There's a new unofficial forum dedicated to WTT: http://www.wttclub.com/forum.  It's NOT affiliated with Giga Watt. Inc., just a bunch of miners like you and me.

Check it out and sign up.  We'll have the latest updates from Giga Watt, threads for answering questions about renting WTT, when we're going to get them, details from people who've made site visits, how to transfer WTT from Cryptonomos to your GW dashboard, etc.

To summarize:

1. Sign up at http://www.wttclub.com/forum
2.
3. Lambos!

I admire everyone's passion and willingness to share information on the tax and legal implications of cryptocurrency mining, but let's face it: None of us, to my knowledge, are tax lawyers or accountants.

If you're a miner, talk to a tax or accounting professional to understand your situation.  I've paid accountants and tax lawyers enough money over the years to keep me out of trouble with the IRS and structure my finances to be reasonably tax-efficient.

Everyone's situation is different.  Talk to a professional.  Not doing so could cost you a lot of money in the long run.

I use https://bitcoin.tax.  USD$19.99 per year.  Very easy to use, imports data form most major exchanges and wallets, integrates with other accounting software.

Here is the list of features from their website:

The laws in Washington, U.S.A. are not pertinent to you unless you live there or choose to incorporate a company there. If neither then you aren't conducting business or creating taxable events inside the state.

Are you using a legal entity to hold the mining assets, or are the assets your personal property?  If it is just your personal property and you haven't formed a legal entity then taxation is determined by the laws where you reside.  Your mined coins could be treated as assets, income, capital gains, dividends, distributions, or any other categorization invented by the powers that be where you live.

If you formed a legal entity to hold the mining assets then taxation is determined by 1) the laws where the legal entity was incorporated, and 2) the laws where you live.  First, some places tax corporate earnings, dividends, capital gains, etc., and others don't. Second, the method by which you transfer assets from the legal entity to yourself could be a taxable event; it might be considered a dividend or salary depending on where you live.

To further complicate things, you could live in one country and have the legal entity in the other.  That's all sorts of fun.

The best thing you can do is talk to an accounting or tax professional to determine the most tax-efficient way to structure your operation.

Lead times for miners are usually at least a few months.

Giga Watt is a great choice for hosted mining - experienced staff, inexpensive electricity, professionally managed hosting, conditioned power, buy from them and have miners shipped directly to their hosting facility, on-site repairs if possible, etc.

There are many cryptocurrency mining calculators out there, but you should always use one that factors in increasing difficulty.  The calculator at http://mycryptobuddy.com is a good one to start with.  Try this link: http://www.mycryptobuddy.com/EthereumMiningCalculator/path?hashrate=237&powerCost=0.033&power=1375. Make sure Difficulty is on and set it for 24 to 30 months, which is the estimated useful life of the miner.

He needs to register on https://gigawatt.sg and provide them with the information used to sign up for WTT purchase on Cryptonomos website.  Once gigawatt.sg recognizes him as a WTT owner he can buy miners at slightly lower prices than on offer to non-WTT owners.  The website https://gigawatt.sg is run by Giga Watt Pte. Ltd., a Singapore subsidiary of Giga Watt, Inc. that buys mining hardware from manufacturers for resale to WTT owners and others.

Here are some mining units gigwatt.sg sells and how many WTT are require to host them (Watts * 1.1 ), though I think the S9 is out of stock now:

Miner	Currency	Delivery	USD Price	Watts	WTT
B3+	ETH	September	$3,290	1,250	1,375
D3	DASH	October	3,499	1,200	1,320
D3	DASH	November	2,199	1,200	1,320
L3+	LTC	Late October	2,399	800	880
S9	BTC	Late October	1,609	1,323	1,456

If he has only 1,000 WTT then he'll need more WTT if he goes with anything other than an L3+.  WTT owners should be able to rent WTT from other WTT owners once Giga Watt makes that functionality available.  I think that'll happen sometime in November 2017.

Cryptonomos updates the total displayed on cryptonomos.com/wtt as commitments to purchase WTT are fulfilled.  Cryptocurrencies need to be transferred to Cryptonomos, bank wire transfers can take a few days to process, and some purchasers were caught off guard when wallets and exchanges halted BTC support due to the BTC/BCH issue.

TL;DR:  WTT good.  Save money.  My estimate: $2 to $2.50 each when listed on exchanges.



It isn't like they minted 30,000,000 physical WTT tokens, put them in a warehouse, then tried to sell them.  The tokens are electronic assets created on demand as they're purchased.  The offering constraints were 1) A maximum number of WTT to be sold and 2) A deadline after which WTT would no longer be sold.

They weren't required to sell a certain number of WTT; rather, the number of WTT sold determines how much hosting capacity they'll build and the timing and degree to which their post-buildout plans can be executed.

Think of it this way: Would you be disappointed if you wrote an Apple and Android app and sold only 22,000,000 copies rather than 30,000,000?  Would your company fold for the lack of an additional 8,000,000 units sold, units with an infinitesimal marginal cost of production?  Of course not.  It may limit how many more people you can hire to write and market your next great app, but it wouldn't be a failure.



Supply of what?  No physical WTT tokens were created, the only supply constraint was the self-imposed 30,000,000 unit limit.  The supply of WTT exactly matches the demand; that's what happens with non-physical assets with a near-zero marginal cost of production.  What is the supply of the theoretical app mentioned above?  You don't have any physical inventory, copies are sold as they're paid for, and the quantity supplied exactly matches the quantity demanded.

If I was going to be critical of anything with the WTT offering I would say they could have done a better job promoting it to a wider audience and explaining the benefits.  I think they did a great job selling a new concept in a relatively young market with so much hype, fraud, and uncertainty.  In other words, they didn't generate enough demand, but for a project spanning continents, and with dozens of people from half a dozen companies working on it, I think the offering was quite successful.  There were a lot of things that happened during the offering that were beyond their control, like BIP 91, Bitcoin Cash, SEC DAO announcement, multiple wallet and ICO hacks, AlphaBay shutdown, and much more.  So, hair-on-fire earthquake alien invasion moon exploding tightrope chainsaw juggling with Satan's ex-wife complaining about her 2/3 caff double ristretto affogato venti mango 2% protein double blended with whip caramel drizzle salted caramel topping vanilla bean frappuccino.



WTT owners will save between $350 and $537 per kWh per year depending on the size of their operation, assuming 95% uptime for their mining rigs.  One kWH requires 1,000 WTT, or $1,200 at $1.20 per WTT.  Savings exceed WTT cost after 2.23 to 3.43 years under these assumptions.

I'm not sure why a miner wouldn't pay $1.20 per WTT under these circumstances.

Assuming a 4% discount rate, a miner planning for a five-year WTT useful life would pay between $1.56 and $2.39 per WTT, or $2.84 to $4.36 with a ten-year useful life.  WTT give miners the right to access extremely inexpensive electricity and managed hosting for 50 years, so the longer you think mining will be economical, the higher the WTT net present value.



No one from Giga Watt or Cryptonomos has said as much.  They've been consistent in their messaging on the topic: No more WTT will be issued.  Again, WTT not stockpiled in a warehouse, purely digital asset, created only when purchased, and offering ended 31 July 2017.

Granted, there is nothing preventing them from doing another token offering, but I don't think they would do so until they've built out enough hosting capacity to accommodate all WTT holders and ran the operation at capacity for at least six months.  They need to spend $20+ million, build 22 MW of hosting capacity, get thousands of mining rigs set up, operationalize their hosting, billing, mining pool, customer service, and equipment repair processes, and complete a thousand other tasks major and minor, none of which can be overlooked without negatively impacting their customers and reputation.

I doubt new tokens would go for less than $1.20 if they were offered again.  Closer to $2.50.  And $2 to $2.50 once they're listed on exchanges.

The countdown is to the release of the first batch of WTT tokens, according to the text:


I imagine they'll reset the counter with each batch released.

Vlad and Vladimir Pulkhrov, who I assume are Cryptonomos representatives, have said in the WTT Token Offering Telegram channel that rentees can take back their tokens at any time.  They haven't said that renters can stop renting at any time, so that isn't clear to me yet.

Here are a few of their messages from the past week:

I would prefer being able to lock WTT rental in for a specific term, both as a renter and rentee, but maybe Giga Watt will implement that feature later.  Predictability and stability are positive attributes in any market, but a lack of lock-in would be attractive for renters.  Two sides of the same coin, if you'll forgive the pun.