putting things into money perspective:

Price of industrial (cheap) power in Norway is avg. 41.6øre/kWh excluding taxes and grid rent (http://www.ssb.no/elkraftpris_en/main.html)

If we are talking about 966 kW of power used 24/7 all year is:
966 kW * 24h * 365 = 8462160 kWh (8.4 million kWh)
8462160 kWh * 0.416 NOK/kWh = 3520258,56 NOK (3.5 million Norwegian kroner, or 648k USD) per year in free electricity.

Now if it were 966kWh per year, the numbers would be:
966 kWh * 0.416 NOK/kWh = 401.9 NOK (or 74USD) per year in free electricity.

To me neither makes sense  :-[

Maybe 966kwh per month?  That number is at least within a magnitude of a reasonable amount.

I guess so

We are all hackers, why the hell would we trust eachother with something unbelievable such as this?