Bitcoin mining project, entry level investment

[QuintLeo]

4 years??

How many generations of mining gear will that require?

 1 - 14/16nm full custom should last about that long and perhaps a bit longer before something better CAN show up.

 2 - IF they do the initial build using currently-available 28nm full custom or the B11 14nm NOT full custom gear/chips.


 When 14/16nm gear shows up for Bitcoin mining, the hardware will have finally caught up with "state of the art" and there won't BE any "better node" to move up to for years.



 No NDA required, just have to pay attention to announcements and existing gear options.

[tmfp]

On a defensive note, this is the second time you have made a threat about post us on a Scam Accusation thread.  We are seeking accredited investors and as such they are very aware about due diligence, and we are more the willing to provide such data.

Yes, I have no interest in appearing to be a bully so I edited that out, not before you read it and quoted it tho.

I am trying to get a handle on the basic proposal, which is a 6 Ph/s farm with hopes for expansion, and attempting to see what you bring to the table that is worth 71% ownership of the project. For a substantial investor confident in the basic premise of mining remaining profitable on a comparatively small scale such as this, a long term lease on hash power in an existing operation would seem to be a more proven and less speculative approach.

[ColumbiaBasinMining]

My usual questions, verifiable NAMES of people behind it, social network profiles, registration data, anything which add to the transparency of this operation? You have to understand, with so many scams around, people do not tend to trust online mining investments.

We will do our best to show more transparency.  The business information is public record and can be found here Secretary of State.

The LinkedIn pages for co-founders:

• Steven Swanson
  
• Keith Kofoed
  

Our website is just a stub at this time as we are not seeking any customers.  We will improve the site when needed.

We also have a Skype to talk to people.  Because Skype is full of spammers, please indicate  "Lets talk about bitcoin mining", this weeds out spammers.

We are also very aware about all the scamming on this forum, and to be honest we believe we have a bigger hurdle proving we are not a scam then even raising the necessary funds for the prototype.

[ColumbiaBasinMining]

1 - 14/16nm full custom should last about that long and perhaps a bit longer before something better CAN show up.

 2 - IF they do the initial build using currently-available 28nm full custom or the B11 14nm NOT full custom gear/chips.

 When 14/16nm gear shows up for Bitcoin mining, the hardware will have finally caught up with "state of the art" and there won't BE any "better node" to move up to for years.

 No NDA required, just have to pay attention to announcements and existing gear options.

Since BitFury has now openly published that they are selling the BF8162C16, I will assume we can talk about them, but not the pricing.

We felt that the 16nm chips would last through the next halving, because going smaller is showing to be much more difficult.

Assuming BitFury guarantees are accurate we should be able to achieve 9.75 PH/s per megawatt.  Most of our calculation was assuming 0.15 J/GH (6.6 PH/s).

[ColumbiaBasinMining]

On a defensive note, this is the second time you have made a threat about post us on a Scam Accusation thread.  We are seeking accredited investors and as such they are very aware about due diligence, and we are more the willing to provide such data.

Yes, I have no interest in appearing to be a bully so I edited that out, not before you read it and quoted it tho.

I like to thank you for that.  Yes, I click quote quickly and then work on what I want to say.

I am trying to get a handle on the basic proposal, which is a 6 Ph/s farm with hopes for expansion, and attempting to see what you bring to the table that is worth 71% ownership of the project. For a substantial investor confident in the basic premise of mining remaining profitable on a comparatively small scale such as this, a long term lease on hash power in an existing operation would seem to be a more proven and less speculative approach.

Referencing a previous posting now:  Assuming BitFury guarantees are accurate we should be able to achieve 9.75 PH/s per megawatt.  Most of our calculation was assuming 0.15 J/GH (6.6 PH/s).

The small scale as you state is just a prototype to prove the profitability of bitcoin mining to a potential larger investor(s) that are not familiar with bitcoin mining.

What we bring to the table is two things, and willing only to talk about the one in open forum.

• We have the land and the power needed for this mining operation.  This is not leased land, it is owned by the co-founder.  Also having power cost of $0.0256 kW/h is almost half of most operation or more.
  
  
• The other part (beating a dead horse) requires the signing of our NDA.  To explain our whole business strategy without a NDA is foolish.  We believe that everything will become crystal clear once investor(s) understand our business model for this stage.

If you are an accredited investor, you are more then welcome you to look over our proposal.  This should convince you one way or the other if we are a scam.

[Phildo]

It's clear that you don't understand how mining works if you think that miners bought today will last for years on end.

New technology is only part of the problem. Every time any other person in the world plugs in a miner, your miner becomes worth less because the difficulty goes up and the miner makes less.

You need to constantly add hashrate to keep up with the difficulty, never mind new technology. And every time you buy a new miner you dig the hole a little deeper and make it harder to get back to where you started from, never mind turning a profit.

[ColumbiaBasinMining]

It's clear that you don't understand how mining works if you think that miners bought today will last for years on end.

New technology is only part of the problem. Every time any other person in the world plugs in a miner, your miner becomes worth less because the difficulty goes up and the miner makes less.

You need to constantly add hashrate to keep up with the difficulty, never mind new technology. And every time you buy a new miner you dig the hole a little deeper and make it harder to get back to where you started from, never mind turning a profit.

Now this maybe condescending, but sir, we understand mining to its fullest. 

If you think there is going to be a new chip every year at this point is ludicrous.  This current generation of ASIC we believe will be valid for two years or more.  We could be proven wrong, but based on research we think the next step is 10nm and not sure how long that will take.

Every time someone adds a more powerful miner it affects the difficulty, although you are only looking at one side of the equation.

How many miners go offline because it just becomes too expensive for them?  How many crash and burn because of old technology?  All this and more have cause and effect on the difficulty.

Also, businesses can not just increase hashing rate every time the difficulty changes, they would bankrupt themselves.  Increasing hashing also increases the expense and unless you have a good handle on all your expenses, including replacement costs you are in a race to the bottom.  With that said, we are always looking for more power to increase our percentage, but we also feel there is a limit before you actually start losing money with more power.

[quietbearcoin]

I still really like how this guy answers questions and think if he has business secrets why not sign a nda.  Has anyone posting signed their nda and looked at this? Just wondering...

Phildo are you even interested in what they are saying or as tmfp put it “just being a bully”?

Please let me know if you will accept a small investment. If you are, I will be happy to sign an NDA.

It really makes me wonder why there seems to be so much resistance to signing one. What is wrong with protecting ones information? Seriously.

[Phildo]

I still really like how this guy answers questions and think if he has business secrets why not sign a nda.  Has anyone posting signed their nda and looked at this? Just wondering...

Phildo are you even interested in what they are saying or as tmfp put it “just being a bully”?

Please let me know if you will accept a small investment. If you are, I will be happy to sign an NDA.

It really makes me wonder why there seems to be so much resistance to signing one. What is wrong with protecting ones information? Seriously.

He hasn't answered how he plans to make more than 6k bitcoins, which is the basic premise.

If you can't do that publicly, you shouldn't be asking for money publicly.

If asking questions to get people to realize that buying miners for someone else is a stupid idea is bullying, you can call me king bully.

[quietbearcoin]

I still really like how this guy answers questions and think if he has business secrets why not sign a nda.  Has anyone posting signed their nda and looked at this? Just wondering...

Phildo are you even interested in what they are saying or as tmfp put it “just being a bully”?

Please let me know if you will accept a small investment. If you are, I will be happy to sign an NDA.

It really makes me wonder why there seems to be so much resistance to signing one. What is wrong with protecting ones information? Seriously.

He hasn't answered how he plans to make more than 6k bitcoins, which is the basic premise.

If you can't do that publicly, you shouldn't be asking for money publicly.

If asking questions to get people to realize that buying miners for someone else is a stupid idea is bullying, you can call me king bully.

So, let me see if I am following you on this... You're saying that if someone asks for monies publicly, they can't keep the answer a secret when all they're doing is asking the questioner to sign an NDA?
Why do you think NDA's are even used then?
But firstly, I have to step back and wonder if you're aware of what the purpose of an NDA is?
I am NOT trying to be snarky here, King of the Bully's  . You just seem to have a real aversion to signing one if you really want to know the answer.
Methinks thou doth protest too much.

[Phildo]

I still really like how this guy answers questions and think if he has business secrets why not sign a nda.  Has anyone posting signed their nda and looked at this? Just wondering...

Phildo are you even interested in what they are saying or as tmfp put it “just being a bully”?

Please let me know if you will accept a small investment. If you are, I will be happy to sign an NDA.

It really makes me wonder why there seems to be so much resistance to signing one. What is wrong with protecting ones information? Seriously.

He hasn't answered how he plans to make more than 6k bitcoins, which is the basic premise.

If you can't do that publicly, you shouldn't be asking for money publicly.

If asking questions to get people to realize that buying miners for someone else is a stupid idea is bullying, you can call me king bully.

So, let me see if I am following you on this... You're saying that if someone asks for monies publicly, they can't keep the answer a secret when all they're doing is asking the questioner to sign an NDA?
Why do you think NDA's are even used then?
But firstly, I have to step back and wonder if you're aware of what the purpose of an NDA is?
I am NOT trying to be snarky here, King of the Bully's  . You just seem to have a real aversion to signing one if you really want to know the answer.
Methinks thou doth protest too much.

An NDA gives no benefit to me. I know the answer to my questions. They don't have a way to turn 2.1 million dollars into more than 6,000 bitcoins like they are claiming. I want them to publicly state that, so they don't get any money, or publicly refute that, so people will have a reason to give them money.

I'm not asking for some state secret, I'm asking for them to give the basics of their business.

[QuintLeo]

Also having power cost of $0.0256 kW/h is almost half of most operation or more.

 Actually, that power rate is very competative but NOT "half" what most major Bitcoin mining operations appear to be paying.

 MegaBigPower, for a well known and somewhat documented example, is ALSO paying a bit less than 3 cents/KWH (their mining operation is in either Chelan or Douglass county, or they may have some operations in both).

 Most of the Chinese big farms are paying NO MORE than 3 cents/KWH per multiple reports and comments about them.

 Folks that are paying 5 cents or more on big farms are rare to non-extant any more.

[QuintLeo]

It's clear that you don't understand how mining works if you think that miners bought today will last for years on end.

 The 14/16nm full custom generation SHOULD be profitable for AT LEAST 3 and more likely 5-6 years, as it will have caught up with semiconductor state-of-the-art and there CAN"T be anything significantly better for a few years (probably 3-5 year timeframe, possibly LONGER, before the 8nm (IBM) or 10nm (Intel) generation hits commercial availability at all).

 The next generation WILL in fact be a new world for mining, since it WON'T have to look over it's shoulder wondering if it will have even 6 months to pay off before the next generation arrives.

[ColumbiaBasinMining]

I still really like how this guy answers questions and think if he has business secrets why not sign a nda.  Has anyone posting signed their nda and looked at this? Just wondering...

Phildo are you even interested in what they are saying or as tmfp put it “just being a bully”?

Please let me know if you will accept a small investment. If you are, I will be happy to sign an NDA.

It really makes me wonder why there seems to be so much resistance to signing one. What is wrong with protecting ones information? Seriously.

quietbearcoin, we are allowed a limited number of non-accredited investors (35), as long as these investors have some actual investment experience.  If you qualify on the latter part, we will be more then happy to send you our NDA.

As to your other question, we have had no requests for our NDA.

[ColumbiaBasinMining]

An NDA gives no benefit to me. I know the answer to my questions. They don't have a way to turn 2.1 million dollars into more than 6,000 bitcoins like they are claiming. I want them to publicly state that, so they don't get any money, or publicly refute that, so people will have a reason to give them money.

I'm not asking for some state secret, I'm asking for them to give the basics of their business.

Before we answer your questions, just alerting that we are taking a defensive stance.

Did you actually read our posting?

At this time we are seeking accredited investors to assist in a 1 megawatt prototype build to show a Proof of Concept to potential larger investors.

The overall build is estimated to cost $2.1M (roughly 6000 BTC based on $350 USD).


You stated: “They don't have a way to turn 2.1 million dollars into more than 6,000 bitcoins like they are claiming.”

What are you thinking?  We said that 6000 BTC was equivalent to $2.1M, based on a set price that was easily divisible.  This was a comparison for the bitcoin community.


Your statement: “I'm not asking for some state secret, I'm asking for them to give the basics of their business.”

We have posted the basics of our business plan, but what we have not posted is our strategy to more profitability, as we are asking for an NDA for this information.


Your statement: “An NDA gives no benefit to me. I know the answer to my questions.”

If that was the case, you would have already funded our whole project, if you have the means.


Your statement: “I want them to publicly state that, so they don't get any money, or publicly refute that, so people will have a reason to give them money.”

Phildo, you came out guns blazing, attacking us without any insight to our business model.  It’s apparent in the above statement you want to sabotage our operation, and we are befuddled as to why.  Are you in the same playing field as us, and do not want to see anymore competition?

[ColumbiaBasinMining]

Also having power cost of $0.0256 kW/h is almost half of most operation or more.

Actually, that power rate is very competative but NOT "half" what most major Bitcoin mining operations appear to be paying.

MegaBigPower, for a well known and somewhat documented example, is ALSO paying a bit less than 3 cents/KWH (their mining operation is in either Chelan or Douglass county, or they may have some operations in both).

Most of the Chinese big farms are paying NO MORE than 3 cents/KWH per multiple reports and comments about them.

Folks that are paying 5 cents or more on big farms are rare to non-extant any more.

MegaBigPower as for as we know is located in Wenatchee (Chelan County).  This article may interest you.

Some of our information on other miners maybe obsolete, and was never intended to mislead.

It's clear that you don't understand how mining works if you think that miners bought today will last for years on end.

The 14/16nm full custom generation SHOULD be profitable for AT LEAST 3 and more likely 5-6 years, as it will have caught up with semiconductor state-of-the-art and there CAN"T be anything significantly better for a few years (probably 3-5 year timeframe, possibly LONGER, before the 8nm (IBM) or 10nm (Intel) generation hits commercial availability at all).

The next generation WILL in fact be a new world for mining, since it WON'T have to look over it's shoulder wondering if it will have even 6 months to pay off before the next generation arrives.

We agree with your above assessment on the chips.

[Phildo]

It's clear that you don't understand how mining works if you think that miners bought today will last for years on end.

 The 14/16nm full custom generation SHOULD be profitable for AT LEAST 3 and more likely 5-6 years, as it will have caught up with semiconductor state-of-the-art and there CAN"T be anything significantly better for a few years (probably 3-5 year timeframe, possibly LONGER, before the 8nm (IBM) or 10nm (Intel) generation hits commercial availability at all).

 The next generation WILL in fact be a new world for mining, since it WON'T have to look over it's shoulder wondering if it will have even 6 months to pay off before the next generation arrives.

If you think that, you don't get it.

New generations of miners are not the only way to damage a mining farm. Other people buying and running 14/16nm chips (which they will be doing in droves if they are so great) will cause the difficulty to increase, which will make these miners generate less coins over time, which will make them less valuable. That doesn't even deal with the issues of hardware failure that are sure to spring up.

Unless of course you have reason to believe that other people will be unable to acquire this magical chip that will be state of the art for 3 years. If that's the case, you may have something, and should at least state that in your public posting.

[Phildo]

You stated: “They don't have a way to turn 2.1 million dollars into more than 6,000 bitcoins like they are claiming.”

What are you thinking?  We said that 6000 BTC was equivalent to $2.1M, based on a set price that was easily divisible.  This was a comparison for the bitcoin community.


Your statement: “I'm not asking for some state secret, I'm asking for them to give the basics of their business.”

We have posted the basics of our business plan, but what we have not posted is our strategy to more profitability, as we are asking for an NDA for this information.


Your statement: “An NDA gives no benefit to me. I know the answer to my questions.”

If that was the case, you would have already funded our whole project, if you have the means.


Your statement: “I want them to publicly state that, so they don't get any money, or publicly refute that, so people will have a reason to give them money.”

Phildo, you came out guns blazing, attacking us without any insight to our business model.  It’s apparent in the above statement you want to sabotage our operation, and we are befuddled as to why.  Are you in the same playing field as us, and do not want to see anymore competition?

You still don't seem to get this so let's try again in plain English.

You are asking for 6,000 BTC, to buy machines that will make more BTC. Mining is just another way to get BTC, that's all it is. Someone with 2.1 million dollars does not need your help to get 6,000 BTC, so they have no reason to give you 2.1 million dollars, or 6,000 unless and until you can explain a plan to turn that money into more than 6000 BTC.

I would certainly not fund your project, nor am I a competitor because I realize that bitcoin mining, at the current status does not make sense. It is MUCH better for me, or anyone else to take my x amount of dollars, and turn it into x/350 BTC, instead of buying a machine that will generate less than x/350 btc over the course of it's useful life.

Even if i was so inclined to do that, I would be much better off buying my own miner instead of fronting all of the money for 21% of a miner as is offered here.

My only motive is to get people to stop throwing money and electricity at this stupidity.

[ColumbiaBasinMining]

My only motive is to get people to stop throwing money and electricity at this stupidity.

So now we can address the elephant in the room.

Are you against bitcoin as it stands now?
Why are you motivated to hurt or hinder a company that has done nothing to you personally?

After reading your statement, all I see, is you want to stop the use of all the energy needed in the mining process.

Adding more mining power to the network is absolutely necessary otherwise you are inviting a 51% control problem, as it is we are already getting close to that.

Our take on it is, you are not necessarily against us, as much as what we are wanting to do.

[ColumbiaBasinMining]

Just wanted to refresh our original posting.

Columbia Basin Mining, LLC (“CBM”) is a Washington State Limited Liability Corporation, located in Moses Lake, WA.

Our co-founder owns two different parcels of land having access to 10 megawatts of power each. He is giving CBM the land rights so we can have nearly 20 megawatts of power for our mining project.

We also have the possibility to lease property with 13 megawatts.

At this time we are seeking accredited investors to assist in a 1 megawatt prototype build to show a Proof of Concept to potential larger investors.

This initial cost of the prototype will include financing the permits and running power to the property from the substations. This cost alone is estimated at $250K from the Public Utility District (PUD).

With one megawatt of power we should have minimum of 6.0 PH/s (0.6%) of the current hashing rate (1 EH/s).

Our electricity cost with all taxes and fees is $0.0256 kW/h.

The overall build is estimated to cost $2.1M (roughly 6000 BTC based on $350 USD).

We are offering 21% of CBM (or 0.0035% per 1 BTC) investment. All investment funds will be held in a cold wallet (1CBMwaCqYWQriKP73hxD8HeCY9mMGGtfbZ).

Once the investment funds reach 30% of target $630,000 (appox. 1800 BTC) we will start construction on the first 0.20 megawatts of mining.  We estimate this build to be 60 days, after which we’ll add additional mining for every $70,000 (appox. 200 BTC) collected.

Should CBM fail to reach the necessary 30% of target on or before April 15, 2016 all funds will be returned to the investors minus a miner’s fee of 0.0002 BTC.

We will be continuously seeking private placement to complete the full 20 megawatt project, and the return of your initial investment. Your ownership percentage will not be diluted because of the private placement.

CBM revenue is the accumulation of all bitcoin mining between Monday – Sunday in a calendar week (“Mining Week”). The earnings will be based on the gross mining revenue from the “Mining Week”, and the valuation will be determined by the spot price of Bitcoin in USD from CoinBase.com the day following the “Mining Week” at 12:00 PST.

CBM is estimating expenses at 35% of gross mining revenue, and will pay earnings based on net proceeds after mining expenses. All earnings are paid within 10 days following the “Mining Week”, by Company cheque (“check”). The investor may elect to receive bitcoin in lieu of check, but all reimbursement calculations are based in USD as if receiving a check.

The earnings amount is dependent on the percentage of investor’s overall ownership, but anticipating 325% ROI over 4 years.

Multiple investors are also welcome.

If you have questions, please email, private message or Skype us. Some information may require signing a Mutual Non-Disclosure Agreement. We will post all relative questions in this thread along with the answer, as long as it does not violate any vendor’s NDA. If any question needs additional research, please allow us ample time to respond.

Any investor desiring a refund before April 15, 2016 we will be charged 2% fee based on the returned amount.

This posting is not a scam, and any such statements and/or unwanted spam posting will be removed.