Worlds Most Economical Bitcoin Mining Contracts!

[bitminers]

Mining Contracts Any Size Welcome!

[1714129822]

1714129822

[1714129822]

1714129822

[Tx2000]

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.

[callmeivan]

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? 

[sojolly]

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

[kakobrekla]

And you dont accept btc for payment? 

[Dobrodav]

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

[skyhigh]

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]

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.

[1.21gigawatts]

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]

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 = 

[Chick]

Reason to buy a mining contract = 

The reason is to make the OP money!

[1.21gigawatts]

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]

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]

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]

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.

edit

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.

[bitminers]

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

Use google and do some research first!

[qed]

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?

[Big Time Coin]

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!   

[Chick]

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! 

[bitminers]

Big Time Coin - Much Appreciated Thankyou!

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

Thanks Again for the support !

[1.21gigawatts]

No haters, we just want mathematical proof why purchasing a mining contract would be more beneficial than just buying BTC outright.
If you can't prove it mathematically, there's no benefit.

[bitminers]

It's personal choice and personal opinion of customers!

Some people want to just buy bitcoins, Some people want to mine them without any effort.

Look at competitors rates and do the math on Rig Rentals and Mining Contracts, there are a lot out there now.

 

[1.21gigawatts]

You keep dodging the math question.  There's a big difference with Vladimir contracts because he started them in Jan when bitcoins were less than $1 per bitcoin.  You'll get more customers if you can mathematically demonstrate why buying a mining contract with you is more beneficial than buying bitcoins outright.

[skyhigh]

I'm not hating. I'm pointing out that renting a rig from ANYONE to mine is outright STUPID and people in this thread demonstrated why.  Let me try it again. LOL.


If a person wants to contract 1 Gh from you, he needs to pay you $1200 US dollars up front.  When the 3 months are up  his final product is  XY of bitcoins. ONLY bitcoins. Right now he could buy 75 BTC with the same $1200 US dollars he needs to wire to you to rent a rig from you. When 3 months are up, the guy that rented rig from you will end up with a lot less bitcoins in 99.99999% of the time. Probably around 50 BTC instead of 75 BTC if he would just buy it on the exchange.

The end result after 3 months is same product. Bitcoins, and in the case he would rent a rig from you he will end up with a lot less bitcoin product. Simple as that. BTC price at that time doesn't matter because he COULD already buy 75 BTC on the day he would pay you $1200 to rent a rig from you.

Why would anyone want to have 50 BTC in 3 months time if they CAN have 75 BTC right now and in 3 months time for the SAME AMOUNT OF CASH .. 50% difference for same amount of fiat currency.


This is not hating. This is simple math. Your explanations how some wants to buy bitcoin and others want to mine makes no sense, because the guys that rent your rig don't mine, they get end product - bitcoins. It's just that unfortunately they get 50% less then they would if they would just buy it for $1200.

The fact that others are offering same type of business for EVEN more  doesn't change anything. This is a stupid business aimed at people who doesn't understand the simple math behind it.  

[1.21gigawatts]

"$1200 for 75 bitcoins right now"
Your mining contract might be desirable to the other math literate party is if:

You can guarantee more than 75 bitcoins (you specify the guaranteed amount) after 3 months, for $1200 cash given to you right now, upfront.
or
You can guarantee 75 bitcoins after 3 months for a payment of (($1200/3)+$X) paid to you per month for 3 months.  $X would be the premium or the interest someone is paying you for a payment plan to end up with 75 bitcoins in 3 months because they can't afford to spend $1200 right now to buy 75 bitcoins, but they still want to end up with 75 bitcoins after 3 months.

[saykor]

Hi,
Can you explain me something here?...:

If I buy from you MC-100      1000 Mhash    $390 Per Month
I will pay you 390$

Difficult factor is: 1379223.42967
Hash Rate (mega-hashes / second): 1000
Exchange Rate ($/฿): $15

for 1 month i will make: $332.54

so i will pay you $390 and will make $332.54 = i will lost $57.46

What is the reason that will convince me to lost $57 ?

And this is in current difficult. It will be change after few days so in fact i will make more less than $332.54 that mean more loses for me.

[nebiki]

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

Use google and do some research first!

i don't need to do any research to understand that these services are basically some people desperately trying to make some money without having to worry about anything. there's just no reason to sell mining power. if it was profitable for your customers, why wouldn't you do it yourself? because there's a risk which you don't want to take. you throw this risk at your customers and are safe yourself, because you have already been paid. this in itself is wrong, considering these prices it's even worse.

[bitminers]

Are you guys Miners? We are!

If you do the price based on $15 now, few days time it maybe $13, next week it maybe $5 or it could be $50.

So, our prices are very competitive for this market, what does it cost you to build a machine with 1Ghash and run it for 3 Months??

[nebiki]

at 180 eur per 6950 which produce about 400Mhash/s each, it's 540eur for 1.2Ghash/s plus another 250 eur for psu+board+cpu+ram. 800 eur for the rig. it consumes about 700W, which is 1500kWh for running it for 3 months. we pay 0.23 eur per kWh (VERY different in the united states, at about 7-8 eurocents). so the rig including running it for 3 months costs 1150 eur. that's 1550 AUD. if you pay 8 eurocents per kWh, that's just a little bit more than 1200 AUD. oh - and it's 1.2Ghash/s, that's even more than 1.

edit: imagine 6 months.

this service is too expensive for anyone who wants to buy just 1-3 Ghash/s. because you can easily set them up at home without having to worry about anything. it becomes a different matter when we're talking about 4+ rigs, which is rather complicated to setup and maintain. you can't just have them stand in your basement without additional cooling. that's when i would want to find a service which houses my computers at a decent cost.

[bitminers]

nebiki - Most clients with this Mining contract want A lot more than 1Ghash Per month, which is exactly right if you where running 4 or more rigs etc.

We have custom contracts if you read on the site, the small list of contracts are for people who just want to try out mining, but the real Mining Contracts are 5Ghash+

[MaGNeT]

nebiki - Most clients with this Mining contract want A lot more than 1Ghash Per month, which is exactly right if you where running 4 or more rigs etc.

We have custom contracts if you read on the site, the small list of contracts are for people who just want to try out mining, but the real Mining Contracts are 5Ghash+

It doesn't matter how you explain it to us.
In the end there is profit, for you...

If a person wants to make profit on Bitcoins he better buys BTC now... Lower cost, same risk...

[nebiki]

how much would a 25Ghash/s 3month contract cost? i've simulated the price which a serious server housing company would take for this. 4x 16 amps 230V, 1x 40HE rack incl. 16kW cooling and security.

[nebiki]

sorry, double post

[skyhigh]

Are you guys Miners? We are!

If you do the price based on $15 now, few days time it maybe $13, next week it maybe $5 or it could be $50.

So, our prices are very competitive for this market, what does it cost you to build a machine with 1Ghash and run it for 3 Months??

I know you understand what we trying to tell you, but you still keep on trying to explain something that is not important at all. Price in $ doesn't matter, only the amount of bitcoins you end up with in the end matters. If a person rents a rig from you, they end up with less bitcoins. Your prices are not competitive because whoever rents a rig from you ends up with 50% less bitcoins when the contract end.

How is that competitive? Unless you want compare it another guy that offers SAME BUSINESS THAT MAKES NO SENSE. That doesn't make it any less STUPID.

You, Vladimir and whoever else is offering this kind of service, needs to get more creative and come up with something that makes sense. Or else you just throwing a bad light on the whole bitcoin community, because you are after dumb people who can't add 1+1 on their own while in the meantime you insulting everyone else with stupid excuses that your service is somehow viable. Everyone except rare few knows it doesn't make any sense what so ever, but they just don't bother telling you that 1232 times.

[Vladimir]

You, Vladimir and whoever else is offering this kind of service, needs to get more creative and come up with something that makes sense. Or else you just throwing a bad light on the whole bitcoin community, because you are after dumb people who can't add 1+1 on their own while in the meantime you insulting everyone else with stupid excuses that your service is somehow viable. Everyone except rare few knows it doesn't make any sense what so ever, but they just don't bother telling you that 1232 times.

The only dumb person here is you, m8. It seems you have stuck in a 3 dimensional space-time continuum, while the rest of the world is in 4 dimensional one. Wake up.

[skyhigh]

Vladimir, if I was the dumb here, I'd be contacting you or OP for the fine service you two provide. I'll pass and let the smarts from the 4 dimensional space contact you for your nice deals.

Enjoy your tea & biscuits

[MaGNeT]

You, Vladimir and whoever else is offering this kind of service, needs to get more creative and come up with something that makes sense. Or else you just throwing a bad light on the whole bitcoin community, because you are after dumb people who can't add 1+1 on their own while in the meantime you insulting everyone else with stupid excuses that your service is somehow viable. Everyone except rare few knows it doesn't make any sense what so ever, but they just don't bother telling you that 1232 times.

The only dumb person here is you, m8. It seems you have stuck in a 3 dimensional space-time continuum, while the rest of the world is in 4 dimensional one. Wake up.

Can you make the calculations for me, what's the advantage of a mining contract compared to buying BTC or mining at home.

[KarlSpaat]

I run a mining farm for myself and when im reading about mining contracts, i have a question.

Why should I prefer mining contracts instead of my own rig?

A contract should give me Bitcoins cheaper than my own rig. With cheaper i mean the sum of productions costs (energy, space, cooling, hardware price decline, prices for repairing hardware), time to keep the rig running (build computers, install operating system, update drivers and miners, check status of miners, fix problems), the real uptime of the miners and the risk of running own hardware.
Im very experienced and can calculate the real production cost of a bitcoin accurately.

By the way i'd like to get PMs, if I forgot something in this list.


So which type of this costs are cheaper if a company builds up a rig and run it? If they aren't cheaper there is no reason of buying a contract.


Some of these costs are obvious, like hardware, energy, uptime) and others depend on how much u pay for your own worktime)

• A company gets better hardware prices, if they buy large numbers. But in order to get these prices, they should buy at least hardware for 20k €. I worked for a small E-Shop and i know that companies just get good hardware prices, if they buy large amounts or often. Otherwise the casual shops are cheaper.
• Energy and space is cheaper for companies, at a specific size, you can't run a rig in your own house anymore
• Cooling can be simple, if you have a room and just open all windows, so you don't need to run a cooling machine. Large Rigs in production halls can benefit from open windows, too
• Hardware price decline is the same for companies as for me
• The larger the rig, the better is the uptime. One damaged part influence Hashrate relatively less in large rigs, and having some spare parts are relative cheaper.
• Companies have more experience in setting up and running rigs than the casual user, so the time needed to build a miner and keep it up is less
• The risk for companies is higher, because they need to pay space rental, and even if they shut down a rig, they have to pay loans and rental for at least a month. This limits running mining farms to small companies without employees, or their farm has to be real large

If i put this all together, i cant imagine, that a large company would setup a farm. Just some nerds who doesnt need employees can do this without too much risk. A production hall is not that expensive so the risk is limited to less than 1000€.

So finally there are some good reasons why a contract can be cheaper than your own rig. Better Uptime, less manhours to setup and keep it running. No risk of loosing hardware or hardware price declines. They have less energy and maybe slightly less hardware costs. But the manhours are more expensive, a company wants to get at least 6% revenue of their investment and has a higher risk so they need to get higher reserve.

So beginners can rent hashpower because they arent experienced enough to build their own rig. But for people with enough experience, the only advantage is less risk, slightly better energy and hardware costs. People who are too lazy to run a rig should just buy bitcoins...


But if you make a contract more risky by paying 3 month at least, renting becomes useless.



PS: I would really like to get response, if i forgot some points in this list, or if you think im wrong in some points.

[skyhigh]

KarlSpaat, you are right on everything, but you missing the point here. You don't have to mine to get bitcoins. If you rent a rig .. you get bitcoins as a final product. Since Vladimir called me dumb, I will use his service as an example.

He charges $700 per month for a minimum of 4 months or a total of $2800 to rent 1 Gh.  If a person wants to rent this, he or she needs to wire him $2800 upfront. In return Vladimir will send daily BTC transfers in amount of statistical expectation of daily bitcoin generation. At the current difficulty of 1379223 this comes out to 0.73 BTC per day until the difficulty re-targets.

4 months x 30 days == 120 days  EVEN at the same difficulty if he sends you 0.73 BTC every day you will receive 87.6 BTC  for the $2800 you wired him. Reality is difficulty will be higher by the time your contract with him runs out, but that's completely beside the point here.

The day that you buy his contract for $2800  you could also buy BTC on the exchange for $2800.  The end result is same - BITCOINS. If you would buy at today's price you would get 180 BTC, while Vladimir will send you 87.6 BTC if the difficulty would stay the same.

This has nothing to do with hardware, electricity, uptime, or whatever else comes to your mind. Whoever sends him the cash to rent a rig, that same person could buy BTC on the exchange that same day.

Vladimir explained in one sentence in his thread :   You buy a contract, you get daily BTC transfers in amount of statistical expectation of daily bitcoin generation for contracted computational power during lifetime of the contract.

If a person buy a contract from these services, they don't even have to actually mine any coins. They COULD buy $2800 worth of BTC on the day you wire them cash. Right now he would get 180 BTC .. Everyday while difficulty at 1379223 he sends you 0.73 BTC to your address. When difficulty will re-target next week he would calculate what he needs to send you daily again. Even if we keep difficulty at 1379223 for the rest of the contract time period of 120 days he would only send you 87.6 BTC  while he COULD buy 180 BTC on the day you wired him cash for his contract.


Isn't this fantastic ?! But then again, I'm the dumb one.

[nebiki]

really nice read, skyhigh.

but you can cut it even shorter:

would you trust this guy?

[Capitan]

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.

You are mostly correct about mining contract sellers. They are basically "short" on bitcoin mining (AKA, placing a bet that bitcoin mining will not be profitable). There's technically nothing wrong with shorting. But I think a lot of people might not be smart enough to realize that is what's taking place, and I feel sorry for them. THere is the claim that it might actually become profitable (if difficulty either stays the same, or if the exchange rate goes up), but I don't see that happening any timein the near future. And I serious question if these leech types who sell the contracts would not withdraw from the contracts if mining actually became more profitable.

You then have to also factor in what happens if the operation goes belly up? What happens to the hardware? If it gets sold, who gets the profit from the hardware? In contracts where you are just renting the mining power it makes even less sense to purchase the mining contract because not only are you very likely to lose money, but you will also have no hardware to sell to cut your losses after the 3 months are up.

[Capitan]

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! 

What's with the pictures in your sig? Who's face is that?

[MaGNeT]

really nice read, skyhigh.

but you can cut it even shorter:

would you trust this guy?

You can't see if someone can be trusted, based on a picture...
I think Vladimir is a real Bitcoin fan and also a real businessman.

I trust him but I also trust my calculator. And if my calculator shows negative numbers, I say "no way"...

[Tx2000]

It's a gamble alright but definitely not the smartest option that is available.  But I guess in the end, that's the world - people have options and this is one of them.  The only thing that is a bit of a fallacy is that he stated he accepts bitcoins for this service.  One would need to pay more bitcoins than they would receive.   There is no gamble in that but pure deception.

[djgtr]

Hi

I am a partner in www.bitcoinminingrigs.com.au and I feel a lot of the people in this thread are only looking at things from their own point of view instead of looking from the point of view of the people that these contracts are aimed at.

1. A lot of people in Australia and around the world for that matter do not have reliable broadband connections but wish to get involved with bitcoin mining, besides a mining contract what option do they have?

2. A lot of people are not tech savvy and have never built a computer in their life nor do they want to, why should they miss out on the opportunity to mine? Are they going to go down to (insert local retailer here) and buy an off the shelf mining rig? Most salesmen have never heard of bitcoin and will try to sell the customer a HP or DELL to mine with.

3. A lot of people actually have jobs that take up a large portion of their life, when they are at home they don't want to be monitoring their miners or watching bitcoin value on Mt Gox.

4. Believe it or not a lot of places around the world pay very high prices for electricity or their partner/parents wont let them run miners 24/7.

So if your tech savvy, have access to cheap computer parts, don't pay a fortune for electricity and don't value your time highly then a mining contract is probably not for you. For the rest of the world (which is a much larger percentage than fits into the previous categories) we offer a service that is in fairly high demand.

In two days we have had over 30 inquiries into mining contracts and have signed 7 contracts in the 1000mhash to 6000mhash range. We explain to all of our potential customers difficulty increases, volatility of bitcoin value, I even point them at this thread to read all your opinions of mining contracts. And guess what.... they still want to sign.

So please continue with all your calculations and predictions it just gives my clients something to read and help them make up their mind on whether to purchase a contract or not. But just remember to look from other peoples point of view that maybe in a different position to yourself. After  all we must be doing something right... business is booming!

Thanks
David

 

[Capitan]

It's a gamble alright but definitely not the smartest option that is available.  But I guess in the end, that's the world - people have options and this is one of them.  The only thing that is a bit of a fallacy is that he stated he accepts bitcoins for this service.  One would need to pay more bitcoins than they would receive.   There is no gamble in that but pure deception.

Ha! You are right, I didn't even notice that. I didn't think to check that stat because who would be dumb enough to charge you 80BTC for a contract that UNDER THE MOST OPTIMISTIC SCENARIO, COULD AT MOST MAKE YOU BACK 75BTC? More likely a lot less than that though.

Man the scammers on this board are out of control. I like to shit on their parade because I hate crooks and thieves and dishonest people.

[Capitan]

Hi

I am a partner in www.bitcoinminingrigs.com.au and I feel a lot of the people in this thread are only looking at things from their own point of view instead of looking from the point of view of the people that these contracts are aimed at.

1. A lot of people in Australia and around the world for that matter do not have reliable broadband connections but wish to get involved with bitcoin mining, besides a mining contract what option do they have?

2. A lot of people are not tech savvy and have never built a computer in their life nor do they want to, why should they miss out on the opportunity to mine? Are they going to go down to (insert local retailer here) and buy an off the shelf mining rig? Most salesmen have never heard of bitcoin and will try to sell the customer a HP or DELL to mine with.

3. A lot of people actually have jobs that take up a large portion of their life, when they are at home they don't want to be monitoring their miners or watching bitcoin value on Mt Gox.

4. Believe it or not a lot of places around the world pay very high prices for electricity or their partner/parents wont let them run miners 24/7.

So if your tech savvy, have access to cheap computer parts, don't pay a fortune for electricity and don't value your time highly then a mining contract is probably not for you. For the rest of the world (which is a much larger percentage than fits into the previous categories) we offer a service that is in fairly high demand.

In two days we have had over 30 inquiries into mining contracts and have signed 7 contracts in the 1000mhash to 6000mhash range. We explain to all of our potential customers difficulty increases, volatility of bitcoin value, I even point them at this thread to read all your opinions of mining contracts. And guess what.... they still want to sign.

So please continue with all your calculations and predictions it just gives my clients something to read and help them make up their mind on whether to purchase a contract or not. But just remember to look from other peoples point of view that maybe in a different position to yourself. After  all we must be doing something right... business is booming!

Thanks
David

 

None of your arguments are relevant because you ignore the simple fact that it is cheaper and wiser for someone to simply buy BTC now. Under realistic circumstances, your mining operation will make them a lot less than 75BTC over 3 months. But at the current exchange rate it would cost them 80BTC to buy the three month contract. So they are set up to lose money right away. You and the OP have countered this by saying "what if the BTC value rises to $50?!". Well true, if the value rose the custom wouldn't lose money from buying your contract. But if the value rose to $50 the customer would also still be better off buying the BTC up front instead of buying the contract.

You make the rookie mistake of trying to convince people of a shitty deal on a public forum. You will not succeed in doing that because people will point out the flaws in your shitty deal and no one will want to partake. If you can show some hard #'s that prove why your offer is worth anyone's money, then all the naysayers in this thread would leave it alone. So far you haven't offered any valid argument as to why this is better than buying BTC up front.

[Capitan]

Hi

I am a partner in www.bitcoinminingrigs.com.au and I feel a lot of the people in this thread are only looking at things from their own point of view instead of looking from the point of view of the people that these contracts are aimed at.

1. A lot of people in Australia and around the world for that matter do not have reliable broadband connections but wish to get involved with bitcoin mining, besides a mining contract what option do they have?

2. A lot of people are not tech savvy and have never built a computer in their life nor do they want to, why should they miss out on the opportunity to mine? Are they going to go down to (insert local retailer here) and buy an off the shelf mining rig? Most salesmen have never heard of bitcoin and will try to sell the customer a HP or DELL to mine with.

3. A lot of people actually have jobs that take up a large portion of their life, when they are at home they don't want to be monitoring their miners or watching bitcoin value on Mt Gox.

4. Believe it or not a lot of places around the world pay very high prices for electricity or their partner/parents wont let them run miners 24/7.

So if your tech savvy, have access to cheap computer parts, don't pay a fortune for electricity and don't value your time highly then a mining contract is probably not for you. For the rest of the world (which is a much larger percentage than fits into the previous categories) we offer a service that is in fairly high demand.

In two days we have had over 30 inquiries into mining contracts and have signed 7 contracts in the 1000mhash to 6000mhash range. We explain to all of our potential customers difficulty increases, volatility of bitcoin value, I even point them at this thread to read all your opinions of mining contracts. And guess what.... they still want to sign.

So please continue with all your calculations and predictions it just gives my clients something to read and help them make up their mind on whether to purchase a contract or not. But just remember to look from other peoples point of view that maybe in a different position to yourself. After  all we must be doing something right... business is booming!

Thanks
David

  

Are we supposed to take your word for it that you have signed contracts? I wouldn't be surprised if some people made such a bad decision, but I also don't see any reason why we should believe it just because you say it.

[BtcNmcMiner]

I hate to jump into a cmpetitors thread, but I'm not sure that your contracts are the 'Worlds Most Economical' for example

I offer 200 Mh contracts for between $75 and $60 USD depending on lengeth, from 2 to 8 months. Yours are $90 per month.

I offer 400 Mh contracts for $135 to $ 112.50 per month, again depending on length, between 2 and 8 months. Yours are $170 per month. I also offer a 2 month minimum compared to your 3 so that the customer is out less money up front.

I know that several other contracts are available for less also, just sayin'.

[grod]

Now the last poster's pricing structure makes a bit more sense.  Call it $300 a month to get a gigahash * 8 months.  $2400.  Assuming difficulty does not go up from 1.3M (and it will, in just a few more days) you'd be getting 185 bit coins for that $2400. 

That's a discount of about $400 from current market price -- a daring person might take the bet of difficulty falling while $ value of BTC staying constant or increasing over those 8 months.

A less daring person would simply buy a ~$1000 worth of parts to produce the same 1Ghash, budget $600 power over the same time frame, buy $300 worth of beer and take the last $500 and bet it on poker games.  And at the end of the 8 months sell the hardware and buy another $500 worth of beer.

The OP's pricing structure, however, is just 

[skyhigh]

David aka djgtr, I'm sure there are people who contacted you and even bought contracts from you. I'm also sure most of them don't know or understand the math behind it, but that's OK. This kind of service is only temporary,  simply because it makes no sense and math behind it doesn't work. When people are more informed on the subject services like yours will get less and less business.

To answer your questions :

--------------------------------
1. A lot of people in Australia and around the world for that matter do not have reliable broadband connections but wish to get involved with bitcoin mining, besides a mining contract what option do they have?
Instead of sending you $1200 US to buy a contract for 3 months, they could BUY bitcoins and get 50% more for the same amount of money.

2. A lot of people are not tech savvy and have never built a computer in their life nor do they want to, why should they miss out on the opportunity to mine? Are they going to go down to (insert local retailer here) and buy an off the shelf mining rig? Most salesmen have never heard of bitcoin and will try to sell the customer a HP or DELL to mine with.
Why bother building anything? Instead of sending you $1200 US to buy a contract for 3 months, they could BUY bitcoins and get 50% more for the same amount of money.

3. A lot of people actually have jobs that take up a large portion of their life, when they are at home they don't want to be monitoring their miners or watching bitcoin value on Mt Gox.
They don't have to monitor anything. Instead of sending you $1200 US to buy a contract for 3 months, they could BUY bitcoins and get 50% more for the same amount of money.

4. Believe it or not a lot of places around the world pay very high prices for electricity or their partner/parents wont let them run miners 24/7.
They don't have to pay any electricity. Instead of sending you $1200 US to buy a contract for 3 months, they could BUY bitcoins and get 50% more for the same amount of money.


The fact is that since some people are offering this services, there is always some people that lack the knowledge on the subject and falls for it. That's OK. We can't get to everyone and explain to them that .. Instead of sending you $1200 US to buy a contract for 3 months, they could BUY bitcoins and get 50% more for the same amount of money.


This has NOTHING to do with being tech savvy, have access to cheap computer parts, pay a fortune for electricity, value your time or whatever else comes to your mind, simply because the end product they get from buying a contract from you are bitcoins. Instead of sending you $1200 US to buy a contract for 3 months, they could BUY bitcoins and get 50% more for the same amount of money.


David / djgtr.. talk to your partner about changing/removing some text on your site. Let me quote it "Some companies have invested over $500,000 USD in setting up a Large Bitcoin Server Farm in Germany".
You don't want to get into unnecessary possible legal issues from someone buying a contract from you and later finding out you guys lied.

[bitminers]

Skyhigh, do you have nothing better to do than ramble on with crap? Seriously put your effort towards something useful!

[1.21gigawatts]

bitminers, you should probably concentrate more on a rebuttal to skyhigh, otherwise it just makes you look stupid because you can't mathematically demonstrate why it would make sense to a potential customer (that's not brain dead in the math dept) to buy a contract from you instead of just buying BTC outright with the money they are spending for a contract.

[skyhigh]

Skyhigh, do you have nothing better to do than ramble on with crap? Seriously put your effort towards something useful!

Sure I have better things to do, but I'm multitasking. I'm not rambling crap because I'm 100% sure I'm spot on with what I'm saying. Majority understands it as well since it's not really rocket science. Funny how you call my ramblings crap, yet you removed part of the text  from your website, which I mentioned in my previous post..  quote "Some companies have invested over $500,000 USD in setting up a Large Bitcoin Server Farm in Germany".

By the way this all comes effortless to me, so when you need an objective opinion for your next business venture feel free to PM me.