[UK/EU] GROUP BUY Virtual Mining Corp Fast Hash One

[qukkM]

I am looking at organising a group buy for the Virtual Mining Corporations Fast Hash One product.

 

The retail price including shipping is $4,199 for the standard base model. This is around 47BTC at present and this is for 256GHash/second. The units can be expanded with further 256GHash/second chip units, however these are currently priced at $4,999 each. Therefore if there is enough interest in the group buy to purchase more than 256ghash/second I would look to purchase further base units rather than the individual expansion chip units. There is no point spending an extra $1000 per quarter terrahash when it is not required. At a later date the chips are likely to come down in price and which time they could be purchased to increase mining capacity at that stage.

 

At the moment I am looking at general interest and peoples thoughts on this.

 

I am thinking that the investment price would be something like 1BTC gets you 5.4GHash/second. The units would be stored and maintained at my location with running and maintenance costs being paid for out of the mining rewards, 5% seems pretty standard for these sort of offerings. It may also be a consideration to set aside a further 10% for reinvestment for expansion chips, leaving the mining reward payout at or around 85%, being paid out weekly.

 

No limit on the number of shares you can purchase.

 

Extra units will only be purchased if the full share allotment is sold, I will however seek to purchase any outstanding shares to complete a unit purchase if more than half of shares have been sold, e.g. 50% of the cost of the unit is already met (25BTC) I will purchase the remaining shares (25 shares @ 1BTC each = 25BTC). The idea would be that your purchase entitles you to 24months of mining power, this would be dependent on the products longevity however.

 

Delivery is stated to be October/November 2013.

 

This will be a pre-paid pre-order, as such if they do not deliver on time the group would need to decide whether they want to cancel (if that option is available) or wait for delivery.

 

Upon delivery it may also be that selling the units immediately could result in a shorter term gain, e.g. selling a unit on ebay for 2 or 3 times purchase price, which could then be reinvested into further mining expansion chips. If there is interest in this we can consider it at the time, this would have the effect of reducing the groups hashing power until expansion chips could be purchased but then we would increase hashing power without requiring reinvestment of mining rewards.

 

In the interest of being open and fair I have already purchased one of these units for my own personal mining farm. Any extra units purchased through this group buy will be run alongside my unit but on a totally separate mining pool account so that everyone can monitor activity of the units and rewards generated.

 Escrow can  be arranged, probably through  JohnK as I have had excellent experiences with him as both buyer and seller, fees paid for by the share buyers. I will organise this if there is interest enough to take this forward.

Happy to answer questions.



 

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[zulover]

sounds good just the delivery time is a bit long. the diff may be too high.

http://mining.thegenesisblock.com/

[qukkM]

I figure the delivery time if met is ok based on 256ghash, especially when compared to buying a 5ghash BFL last year and getting it delivered today. Plus by buying more than one unit and trying to sell it for 50% to 100% more when it arrived it should allow for the purchase of 2 or 3 expansion chips,  taking the hashing power up to 0.75terra hash to 1 terrace hash, for an initial investment of $8200. Worst case scenario is that we end up with only 0.5terrahash for our investment.

Knc are currently offering 200ghash for $4k amd 400ghash for $7k, although shipping dates are september to October and VMC is October to November. So the offer is comparable to Knc in $/ghash

This equates to $17.49 per ghash for the 400Ghash machine  whereas VMC works out as $15.23 per ghash.

Basically I would happily start off any group buy with the first 50% of shares (approx 25 BTC)

[iikun]

I'm not aware of a single mining company which has delivered on time so best not rely on prompt delivery I think.
If we thought BFL screwed customers over, if one of these next-gen companies fails to deliver it will be just as disastrous as that, if not more so.  Even just the Avalon chip orders are going to raise the difficulty enough :/  I think only spend what you can 100% afford to lose

[qukkM]

" I think only spend what you can 100% afford to lose"

Yeah that was my thinking.  I purchased one unit from profits made reselling USB miners and figured a good way to minimise any further risk is a group buy that would allow many people to only risk a small amount of overall BTC.

The one thing I would note though is that even if Avalon get all their chips out the door, there is no reason the buyers will be any more successful than Avalon in getting them hashing in a short time frame.

Still I do agree about difficulty increasing hence looking at an expandable miner from VMC at some point in the future as opposed to buying $4000 worth of BFL or Avalon products today.

[iikun]

" I think only spend what you can 100% afford to lose"

Yeah that was my thinking.  I purchased one unit from profits made reselling USB miners and figured a good way to minimise any further risk is a group buy that would allow many people to only risk a small amount of overall BTC.

If that's the case then sure, why not take a stab at one of these next companies then.  Any reason you chose to back VMC/AMC over others btw?

[fallensound]

I'd be interested. What sort of timeframe are you looking at purchasing?

[zulover]

I figure the delivery time if met is ok based on 256ghash, especially when compared to buying a 5ghash BFL last year and getting it delivered today. Plus by buying more than one unit and trying to sell it for 50% to 100% more when it arrived it should allow for the purchase of 2 or 3 expansion chips,  taking the hashing power up to 0.75terra hash to 1 terrace hash, for an initial investment of $8200. Worst case scenario is that we end up with only 0.5terrahash for our investment.

Knc are currently offering 200ghash for $4k amd 400ghash for $7k, although shipping dates are september to October and VMC is October to November. So the offer is comparable to Knc in $/ghash

This equates to $17.49 per ghash for the 400Ghash machine  whereas VMC works out as $15.23 per ghash.

Basically I would happily start off any group buy with the first 50% of shares (approx 25 BTC)

Your reasoning is sound. I would tend to agree. Ive down some mining, only got into it in april, but tasted cpu gpu and block etuptor asics. I know its transitional period now a big wave is heaving up and everyone wants to catch a part of  it. Im sitting on sround potential 20k gbp to invest in something from this arena and not looking for a get rich quick thing thats why this expansion idea sounds goog keeping ahead on the wave and re investing in additional so the diff doesnt outstrip your setup is good. I know weve missed out on the avalon chip thing now unless some people sell big quatities from the earlier batches I would buy , they are very profitabe once you scale up to a couple of 100 gigs. But yes im still interested in this vmc and still lookin at knc also. Some timframes and margins would good.

Thanks

[qukkM]

" I think only spend what you can 100% afford to lose"

Yeah that was my thinking.  I purchased one unit from profits made reselling USB miners and figured a good way to minimise any further risk is a group buy that would allow many people to only risk a small amount of overall BTC.

If that's the case then sure, why not take a stab at one of these next companies then.  Any reason you chose to back VMC/AMC over others btw?

Cost per giga hash is best at present, expansion options are also good.

Kraterminer wants twice as much for a 60-90ghash machine (90btc)

Knc early orders have been filled and have a higher cost per gnash with no expansion  options.

Avalon are only selling chips

BFL are BFL

I am not familiar with bit fury offers

[qukkM]

I'd be interested. What sort of timeframe are you looking at purchasing?

I will look to formalise the offer tonight and include time frames.

As they price in USD I don't want to be hanging around at the mercy of the exchange rate though do each purchase will be done as soon as funds are available.

[qukkM]

I figure the delivery time if met is ok based on 256ghash, especially when compared to buying a 5ghash BFL last year and getting it delivered today. Plus by buying more than one unit and trying to sell it for 50% to 100% more when it arrived it should allow for the purchase of 2 or 3 expansion chips,  taking the hashing power up to 0.75terra hash to 1 terrace hash, for an initial investment of $8200. Worst case scenario is that we end up with only 0.5terrahash for our investment.

Knc are currently offering 200ghash for $4k amd 400ghash for $7k, although shipping dates are september to October and VMC is October to November. So the offer is comparable to Knc in $/ghash

This equates to $17.49 per ghash for the 400Ghash machine  whereas VMC works out as $15.23 per ghash.

Basically I would happily start off any group buy with the first 50% of shares (approx 25 BTC)

Your reasoning is sound. I would tend to agree. Ive down some mining, only got into it in april, but tasted cpu gpu and block etuptor asics. I know its transitional period now a big wave is heaving up and everyone wants to catch a part of  it. Im sitting on sround potential 20k gbp to invest in something from this arena and not looking for a get rich quick thing thats why this expansion idea sounds goog keeping ahead on the wave and re investing in additional so the diff doesnt outstrip your setup is good. I know weve missed out on the avalon chip thing now unless some people sell big quatities from the earlier batches I would buy , they are very profitabe once you scale up to a couple of 100 gigs. But yes im still interested in this vmc and still lookin at knc also. Some timframes and margins would good.

Thanks

Re: Avalon chips,  i would go that route if i had any knowledge of how to use them,  from what I can see they require PCBs etc and I don't have the time to do that myself. Kraterminer offer a service building machines using your own chips but I can't see that being very cost effective

[zulover]

I will look to formalise the offer tonight and include time frames.

As they price in USD I don't want to be hanging around at the mercy of the exchange rate though do each purchase will be done as soon as funds are available.
[/quote]
cool

[SullyTex]

Has anyone thought to create a contract bond ala something seen on btct.co for example?  Say x BTC per share/ghash?

[e4xit]

So which machine would you be interested in getting? I might be interested in a a small stake seeing as I amalso UK based, and I quite like to have my fingers in various pies, to hedge some ofthe risks associated with BTC as best I can...

Would you be selling shares in the miner in terms of GH/s; so we could just purchase, say, 20GH/s, adn then would own 20/256% of the miner and recieve the same % of the mined profits?

Thanks

[Stinky_Pete]

Probably interested in a small way, but difficulty levels at expected delivery time worry me.

I'll watch for now.

UK based

[qukkM]

I would look to purchase a 256 giga hash machine,  they can be expanded but the base unit is currently $1000 cheaper than an expansion chip. So the bade unit is 3999 usd and a 256giga hash chip is 4999usd.so for a base unit at 256 plus an expansion chip bringing total hash power up to 512giga hash it would cost 8998usd, however 2 base units would equal 512 giga hash and only cost 7998usd plus shipping

[abuelau]

Also interested, also UK based.

I am, however thorn between VMC and KNC. Since KNC is delivering in October (I read this as 30/October) and VMC in in October/November (I read this as 30/November), this can make a big difference in returns. The KNC Saturn system (200Gh/s) is selling for U$ 3795, and being in the UK we could probably fly there in Stockholm and pick it up.

One interesting thing that we could do is buy it and list the shares in Bitfunder...

[qukkM]

If possible it might be an idea to start with a VMC unit,  if more funds can be raised purchase a knc and after that perhaps a bitfury machine.  That way we would have a safer bet spread across 3 manufacturers.

I have not looked in Bitfunder listing but I will if there is enough interest.  See how the initial offering goes here, I will check if we could convert it into a Bitfunder asset at a later date.