What's a fair price for 1.1GHash (sub-letting mining)?

[Reikoku]

Hi all,

I'm looking at setting up some rigs and sub-letting mining.

They'd be putting out 1.1GH/sec each, running Arch with three 5870s. I'd be willing to just point them straight at the buyer's choice of pool.

What would be a fair price to rent out a rig for 3 months for? (1.1GHash/sec for 3 months)

I know that Vladimir offers a 4 month service for £1600 for 1GH/sec (I know Vladimir is far more well known than I am around here) but I was wondering if anyone else is offering the service and what price ranges are considered reasonable.

I have 10 years experience with Linux, lots of experience with computer building and I'd be holding replacement components so if anything goes, the machines would be right back online in (at worst) hours. I'd offer 89 day uptime guarantee in 90, with any more lost days replaced by two days at the end of the contract gratis.

So, looking for feedback of any kind, and what would be required to make this a hit.

[1714831418]

1714831418

[Reikoku]

No opinions?

[hawks5999]

Why wouldn't you just mine with them yourself? I may be a little dense but I don't see how you could get greater value from subletting than from getting blocks.
Just my ฿0.00002

[Reikoku]

Because if I sublet, I can buy more rigs meaning after the 3 months I end up with a lot more mining rigs.

[Alex-Z]

The reason vlad sells contracts in the first place is because he knows that in four months the returns will be so tiny from mining and he would make more money from people purchasing contracts rather than he could make himself by mining.

[jibjabz]

I just did an analysis on what I would pay and it wasn't something I'd expect you to be interested in.

The issue with leasing is you take on all of the risk (rapid increases in difficulty and/or rapid decreases in BTC price) without the safety net of owning the hardware.

If I go out and buy a sweet rig and in 30 days it's not generating profit then I'm out 20% of my investment, tops. In a lease situation it won't ever become completely unprofitable, but it could very realistically reach a point where I'm not making much more than whatever the power bill is on 1.1GHash.

This could be worth anywhere from $200 (at equilibrium pricing) to $1,600 if no one notices mining is profitable. Obviously it could go higher than $1,600 if the bitcoin price rallies, but under that assumption it's probably better to buy. Mining is very profitable right now, but market forces will correct it. I'd offer $1,000 for the 3 months and would consider it a very risky investment.

[Capitan]

The reason vlad sells contracts in the first place is because he knows that in four months the returns will be so tiny from mining and he would make more money from people purchasing contracts rather than he could make himself by mining.

His prices are also ridiculous. Last time I checked his monthly charge of ~400 euro is around $700USD, for ~1Gh/s/month. That's more than twice what it takes to build a machine capable of the same mining power yourself. At least going by the prices I saw in his post (I only looked at it today), the only people paying him must be those who haven't done the math themselves. And what does it say to you when someone goes around charging people for various things related to a fad instead of putting his money where his mouth is and mining for himself? I'm sure he's mining too, but he's making a killing by charging people crazy prices and then either pocketing the profit or putting it into his own hardware. Even if the market crashes he can sell the hardware and still make out really well. I can't say there's anything wrong with what he's doing, just not sure about the judgement of anyone sending him money.

NOTE: i'm basing that solely on the 400euro/month price i saw in his thread today. Maybe also everything costs more where he lives than where I live.