I get quite a mailbox on this, subjects ranging from the "refund guarantee" not being honoured, to rebuttals of my math based on "bulk discounts"
Dear tmfp,
>Now, one thing put forth by you about the mining output ref: post #11 what their people have told me that you cannot utilize the the package cost as the cost of the server as they are buying in bulk it come to them for cheaper.
There is no such thing as bulk advantage in
mining bitcoin. 10,000 machines will only mine 10,000 times that which one will mine.
Manufacturers like Bitmain may give a small discount for very large purchases and economy of scale may save on peripheral costs (repair staff, admin), but any suggestion that huge discounts can somehow apply and change the maths involved is unfounded.
YouTube videos purport to show Gainbitcoin mining with Antminer S9 machines. There have been various versions of this made and sold, varying in hashpower from 11 to nearly 15 Th/s.
A top spec S9 may just provide the hash power sold by Gain in the form of 10 Basic contracts (10 x 1.5 Th/s).
The 10
BTC they received for those contracts is not profit it's just a loan, counterbalanced in the books by their commitment to repay it and more...
Averaging the two main calculators, Coinwarz and Alloscomp, one S9 will mine 0.29
BTC per month
Gainbitcoin need 1.00
BTC per month from each S9 to pay their promised 10% return.
And that av ~0.29 per month is
gross income.
No deductions made for costs....
electricity
capital investment
maintenance and downtime
administration
mining pool.
Mining with S9's or equivalent, currently Genesis, BW and ViaBTC take an average of 42% of gross mining income for these costs.
So, the biggest cloud mining operations currently available return 0.1682
BTC net per S9 per month to their customers.
Gainbitcoin promise to return 1
BTC net per S9 per month to their customers.
Where does the missing 0.8318
BTC come from?
What possible answers are there to that question?
1) magic (unlikely)
2) other income (but Gain only sell mining contracts)
3) later investors' deposits (that would make them a Ponzi Scheme)
GBC contract validity: 18 Months
Average life of mining hardware: 4 years (estimated)
Months left after user’s contract expires: 30 Months
In GB, people are getting a fixed and limited income for 18 months only. After the 18 months until the hardware remains in operation can be used to mine for company or for new users. More the people, more the after 18 months income for company.
I'm trying, and failing, to understand this logic.
For every 1.5 Th/s contract that they sell, Gain promise to pay out on balance 0.8
BTC. [(1 x 10% x 18) -1] over its eighteen month life.
Mining with that 1.5 Th/s for eighteen months gives them 0.522
BTC gross income, around 0.30276 after overheads (not including MLM commission payments).
On every contract sold, they lose money.
When one contract ends after eighteen months, they sell the hashrate again and lose more money.
The only way they can avoid this is to not honour the 10% monthly repayment, or use funds from a source other than mining to make it.
So GB is getting huge profits already from the users
How?
They are getting large amounts of deposits (loans) certainly.
If you go and borrow say $1m, you will have $1m in your hand. Is it profit? No.
If you pay the interest on the $1m and make a profit on top by whatever process you use it to finance, then you're making money.
Gain are borrowing at 10% per month to finance mining with a return of 1.682% per month.
Please explain where those maths are wrong, because
I somehow completely buy your point.
I don't buy yours.