[HAVELOCK] PETAMINE - 1,150 TH/S HASH RATE (1GH/S per Unit)

[BiteMyShinyMetalAss]

Its going  faster than even I had thought. Current hashrate according to blockchain: 115PH  
Cryptx share of the network: 1221 TH / 115 PH = 1.06%
That 2% goal sounds like a distant pipedream and  with 8+ weeks of no reinvesment and thus further decline ahead even 1% is completely out of reach. 0.6% will be closer to reality before the loan is paid back. Good luck bag holders.

You keep saying bag holders, there is no bag holders here. Hera are people with little funds holding max 100-500 shares. Noone of 5% so far said a word in this thread...

[Puppet]

 

http://www.investopedia.com/terms/b/bag-holder.asp

[BiteMyShinyMetalAss]

http://www.investopedia.com/terms/b/bag-holder.asp

Thank you, i was not aware, and hence I appologize.

[Puppet]

Yeah yeah yeah. So we dont have another 12 weeks dividends(6 weeks for loan, 6 weeks to get a reinvestment fund), still though, the reinvestment fund will be at least 300-400BTC. With bitcoin price 700$ that would be 210k-280k. Now lets say, BTC price will be 1000$ so fund would be 300-400k. Enough to jump back in business. Now, its ridiculous to assume that btc price would be 2500$ in 12 weeks, but in this very unlikely scenario, our fund would be 650-800k...

Let me suggest an alternative investment strategy to you; if you burn half your money, and with the remaining half you buy a lottery ticket, you may just win $10M. Therefore, burning half your money may actually make sense. Right?

Puppet is a man with no agenda.

Other than than my google calendar, correct.

Man with hundred accounts.

BS.

Puppet, you would save thousands of lives if you stay on Cex troll box.

There are plenty of people trying to educate cex.io bagholders and countless threads on BFL. This thread had almost nothing but newbies all of whom seemed to think Peta's proposition is somehow a novel concept that is going to make them a profit.

Yes, mining is not profitable if you buy a miner at the market price. However, if you buy chips in large quantities and make your own boards, thats a bit different story.

Judjing by the numbers, its a far worse story. 
Besides, let me tell you what would happen if cryptx at some point could get some killer deal from any of the chip manufacturers; since no one is going to buy in at IPO price anymore, to actually raise capital,  he will  do what every mining security issuer before him did, launch a new security, call it ZetaMine or CryptY and allow cryptx investors to "upgrade" to crypty.  Gigamining/terramining all over again.

[fonsie]

Bid support is almost none existant, the sell pressure however is increasing.

People forget that a good dividend share needs to keep it's value, otherwise it's like getting the water out of a boat with a hole in it, you can keep doing it for a while until somebody comes along with a bigger bucket or you get tired and the boat sinks.

Meaning the IPO's are the buckets, but at some point nobody comes anymore with a bucket.


Also last night it popped into my head, if you are a manufacturer of ASICS and you have build 2 units, look at the build cost, figure out the sell price, wich would be for example 2000$. Now I'm going to sell 1 unit for 4000$ and put 1 FREE unit in my own mine. For every unit I sell to another miner, I can put 1 in my own mine for free, so by the time the miner gets home plugs in his brand new top of the line ASIC miner, he's allready too late.

Try competing against that scenario.

[BiteMyShinyMetalAss]

So the only way is for Cryptx himeself to buy a bunch of shares at IPO price...

[fonsie]

They have to prove that they can keep paying dividend, invest enough in new hardware to keep up with the increase in hasrate and difficulty, WITHOUT doing IPO's again and again. The IPO is to bring in additional money to get back ahead of the increase in difficulty, it is the proof itself that reinvesting isn't enough. Them giving a loan is no real incentive from their part, because they know that the loan will get paid back either way.

[Puppet]

Also last night it popped into my head, if you are a manufacturer of ASICS and you have build 2 units, look at the build cost, figure out the sell price, wich would be for example 2000$. Now I'm going to sell 1 unit for 4000$ and put 1 FREE unit in my own mine. For every unit I sell to another miner, I can put 1 in my own mine for free, so by the time the miner gets home plugs in his brand new top of the line ASIC miner, he's allready too late.

Try competing against that scenario.

Closer to the truth: sell both units for $4000 and pocket $8000. Keep doing that until your pile of cash is big enough to deploy something like KnC's datorhall,






And thereby kill the ROI of all your former customers with hardware paid for by them, costing only marginal production cost, and electricity costs far below any residential miner:

But even then, rather than self mine with your new megamine, it turns out its actually better to rent/sell that hashrate for as long as people are gullible enough to overpay for cloudmining.

This is exactly what KnC,  Cointerra and Bitury/cex.io have been doing. Like I said before, you dont win this arms race unless you are an arms dealer.

[skuser]

Accepted and I appreciate the candidness. After all the scams and bad investments I have tried to expose over the years, I dont actually recall being thanked once even after the fact.  I do recall often being accused of actually having caused the collapse. Im sure that will be next here too .

One more thanks from me. I started the "difficulty is rising" trolling few days ago and finally managed to read all the following posts. I was too lazy to do my own homework too before spending money, but this happens to me when betting too small part of portfolio into something . So thanks to Puppet for doing thorough analysis and also to thread owner for letting people put their opinions and not deleting them.

[fonsie]

Also last night it popped into my head, if you are a manufacturer of ASICS and you have build 2 units, look at the build cost, figure out the sell price, wich would be for example 2000$. Now I'm going to sell 1 unit for 4000$ and put 1 FREE unit in my own mine. For every unit I sell to another miner, I can put 1 in my own mine for free, so by the time the miner gets home plugs in his brand new top of the line ASIC miner, he's allready too late.

Try competing against that scenario.

Closer to the truth: sell both units for $4000 and pocket $8000. Keep doing that until your pile of cash is big enough to deploy something like KnC's datorhall,






And thereby kill the ROI of all your former customers with hardware paid for by them, costing only marginal production cost, and electricity costs far below any residential miner:

But even then, rather than self mine with your new megamine, it turns out its actually better to rent/sell that hashrate for as long as people are gullible enough to overpay for cloudmining.

This is exactly what KnC,  Cointerra and Bitury/cex.io have been doing. Like I said before, you dont win this arms race unless you are an arms dealer.

It seems they have plenty of room to grow in the height, and the heat doesn't seem a problem, snow still not melting on the roof...

[runam0k]

They have to prove that they can keep paying dividend, invest enough in new hardware to keep up with the increase in hasrate and difficulty, WITHOUT doing IPO's again and again. The IPO is to bring in additional money to get back ahead of the increase in difficulty, it is the proof itself that reinvesting isn't enough. Them giving a loan is no real incentive from their part, because they know that the loan will get paid back either way.

The second IPO opened up economies of scale (cheaper energy costs, bulk buying, etc). We're replacing older mining equipment with new, which might not have been cost effective without growing the mine.

We get it, you saw the light and sold your shares -- that was the right decision for you. But now what? Are you really just here to convince people to sell? By all means, chip in as and when people seek advice, but there are still shareholders (rightly or wrongly) and people with genuine interest that want to discuss Peta without the constant barage of trolling.

[Puppet]

also to thread owner for letting people put their opinions and not deleting them.

Have to +1 that. As much as I think this is a toxic asset, I cant fault the issuer, he has been acting exemplary IMO.
Id be happy to invest in some future cryptx venture if it has a business plan I  believe in.

[fonsie]

I don't care if anybody sells or not, I'm also not trying to save anyone. Everybody makes his own decisions.

Cheaper electricity and bulk prices are a valid point, but then they should atleast make sure that they can keep up and maintain the value of the shares.

As I see it... "IPO 1500TH - 2% of worldwide hashpower"

-Are there 1500TH? NO
-Have they got still 2%? NO
-Will they have enough reinvestemt fund to get back to 2%? Probably NO
-Has the share kept it's value? NO
-Will there be an oppurtunity for a few to still get out at 0.08-0.095? Perhaps
-Will all 77400 shares have an oppurtunity to get out at 0.08-0095 or 0.05? NO

So what is there left to do? Another IPO and hoping that they sell enough shares, hoping that by the time they install the hardware they didn't lost another 0.5% of the network, getting back to 1.5 instead of 2%. The IPO will create some buzz and oppurtunities for a few to get out with a nice profit.

The more GH, the more money cryptx makes, not counting the miners that are paid by investors and are running only for them. Who knows what deal they actually made 4000 or 3900$ gives room for a few free ASICS. Can anyone really know this? It could just be that they aren't as energy efficient as on paper.

But "Hey Jack" I could be wrong.

But 1 thing I'm certain of, cryptx, they are no fools and they figured it out in a clever way.

[BongaManollo]

What's left to do is sell all hardware, but cryptx doesn't even manages that at a propper level.
https://bitcointalk.org/index.php?topic=639910.msg7253218#msg7253218

I'm almost out of this sinking ship. It was a fun ride but atm it's getting nowhere.

[fonsie]

Selling all your shares is no real viable option anymore, just hope that you:

1) Made it out already with some profit
2) Made it out with break-even
3) Made it out with a loss you can live with
4) Hope that by some wonder they pull it off to raise money from whatever investor, so giving you a chance to get to shore

I picked option 3, because I had no hope for option 4, my own mistake for keeping my pink sunglasses on and buying in, STUPID STUPID ME.

They could have spiked the price share a bit more by some good PR on the whole ghash/p2pool thing, but I think they realized that it's best not to draw too much attention to a dying corpse.

[BongaManollo]

Was in it from the beginning, made about 15 BTC or a  bit more. Lucky me.

[fonsie]

Well done sir, 1.65BTC came from me  enjoy the donation

[Puppet]

What's left to do is sell all hardware, but cryptx doesn't even manages that at a propper level.
https://bitcointalk.org/index.php?topic=639910.msg7253218#msg7253218

Ouch!

Also of note, ~1.6 BTC/TH resale value. Remember the last IPO was for 6.5 BTC/ TH not even a month ago, current bond price represents ~4.2 BTC/TH minus the loan..

I think I sufficiently proved my point by now. Best of luck to those who didnt get out yet.

[BongaManollo]

Well done sir, 1.65BTC came from me  enjoy the donation

 
I bought some icecream thanks

[ujka]

What's left to do is sell all hardware, but cryptx doesn't even manages that at a propper level.
https://bitcointalk.org/index.php?topic=639910.msg7253218#msg7253218

Ouch!

Also of note, ~1.6 BTC/TH resale value. Remember the last IPO was for 6.5 BTC/ TH not even a month ago, current bond price represents ~4.2 BTC/TH minus the loan..

I think I sufficiently proved my point by now. Best of luck to those who didnt get out yet.

I do respect every opinion in this thread, but just a little correction here, it was 3.76 btc/th:

The money that is raised at the IPO will go to the purchase of 1000 TH/s of mining equipment, which costs about 3,760 BTC. Financial breakdown to deploy 1PH/s:
Cost: 3,760 BTC
Income:
                * 33,794 shares at IPO: 3,313 BTC
                * Current reinvestment funds: 150 BTC
                * Mining revenue (16-31 May): 300 BTC

Or did you mean the price IPO was for - 0.095 BTC for 15GH ?

Edit: I wonder where the difference ended: 6.33 (IPO)- 3.76(actual purchase) = 2.57 btc/th?