Gigamining / Teramining

[jamesg]

Giga, any news on when the update will be done?

I have registered my intentions to upgrade but at the moment I'm purchasing more shares, so please tell me how this will move forward.

thanks
ian

When I know more, you'll know more. The upgrade is totally dependent on BFL and their timeline for releasing ASIC.

[1714173550]

1714173550

[1714173550]

1714173550

[1714173550]

1714173550

[CrazyGuy]

I apologize if this has been answered already. What percentage of gigamining bonds are currently invested with pirate?(If any).

[BurtW]

I apologize if this has been answered already. What percentage of gigamining bonds are currently invested with pirate?(If any).

I always assumed all of it was.

[CrazyGuy]

I apologize if this has been answered already. What percentage of gigamining bonds are currently invested with pirate?(If any).

I always assumed all of it was.

lol

Haha, seriously though... I know Gigavps is a pretty big pirate supporter and I also know gigavps has a ton of hardware behind the bonds. At the current difficulty, with 240gh/s, giga should be making around 770 btc a week. Coupon payments page shows him scheduled to pay out around 600 btc over 40,000 bonds. 170 BTC a week is not bad, but after DC and electricity costs that may be much less. Seems like it would be easier to invest some of those coins in a venture that returns 7% weekly and pay from there.

If the answer is 0%, how heavily are you personally invested? Is it enough to hurt your mining operation if you don't get your money back?

Just curious as I'm thinking about investing in gigamining again.

[jamesg]

To all Gigaminers:

The coupon payment for the week is out.

Enjoy,
gigavps

[jamesg]

Haha, seriously though... I know Gigavps is a pretty big pirate supporter and I also know gigavps has a ton of hardware behind the bonds.

Hi CrazyBlane,

You are correct that I believe pirateat40 is stand up guy and will not default on his lenders. However, I would like to keep that outside of the gigamining thread.

At the current difficulty, with 240gh/s, giga should be making around 770 btc a week. Coupon payments page shows him scheduled to pay out around 600 btc over 40,000 bonds. 170 BTC a week is not bad, but after DC and electricity costs that may be much less.

I am running about 160Gh/s currently. I have more GPU purchases to setup this week and am still looking for more mini rigs to purchase. All current equipment and upgrades have been paid for 100%.

Seems like it would be easier to invest some of those coins in a venture that returns 7% weekly and pay from there.

If the answer is 0%, how heavily are you personally invested?

Some profits from the gigamining offerings were used to fund my BTCST account. As for percentages or amounts, I feel no need to disclose that information.

Is it enough to hurt your mining operation if you don't get your money back?

If pirateat40 does not return capital, then I will lick my wounds and make up the losses from personal funds.

The contract is that I pay out 100% PPS for all outstanding bonds and this is what I have done and will continue to do.

Best,
gigavps

[CrazyGuy]

Thanks for the response, not sure why I thought you had 240gh. How can you pay 200gh/s worth of bonds on 160gh/s?

[jamesg]

Thanks for the response, not sure why I thought you had 240gh. How can you pay 200gh/s worth of bonds on 160gh/s?

There was a lot of profit with the sale of the bonds. I have used some of the profit to offset getting up to full speed.

[amgomez]

Thanks for the response, not sure why I thought you had 240gh. How can you pay 200gh/s worth of bonds on 160gh/s?

There was a lot of profit with the sale of the bonds. I have used some of the profit to offset getting up to full speed.

Please do not get mad at me but... like in a ponzi ??(!) 

How do you plan to reach 200 gh/s? Selling more bonds?

Seriously, I have too many gigamining bonds to hear this.

[jamesg]

Please do not get mad at me but... like in a ponzi ??(!) 

How do you plan to reach 200 gh/s? Selling more bonds?

Seriously, I have too many gigamining bonds to hear this.

Hi amgomez,

Like I said, I am actively building more rigs and seeking more deals for mini rigs.

If you do not like my honesty about where I am at, then by all means please sell your bonds.

Best,
gigavps

[puffn]

Yes, please, sell your bonds !!!$$$!!!

[sunnankar]

Like I said, I am actively building more rigs and seeking more deals for mini rigs.

If you do not like my honesty about where I am at, then by all means please sell your bonds.

I think he is merely trying to get a more accurate sense of your income statement and balance sheet to better judge your credit worthiness and more accurately value the GIGAMINING bonds.

To better judge your credit worthiness the two material pieces missing are (1) revenue capacity, what PPS% the 160GHs produces, and (2) how many unencumbered bitcoins you have in your possession allocated for building or buying more rigs.

Obviously, if the 160Ghs produces only 100%PPS and you have only 1,000 BTC in your possession then you will negative cash-flow about 125 bitcoins per week at current difficulty. Assuming a rise in difficulty this would leave about 8-10 weeks until a partial default. However, if you have 10,000 BTC in your possession then credit worthiness would be a lot higher.

Because of your unwillingness to disclose how many BTC are currently in your possession the market does not know whether you have 0 BTC or 5,000 BTC, etc. and has to begin assessing a value on the probability of default and time frame. Markets like information and transparency.

When looking at comparable issues there appears to be only one and it is interesting that BITBONDS are trading at a 13% discount to GIGAMINING. Why is this? Are they undervalued or is GIGAMINING overvalued?

Since GIGAMINING has only 80% of the equipment to back its commitments and an uncertain amount of liquid reserves to meet debt service therefore does BITBOND lack a significant amount of production capacity it has claims for to result in this material discount in the trading price?

I have not found a statement from amazingrando on the matter. Anyone?

[jamesg]

I think he is merely trying to get a more accurate sense of your income statement and balance sheet to better judge your credit worthiness and more accurately value the GIGAMINING bonds.

To be totally honest, I think I am one of the most open and honest operators around. I don't see many other operators opening out status pages to their farms for instance.

To better judge your credit worthiness the two material pieces missing are (1) revenue capacity, what PPS% the 160GHs produces, and (2) how many unencumbered bitcoins you have in your possession allocated for building or buying more rigs.

If you would like to judge my credit worthiness, please see Patrick's personal credit rating thread.

https://bitcointalk.org/index.php?topic=99660.msg1090151#msg1090151

You'll notice I'm at the top of the list there.

Obviously, if the 160Ghs produces only 100%PPS and you have only 1,000 BTC in your possession then you will negative cash-flow about 125 bitcoins per week at current difficulty. Assuming a rise in difficulty this would leave about 8-10 weeks until a partial default. However, if you have 10,000 BTC in your possession then credit worthiness would be a lot higher.

First, the 160Gh produces greater than 100% PPS results as it is run on gpumax.com. On average, this month, I have been running about 114% PPS which makes up quite a bit of the short fall. Second, I have spare coins to cover any short falls in the foreseeable future.

Because of your unwillingness to disclose how many BTC are currently in your possession the market does not know whether you have 0 BTC or 5,000 BTC, etc. and has to begin assessing a value on the probability of default and time frame. Markets like information and transparency.

The market should look at my reputation, commitment and credit ratings by others in the community to determine whether they would like to be a part of gigamining or not.

When looking at comparable issues there appears to be only one and it is interesting that BITBONDS are trading at a 13% discount to GIGAMINING. Why is this? Are they undervalued or is GIGAMINING overvalued?

I find it less than honorable that you would use my thread to pump up a bond which you own the majority of. I have a ton of respect for AmazingRando and I hope your actions to do not reflect upon him.

Since GIGAMINING has only 80% of the equipment to back its commitments and an uncertain amount of liquid reserves to meet debt service therefore does BITBOND lack a significant amount of production capacity it has claims for to result in this material discount in the trading price?

Gigamining has a clear ASIC upgrade path which is already paid for 100%.

I have designed this upgrade path to keep the price of Gigamining up so that current bond holders would not lose significant value over the short term whether they wanted to stay a part of Gigamining or not. They also have the option of upgrading for FREE, which, if you owned BFL equipment, you would not have the luxury of.

Regards,
gigavps

[PatrickHarnett]

Like I said, I am actively building more rigs and seeking more deals for mini rigs.

If you do not like my honesty about where I am at, then by all means please sell your bonds.

I think he is merely trying to get a more accurate sense of your income statement and balance sheet to better judge your credit worthiness and more accurately value the GIGAMINING bonds.

The main value of the bonds is, of course, the dividend/payment stream.  Obtaining additional information on the balance sheet and cash-flow statement would provide some additional information, but I expect Giga has more than just mining underpinning the payments he makes.

As a borrower, I have provided a number of loans/financing to Giga and have no particular concerns about his liquidity or ability to repay.  For his mining bonds (inclusive of a very good upgrade path) there are different ways to support such a business, and from my discussions with him he accounts for things pretty sensibly.  As for the size of the balance sheet, income, mining hardware/assets, that is not required to be public, but I can understand the desire to have some third party look at it and express an opinion.

You do realise, of course, that if a credit rating for Gigamining comes out looking good, it is likely to affect the price.

[sp0rus]

Just wanted to say, thanks for the honesty and openness with how you're running things.  Sometimes people don't ask for information in the nicest ways, but you still provide an answer to the question.

That was a large factor in my choosing to invest my small amount (in the grand scheme of things, large amount for me though, haha) in your fund.  The reputation you have with others also played a small role, as well as your willingness to provide verification that you are who you say you are on the exchange.

I'm happy with what you are doing, and excited to see how this upgrade to Teramining goes.  Best of luck to you.

[sunnankar]

GIGAMINING INSURANCE BY PATRICKHARNETT?

The piece that I was missing was related to the dual questions of:

Borrower: "why should I get a Starfish rating?" and
Lender: "why should I trust a Starfish rating?"

My answer to that is to back the ratings with cash. 
If I rate someone and they default on a loan, I offer to take over the loan at the percentages given in the table below.  The offer is only good for one-time per rated person, and excludes interest.  That is a sensible thing to do to prevent various games being played.  Also, loans need to be reasonably well documented, because successful loans can be used by borrowers to improve their Starfish rating, and if a lender wishes to cash-in the guarantee, they need to have documentation as well.

1 Starfish	Bad Risk	up to 10BTC paying 50% for first claim
2 Starfish	-	up to 25BTC paying 60% for first claim
3 Starfish	-	up to 100BTC paying 70% for first claim
4 Starfish	-	up to 250BTC paying 80% for first claim
5 Starfish	Trusted	up to 1000BTC paying 90% for first claim

Reserved for published ratings.



Gigavps
BurtW
wachtwoord

Are we to understand that the GIGAMINING bond is insured by PatrickHarnett to the amount of 1,000BTC paying 90%? Or would any other outstanding debt from Gigavps take precedent position in a credit event?

Is there any particular reason this insurance contract is not mentioned in the original post for the GIGAMINING contract? I think it is a material term that could positively affect the GIGAMINING price.

Is there any other outstanding insurance on GIGAMINING like CPA?

PIRATE INDUCED CREDIT CONTRACTION

The main value of the bonds is, of course, the dividend/payment stream.  Obtaining additional information on the balance sheet and cash-flow statement would provide some additional information, but I expect Giga has more than just mining underpinning the payments he makes.

As a borrower, I have provided a number of loans/financing to Giga and have no particular concerns about his liquidity or ability to repay.  For his mining bonds (inclusive of a very good upgrade path) there are different ways to support such a business, and from my discussions with him he accounts for things pretty sensibly.  As for the size of the balance sheet, income, mining hardware/assets, that is not required to be public, but I can understand the desire to have some third party look at it and express an opinion.

You do realise, of course, that if a credit rating for Gigamining comes out looking good, it is likely to affect the price.

I understand credit contractions with their attendant loss of confidence, and Pirate has started a credit contraction, are no fun but this is money we are talking about and we are not having tea. As Warren Buffett has said we do not know who is swimming naked until the tide goes out. The mark-to-market value of the GIGAMINING contract is about $400,000.

When it comes to making capital allocation decisions I do not really care about people's opinions; I care about opinions people are willing to back with their money.

Thus, I noticed a few weasle words which I bolded so perhaps you can answer more directly the following questions.

PatrickHarnett, have you personally inspected the financial statements and assessed Pirate exposure and how that would affect the ability to service the mining bonds? If Pirate partially or completely defaults then does the 5 starfish credit rating and insurance still stand for either Gigavps, GIGAMINING, or both? For how long does the rating and insurance stand before it can be changed based on changing information?

CONFLICTS OF INTEREST

...

This was beneath you.  I respect you very much (which I can say to about seven people on this forum) and you shouldn't be stumping in someone else's project thread without disclosing your interest in a competing project.

Not really sure what difference it makes as ideas stand on their own merit but I could see a possible suspicion of bias.

For what it matters I am long both GIGAMINING and BITBOND (a comparably sized mining bond with 210Ghs issued) and am probably one of GIGAMINING's top 5 investors and therefore I have more of a financial interest in positive movement of GIGAMINING's price than Gigavps.

Aside from a private contract which would be difficult to execute quietly, and I am unaware of any that exist, therefore I think it is safe to assume that the only person who could have a material financial interest in a short position on GIGAMINING is Gigavps.

It really makes no sense for the short to call the long a short and is a complete distraction from the material issues.

GIGAMINING'S LIQUIDITY?

Obviously, if the 160Ghs produces only 100%PPS and you have only 1,000 BTC in your possession then you will negative cash-flow about 125 bitcoins per week at current difficulty. Assuming a rise in difficulty this would leave about 8-10 weeks until a partial default. However, if you have 10,000 BTC in your possession then credit worthiness would be a lot higher.

First, the 160Gh produces greater than 100% PPS results as it is run on gpumax.com. On average, this month, I have been running about 114% PPS which makes up quite a bit of the short fall. Second, I have spare coins to cover any short falls in the foreseeable future.

Thank you Gigavps for professionally answering the first question regarding income capacity.

Is there any particular reason you are being so evasive on the second question related to liquidity and how many bitcoins you have in your personal possession that can meet GIGAMINING debt service? How long is this nebulous 'foreseeable future'?

[PatrickHarnett]

Wow, if you want to make stuff up or read into other people posts whatever you want, go ahead.


I have recently completed a 3000 coin loan with Gigavps (the latest of several pieces of business).  His ability to repay was not linked to BS&T.  I don't recall referring to an insurance of Gigamining, but I would stake 1000 of my own coins on gigavps making good on a debt.

Being able to bold words in a post for some implied ulterior meaning isn't clever.  I made a statement as to the credit that I would apply to Giga based on what I know.  Several people are considering ratings for their GLBSE products, and until such time as information is provided, there is ample information publicly available to make some assessments.

[jamesg]

Not really sure what difference it makes as ideas stand on their own merit but I could see a possible suspicion of bias.

For what it matters I am long both GIGAMINING and BITBOND (a comparably sized mining bond with 210Ghs issued) and am probably one of GIGAMINING's top 5 investors and therefore I have more of a financial interest in positive movement of GIGAMINING's price than Gigavps.

Aside from a private contract which would be difficult to execute quietly, and I am unaware of any that exist, therefore I think it is safe to assume that the only person who could have a material financial interest in a short position on GIGAMINING is Gigavps.

It really makes no sense for the short to call the long a short and is a complete distraction from the material issues.

Hi sunnankar,

Please go back a re-read what I said. I was referring to you trying to pump the price of BITBOND in my thread. I have no worries about Gigamining's price.

Thank you Gigavps for professionally answering the first question regarding income capacity.

You are welcome.

Is there any particular reason you are being so evasive on the second question related to liquidity and how many bitcoins you have in your personal possession that can meet GIGAMINING debt service? How long is this nebulous 'foreseeable future'?

I will not divulge my bitcoin holding publicly. I will be traveling for the rest of the week, but when I am back I will have Patrick run an assessment of Gigamining and will pay him for his time. He can then issue one of his credit ratings for Gigamining and we will be done with this.

Best,
gigavps

[jamesg]

To all Gigaminers:

The coupon payment for the week is out.

Enjoy,
gigavps

[jamesg]

To all Gigaminers:

The coupon payment for the week is out.

Enjoy,
gigavps