Bitcoin Forum

I am going to try this again.....my last offer led to confusion and bizarre counter-offers.  


I own a mining operation that hashes at a minumum of 7,500 MH/s, and gets closer to 9,000 MH/s in the evening.  Over the last week I have averaged just over 8,000 MH/s.  I am willing to rent out this "farm" to interested parties.  
  

Terms are as follows:

1)  7 day contract
2)  Guaranteed 8,000 MH/s average over the contract term
3)  MINING WILL BE DONE AT MY CURRENT POOL, you will merely recieve the pay-outs.  I will set auto payment for every 2.5 BTC
4)  Any increase in mining power over the contract is yours, gratis.  (I am continually adding GPU's)
5)  Payment is to be made half in advance, half at the midpoint of the contract.  

Price:  26 BTC


My terms are firm, please DO NOT ask for something different.  If no one is interested, I am glad to keep hashing away and keeping the BTC myself.  

If you would like to purchase this contract, reply with your BTC address and send your initial payment to my BTC address (which can be found below).

Thanks!  


UPDATE:  I have sold this contract.  I am considering selling another 7 day contract upon completion of this one.  If interested, feel free to respond or PM. 

lol gl this time. Last thread was hilarious though :P

I noticed you were enjoying the show..... ::)

perhaps you should buy the contract this time around?!

Just sent you a PM

What cards are you using and how many systems do you have?

I have a tentative deal, but I will regale you with my stats anyway.

5   x 6970
10 x 6950
3   x 5830
3   x 5850
6   x 5770

These cards are spread over 20 workstations.

You say guaranteed 8000MH/s - how can the renter be assured of this guarantee?  The way I calculate it, I would make just over 35 BTC in 7 days with 8000MH/s.  So why only charge 26 BTC?  Do you just need a short-term loan?

Just trying to figure out "what's the catch".  What is your reason for doing this?

I assume he needs it upfront to keep adding to his current load.

I have a few reasons for doing this:

1)  I want to establish credibility amongst the BTC community.  I think engaging in some short term mining contracts, and delivering exactly what I promise (or over-deliver) will be a good start.
2)  I doubt anyone will buy a contract if it only pays back what you purchased it for.  Selling it at a discount benefits the buyer (ie, higher expected payout than purchase price), and also benefits me (I know I have 26 BTC at todays price versus 35 BTC at an unknown future price).  Business engage in this type of transaction constantly.....albeit perhaps not at this much of a discount.  

As for the 8,000 MH/s garauntee.....I will be sending the buyer my pool stats periodically so he can independently confirm the mining speed.  I suppose I could fake these, but if I was not delivering the stated speed, surely it would be reflected in abnormally low pay-outs.  

I've been working on getting my own mining farm set up and I have come up with the same reasoning on deciding how mining contracts should be priced. 
The miner is able to hedge their exposure to the USD/BTC exchange rate by selling their production forward.  The speculator (person buying the contract) is assuming the exchange rate risk and is therefore being compensated by being able to purchase the future production at a discount. 

There could be occasions where someone may actually pay more to take delivery a commodity at future date, such as when the cost of storing the commodity is fairly expensive and there is a cost associated with holding the commodity, but that is not the case with BTC.

Makes sense, thanks for the explanation.

Perfect explanation.....Contango vs backwardation.....just like any commodity. 

If I buy,can you make sure that I have access to the maximum power possible if I'm a paying customer.Is it possible to pay in 2 installments due to issues at the exchange for me?

I have 11.11BTC at the moment.I'll get the rest after hte exchange sorts itself out for me.

Is that the best price you can give me? I'm happy to just accept payments (instead of having miners pointed to me as that's sounds like a pain with systems in multiple locations)

If it's the best price you can offer,can you make absolutely sure that I get the absolute maximum power at all times when possible (taking into account of possible day/night situation with elec bills at ur end) so that I can later give a review of your services on my other sites (that I either co-edit or am the author of)?

Good service+good price=great service reviews :-)

great service reviews=more business :-)

My next 3 contracts are spoken for.  Price is firm, and will actually go up as I add more power.

Can I please secure a contract at todays prices?

I'd like you to give me a few days buffer as the exchange Im on is having problems for getting the bitcoins to you?

I don't wish to be affected by the price rise.1st I had to endure a challenge from the other bidder for your previous offer,now I gotta face price hikes :-\ over time.

Ok secure me a place asap at current price or i'm not interested.If it wasn't for me and the rival bidder,your service wouldn't be so popular,we could at least get a good price as we effectively did free advertising for your service during those challenging (yet hilarious posts) to secure the bids.

I'll pay within 4 days when the exchanges sorts itself out for the coins I'll pay you with.

I want a 7 days contract also!

??

Looks like I have competition once again,oh well.Guess that's life.Anyways I'm kinda glad that more people are interest because I hope that this will force the lowering of prices because economies of scale should affect pricing.If the merchant gets lots of paying customers,then economies of scale dictate that prices should be droppped to gain constant business and income as is my understanding of this.

Yochdog,how much interest have your contracts got?If it's a lot,you can make a serious amount of money by dropping prices which thereby encourages more customers to sign up with you.Here's what I mean:
price is 26BTC and only 5 customers use services =26x5=130btc
now if prices were dropped to say 19 or 20btc but you have 7 or more customers that would equal (20x7) 140BTc total within a period of just under 2 months which may offset the costs of extra power being added all the time as well as profit.

Whip up the interest and lower the prices.If the exchange doesn't sort itself out for me,I may drop out of the bid soon.i have 3 days left to wait for this to work.


P.S when will BTC value rise again as it's largely stagnant with occasional drops and rises now which is putting me off BTC in general,I'm now a semi-miner,semi- investor now due to the climate of BTC.

You've got that completely backwards.  When demand increases, prices increase.  When demand drops, prices drop.  When SUPPLY increases (i.e., this gentleman gets more machines to rent), then prices drop, and when supply decreases, prices increase.

Here is an update for all of you who are interested in my next contract:

I have had several PM's asking me to reserve this slot, but I feel it will be more fair to put it out there publicly for everyone. 

My hash rate is climbing, and I am now closer to an average of 9,000 MH/s.  (added 600MH/s last night alone).

The next available contract will begin August 30th at 7:00PM EST.  It will run through September 6 at 7:00PM EST.

-I will garauntee an average of 8,500 MH/s for the 7 day run
-Buyer will be pro-rated a refund for any downtime or hashing deficiency
-As always, any increase in power over the contract term is yours

The price is 30 BTC. 

If you would like to reserve this contract, reply with your address, and send 10 BTC to my address.

The balance of 20 BTC will be paid as follows:

10 BTC on August 30th, prior to commencement of the contract
10 BTC on September 2nd, no later than 7:00PM EST

I'm curious how much your electricity bill is lol. Also how big are you trying to make your farm? You seem to constantly be adding to it.

I live in the second cheapest state for power.....YA FOR HYDROELECTRIC DAMS!

My last bill was just over $200 bucks.....my rate was .08 per KW/h...and that rate goes down in about a month. 

I can see that I can expect to lose out on another oppourtunity cus :
a.I'm too late (for when bitcion first arrived to make serious $$$) as I'm unable to keep up plus no1 rly cared to tell me when it first opened in 2009.
b.Price for mining contracts keeps going up (from my experience despite numerous offers,no one but 3 suppliers care about them)
c.Profit margins are getting thinner with each 'upgrade' of  a contract.I feel that mining contracts are taking the mick in pricing now.The person has very low elec rates yet the end price is high :-/ (I honestly think that hardware can easily be paid off with loads more lower priced users more quicker than a few high paying users)
d.Difficulty rises means I get less BTC for my efforts
e.BTC value either drops a lot in a day or rises but never stays there.Value is unstable
f.If you wish to make bitcoin more acceptable as a currency to every1 (not just us miners),then add hte fairness bit where things have either a 'stabiliser' where things are kept stable or introduce 'relief' periods where in times of really low BTc value,there is a chance for hte currency to recover and when it's too high (too expensive for hte buyers),lower it to a more reasonable level.(I can only propose solutions as I lack programming knowledge to create my own currency).in life currency fluctuates all the time but not to ridiculous extremes which seems to happen on a regular basis from all the time that I was involved in mining of btc since late May 2011.

I wish to profit without the artificially created barriers and expense I constantly face.Well I feel that's happened for me because:
a.I'm a investor that likes to spend a more modest amount of money (not $1000's like some people can with hardware or buying bitcoins via exchanges) but expect proportional returns instead of like £74 investment in BTC giving me £5 profit.People I know who are able can spend HUGE amounts of money and profit like overnight yet I can't spend much and still take ages to pay off hardware and elec bills
b.I have extra challenges like bugdet cutbacks,living in a place where people complain about the heat,noise and power use of my mining rigs even a little.I have no access to alternative energy which would otherwise make my elec bill free instead of like $0.40 per kwh now in UK.

I don't wish to sound like a hater or a complainer so plz don't flame me.I'm simply getting some opinions off my chest as things have been very difficult for me in the btc world recently.

The return on hardware investment (excluding electricity cost) is the same for someone who buys $500 worth of mining gear, or $50,000.

I can understand how $.40 power would make BTC mining a monstrous pain. 

Just for the record, I don't think it is possible for people to "spend HUGE amounts on money and profit overnight".  If that was the case, everyone and their mother would be spending every cent they had to reap instant profits. 

No wonder you have a waiting list. You are selling contracts at a loss. Why??? For 30 BTC your farm will generate 33 BTC, since there's virtually zero chance of difficulty changing significantly in the coming week.

Ahhh, but what if the exchange rate is cut in half by next week? 

We discussed this earlier in the thread.....pretty straightforward. 

You're betting that bitcoins will tank this week? If you're so convinced that the price of bitcoin is going to drop, then why don't you sell your miners? Because if the price of bitcoins go up, this contract is even more of a bad move on your part.

What if he wants to mine even if he thinks the price is going to drop?  Why wouldn't he, if he can still make a profit on it (and a larger one if he gets the BTC today, but the price drops before the contract ends)?

If the price goes up, he looses.
If the price stays the same, he looses.
If the price goes down a little, he breaks even.
If the price goes down a lot, then he wins.

If the price is going to go down a lot, he'll make a much bigger profit by selling the hardware now.

There's clearly enough interest in mining contracts, especially moderately priced ones. I don't see the point in selling them at a loss. He could easily sell them for a small profit.

If the price goes down a lot, why would he make a much bigger profit by selling the hardware now, vs selling it in 7 days after the first contract is completed?

Selling now:  $5000 in hardware
Selling in 7 days:  $5000 in hardware + $246.22 in BTC.

I would agree with you that I don't see the point in selling them at a loss, but that's his choice.  He'll still make money on it, and that's all that is important to him.

There is no way to know whether I am selling this contract at a loss until it is completed.  My current contract was sold when BTC was $11.15/BTC.....today it is down to $8.9/BTC.

If the price continues to plummet, I will be better off having traded 30 BTC of declining value for 26 BTC @ $11.15.  (Yes, I sold them). 


I really hope this is the last time I have to explain this.  Questioning why I am "selling at a loss" is not only the wrong question, it is somewhat ignorant.  

The current contract expires today at 7:00PM EST.

Is anyone intrested in purchasing the next 7 days?  I will garauntee 8,500 MH/s for the entire contract.

Price is 30 BTC. 

Yes, but with $500 worth of rigs (or rather, rig) you wont be earning anything 'worthwhile'.
With $50k of rigs (say ~30,000 mhash) you would likely be earning more from mining per month than working at a decent mid-level managerial position in a company.

While both people do get their investment back in time, $500 is peanuts in the big picture. $50k is a lot, even for relatively rich people.
Paying off that much hardware & gaining everything after that as pure profit after electricity is a very lucrative business.

can you post how the last contract went?

I'll offer 27 bitcoins (all I have) if you switch the miners to my deepbit account.

I purchased the last 7 day contract and everything went smoothly.

Indeed, it was a great transaction.  Bitsense kept his word and was excellent to work with. 

If you are interested in the next contract, I have averaged 9,000 MH/s over the last 48 hours.  Those 5970's certainly kick it in the ass. 

Is it 8000 real mh/s as detected by mining program? And 8500-9000 I assume is whats being reported by the pool being used?

Not at all.  I track my miners individually and tally my total hash rate in a spreadsheet. 

I check it against what the pool reports to make sure it is close.  I am usually within 150 MH/s of what I expect to be.

The original post states 8000 mh/s. Did you add hardware since then?

Yes indeed....I added two 5970's (thanks Newegg!) and some random smaller cards.  I am well above 9,000 Mh/s, but with this many machines I suffer 1 or 2 outages a day.  Therefore I will only garauntee 8,500 MH/s.

Price is 30 BTC.

ok. wait so 2ghs = 1btc a day right? so 8ghs = 4btc a day * 7 days = 28btc +- 2btc with variance.

how's this a good deal?

No.  http://www.alloscomp.com/bitcoin/calculator.php

Good God, the amount of ignorance on this forum is mind blowing.