Cloudhashing ASIC mining contracts, UK LTD company - Now Mining & Paying Bitcoin

[yxt]

BFL ... sorry but you are fucked

[jml]

We in total have 4 mini rigs on order with BFL (I admit I wish we ordered sooner).

What are your fault tolerance policies if a minirig failed? I assume that one minirig could hash at a rate of 1500GH/s (as per BFL's advertising) and assuming that 1GH equates to a minimum of one contract per GH, then 1500 contracts would be affected.

BFL have not issued the specifications of the minirig and I am assuming it has no fault tolerant hardware or High Availability hardware either; such as hot swappable PSU's or ASIC racks if there was a failure within the minirig. If this was the case, perhaps you should look into a fail over cluster to deliver the hashing capacity as promised by your contracts.

[rammy2k2]

let us know when u have something to offer ... not plans

[cloudhasher]

https://picasaweb.google.com/104878918886305681953/ProofOfPurchase?authuser=0&feat=directlink

Proof of last 3 Mini rigs for cloudhashing.com.

Enjoy

[rammy2k2]

still BFL is nothing but a dream atm ...

[dg2010]

So you spent close to £60k and you haven't got a product yet so you are selling contracts to hedge your exposure now.

Quite why anyone would buy contracts for something not shipped yet is beyond me.

[Rawted]

You're right, post updated. I wish you all the best and hope that my initial suspensions are proven wrong.

5249/6000 contracts sold, has anyone in the community reported using this service? I hope you understand my skepticism.

THIS...

So, apparently you've sold 5249 contracts (potentially worth $5,249,000) without advertising or announcing your service on bitcointalk. Also, no one from the community has found your service and posted a thread about it to ask if it's legit like many others have done. If 5249 bitcoiners really bought contracts from you, we would of heard about it from AT LEAST one forum member...

Only just now you post here on the biggest bitcoin forums when you ONLY have 751 left  (possibly worth $751,000)... hurry, buy now before we're out!!!   ..... fishy....

Also, you state the business is in England, yet you price your products in USD. ..... double fishy ....

I call bull shit.

Hi,

I completely understand. Just please do more homework before saying such. Its hard enough getting a business's off the ground in the bitcoin economy when others before ourselves have screwed people over.

This is a genuine service.

Again proof is available for those who care for it.

You have to earn our trust/respect here sir, this sort of thing is just not given to strangers.

We are not sheep, just because you have a fancy website and a company name doesn't mean you're not a scammer.

So many people have come before you wanting us to send them our money with new ASIC hardware or services and turned out to be scams.

Until you prove that you are not a scammer, I am sticking to my gut instinct that this is awful fishy.

PS: Nice try, I almost thought you were legit... nice website design work. That's one of the most fanciest websites built for a scam on bitcointalk EVAR! mad props!  

It's actually a stock joomla/virtuemart template. There's literally 0 customization done, and all the content is from other websites. It's the epitome of a scam site.

[Rawted]

https://picasaweb.google.com/104878918886305681953/ProofOfPurchase?authuser=0&feat=directlink

Proof of last 3 Mini rigs for cloudhashing.com.

Enjoy

I thought you said you were hosting them in the united states? that photo shows a shipping address to the UK. Also, why hide your name? Are you Emmanuel Abiodun?

[Gator-hex]

https://picasaweb.google.com/104878918886305681953/ProofOfPurchase?authuser=0&feat=directlink

Proof of last 3 Mini rigs for cloudhashing.com.

Enjoy

I thought you said you were hosting them in the united states? that photo shows a shipping address to the UK. Also, why hide your name? Are you Emmanuel Abiodun?

The only reason I can think of to hide the name and address is to disguise the fact that the assets do not belong to the LTD company.

[jml]

https://picasaweb.google.com/104878918886305681953/ProofOfPurchase?authuser=0&feat=directlink

Proof of last 3 Mini rigs for cloudhashing.com.

Enjoy

I thought you said you were hosting them in the united states? that photo shows a shipping address to the UK. Also, why hide your name? Are you Emmanuel Abiodun?

The only reason I can think of to hide the name and address is to disguise the fact that the assets do not belong to the LTD company.

These are my opinions based on what you have said in this thread https://bitcointalk.org/index.php?topic=163741.20

The order you published contradicts cloudhashing.com's plan of having the minirigs housed close to BFL in order to reduce downtime. You will need to explain for this.

If BFL goes into administration, so too cloudhashing's operation will suffer as cloudhashing is heavily dependent on BFL's hardware as per their SLA contract. There is no guaranteed uptime rate for contract holders which cloudhashing.com cannot promise a steady income if failures happen which is quite disappointing.

Furthermore, the minirigs are untested (to me it looks like a half baked concept for almost $30K a piece) and there is still no proven demo that they actually work when in fact, all that has been shown is just an empty box with lots of fans. No technical documentation of the minirigs has been released, such as MTTF (Mean Time To Failure) and MTBF (Mean Time Between Failures). An SLA agreement as per to what was mentioned, agrees to provide hardware repairs to the damaged minirigs within 24 hours or less but does not state how often would these units break thus reducing overall uptime.

In a nutshell, you cannot guarantee:

1) The minirig units exist or not. Orders don't prove it; it only proves you have spent money on something that may or may not exist.
2) The uptime rate of mining activity per 1GH contract. It could be as low as 1% over a year period.
3) No documentation of how often the unit/s will fail, meaning that there would be an increase in downtime for contract holders.

The company seems to be highly dependent on BFL's hardware and unable to source generic hardware for its minirig investments which is itself a risk to investors. Another question to consider, what if BFL decides to relocate headquarters to another county or country? A 24 hour downtime would soon be 48 hours or maybe even more.

[JasperDX7]

I saw a thread started here almost a month ago from someone asking if this was a legit service. No one answered but I too was curious so I watched the service and the forums hoping for a answer. I've seen this guy post on several other forms including butterfly labs. At the time they had supposedly sold close to 5000 contracts. I believe it was around 4600 give or take. In one day it shot up to 5000 and then at the end of the week it was at 6000 contracts and a red message at the top said "Sold out". A few days later the numbers where changed again to be under 6000 and two new types of contracts where added to the list with contract prices being upped by $5 (went from $45 to $50). One being a new indefinite contract and another being a 1 year contract that WAS $50. Now I see that the 1 year contract is $150 which is definitively not worth getting. I can't say 100% if this is a scam or not but the fluctuation of contracts and the sudden increase of prices is not something I'd personally feel safe in purchasing. If you are legit then I'd suggest buying some actually mining rigs and building some cred while you wait for BFL. That way people know you're definitely in it for real and that you are not another scam.

FYI. if you're gonna make a hashing service you should lower your prices for contracts that start several months after Asci's are "supposed to be shipped". You raised your prices which makes it unappealing. There's absolutely no reason for a person to pay more for a mining service when the difficulty is going to be bat shit insane a few months later. Any sane person would just buy a rig.

/2cents

[etheral]

can the owner of cloudhashing explain why the contractor numbers changed?

[cloudhasher]

Hi,

Thanks for your comments however pricing something we feel is right at this moment in time.

Regarding the contract sales. Please be aware that we do not only make contract sales online but also to individuals we know directly or organisations we have previously done business with in the past.

The contract sales count is exactly that. The number of contracts sold to date. If there is a jump from one day to another, its because the sales have jumped. In the particular scenario you mentioned before, we made particular companies aware of a potential price hike in hardware given Avalon did the same thing. This in turn allowed us to sell more contracts in a short period.

Pricing had to rise significantly because of the power Consumption of BFL equipment has risen hence a rise in hosting fees. Also the pricing hike in BFL hardware had to be matched.


JML - you do make accusations rather than ask questions.

Please read https://forums.butterflylabs.com/showwiki.php?title=FAQ:MiniRig+SC+and+Single+SC+Hosting

You will find that the hosting is dealt with via email. Ordering is in my name as I am the contact person. Not everything is a conspiracy. The previous argument by the board was we did not have the orders, we provide the proof of orders then now its the orders are in our name.

I think there isn't a request for proof here but a consistently insistence on guilt.

https://www.cloudhashing.com/terms-conditions
Indefinite Contract Equipment Ownership

Technology IQ LTD will act as management firm operating in the best interests of her Client. All client purchased computing power belongs to the client. In the event that z Technology IQ LTD liquidates assets or becomes bankrupt, the proceeds from sale of equipment go directly to The Client less Technology IQ LTD’s costs of processing such a transaction. The client cannot at any time withdraw any mining equipment from The Company


Kind regards.

[jml]

Hi,

Thanks for your comments however pricing something we feel is right at this moment in time.

Regarding the contract sales. Please be aware that we do not only make contract sales online but also to individuals we know directly or organisations we have previously done business with in the past.

The contract sales count is exactly that. The number of contracts sold to date. If there is a jump from one day to another, its because the sales have jumped. In the particular scenario you mentioned before, we made particular companies aware of a potential price hike in hardware given Avalon did the same thing. This in turn allowed us to sell more contracts in a short period.

Pricing had to rise significantly because of the power Consumption of BFL equipment has risen hence a rise in hosting fees. Also the pricing hike in BFL hardware had to be matched.


JML - you do make accusations rather than ask questions.

Please read https://forums.butterflylabs.com/showwiki.php?title=FAQ:MiniRig+SC+and+Single+SC+Hosting

You will find that the hosting is dealt with via email. Ordering is in my name as I am the contact person. Not everything is a conspiracy. The previous argument by the board was we did not have the orders, we provide the proof of orders then now its the orders are in our name.

I think there isn't a request for proof here but a consistently insistence on guilt.

https://www.cloudhashing.com/terms-conditions
Indefinite Contract Equipment Ownership

Technology IQ LTD will act as management firm operating in the best interests of her Client. All client purchased computing power belongs to the client. In the event that z Technology IQ LTD liquidates assets or becomes bankrupt, the proceeds from sale of equipment go directly to The Client less Technology IQ LTD’s costs of processing such a transaction. The client cannot at any time withdraw any mining equipment from The Company


Kind regards.

An accusation would be fair if I called you a "scam company" which I am refraining for now. What I have given to you are my opinions based on what you have told me how your business works.

Cloudhashing.com has been included on a separate thread https://bitcointalk.org/index.php?topic=176262.0 and you are under review. So expect other members to grill you as they start to find out more about your operations. If you decide to take a defensive stance like you just did, I doubt it very much that this would look good on you.

You have not answered my last question AND PLEASE do not take this as an accusation.

What would happen if either BFL or Community Hosting relocates or goes into administration? How would this affect your Service Level Agreement in keeping downtime to less than 24 hours? What are your mitigation plans if this would happen?

Now this is my opinion: You sound like a very expensive hashing reseller.

[cloudhasher]

Hi

Good question.

Because of the potential political issues that could arise because of Bitcoin and its fear from central banks. Our long term goal is to adopt a similar strategy to www.bullionvault.com,namely hosting our rigs in different countries.

1) USA
2) UK
3) Switzerland

Doing that from the onset is expensive and would had required VC money to do so. We have to take a staggered approach. Regarding our USA host, we are looking at spreading further units out starting in the DC area. Now this does affect cost and SLA. Now by how much it does is purely speculative now. We truly must wait for delivery of the rigs and also further Tech data from BFL before commenting. Otherwise we could be accused of making presumptuous claims.

Regarding cost, now I have said this service is not for everybody. Because this is a new sector, we need to be careful about who we target in the onset. The market will grow and other entrants at lower price points will surely appear.

Just to put things in perspective, purchasing a 60 Ghash device from Avalon compared to our offering you will find is very competitive. Currently our average order size is over the 1000 dollar mark. You could say that is our target audience.

Kind regards

[boonies4u]

cloudhasher, I would like to clarify something...

The "Hero Member" title is not a title bestowed upon someone for their acts or deeds. It is merely a title given to you when you reach a certain post count. (going to crosspost this to other thread)

[kevinm]

Emmanuel tell me abeg,
when u nah get your uk passport o?
mebee me go dey beckenham in kent to catch some gistin
den we go take dis butterfly to Abuja nah   

Kev

[jml]

Hi

Good question.

Because of the potential political issues that could arise because of Bitcoin and its fear from central banks. Our long term goal is to adopt a similar strategy to www.bullionvault.com,namely hosting our rigs in different countries.

1) USA
2) UK
3) Switzerland

Doing that from the onset is expensive and would had required VC money to do so. We have to take a staggered approach. Regarding our USA host, we are looking at spreading further units out starting in the DC area. Now this does affect cost and SLA. Now by how much it does is purely speculative now. We truly must wait for delivery of the rigs and also further Tech data from BFL before commenting. Otherwise we could be accused of making presumptuous claims.

Regarding cost, now I have said this service is not for everybody. Because this is a new sector, we need to be careful about who we target in the onset. The market will grow and other entrants at lower price points will surely appear.

Just to put things in perspective, purchasing a 60 Ghash device from Avalon compared to our offering you will find is very competitive. Currently our average order size is over the 1000 dollar mark. You could say that is our target audience.

Kind regards

Good answer, although since you cannot comment any further with regards to BFL's supply chain and maintaining the SLA if they go into administration, I am assuming that you are locked in with the vendor; i.e. vendor lock-in.

With regards to Avalon, what if the bitcoin value plummets to a single value? I would imagine people would invest in bitcoins in order to get the Avalon 3rd shipment costing at 75BTC. How would this affect current contract holders and future sales?

[ex-trader]

So let me get this right:

You have ordered 4 machines in total that cost about $120k.

They produce a total of 6T/Hash (allegedly).

You are selling 5 G/Hash indefinitely for $1k each.

In total therefore you are asking up to $1m for something you paid $120k for.

These machines don't even exist and have never even been proven to have existed.

Quite brilliant - well done!

[CoinHoarder]

So let me get this right:

You have ordered 4 machines in total that cost about $120k.

They produce a total of 6T/Hash (allegedly).

You are selling 5 G/Hash indefinitely for $1k each.

In total therefore you are asking up to $1m for something you paid $120k for.

These machines don't even exist and have never even been proven to have existed.

Quite brilliant - well done!

Exactly... even if he is not a "scammer" in the true sense of the word (which I'm not fully convinced he isn't yet), he is still a scammer for his price gouging.

Taking money from innocent newbies that don't realize they are paying way too much per Gh AND they will get the hardware AFTER almost everyone else that already has preordered when the difficulty is sky high. On top of that, he is pushing the fact that BFL will have these out by June... anyone that knows anything about BFL knows that is not going to happen.

No one is going to make any money on this other than cloudhashing themselves.