You keep going to the 5 years calculation.  Miners continue to get more efficient and faster.  If they started with Antminers running 350 watts at 200gh (Let's assume they overclock) and then they start getting Spondoolie hardware at 6th for 2600 watts.  They can move a whole bunch of contracts to the 6th and shut down the Antminers and sell them off for profit.

It's not like they are going to run an Antminer for the next five years and pay more money in power than it earns in mining.

At some point, you don't even mine for those people if it doesn't make fiscal sense to do so.  You scrape up a dollar and pass out the change without even bothering to mine.

No, not only your view is very limited, you are as a person (this is for beying a smart ass) )
It uses x electricity now, it will not use x electricity in the future. Anyway, you don't have any understanding how how a business work. If you use just math like you are doying, well let's say if you put 10 dollars somewhere ( like in your wallet) it's imposibble to have in a year $11 or $9, you will have $10 exactly. But if you use economics and if you put $10 somewhere (like in a business, or a fund) in a year is very probable you will have $100 or $0.1. Anyway, it's preaty clear you have no ideea how a business work and you just assume 1+1 always equals 2. If this would be the case it would be impossible for a business to grow if you invested $100, because math forbide it, but it's not like that.

imaging there is such  thing like progress and it tell me what at least in end of this year We will have 0.2 watt per ghs now go ahead and imaging end of 2015 year at least technically possible 0.1 watt per ghs so div Your calcs with 10.

cex.io you mean?

You are very limited in your point of view. Maybe (and I say maybe because I don't know how this business model work) they buy hardware for x and sell it for y resulting a profit of y-x=z. The z doesn't all go into profit but a part goes in reinestments, a fund for future upgrades and future expansion, because, as a business you have to think of this parts. You just assume that they all take as profit but I'm know for shure it doesn't work like that, because I have a business (not btc related) but the principles apply also.

"Group Bitcoin" I see You do same business as PB in UK and sell ghs for 2.8 usd and only with order more than 1 ths.In UK kwh more expensive than in Canada, and I think Your goal to spread FUD here and get some customers, I'm adding You on my ignore list and if possible remove  "Group Bitcoin" from this thread.

It's not pointless at all actually.  There is nothing on our web site to say that the customer will be mining with the same hardware for 5 years.  

If you would made this calculations a year ago with an Avalon@200 GH pulling 2.4 kW none of it would aply now. Same will be after one year. And please make again your calculation with the price of energy from China, you will be surprised of the difference.

If he was looking at the same sheet I was, that is for commercial. 

I don't know pb runs or not but it's really possible.At least they can pay by 5 year contracts and also make profit.You look only one corner but its also 3 other corners.I'm geting hardware from china less than 2 usd per ghs(1.45 usd) and mine nearly same btc as they pay so for Me if I start do same and people  buy it I can do huge profits and pay whem also with terms of contract.
and if I order like pb I can get even cheaper.

That is why I said I was slightly confused by this, mainly because of your broken grammar and no sentence structure.  I am not going to delete my comment, I am not afraid to be wrong if I am

Okay, so you are saying 1 TH/s costs $4,380 for 5 years??? Then yes, it would be absolutely impossible to make money for them, and they would lose money.

I probably shouldn't have went off on a tangent but I really thought you meant they were paying $4,380 for 5 years with all their gear.

My apologies.

Slightly confused by this:

So are you saying it costs $4,380 per hour for them to mine that much?  $4,380 for 5 years worth of mining?  What are you saying it costs?

If you are saying it costs $4,380 per 5 years, which I highly think you are  You realize you are making a terrible claim then correct?

$4,380 / 5 = $876 per year, or $73 dollars per month.

Now, I am just going to grab 1 miner that purchased a contract through them.

Customer 13022 purchased 7500GH/s from there probably about 3 weeks ago, maybe 2, who knows.  That person spent probably 30BTC to pay for that, which with today's cost is roughly $17,100 dollars.  Keep in mind this is just 1 customer.  
Now roughly again, just roughly saying 7.5 TH/s costs probably around 27BTC.  Which leave them only in 3 BTC profit.  Which is roughly $1,710 dollars.  Well that is good they nearly covered there whole electric bill with 1 customer for 5 years.  Imagine if they had 2 customers, oh wait they do, so that covers that cost of electricity.  Now lets say they spend roughly $100,000 on staff/website costs, cooling, mining per year(Which I am wayyyyyyyyy over shooting)  That means they will need about 10 customers per month to maintain that in the example I used:  They have roughly 200-300 people who have purchased over  1000 GHs.  These people spent anywhere between 3.6BTC and 36BTC.  Lets just average it out and say they 15 BTC per person and take the minimum of the people(200)  15*200 = 3000BTC from these people(which is an understatement)  They probably make anywhere between 1BTC and 4 BTC from all of these people.  So lets say they make an average of 2BTC per person.  200*2 = 400BTC *570(USD) = $228,000 they made from just this people this year.  This is covering electric cost and the staffing cost by quite a bit.

So don't use math as an example if you aren't good at it, bottom line.

I don´t want to burst any bubbles here, but Washington state offers under 4ct/kWh for datacenters.

Also, in one month the sp30 will be released with a power consumption of under 0.5W/GH.

It isn´t too much of a speculation if we assume that by end of next year alone, we would be at 0.25W/GH equipment (e.g on 16nm).

1w per GH/s for how long?

If it is 1w per GH/s and 1w is .001 kwh at .10 = .0001 per GH/s in electricity costs?

1000GH/s = 1000w x 87600hours (10years) = 87600 kwh x .10 = $876 / 1000 = .876cents per GH/s for electricity.

Also, cloudhashing is going to be selling contracts at $1.99 per GH/s starting aug 1. Are you saying that doesn't even cover the electricity for the year of the contract?

Although that might be true, I trust PBMining, and I believe that they are legit.
Even cex.io has been around for some time.

I can't believe people pay for 5 years worth of mining.
Most companies in bitcoin world barely can stay active for more than 5 minutes.

Hit enter too soon

- What are the provisions for backup power, fire suppression and network connectivity to the site?
- Do you have insurances to cover the equipment that would be collocated in the facility?
- Does the facility have 24x7 access or engineers onsite to resolve issues with miners?

Separately.. You say 252u of rackspace, this is around 6 full racks. I also assume that the 'tunnel' in the picture below is just a wall print so what are future expansion options at the facility?

96 Amps of power at 230v is 22KW, how are you delivering this to the rack? Also how is the cooling provisioned to dissipate that much heat?

Hello I have just now paid for over 100 ghs my first order..wish me luck..  #1522    Jun 17, 2014    pending    $300.90 USD

As I grow I may do colocation as well if I purchase a second rig down the road. I am in process of buying one rig will stay in my Friend's house but if I ever get to buy  second one at least I know where to house it. I have no clue about running a rig so if I buy a rig and you receive it your end do you turn it on for me to hash as well?