100,000,000 Difficulty before Jan 1st, 2014?
Please pass whatever the hell you got off silkroad.
I would definitely say that if you are not planning to be profitable at diff 100m or greater, than you have no clue about what's coming. Where the hell are we getting 730 TH of mining power?
Once initial pre-orders are shipped out, purchasing will continue until profitability calculators are no longer "gold rush" 6-8mo. What happens then? ASIC manufacturers lower their prices because they have a shit ton of chips, PCBs, etc laying around doing nothing. Avalon add's 30, BFL has 55-75 (preordered), Basic has  in march (iffy), drop 20 from GPU miners exiting the scene or going to Litecoin. If Avalon's website is any clue, they will soon have the capacity to start delivering 30Th per week..... |
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Is it possible for someone else to claim others bonds? For example if 2GOOD trusts me to claim his bonds and I'll write his on my legal document?
Hi burger, It is not possible. Best, James |
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Wait, I thought he was rage quitting the project? And then selling to the Asians? And now "winning"? Too much drama..... |
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I claimed payment on Dezember 26, with a copy to you James. I did not get an answer from you, nor your lawyer.
My Gouvernment (Germany) say it is illegal to copy or scan my ID.
Also, as I made clear before, all the things you guys ask would cost me estimately 150€. I am not even sure if I get this much as a return.
Its ridiculous, your so called lawyer doesnt even reply, and if he does, it's just the standard text from your website.
Is this the way you treat people that trusted you with their money?
I am really dissapointed and cant believe there are people still investing in your operations.
Hi bixcoin, I apologize for Quentin not responding. There were technical errors on his end where email when to spam unintentionally. Please re-forward your request. Best, James |
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when is THE day?
1d ~21h to go..... |
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Can anyone offer advice to a UK resident wishing to begin the claims process?
Hi Lucidize, There are other UK residents who have started and completed the claims process without issue. Please email Quentin: qpage at mylawyr dot com Best, James |
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So then what happens to those that choose to not upgrade?
I am not sure why anyone would not chose to upgrade. When ASICs arrive, a single 5Mh/s unit will output many multiples less than it does now. I quoted Meni before about this. His idea was: I will continue paying coupons of 1MH/s per bond for a while. When the ELE (extrapolated lifetime earnings with current difficulty) was about 1 BTC the bond traded around 0.4 BTC (40% of the ELE), so when I eventually do a buyback (likely after ASICs have stabilized) I think a fair price will be 50% of the ELE at that time (this is subject to change).
I am willing to do the same. |
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So then what happens to those that choose to not upgrade? You will obviously retain all the mining hardware.. do those guys just keep getting hashing power until you decide to turn off the rigs? This just looks like you upgraded thousands of dollars worth of hardware for just 6 months of hashing... for us that is ... you obviously will keep the rigs running and be mining BTC for as long as it is still profitable for you. Bravo on making out like a bandit on the hardware ... but that is it... no more anything?
Naelr
Hi Naelr, I have been saying for months now that without a buyback clause, there is no way to offer Teramining as a perpetual agreement. I have never been willing to offer any ownership in either equipment or company, this has not changed. I am offering both a free and paid upgrade path for those who want ASIC. I have also lowered the upgrade price. Please tell me what you think Teramining should be and we can discuss it. Best, James |
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Giga,
So unless I missed it you never said what happens, after we upgrade, after 6 months is up?
Hi Naelr, Sorry if I didn't answer this before. Teramining ends after the term of each individual contract has received 6 months of payments. While we are still waiting for the TOS from Quentin, I have been contemplating making the term longer. If I read the contract right and understand what your trying to do we upgrade from gigamining to teramining paid or otherwise, hope we make more btc then we paid in, then? ?? the contract is fulfilled and no more shares for us? The mining contract is over after the term. we start over?
I will probably not be making any more offers after Teramining. are we hoping for some kind of share trading ? You absolutely cannot trade your Teramining contracts as this would classify the contract as something that would need to be registered with a bunch of 3 letter agencies. I sent in my claim so I am almost ready to make a decision I just want to know what is next ... after the 6 months.
Thank you for sending in your claim. Best, James |
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So who's the delusional one in this picture?
+1 |
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Hi gigavps
Thank you for the reply. What do you think is there a chance that for you to extend the contract for 12 months? Please understand me well I must pay around 4-5 BTC to get my ~20 gigamining bonds. Tomorrow will ask again for a cheaper service but still it's a bit unfair for non US citizens.
Regards
2GOOD
Hi 2GOOD, While I definitely understand your concern regarding creating legal documents, there is really no other way around this. I am still considering extending the contract, but have not made a decision. Best, James |
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That's more or less a good news for the ones with access to their shares. I'm still waiting for the digital signature option.
What about the 6/9/12 month !?
Hi 2GOOD, I do not recommend that you wait. The claims process will stay open but Gigamining cannot be automatically upgraded to Teramining. So if you are interested in Teramining, I would not wait. Best, James |
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I have asked Mircea to claim again. Below is the chat log from IRC. <mircea_popescu> sup
<gigavps> payments have resumed
<gigavps> for verified claims
<mircea_popescu> cool!
<gigavps> please send in your info so i don't have to deal with your delisting mess
<mircea_popescu> that's done already.
<gigavps> what?
<mircea_popescu> the delisting ? back in wherever it was, 1st of december ?
<mircea_popescu> it's done, dealt with, water under the bridge.
<gigavps> so you are not going to claim and keep paying your mpex clients?
<mircea_popescu> i'm really not going to rehash this two months later either.
<gigavps> ok, just making sure
<gigavps> i'll make a post about it
<gigavps> mind if I use this log on the forums?
<mircea_popescu> *shrug*
<gigavps> https://bitcointalk.org/index.php?topic=129544
<gigavps> that thread was started by ppl who hold your ETF
<gigavps> in it, -pr said things would be taken care of regarding fiduciary duty and such
<gigavps> so if you wanted, you could make the payments yourself
<gigavps> https://virtualprocessingsolutions.com/
<gigavps> has a list of the per unit output
<gigavps> 2012-10-08 would start the backlog
<mircea_popescu> alrighty. there's the rota process for people who are interested in it, no big deal.
<gigavps> ok, let me just ask again, do you mind if I post this chat in the forums?
<mircea_popescu> nope
<gigavps> awesome, thanks
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I don't see the option for the upgrade after logging in with my userid. Is this turned on for everyone now?
Hi BrimStone, I am still waiting on the TOS for the site from Quentin. As soon as it's ready, the process will go live. Sorry for the confusion. Best, James |
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To all Gigaminers:
Effective immediately, the price to upgrade to Teramining is being dropped to .25 BTC per Gigamining unit upgraded.
BurtW has also been kind enough to help to test the VPS system with a live upgrade and he was able to successfully complete the process.
Best,
James
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To all Gigaminers:
The VPS website has been updated to allow for verified claimants to easily upgrade to Teramining. I am waiting on Quentin to provide the terms of service before we can officially begin the upgrade process.
If you have not sent in your claim yet, please do.
Best,
James
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- Gigamining was fully insured against any equipment defects or other problems, 5Mh no matter what. Terramining doesn't seem to be (maybe I've not read all this carefully enough).
The expected output should still be 100%. VPS has strategies in place to make sure defective equipment does not adversely effect the contract, it is just not explicitly guaranteed. - Gigamining was (advertised as) perpetual.
The buyback clause was the devil in the details. Nothing is perpetual. - Gigamining was a BTC deal, not a fiat deal, which is what Terramining is (cleverly disguised as this fact may be).
Teramining will be paid in BTC. - (most importantly) GLBSE-era nonsense & silliness is over.
Completely agree. Things will never be the way they were and it is probably for the best. As revised, this is a simple "dedicated server" deal, available from pretty much any datacenter/ISP: you pay us 100% mark-up on equipment for a year, we provide connectivity, power, cooling and floor space.
This is right. Teramining is a contract giving the recipient access to both the Bitcoin network and the specialized data processing equipment. There is of course, more to it than just that, but that is the essence of the contract. As to the earnings projections offered:
They are exactly that, just projections. This is why I asked for others to make their own assessment of the situation. In case anyone's wondering, this isn't an impeachment of James Gibson personally. The case is simply that antiquated (that is to say, fiat) arrangements do not work for Bitcoin.
Well, when the real world meets Bitcoin more head on, I believe that having "antiquated" arrangements will be the only thing to save all parties from eventual regulation / laws / etc that will be placed over the payment system. It's great that someone is trying (in the sense it's great someone's trying to prove you can't grow taller by pulling your own ears) but the blindness of frustration mentioned afore also guarantees it's suicide.
That is your opinion and you are welcome to it. |
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Just to throw more gas on the fire, how about an option to buy MORE shares at that .29 price if you are already a bondholder? I would be willing to double up at that price.
(I run a farm of my own and know what the TRUE costs are)
-BrimStone
Hi BrimStone, First, thanks for pointing out that there are definitely more intangible costs to running a mining farm. My wife can certainly attest to all of the time I spend looking at my phone to make sure things are up while she has something important to say to me. I do appreciate your offer, but no. The offer will stay as-is. Best, James |
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Regarding the paid upgrade option, my interpretation of the above is that 0.29 BTC ($3.90 at today's rates) gets a Gigamining holder an additional 11 Teramining contracts over the 4 offered by the free path. 11 contracts at 9Mhps apiece is 99Mhps.
Consider a BFL Little Single SC. It hashes at 30,000Mhps and sells for $650. 99Mhps is 0.0033 the hashrate of the SC. 0.0033 of $650 is $2.15. But the paid Teramining upgrade is $3.90 ... a premium of 81% over the actual hardware cost (nearly double). And it ends after just 6 months. Of course some premium is to be expected (hosting facility, utilities, insurance, time, risk) but I find it difficult to justify an 81% markup... even more difficult knowing that the contract ends after 6 months.
So 3 options for Gigaminers to consider are (a) do nothing and accept the 1:4 free upgrade; (b) pay 0.29 BTC/share for the 1:15 upgrade; or (c) put their 0.29 BTC/share towards the purchase of an actual Single (which can likely be re-sold for its full purchase price after 6 months, given BFL's track record of a full-value trade-in program).
I do understand that some people are willing to pay a high premium for not having to worry about the effort of maintaining a physical miner, but I think it is worthwhile to go through the exercise.
Giga, for transparency, would you be willing to provide an itemized list of your (anticipated and/or estimated) operating costs, non-recurring costs, and operating income during the 6-month Teramining period? It would help Gigaminers better judge the value of both the free and paid upgrade paths on offer and help with their decision. My feeling is that a 0.2BTC/share upgrade (26% markup) may be more reasonable than the 0.29BTC (81% markup) proposed ... but without actual numbers to back either one of these, there is nothing to say that one is more reasonable than the other.
Also, for those who no longer wish to continue with Gigamining or Teramining, what options are available to sell their shares? Would you consider a buy-back of some of these yourself and, if so, for what price?
Hi Epoch, First, thanks for taking the time to write up your response. Gigamining/Teramining is not for anyone who wants to run their own bitcoin mining equipment and deal with all of the issues that arise. If this was the target market, there wouldn't be a business. As for the premium, Gigamining sold at a 100% premium to the cost of the equipment so 81% seems a bit low. For operational costs, there is hosting the equipment, paying for 24/7 support and having an internal employee fret over making sure everything is working correctly. That's about $6k/mo with healthcare, taxes, etc. This also does not include the pool VPS is developing nor the "bitcoin mining analytics" software we are developing to help run the business. And there isn't just the costs of the equipment, there are "use tax" payments to be made for different states the equipment will be running in that are usually around 6% of the purcahse price. We can consider a buy-back of Gigamining similar to what Meni has mentioned. I believe he said: I will continue paying coupons of 1MH/s per bond for a while. When the ELE (extrapolated lifetime earnings with current difficulty) was about 1 BTC the bond traded around 0.4 BTC (40% of the ELE), so when I eventually do a buyback (likely after ASICs have stabilized) I think a fair price will be 50% of the ELE at that time (this is subject to change).
Does anyone have an issue with what I quoted above? EDIT: This buyback would only pertain to Gigamining, not Teramining. Best, James |
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Can you gives us a definition of a "Gigaminer"? From your posts, it seems like you are not sure what to do with those who have not submitted their info. Maybe, you have not really thought about it yet but for heaven's sake just say so.
Going forward, I do not plan to submit any documents to claim what I had invested.
However, I am interested to know what is going to become of my shares.
Thanks!
Hi nebulus, At this time, there is no cut off date for claims. All accumulated BTC will be held in cold storage. Since the Gigamining contract is perpetual, coins will keep accumulating in the cold storage wallets until they are claimed. This is the only way to insure that I will be able to cover the liability at any point in the future. Best, James |
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