New hashing power renting business

[BitEnergi]

Hi everyone !

I intend to start a mining farm and I am thinking to possibly provide a service of renting our rigs but first of all I would like to ask opinions.
I would not like to go the 'cloud mining' way, but also not give straight access to the mining rigs, probably by having a person switch the miner to a different algo and pool.

I know there are a lot of people that want to mine new coins and have a powerful rig only for themselves and this is mostly addressed to them. The plans that I think of are 1 month/3 months/6  months renting.
The first two rigs will be 6 pieces of Vega 56 then we will add another 2 in a very short time.

Our location for the start is in Bucharest, Romania, 2 kilometers from the center of the city but as we will develop the mining farm we are going to move it outside the city, 25 km from city center where we own a 10,000 square meters land with a 200 square meters new building. At the initial location, some of the power for mining will be produced by solar panels already installed at the location.

We intend to start the company very soon after finishing the 4th mining rig which should not be later than the end of the year.

Thank you and I am waiting for your feedback !

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[phantam]

The biggest issue i see with this sort of thing is that what ends up happening is the rental company always ends up charging more than can be made on the mining, otherwise they would just mine themselves... Its why its always funny how prices to mine go up, just because the price of BTC went up, even though the cost to run the rigs stayed the same, except if somehow all these cloud mining platforms are paying for their electric in bitcoin.

[BitEnergi]

The biggest issue i see with this sort of thing is that what ends up happening is the rental company always ends up charging more than can be made on the mining, otherwise they would just mine themselves... Its why its always funny how prices to mine go up, just because the price of BTC went up, even though the cost to run the rigs stayed the same, except if somehow all these cloud mining platforms are paying for their electric in bitcoin.

Well, certainly I do not want to charge much more than can be made on the mining. At least I have no intention of going the Genesis Mining way. I want to target two possible types of customers:

1. The ones that want to mine new coins as soon as they appear hoping for a big profit.
2. The ones that launch a coin and would like to sustain the network until there will be other miners that can sustain it (I have been in this case and I needed mining rigs).

Certainly some of these people do not want to get into building rigs, installing software, flashing video cards BIOS-es .. etc.
For them it can be convenient to rent a rig by the month, 3 months or 6 months. In no case offering plans for 2 years as we don't know what the future reserves us in the crypto world.

Of course they will have to pay an extra fee but for some people this might be more convenient than buying a big mining rig just for mining one month. There is an advantage also for them that they can start mining same day they decide to, but if they want to build a rig, it might take them at least one week.
Our advantage will come from reinvesting the money early in extra video-cards.. of course and not wait for 1 month or more to get that profit.

Regarding the BTC payment that as BTC increases also their mining cost will increase, this is a little flawed. Considering they would have bought mining hardware to mine today, then the BTC would increase, still the mining they do with the hardware they bought today costs them more after 2 months when BTC increased 2X. Let's not link the increase of BTC value with this business.. I do not consider that my future customers will want to have a profit from this, but maybe satisfy their temporary need !

Thanks for your feedback !

[maeusi]

Very interesting would be a mining farm, where I can target my own pool, but I think, it is not possible, is it?
That would be really great. If it would be not possible, you can maybe offer an additional service like eobot with its awesome interface. Contracts should be possible to cashout earlier, if needed with fee. That would make you trustable.

[BitEnergi]

Very interesting would be a mining farm, where I can target my own pool, but I think, it is not possible, is it?
That would be really great. If it would be not possible, you can maybe offer an additional service like eobot with its awesome interface. Contracts should be possible to cashout earlier, if needed with fee. That would make you trustable.

I need to research more what eobot is. This is the kind of replies I was expecting with ideas how to run this.
Of course it will be by targeting your own pool and your own wallet. I don't want to deal with handling customers money. There would be also unnecessary problems coming out of handling the money which I want to avoid. Look at what Genesis mining is doing, there is many complaints that they hardly pay the customers. What's the point in giving to someone hashing power if they don't get any money from it ?
I don't know what is 'cashout earlier'.. like the customer will receive his initial money back ? I'm afraid for one month that would be already a very short time compared to 2 years of Genesis mining ..


Thank you a lot !

[BitEnergi]

Very interesting would be a mining farm, where I can target my own pool, but I think, it is not possible, is it?
That would be really great. If it would be not possible, you can maybe offer an additional service like eobot with its awesome interface. Contracts should be possible to cashout earlier, if needed with fee. That would make you trustable.

I have checked now eobot. It is just another cloud mining service same as Genesis mining. They will charge a maintenance fee for electricity..
I don't see how people can buy hashing power from them though .. it's clearly a loss for any customer.

What I would like to do is to give the possibility to the customer to rent a rig of 11640 h/sec Cryptonight algo for example, for 1, 3 or 6 months .. even 1 year or 2 if they would like it. I am thinking of allowing to point it to a pool of choice/coin of choice and have 4 changes in a month allowed, changes that can be made by submitting a support ticket. If they rent the rig for Cryptonight, they can also switch it to Ethash if they want it and if they feel like it can be profitable.

Whatever would be above the 4 monthly algo/pool switches, it could be charged a small fee, as we also need a person employed to deal with customer/technical support.

As of now we have the financial capability to install 100 rigs x 6 Vega cards but we will probably build it slowly to see how it works, probably mix in with rigs with Nvidia 2080/2070 when they will be coming at the start of 2018... so not in a hurry to go the Vega way.

I know there are a lot of people that make money from the launches of new coins and I would be glad if we get a share of that profit for providing the hardware in exchange

[gustiadid]

hello,
any development? would love to hear good offer here

[BitEnergi]

Hello,

We have the mining farm already up and running.

We use it to mine cryptonight coins. We have vlogging for cars and crypto in our country and some of the videos have 350K viewers.. you can see our farm in those videos. If we receive a good offer for renting hashing power, we will take it.

[the13thsymphony]

This is a very good business idea other than could mining considering that most of the potential small time miners cannot afford GPUs because of the current prices which will only stabilize after a few months. The only problem is that how would you competitively price the rent of the mining rig because of the mining difficulty and volatile price of the cryptocurrency to be mined? Also if you start the mining rig renting business would you only cater local customers or would you also cater potential customers internationally?

[BitEnergi]

I would love to have customers from international locations. We have 2 rigs with 5 Vega 56 that we would like to rent.. which are pretty stable as of now. We would think of a price that the customer would also be satisfied with .. and us too.