Your thoughts on a $3.00 - $3.24 per GH/s per Year Bitcoin Mining Contract

[Supercomputing]

Hello all,

If I were to offer a 1 year Bitcoin mining contract for $3.00 - $3.24 per GH/s for Pre-Order, would you consider it to be a good deal or a great deal?

Contract period: January 1, 2014 to December 31, 2014.
Fully hosted solution in a Tier III data center.
Purchased in blocks of 250 GH/s for $810 each or purchased in blocks of 5 TH/s for $15,000 each (additional blocks of 250 GH/s for $750 each).
Bi-weekly payouts (with no transaction fees) and all payouts will be in BTCs, no exceptions.
Transparent payout calculations based on your percentage of the total Bitcoin network's hash rate (calculated every 2016 blocks - in sync with difficulty changes).
Secured website to monitor all of your payments and manage your Bitcoin payment addresses.
No other fees.

If I were to offer such a deal, I would do the following:
Accept BTC as the preferred payment method.
Accept Credit Cards through PayPal or Amazon.
Accept Dwolla.
Provide refunds minus any transaction fees.
Guarantee that you will have at least as much BTCs in returns as you invested (I will make for the shortfall if necessary). If you paid in fiat currency, your equivalent amount of BTCs will be locked in when your payment was processed using the following rate table (https://bitpay.com/bitcoin-exchange-rates). Who else is going to make such a guarantee without the fear of losing BTCs.

Some background info:
I have 15 years of experience as a Systems Administrator, Systems Integrator, and a Network Architect. (I hold many certifications)
Some background in Electrical/Electronics Engineering.
Started mining Bitcoin in late 2009 on my Virtex-6 LX240T FPGA development board.

[lassdas]

...for Pre-Order, ...

You lost me there.

[User705]

... Guarantee that you will have at least as much BTCs in returns as you invested (I will make for the shortfall if necessary). If you paid in fiat currency, your equivalent amount of BTCs will be locked in...

I lasted a bit longer.  

[balanghai]

It would be great deal if it started mining a year ago.

[Supercomputing]

I like your sense of humor. Where is my Dorothy to say to me: "you had me at hello".

[fxkevin]

I would offer 25k for 10TH...

I would need to see proof of concept and verifiable proof of the business plan.

The January start is essential to hold this price.

Cheers,

[mootinator]

It's about 3x better than BFL's deal.

And if you factor in when they'll start mining and assume you start January 1st, it's about 30x better.

[fxkevin]

Regardless of how much better it is than the 'competition' and I use that word very loosely, in the end all the purchaser wants is a good chance at a decent ROI.

At 10 USD per TH like BFL is looking to charge in Jan/Feb 2014 there is little or no chance to every break even.

Cheers...

[Supercomputing]

I completely agree that it all comes down to making a decent return on your investment. For me, I would never purchase a Bitcoin mining hardware or contract just to have a chance of breaking even. But from what I have seen, it does not seem to stop a lot of people from making such purchases.

However, no one can truly guarantee a return on your investment in fiat currency when it comes to Bitcoin. But you can guarantee a return in BTCs, it is just a simple matter of how many BTCs you have in reserve  just in case. If someone is mining for Bitcoins with the sole purpose of exchanging them for fiat currency right away, then there are no guarantees and your milage will vary.

Also from what I have seen, the best seat in the house right now belongs to ASIC manufactures for Bitcoin mining hardware, they are the only ones guaranteed to make a decent ROI. I am very tempted to join them.

[fxkevin]

That is very true...

The idea here is mine more BTC then spent on the mining setup. Cashing in will come later once the BTC has appreciated a bit.

That being said, I am interested as previously stated.

Cheers...

[User705]

I completely agree that it all comes down to making a decent return on your investment. For me, I would never purchase a Bitcoin mining hardware or contract just to have a chance of breaking even. But from what I have seen, it does not seem to stop a lot of people from making such purchases.

However, no one can truly guarantee a return on your investment in fiat currency when it comes to Bitcoin. But you can guarantee a return in BTCs, it is just a simple matter of how many BTCs you have in reserve  just in case. If someone is mining for Bitcoins with the sole purpose of exchanging them for fiat currency right away, then there are no guarantees and your milage will vary.

Also from what I have seen, the best seat in the house right now belongs to ASIC manufactures for Bitcoin mining hardware, they are the only ones guaranteed to make a decent ROI. I am very tempted to join them.

Awesome business strategy.  Sign me up.  Also since you are guaranteeing BTC why even take payments.  I'll sign up and if the contract earns more then the guarantee just send that to me and if it earns less well you guaranteed it so we'll just be even.  Right?

[Buffer Overflow]

My eyes glazed over once I read the words 'pre-order'.

[Supercomputing]

That is very true...

The idea here is mine more BTC then spent on the mining setup. Cashing in will come later once the BTC has appreciated a bit.

That being said, I am interested as previously stated.

Cheers...

10 TH/s for a Bitcoin mining contract commencing January 1, 2014 for a year in a the Tier III data center for $25K?

It is not going to happen anytime soon and here is why: KnCMiner charges $3,960 per year for their Jupiter miner hosting plus you must purchase their Jupiter miner separately, and there are some people who consider it to be a good deal. However, there is no reason for them to drop their hosting prices by much as long as many people consider it to be a good deal.

[Supercomputing]

I completely agree that it all comes down to making a decent return on your investment. For me, I would never purchase a Bitcoin mining hardware or contract just to have a chance of breaking even. But from what I have seen, it does not seem to stop a lot of people from making such purchases.

However, no one can truly guarantee a return on your investment in fiat currency when it comes to Bitcoin. But you can guarantee a return in BTCs, it is just a simple matter of how many BTCs you have in reserve  just in case. If someone is mining for Bitcoins with the sole purpose of exchanging them for fiat currency right away, then there are no guarantees and your milage will vary.

Also from what I have seen, the best seat in the house right now belongs to ASIC manufactures for Bitcoin mining hardware, they are the only ones guaranteed to make a decent ROI. I am very tempted to join them.

Awesome business strategy.  Sign me up.  Also since you are guaranteeing BTC why even take payments.  I'll sign up and if the contract earns more then the guarantee just send that to me and if it earns less well you guaranteed it so we'll just be even.  Right?

You are correct except for the question of why even take payments, and here is your answer:

If I go at it alone, my purchasing power is limited to about 2 PH/s of processing power for Jan. 2014, and doing so will account for just about all of my BTC holdings. It is never a wise decision to empty ones bank account for a high risk investment. But if I were to raise half of the funds from Pre-Orders and put in the other half, I will still get a volume discount for purchasing hardware and cut my up-front risks by half. Also, my ROI will be cut by half which is more than acceptable to me.

So in a nutshell, it is all about better risk management. Half of the funds that I would have otherwise spent up-front to receive volume pricing, will become my reserve to cover the shortfall for others if it ever came to that. I would rather go 12 rounds in the boxing match and take my changes than stand the risk of getting knocked out in the first round.

[fxkevin]

If I see some poof of concept 30k is doable.

Cheers...

[User705]

Hmm let's see.  You have enough btc to buy hardware but you want others to "invest" with you so you can use their btc to buy hardware.  Then you'll keep your btc "in reserve" to cover the "investors" aka "suckers" with your "guarantee".  I got it.  Oh and then you got another member possibly a sock here throwing around big numbers to make it all sound super duper.  Thread reserved for future entertainment value. 

[fxkevin]

So I am the 'sock' in this scenario?

http://kevinmurcko.com

I am a real person...

And I would not go forward in ANY venture without proof of concept and some type of guarantee that I am getting what I paid for. However there is little reason to spout off on a public forum about my intentions. If the venture comes to fruition my interest is on record and at that point I can do the needed due diligence and decide to move ahead or not.

Cheers...

[User705]

If you think there's nothing wrong with OP saying give me x amount of money and I guarantee to generate a number greater then x with no risk for you then I wish you luck with your "business".

[fxkevin]

I take his post as I would any forum post...

I am 'interested' in the project if I can verify it's existence and am comfortable with his business plan.

Right now it is a forum post, nothing more, and anyone can write anything they want on a public forum.

He asked IF we, as forum users, would be interested in such an offer, and I would be, provided I can vet the offer, and not via some lame 'vetted by X forum member' either.

Real world business means real world vetting.

If it is BS then I won't be investing.

Cheers...

[Puppet]

Guarantee that you will have at least as much BTCs in returns as you invested

That would be insane to offer. Just insane.
Unless its a scam.