hash rental idea looking for input ... please and thank you

[gektek]

So...we all know Pyramining right? (Pyramining is down at the moment during MtGox transition but see sig file for link ) I wanna do a similar idea but with cash instead of btc being invested. Basically I want to lease out my current hashing power with the idea that...

Let's say I have 1,000Mh/s running at the moment and I want to lease it to someone at a cost of say $2 per Mh/s. So someone leases for $2,000 giving them all of my hashing power until the following condition is met. The leased hash power mines enough btc to become equivalent to double the initial investment ($4,000) OR one year of mining as long as the investment has earned at least 10% OR until the investment has earned at least 10%.

With the above numbers and conditions I would estimate that the $2,000 investment would double in roughly 1 year based on today's conditions (difficulty and btc value). My operation is small to begin with so this is an attempt at making it grow a little bit. My end goal is to be able to build/sell gaming/mining rigs so that my lease idea can become a bit of a rent to own sorta deal. Plus there are some side business ideas like custom cases and such but that will happen eventually regardless of the bitcoin involvement so no need to mention it more here other than cheap advertising for the future

So...what say ye? Idea is full of holes I'm sure and wouldn't really be open to the 'general public'...more of a friends and family kinda thing I guess. Friends of friends too perhaps

Anyway, njoy1

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[ryepdx]

If this is going to be a project for just "friends and family," you're probably better off asking them...

[pheaonix]

the difficulty is going to climb, though. you have to hedge against that harshly. a lot more asics are going to be running around by the end of the year.

smartest thing if the goal is btc without the side benefit of gaming rigs is to gather up everyone's cash, buy asics when they are available and cheap, and run them wherever is most secure and suitable.

keep in mind, if you are not a shitty person, you are liable for their investments.

[gektek]

About the asking friends and family about it...I have...all are interested in investing but none know a thing about bitcoin. I do my best to explain but for the most part I just confuse them more. So, I present my idea here to get some help filling in the gaps...which so far, is working

As for the difficulty and all that and saving for ASICs. First off, I am making the friends and family well aware that all of this is essentially dealing with an open market that fluctuates. Not to mention the rising difficulty and all that yadda yadda. They are fully aware of the risks and are willing to take that gamble. I am trying to push the issue that I am only guaranteeing investors a 10% return which could, worst case scenario, take years to complete (which is why I made reference to Pyramining in the first post ). But the way the market its right now there is a 'chance' of earning up to double within the next year.

And the problem I see with ASICs...purchasing them anyway...there aren't enough manufacturers producing them for me to buy one any time within the next year. So why not build up an inventory of 'gaming' rigs that are doing mining in the mean that I can slowly sell off at a profit (or again, worst case scenario, initial cost minus what they have mined just to break even again) if the difficulty rises too much to continue to be profitable.

Remember also that the end goal is to be a rent to own hardware business. I'm hoping...even if I have to switch to litecoin eventually...that I can get an investor to invest say $500 for a year, have it double to $1000, and then pay the customer back, not with cash, but rather a new gaming rig.

Thanks for your time and input...greatly appreciated!!!

Jake

[Vod]

So why not build up an inventory of 'gaming' rigs that are doing mining in the mean that I can slowly sell off at a profit (or again, worst case scenario, initial cost minus what they have mined just to break even again) if the difficulty rises too much to continue to be profitable.

That's where your error comes from.

You can't sell gaming rigs for a profit anymore.  The market is already flooded with them, and it will only get worse.

[gektek]

So why not build up an inventory of 'gaming' rigs that are doing mining in the mean that I can slowly sell off at a profit (or again, worst case scenario, initial cost minus what they have mined just to break even again) if the difficulty rises too much to continue to be profitable.

That's where your error comes from.

You can't sell gaming rigs for a profit anymore.  The market is already flooded with them, and it will only get worse.

In the original post I make mention about custom cases. I'm hoping a sexy and unique case might make my machines stand out from the crowd and make it worth while but you are right...gaming rigs are a bit of a gamble. Do you perhaps have another idea?