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Author Topic: Worlds Most Economical Bitcoin Mining Contracts!  (Read 11250 times)
bitminers
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July 02, 2011, 06:06:00 AM
 #1

Mining Contracts Any Size Welcome!

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Tx2000
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July 02, 2011, 06:32:49 AM
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Obviously this is meant for people who may not be as savvy or simply do not have money worries but I am curious about one thing.  How does or will your business account for difficulty increases?  Because, in practice, your clients will get less "bang for their buck" as time goes on.
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July 02, 2011, 02:00:33 PM
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Obviously this is meant for people who may not be as savvy or simply do not have money worries but I am curious about one thing.  How does or will your business account for difficulty increases?  Because, in practice, your clients will get less "bang for their buck" as time goes on.

LOLOLOLLOL how do you know difficulty will increase, maybe it will decrease. EVER THOUGHT OF THAT ?

Dont you see how competitive his prices are?  Shocked
sojolly
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July 02, 2011, 02:17:46 PM
 #4

Nice business model.

To compare.  At the current exchange rate 0.92 USD/AUD.  This runs to $423.91 per $1GH/s

Cost to run a 1000 MH/s rig in the US runs about $269/month + leasing costs for the floorspace add in the ~$83/month in depreciation and this isn't a bad deal. 

The difference for me is at the end i want to own the supercomputer nodes to do other things with them.

How are you controlling the MH delivery to each customer?

Sojolly
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July 02, 2011, 02:40:09 PM
 #5

And you dont accept btc for payment?  Shocked

Dobrodav
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July 02, 2011, 06:18:09 PM
 #6

Well, anybody selling mining contract, do not have any interest in BTC. It is clear.

We will  meet in not-so-distant future.
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skyhigh
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July 02, 2011, 08:45:20 PM
 #7

Might be most economical mining contract out there, but that doesn't say this is a smart way to go. In fact its pretty dumb. Lets see why.

First catch is 3mo upfront payment. I'll be generous and round the numbers to $400/mo for 1 Gh. So we are paying $1200 for 3 months lease that will at best get us 60 BTC at the end of the contract if difficulty would stay the same. We basically paying $20 per each BTC. Basically you paying someone a 25% premium over the current price. In reality you will most likely get a lot less because of the difficulty factor. In 3 months time due to difficulty going up you won't really make 60 BTC but more like 45.


So $1200 buys you 75 BTC today OR you can rent a miner to get you 45 to 60 BTC in 3 months time.

I understand this is a business and business needs to make a profit, but business owner ALSO needs to understand that business needs to at least make some sense.


Let me give you super extreme very dumb comparison.

I'm a farmer growing potato. Your family yearly needs are  550 lbs. You can rent a part of my land on which I will grow and take care of your potato for $2.0 per lbs or a total of $1100 paid upfront and we will deliver you 550 lbs of potato when we harvest it. Great business you run sir, its just unfortunately that 550 lbs of potato in a store only costs $825. Did I mention a possibility that your potato can also rot and you get nothing?

Sign here please, your rented land awaits you.
geek-trader
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July 02, 2011, 08:48:31 PM
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Well, anybody selling mining contract, do not have any interest in BTC. It is clear.

I guess I don't understand mining contract sellers.  If someone could rent a rig from them, and make money, why wouldn't the contract seller just mine for himself?

So, the seller must think that BTC is going to fall enough in value that it's better to rent time than mine for himself. So, therefore, he is selling what he thinks are false hopes.

Unless he has 1/2 his rigs mining for himself, and 1/2 rented - then he's got both bases covered.  That's the only thing that makes sense to me.

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1.21gigawatts
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July 02, 2011, 09:22:31 PM
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a person buying contracts for mining would profit is if bitcoin prices are significantly higher after 3 months...
At that point in time, the person selling contracts would love to see the contract end so they can resell the contract at a higher price or just use the equipment to mine for themselves.  Seller of contract is pretty much a hedge against falling bitcoin prices, since what if bitcoins went down to $5?  They would still be making money on the contract.

Problem that I see with mining contracts is that the seller of the contract could disappear, halt operations, equipment burns down, anything can happen for them to abandon or cancel the contract before the contract period is up.
jasonk
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July 02, 2011, 09:45:00 PM
 #10

Doesn't make economical sense to rent a mining rig even at his prices.

1Ghash for a little over $400 USD.  That will generate 0.66BTC a day @ the current difficulty level.

The next difficutly level will go up to about 1.6M or about 15% increase.  This will decrease profits to about 0.56 btc a day.

Lets be generous and assume a 10% difficulty increase every 10 days.

Say I bought a mining contract today, this is about how much at the most I can expect to make in a month:

1) Difficulty goes up to 1.6M in 4 days, so I'd make .66BTC @ 4 days = 2.64
2) 1.6M difficulty (.56 btc) x 10 days = 5.6
3) 1.76M difficulty (.5 btc) x 10 days = 5
4) 1.94M difficulty (.45 btc) x 6 days = 2.7

Total: 15.94 btc in 30 days.  Value according to current market prices: about 16 x 16 = $256 USD.  Net loss of about $150 per month.

Reason to buy a mining contract =  Huh

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July 02, 2011, 10:11:52 PM
 #11

Reason to buy a mining contract =  Huh

The reason is to make the OP money!

1.21gigawatts
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July 02, 2011, 11:05:52 PM
 #12


So $1200 buys you 75 BTC today OR you can rent a miner to get you 45 to 60 BTC in 3 months time.


At those prices, I agree that it makes no sense for someone to rent a miner, ESPECIALLY because you need to pay for 3 months upfront.
The only way this would make sense is if you wanted to buy 75 bitcoins TODAY but don't have $1200 to spend to buy it all today.  What if I only had $300 today?

If I had $1200 to spend today, there would need to be some incentive to go with a mining contract instead of just flat out buying $1200 worth of bitcoins today and not even bother with a mining contract
bitminers
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July 03, 2011, 02:27:00 AM
 #13

Hello,

Our Mining contracts are in fact the cheapest you will find. Bitcoins are gaining in value, if you do not understand the concept of mining today and reaping the benefits later, mining contracts are not for you!

Our business model is built on supplying the growing demand for individuals and businesses that want to invest in the bitcoin mining industry but do not want the bother of Hardware failure, monitoring and maintaining rigs, electricity and cooling costs.

We have over 15 years experience in building custom computers and servers for specific purposes, we are not new to the custom computer world and can afford to offer these prices. What happens if you do a calculation that bitcoins are $50 each within 2 Months, then bitcoins hit $100 there after?

There is a demand and our business is meeting the demands expectations, have a really good look around the internet for Bitcoin Rig Rentals and Bitcoin Mining Contracts.

We also have the option for customers to buy and house their own rigs through our finance company. *TAP

Also, our clients setup their own accounts at which ever pool they like, provide us with the details to point each miner at and we run and monitor their systems 24x7.

Our custom mining contracts for over 1Ghash Per Second are a lot less per Ghash when buying many per month, we do not have those listed as there are too many options each large mining contract is tailored to the clients requirements.

We don't just specialise in Mining & Hardware, we also have a software company also where we are building many different Bitcoin commerce, applications & content providing solutions specifically for the Bitcoin community.
bitminers
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July 03, 2011, 02:30:28 AM
 #14

Also, we accept Bitcoin for all products and services I am sure that our guys have put "We Accept Bitcoin" Logo on the front page of the website.

Thanks!
nebiki
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July 03, 2011, 03:32:59 AM
 #15

i've already said this in vladimir's thread. for 1200AUD you can get a 6990 and a 6950 which produce more than 1Ghash/s, keep them running for 3 months(electricity cost) and you can even keep the cards. if you're interested in the btc economy itself, read some post above mine, someone said that buying the coins directly would be the way to go. this "contract" is scam. anyone who buys it needs some serious treatment.

We also have the option for customers to buy and house their own rigs through our finance company. *TAP

that's the only cool part, but i doubt they'd actually do it for decent prices.

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Quote
Some companies have invested over $500,000 USD in setting up their own managed mining rigs to mine Bitcoins, it is an extremely fast paced growing industry.
lol.

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bitminers
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July 03, 2011, 03:49:01 AM
 #16

nebiki - LOL no scams here, do some research on Rig Rentals and Bitcoin Mining Contracts!

Use google and do some research first!
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July 03, 2011, 04:14:39 AM
 #17


Quote
Some companies have invested over $500,000 USD in setting up their own managed mining rigs to mine Bitcoins, it is an extremely fast paced growing industry.

What's the source of this?

Mobile App (Android)

Monitor miners, exchange rates and Bitcoin network stats.
Big Time Coin
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July 03, 2011, 05:25:33 AM
 #18

Hey, I just want to post to support you for setting up a company to do mining contracts to compete with Vladimir.  You are offering a much lower price.  It's too bad there are so many people trying to bash you and discourage people from using your service.  I think it has more to do with people trying to discourage new miners than it does your service in particular.  Good luck!   Cheesy

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July 03, 2011, 05:52:21 AM
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Quote
Some companies have invested over $500,000 USD in setting up their own managed mining rigs to mine Bitcoins, it is an extremely fast paced growing industry.

What's the source of this?

From me, of course. I have over 500k of Bitcoin mining equipment and I can afford to give away 1,000 Bitcoins to a random person a day!  Cool

bitminers
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July 03, 2011, 05:53:10 AM
 #20

Big Time Coin - Much Appreciated Thankyou!

There will always be haters, no matter what. It makes me laugh!

Thanks Again for the support !
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