Q: What if BTC spikes and you have not the funds to buy sufficient BTC to repay those who chose to be repaid in BTC?
A: Great question. Fortunately, I own the vast majority of Bitcorp Mining CO (totally different venture). My share yields several hundred BTC per month. This, combined with my other substantial means, gives me very high confidence in being able to secure the necessary BTC.
My primary concern is the interval. Five years is like an aeon in Bitcoin terms. Will Bitcoin Mining CO survive this year? Will you stay interested in acquiring BTC to reduce risk? Will Bitcoin itself survive, or will the exchange rate be above 1000$? It seems to me that there needs to be a backup plan covering all cases. Also, maybe some details about who you are and what you do might help. That was certainly the largest hurdle I anticipated as well. Bitcorp is completely debt free, has assets in excess of $10,000, and needs only very low prices of BTC to remain highly profitable. As for the other contingencies, I do not think I would be willing to do more than 40-50% of the loan with BTC repayment to largely reduce the exchange rate risk. Details on myself and what I do will gladly be shared privately with qualified, interested lenders. Thanks for the feedback, I know there are things I have not thought of yet. |
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Do we have any architecture for doing a Kickstarter-esque experience, or are we just tossing coins at addresses for the time being.
No formal architecture that I am aware of. I would like to think we can put together something more substantial than just tossing coins! I absolutely plan on being completely transparent on the details of the loan, and post a spreadsheet showing amounts owed, amounts repaid, and any other info that the lenders desire to be shared. |
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I have been thinking about this a fairly long time, and think the time is right to put the proposal out there.
10,000 11,000 BTC 5 year note:
-Minimum single commitment of 100 BTC (not interested in 1000 different lenders)
-Interest of 10% per annum
-Re-payment will be in 20 60 equal, quarterly monthly payments
-P & I will be amortized over the lifetime of the loan.
-Lender(s) must establish up front if they wish to be repaid in BTC or USD
Let me try to head off some obvious inquiries....
Q: What in the world do you need 10,000 BTC for?
A: I am in the process of buying out the senior partner in my firm (several percent a year), thus need capital.
Q: Why not go to a bank?
A: This is 1000% more interesting. Really, the implications (if this works) are really profound. It would mean individuals are able to crowd-source large amounts of financing without playing the rigged game with banks. I have no problem securing bank financing, but I hate the system, just like most Bitcoiners.
Q: How can the lender(s) be assured of willingness, and ability to repay?
A: Couple reasons: My record as a trader/borrower is pristine. The equity in the firm yields substantially more than the interest rate on the loan, so I am locking in a spread. Further, I will fully collateralize the loan.
Q: What if BTC spikes and you have not the funds to buy sufficient BTC to repay those who chose to be repaid in BTC?
A: Great question. Fortunately, I own the vast majority of Bitcorp Mining CO (totally different venture). My share yields several hundred BTC per month. This, combined with my other substantial means, gives me very high confidence in being able to secure the necessary BTC.
Q: Why would someone loan you BTC at 10%, when people are offering crazy annualized rates on smaller loans?
A: Most of the other loans I see are extreme short term in nature. Its great if you can keep rolling over the loans to achieve the crazy annual rate, but you most likely cannot (this also increases the risk of fraud/scam as you deal with dozens of borrowers). I feel that the rate I am offering, though lower than the norm, is a good deal for persons looking to invest BTC for a long time horizon with minimal ongoing hassle.
Q: Sounds interesting, but I really need more info to feel comfortable with this.
A: I am willing to discuss more details with serious potential lenders.
Just a final word.....I realize this will come off as crazy to many people. I also know from past experience that it will attract some trolls. That being said, try to be civil. I am completely serious about this, and would love to see it work. I think it would be great for BTC as a whole, and show tantalizing potential for future possibilities.
Constructive feedback is desired, and I am happy to answer any questions. Let's do this!
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I would like to focus on other things DrG has said.  I don't know about everybody else's setup but yours is the best/cleanest I've seen. I wanted to copy your setup but building a custom house/babies/patients took a priority.
Thank you DrG. I appreciate your kind words. Hey Giga, Your install is the Tits.....no 2 ways about that. Mind answering a couple questions? Where are you hosting those miners? It looks like an industrial space, perhaps a small warehouse? What is your power cost per Kw/h? How much do you estimate you have invested in terms of capital? How about man hours of effort? I have recently been compiling my own numbers in order to get a feel for how profitable my efforts have been thusfar. I am pleased for the most part, but have a few more variables to put into the equation. |
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I don't understand the people buying brand new 7970's thinking the resell value will be better, it's going to lose a few hundred $ in value the first few months, while a 5970 still maintains the majority if not all of it's value if you bought one when the 7970 came out. Anyway more for me I guess.
Very simplistic view. Most 5970's are 2 years old, and many have been overclocked the entire time. It is a gamble paying $400 for a card that could go bad at any moment, thus taking the re-sale value to nearly zero. Many people would rather take a garaunteed 150-200 dollar hit on a new 7970 that will very rarely crap out (and has a warranty even if it does), over a very sketchy 5970 that could cost you 100% of your investment. I have about a 50/50 split in my farm on 5970/7970.....so I have thought this through extensively. |
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I am running all my rigs downclocked for the spring.. Now at 39900
share your specs! How does the hash power breakdown? |
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I have 400 MH/s!
I'm sure some will be able to beat that?
I started with 21 MH/s on an old Asus 9000 or something. Keep on trucking! |
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What is the largest mining farm that we know of? I am talking a single individual, not pool operators.
My farm is currently pushing out 23,000 MH/s
I used to think this was pretty damn beastly, but realized I have no idea who might be out there with even more massive farms.
Anyone have good knowledge of the matter and care to post a list of large miners?
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I'll give you 19 btc for the Asus 5850 with the broken fan shipped to rainy Seattle  Deal. send coins to: 1At7bAMzMbiZRkcdgWfeyxB5X85sYAKe8G Sent! got em.....send me an address! |
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I'll give you 19 btc for the Asus 5850 with the broken fan shipped to rainy Seattle Deal. send coins to: 1At7bAMzMbiZRkcdgWfeyxB5X85sYAKe8G |
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bump....make me an offer!
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45 btc for the xfx and the working asus card
47 including shipping? |
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Dudes, I will entertain offers on these items.....don't hesitate to throw something out there!
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Would you ship to glorious Yurup?
Sorry, no international shipping! |
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Seems abcpool is down now  - thank goodness I've a backup pool in place. Confirmed. All of my miners are down....unable to connect. |
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Finally, I have a PSU that I lack the knowledge to fix, but I am 99% certain a person with more experience will have no problem fixing up:
What are its symptoms? Just quit one day. I have not done any testing beyond trying to start it up again.....it would briefly spin the fans, then die again. |
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First the GPU's:  XFX 5850: 25 BTC, shipped USA soldAsus directCU 5850 (needs new fan, or fan repair): 20 BTC, shipped USA soldAsus directCU 5850: 27 BTC, shipped USA soldAll 3 work great. I am sure I could repair the fan myself, but I have moved on to 7000 series cards and don't want to mess with it anymore. Now the PSU's:  From bottom left, then up and around: Dell 375 watt, 1 PCIe connector: 10 BTC, shipped USA Dell 375 watt, 1 PCIe connector: 10 BTC, shipped USA Dell 500 watt, 2 PCIe connectors: 15 BTC, shipped USA Antec 500 watt, 2 PCIe connectors: 15 BTC, shipped USA Antec 500 watt, 2 PCIe connectors: 15 BTC, shipped USA Rosewill 750 watt, 4 PCIe connectors: 15 BTC, shipped USA Finally, I have a PSU that I lack the knowledge to fix, but I am 99% certain a person with more experience will have no problem fixing up:  Make me an offer!!! |
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February is in the books, and we are very happy with our results. We generated 416.44 BTC during the month, and pushed our mining speed to over 22,000 MH/s! We are still working on getting everything stable at this speed, but our progress has been very encouraging. Our build-out program is nearly complete and we plan on very little further investment until we can assess the impacts of the reduction in the rewards coming up.
Production (in BTC) 416.44
Operating Expenses (in BTC) 300.00
Free BTC flow 116.44
We are amortizing the purchase of new hardware over the next several months, thus operating expenses will remain elevated during that time. By mid-summer, we should be back to very low expenses and be turning a 300+ BTC profit.
Financials have been updated on the first page.
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If you can get the system working we have some interesting numbers.
16 x 5970 @ 390 MH/s per GPU = 12480 MH/s
At the current difficulty and at a value of $4.8 per BTC would see break even in less than 6 months.
This includes $1200 for the system build and $400 per 5970.
16 X 7990 @ 600 MH/s per GPU = 19200 MH/s
At the current difficulty and at a value of $4.8 per BTC would see break even in 7 months.
This includes $1200 for the system build and $849 per 7990
It would be nice if it can be hashing before the halving.
Except you cant buy 5970s, and 7990s will be dropping in about 6 months.... so buy the 5970s now, sell them, and replace them with 7990s Did you mean you CAN buy 5970's? Nope, can't. Almost all the used ones on ebay are owned by insane overclocker gamer types, and have done dumb shit like throw out the stock hsf in favor of improperly installing a wc block that probably cracked the dies. Total YMMV territory. Huh. I have purchased at least 8 off of Ebay, and every single one of them is working great. The only issue I had was a bad fan, and that fixed with a $39 fan and about 20 minutes work. Have you had bad experiences personally, or are you simply speculating? Aggregating bad experiences of others. So is it not, in fact, a case where one "can't" but 5970's, but one where you would recommend people don't. |
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If you can get the system working we have some interesting numbers.
16 x 5970 @ 390 MH/s per GPU = 12480 MH/s
At the current difficulty and at a value of $4.8 per BTC would see break even in less than 6 months.
This includes $1200 for the system build and $400 per 5970.
16 X 7990 @ 600 MH/s per GPU = 19200 MH/s
At the current difficulty and at a value of $4.8 per BTC would see break even in 7 months.
This includes $1200 for the system build and $849 per 7990
It would be nice if it can be hashing before the halving.
Except you cant buy 5970s, and 7990s will be dropping in about 6 months.... so buy the 5970s now, sell them, and replace them with 7990s Did you mean you CAN buy 5970's? Nope, can't. Almost all the used ones on ebay are owned by insane overclocker gamer types, and have done dumb shit like throw out the stock hsf in favor of improperly installing a wc block that probably cracked the dies. Total YMMV territory. Huh. I have purchased at least 8 off of Ebay, and every single one of them is working great. The only issue I had was a bad fan, and that fixed with a $39 fan and about 20 minutes work. Have you had bad experiences personally, or are you simply speculating? |
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