[HOSTING] High Cacacity & Density Bitcoin ASIC Hosting

[gektek]

Yes, in the US.
But the thing is, a hosting service will be moving substantial amounts of BTC.

But but but...he's just renting out space in a room to house the machines whilst they be running. I don't think any of the coin generated will ever go to his wallet...it should be going directly to whoever's wallet the machine belongs too. I don't even see the service being paid for in btc...USD seems perfectly reasonable here...through paypal even like any other hosting service would. Just sayin...

edit: wouldn't it be similar to a farmers collective? I rent land to grow crops...land owner cares for the crops but I eat the food. Or stabling a horse? Or storing a boat? Or am I missing the fact that it is JUST because it is a digital currency?

[villex]

Yes, in the US.
But the thing is, a hosting service will be moving substantial amounts of BTC.

But but but...he's just renting out space in a room to house the machines whilst they be running. I don't think any of the coin generated will ever go to his wallet...it should be going directly to whoever's wallet the machine belongs too. I don't even see the service being paid for in btc...USD seems perfectly reasonable here...through paypal even like any other hosting service would. Just sayin...

I know, I'm not trying to discourage anyone.
I'm trying to make people think about it, because right now everyone is saying "nothing will happen", but when the time comes and something happens you should be prepared.

edit: wouldn't it be similar to a farmers collective? I rent land to grow crops...land owner cares for the crops but I eat the food. Or stabling a horse? Or storing a boat? Or am I missing the fact that it is JUST because it is a digital currency?

Actually, the US government is trying to regulate BTC

[gektek]

I know, I'm not trying to discourage anyone.
I'm trying to make people think about it, because right now everyone is saying "nothing will happen", but when the time comes and something happens you should be prepared.

edit: wouldn't it be similar to a farmers collective? I rent land to grow crops...land owner cares for the crops but I eat the food. Or stabling a horse? Or storing a boat? Or am I missing the fact that it is JUST because it is a digital currency?

Actually, the US government is trying to regulate BTC

Hoping I snipped up that quote right buuuut...ya, I guess we all knew it was going to happen eventually... Still, I think my tiny little 2(ish) Gh/s mining operation is safe...from the government at least...for now. I just need to worry about the drop in price lately...I keep hoping it will bounce back up to $200 plus for btc

[villex]

Hoping I snipped up that quote right buuuut...ya, I guess we all knew it was going to happen eventually... Still, I think my tiny little 2(ish) Gh/s mining operation is safe...from the government at least...for now. I just need to worry about the drop in price lately...I keep hoping it will bounce back up to $200 plus for btc

That's about right, but what if one of this hosting services reaches something like 3 TH/s in site.

[Dalkore]

Thank you everyone for you concern.   We take our fee from the mining proceeds and then put the coins into storage where the client can request a withdrawal at any time.  It is their hardware that is being manged on their behalf.   Each person is responsible for their own regulations but at this point it is "only" guidance and there is noting explicit against managing a person's mining machine. 

With that said, our fee is 9% and that is all inclusive.    Demand has been strong and we are at the accepting hardware phase.  I am driving out to the new site right now (5:50am PST).   

[SebastianJu]

Of course, but the regulations are not only for exchangers.
Also, an extract from the document.
"In addition, a person is an exchanger and a money transmitter if the person accepts such de-centralized convertible virtual currency from one person and transmits it to another person as part of the acceptance and transfer of currency, funds, or other value that substitutes for currency."

In this definition everyone who uses bitcoins would be an exchanger isnt it?

Yes, in the US.
But the thing is, a hosting service will be moving substantial amounts of BTC.

Im really not sure if its so hard. Arent always said that us-government is targetting the exchanges only now? I never read that this applies to normal people too, regardless of the amount. Of course... when someone changes fiat to bitcoins that would be a another thing. But bitcoin for a service or bitcoin for goods?
Man... it wouldnt be bad if some more legal security would be there for bitcoins.

[Dalkore]

Of course, but the regulations are not only for exchangers.
Also, an extract from the document.
"In addition, a person is an exchanger and a money transmitter if the person accepts such de-centralized convertible virtual currency from one person and transmits it to another person as part of the acceptance and transfer of currency, funds, or other value that substitutes for currency."

In this definition everyone who uses bitcoins would be an exchanger isnt it?

Yes, in the US.
But the thing is, a hosting service will be moving substantial amounts of BTC.

Im really not sure if its so hard. Arent always said that us-government is targetting the exchanges only now? I never read that this applies to normal people too, regardless of the amount. Of course... when someone changes fiat to bitcoins that would be a another thing. But bitcoin for a service or bitcoin for goods?
Man... it wouldnt be bad if some more legal security would be there for bitcoins.

Difference is that I am not an exchange.  I am only managing hardware.   I am specifically staying away from that area at this point.

[gektek]

Im really not sure if its so hard. Arent always said that us-government is targetting the exchanges only now? I never read that this applies to normal people too, regardless of the amount. Of course... when someone changes fiat to bitcoins that would be a another thing. But bitcoin for a service or bitcoin for goods?
Man... it wouldnt be bad if some more legal security would be there for bitcoins.

When they first started cracking down hard on piracy everyone was affected until the wave of hysteria had subsided and laws were created to protect the individual (not with protection of course but with the fact it become non cost effective to go after the 'little guy') until now the only ones affected by piracy (really) are the ones actually trying to make a profit off of other peoples work. I see virtual currency being similar. At first they are going to just say no and everybody is screwed. As they get sued more and more for being ridiculous then they will start to leave the little guy alone and focus on the exchanges and bigger players but in all honesty...if you're doing something even remotely 'big' with any crypto currency or anything in my opinion...I'd make sure a legal team is part of your budget. Even if it is just one of those groups where you pay $25 a month and get a discounted lawyer when ya need it...still helps.

[villex]

Im really not sure if its so hard. Arent always said that us-government is targetting the exchanges only now? I never read that this applies to normal people too, regardless of the amount. Of course... when someone changes fiat to bitcoins that would be a another thing. But bitcoin for a service or bitcoin for goods?
Man... it wouldnt be bad if some more legal security would be there for bitcoins.

When they first started cracking down hard on piracy everyone was affected until the wave of hysteria had subsided and laws were created to protect the individual (not with protection of course but with the fact it become non cost effective to go after the 'little guy') until now the only ones affected by piracy (really) are the ones actually trying to make a profit off of other peoples work. I see virtual currency being similar. At first they are going to just say no and everybody is screwed. As they get sued more and more for being ridiculous then they will start to leave the little guy alone and focus on the exchanges and bigger players but in all honesty...if you're doing something even remotely 'big' with any crypto currency or anything in my opinion...I'd make sure a legal team is part of your budget. Even if it is just one of those groups where you pay $25 a month and get a discounted lawyer when ya need it...still helps.

Well, at least one is reading carefully. Thanks gektek.
My personal recommendation is, report your earnings and pay taxes. Remember how they caught Al.

[gektek]

Well, at least one is reading carefully. Thanks gektek.
My personal recommendation is, report your earnings and pay taxes. Remember how they caught Al.

hehe...yup that's what I'm doing...more or less In the state of Washington it only costs $15 for a business license, plus another I think $5 for a DBA (doing business as) name. Then there is another smallish (less than $100 I think) fee to pay if you have a physical location and the fee depends on the county I think. Then just save receipts, keep track of earnings and expenses...and yer gold. Hell, take it one step further and pay the extra bux to get an LLC...then if the poo really hits the spinning turbine the company takes the hit...not you

[Dalkore]

Well, at least one is reading carefully. Thanks gektek.
My personal recommendation is, report your earnings and pay taxes. Remember how they caught Al.

hehe...yup that's what I'm doing...more or less In the state of Washington it only costs $15 for a business license, plus another I think $5 for a DBA (doing business as) name. Then there is another smallish (less than $100 I think) fee to pay if you have a physical location and the fee depends on the county I think. Then just save receipts, keep track of earnings and expenses...and yer gold. Hell, take it one step further and pay the extra bux to get an LLC...then if the poo really hits the spinning turbine the company takes the hit...not you

I 100% agree.  Pay your taxes and don't be a cowboy.

[hardpick]

Thank you everyone for you concern.   We take our fee from the mining proceeds and then put the coins into storage where the client can request a withdrawal at any time.  It is their hardware that is being manged on their behalf.   Each person is responsible for their own regulations but at this point it is "only" guidance and there is noting explicit against managing a person's mining machine. 

With that said, our fee is 9% and that is all inclusive.    Demand has been strong and we are at the accepting hardware phase.  I am driving out to the new site right now (5:50am PST).   

"With that said, our fee is 9% and that is all inclusive."

I not sure if I understand

if my rigs earn 100 BTC  per month the fees would be 9 BTC .

I presume this includes power

[SolarSilver]

if my rigs earn 100 BTC  per month the fees would be 9 BTC .

I presume this includes power

it better include power, you can run an Avalon @ 650 Watts in colocation for about EUR 90 / month

[Dalkore]

Thank you everyone for you concern.   We take our fee from the mining proceeds and then put the coins into storage where the client can request a withdrawal at any time.  It is their hardware that is being manged on their behalf.   Each person is responsible for their own regulations but at this point it is "only" guidance and there is noting explicit against managing a person's mining machine. 

With that said, our fee is 9% and that is all inclusive.    Demand has been strong and we are at the accepting hardware phase.  I am driving out to the new site right now (5:50am PST).   

"With that said, our fee is 9% and that is all inclusive."

I not sure if I understand

if my rigs earn 100 BTC  per month the fees would be 9 BTC .

I presume this includes power

Yes.

[Dalkore]

if my rigs earn 100 BTC  per month the fees would be 9 BTC .

I presume this includes power

it better include power, you can run an Avalon @ 650 Watts in colocation for about EUR 90 / month

It includes power, hosting, management and cooling. 

[hardpick]

if my rigs earn 100 BTC  per month the fees would be 9 BTC .

I presume this includes power

it better include power, you can run an Avalon @ 650 Watts in colocation for about EUR 90 / month

It includes power, hosting, management and cooling.  

what I understand from this is

an Avalon makes about $10000 per month at present
you are  going to charge 9% which is $900 For power, hosting, management and cooling .
cost of power is about $9.36 using 0.02 /kwh

Is this correct ?

what happens  in December 2013 when hash rate is 4000 TH and difficulty is   525,536,000  and Avalon will be  earning about $ 200 per month
will you now charge  $18 ? --


what I am trying to say there must be a point where you will no longer want to host the Avalon -- (you losing money) just like a estimate what that hash rate / difficulty .

[Dalkore]

if my rigs earn 100 BTC  per month the fees would be 9 BTC .

I presume this includes power

it better include power, you can run an Avalon @ 650 Watts in colocation for about EUR 90 / month

It includes power, hosting, management and cooling.  

what I understand from this is

an Avalon makes about $10000 per month at present
you are  going to charge 9% which is $900 For power, hosting, management and cooling .
cost of power is about $9.36 using 0.02 /kwh

Is this correct ?

what happens  in December 2013 when hash rate is 4000 TH and difficulty is   525,536,000  and Avalon will be  earning about $ 200 per month
will you now charge  $18 ? --


what I am trying to say there must be a point where you will no longer want to host the Avalon -- (you losing money) just like a estimate what that hash rate / difficulty .

I have paid the carrying cost for 12 months so until next June it will be available.  I assume next gen will be out by then so likely we will just cycle hardware.    My goal is to continue this atleast for the next few years.   It is a great option so you can get the most from your hardware.

[Dalkore]

Updated.

[slavix]

I am in. Will send a few miners to get started and build up from there. - bitcoinerS

[SebastianJu]

In what form to send the miner? completely assembled burnin miner or should they be built into a 19" case?