Mining Investment - need expert opinion, would pay for consultation

[REorEVOLUTION]

Hi,

I need some expert to gauge whether a BTC Mining investment I am offered is profitable.

The cliffs:
- 10k GBP buys 1k MHs for 3 years.
- 50% of profits will be retained by the company
- the most profitable of the currently 14 most liquid coins is mined and exchanged into BTC on a daily basis

example calculation with the assumption = BTC stays constant at 250GBP/BTC:
30k GBP = 3k MHs mine 13.05 BTC in 3 weeks = 1087.54 GBP
after 50% fee = 543.77 per week profit
after 3 years = 84828.12 GBP

Is this realistic?

I would be happy to pay a consultation with an expert via Skype if this is not completely unrealistic.

[notlist3d]

- 10k GBP buys 1k MHs for 3 years.


Are you looking at cloud or hardware?  The 3 year part sounded like cloud possibly to me.

[coinmaster222]

if its cloud thats expensive in my opinion

[REorEVOLUTION]

thanks for your responses. the company buys and maintains hardware with it, so i assume you can call it cloud

would any of you be willing to check out the pdf and have a look if the assumptions are realistic?

[notlist3d]

....

example calculation with the assumption = BTC stays constant at 250GBP/BTC:
30k GBP = 3k MHs mine 13.05 BTC in 3 weeks = 1087.54 GBP
after 50% fee = 543.77 per week profit
after 3 years = 84828.12 GBP

Is this realistic?

After looking at it no it is not realistic to assume you will make the same profit every week for 3 years.  You are not thinking about difficulty change.  Also in 3 years most miner's are obsolete.  I can't imagine a miner that will run profitable to 3 years.

[coinmaster222]

Who is the company are they legit,do they actually have that hash???

[gingpark]

I am also wondering about the calculation in the difficulty changes especially since it is hard to predict how much change we will see especially in the next 3 years.

Also being in other types of business the one common thing that I encountered the most is that the numbers always look good on "paper" but in reality it is so much different.

Most of the time there are many variables that can't be calculated and things can just randomly happen both good and bad that can completely change the whole business.

But of course as the subject says it is purely my opinion on the matter cause in the end you are making the final decision.  

[REorEVOLUTION]

Thanks for the replies guys, really appreciate it. I can PM you the name of the company if you are interested in more details.

They state that they are aware of the rising difficulty but they focus on the coin with the highest profit margin. Their argument for profitability is that they continually upgrade and ensure newest equipment at cool locations. But I would assume other clouds do the same.

Not really sure what I should think of this. In addition there are of course other risks with things like that (e.g. fraud, theft and so forth)

 

[notlist3d]

Thanks for the replies guys, really appreciate it. I can PM you the name of the company if you are interested in more details.

They state that they are aware of the rising difficulty but they focus on the coin with the highest profit margin. Their argument for profitability is that they continually upgrade and ensure newest equipment at cool locations. But I would assume other clouds do the same.

Not really sure what I should think of this. In addition there are of course other risks with things like that (e.g. fraud, theft and so forth)

 

I don't know about continually upgrade.   You will find a place with low electricity prices and build a center (or find one already there and rent spots).   But you will go pretty much for all at once.   You will need to make sure you ROI on that equipment plus some.     Upgrading at that scale would only be done if first time was successful.

[TheDragonSlayer]

Hi,

I need some expert to gauge whether a BTC Mining investment I am offered is profitable.

The cliffs:
- 10k GBP buys 1k MHs for 3 years.
- 50% of profits will be retained by the company
- the most profitable of the currently 14 most liquid coins is mined and exchanged into BTC on a daily basis

example calculation with the assumption = BTC stays constant at 250GBP/BTC:
30k GBP = 3k MHs mine 13.05 BTC in 3 weeks = 1087.54 GBP
after 50% fee = 543.77 per week profit
after 3 years = 84828.12 GBP

Is this realistic?

I would be happy to pay a consultation with an expert via Skype if this is not completely unrealistic.

Which cloud mining you are talking about? You should just go for trusted one like pbmining and hashnest. Also, your calculation is out cause the difficulty is increasing at a very fast rate.

[gkv9]

The only opinion that matters is, on one hand, you don't know where the difficulty will be in the next 3 years period as it changes almost every 3-6 months and on the other hand, Price... We are uncertain as no one can predict where the price will be later at the time when you said that your mining will end, both these things are correlated to each other and must be watched out, also you need some solid prediction that the price of a BTC must be at least 4-5 times the current price after 3 years for you to be in profit, based on calculations such as difficulty change, electricity cost, etc. everything. I have shared everything to the best of my knowledge, even I have a thread regarding this thing, I ain't paying anybody for consultation, but yes, currently I'm trying to know that which mining hardware or cloud service can gain me something good as I also have an investor ready to invest in the same.

This is the link to the thread: https://bitcointalk.org/index.php?topic=879461

Would love to hear from you and from everyone whoever lands here and want to get some opinions too for the same...

Good luck with your mining dude...

[micky123]

This is not cloud mining. I believe the term used is "hosted mining" or "co-located mining". The company helps you purchase the equipment (naturally with a cut included for them) then they have it shipped to their mining farm location, where they run the miners for the user and take care of the complete process.

They take care of all maintenance costs and electricity for a fee which the user can pay them from their balance.

My points of view:

1) They should be trustworthy - very difficult to establish trust these days in the crypto world.
2) The fees work out too much especially when you consider that the difficulty is rising each day and the earnings are dropping every day.
3) RoI will take much longer than if you had your own hardware (if at all) 10K GBP is quite substantial.


IMO its not worth the trouble. Have you taken into account possible downtime due to faulty hardware while doing your calculations? Will you be compensated by the company for the downtime period in case of hardware failure. Repair timelines will also include time for shipping the unit back to the company which will, in all probability, be located in China. Will the company bear the cost for transportation of the unit to China for repair / replacement if needed? This could mean more cost to you.

Please read the contract carefully in case you plan to go with this scheme. Not worth it IMO.

[coinmaster222]

My last post on this but it seems to me very expensive and too much taken on trust,do you get the resale value if there is any at the end of contract on YOUR equipment that they buy for you?

[armedmilitia]

This is not cloud mining. I believe the term used is "hosted mining" or "co-located mining". The company helps you purchase the equipment (naturally with a cut included for them) then they have it shipped to their mining farm location, where they run the miners for the user and take care of the complete process.

They take care of all maintenance costs and electricity for a fee which the user can pay them from their balance.

My points of view:

1) They should be trustworthy - very difficult to establish trust these days in the crypto world.
2) The fees work out too much especially when you consider that the difficulty is rising each day and the earnings are dropping every day.
3) RoI will take much longer than if you had your own hardware (if at all) 10K GBP is quite substantial.


IMO its not worth the trouble. Have you taken into account possible downtime due to faulty hardware while doing your calculations? Will you be compensated by the company for the downtime period in case of hardware failure. Repair timelines will also include time for shipping the unit back to the company which will, in all probability, be located in China. Will the company bear the cost for transportation of the unit to China for repair / replacement if needed? This could mean more cost to you.

Please read the contract carefully in case you plan to go with this scheme. Not worth it IMO.

ASICSPACE is the most trustworthy co-location service I've heard of. They're pretty high profile, pretty sure they aren't scammers.

I don't use ASICSPACE, for my HW though. My co-location service is SEGMINING (based in WA), which has been active for a while and has a few vouches from reputable btctalk members (myself included, if you consider me reputable). Mind you, I wouldn't just trust them with >$10K, because you never know. They could disappear and take my hardware with them--I would have practically no chance at recourse. (That's just the tinfoil hat part of me talking though).

[gkv9]

ASICSPACE is the most trustworthy co-location service I've heard of. They're pretty high profile, pretty sure they aren't scammers.

I don't use ASICSPACE, for my HW though. My co-location service is SEGMINING (based in WA), which has been active for a while and has a few vouches from reputable btctalk members (myself included, if you consider me reputable). Mind you, I wouldn't just trust them with >$10K, because you never know. They could disappear and take my hardware with them--I would have practically no chance at recourse. (That's just the tinfoil hat part of me talking though).

They seem to be new to the industry and are quite expensive with their plans, up to $80-$95/KW/Month...

I would like to have an argument upon the same thing with some calculations for everyone to understand it better that how one can profit giving his/her mining hardware to the ^UNKNOWN^ company/people?

[MCHouston]

From my calulcation you will not make your money back, you will be out of pocket even at the end of the 3 years.  I assumed a 3% Diff increase for my calculation and assumed an LTC constant as a base.  You would still be about 35% from breaking even, and a 35% profit from the added trading and multi mining you would be doing is probably not worth the gamble.

I wouldnt do it.

The info is free, unless you want me to make a presentation with graphs why you should not do that deal.