Gigamining / Teramining

[jamesg]

According to:

http://gigamining.com/mgpumon/

There is about 15Gh/s running. It looks like mostly BFL Singles. Are all of the other GPUs (still) in transit? Something like 26.5Gh/s worth?

And, by the way, a GPU is down and has been down for a while now.

Hi Lumpy,

Most of the GPUs are now up and running again. It will be approximately 15 days until we have fiber to the new DC to start reporting stats to a central location. GPUs go down from time to time, no big deal. I have been working 15 hour days to start getting the new DC up and running.

Best,
gigavps

[Lumpy]

Yikes! Thanks for the status update. Good to know that the GPUs are running if not reporting. I hope the venture to be a wild success.

[jamesg]

Yikes! Thanks for the status update. Good to know that the GPUs are running if not reporting. I hope the venture to be a wild success.

None of this would be happening if it wasn't for all of the gigaminer's out there. I cannot thank you guys enough, and will keep you updated as things happen.

Best,
gigavps

[jamesg]

To all gigaminers,

110% PPS payouts will be paid for 3 weeks once the mini rigs arrive. I have had word that they are working and are being tested now.

Get ready, things are heating up.

Best,
gigavps

[sunnankar]

110% PPS payouts will be paid for 3 weeks once the mini rigs arrive.

Will this be reflected on the Gigamining webpage by increasing the Mh/s Bond from 5 to 5.5 or will a new column be added to track the bonus?

[BTCurious]

110% PPS payouts will be paid for 3 weeks once the mini rigs arrive. I have had word that they are working and are being tested now.

Get ready, things are heating up.

Sweet extra payout sounds good

[jamesg]

110% PPS payouts will be paid for 3 weeks once the mini rigs arrive.

Will this be reflected on the Gigamining webpage by increasing the Mh/s Bond from 5 to 5.5 or will a new column be added to track the bonus?

Correct. The tracking spreadsheet will be updated to reflect the change once the mini rigs arrive.

Best,
gigavps

[Cablez]

Hi, please excuse my noobness as I really don't understand this.  So a person buys a bond for around 0.25ish and gets paid 1Mh/s per week per bond, correct?  It seems it would take a good bit of time to get your money back this way. Am I missing something fundamental here as these seem really popular?  Thanks.

[sunnankar]

Hi, please excuse my noobness as I really don't understand this.  So a person buys a bond for around 0.25ish and gets paid 1Mh/s per week per bond, correct?  It seems it would take a good bit of time to get your money back this way. Am I missing something fundamental here as these seem really popular?  Thanks.

That is a good basic understanding but in the GIGAMINING instance it is about 1.4BTC for 5/Mh/s of processing power paid weekly. You can calculate the potential return using this bitcoin mining calculator. If you want to calculate in a spreadsheet, etc. then I reduced the formula down for you to: average BTC per Day = (megahashes per second / difficulty) * 1005.82838

[stochastic]

Hi, please excuse my noobness as I really don't understand this.  So a person buys a bond for around 0.25ish and gets paid 1Mh/s per week per bond, correct?  It seems it would take a good bit of time to get your money back this way. Am I missing something fundamental here as these seem really popular?  Thanks.

Another way to look at the popularity is to take an alternative investment like a rental property.  Purchase a home for $120,000 and charge $1000 per month on rent.  Assuming a renter always pays the rent each month and there is no additional capital put into the property for repairs or taxes; it will take 10 years for the investment to get its money back.

Compare that to GIGAMING which has paid about 0.022 BTC per bond each week.  An investment in GIGAMINING right now would take about 65 weeks to get its money back assuming the coupon payment does not change.

[Timbo925]

Don't forget each share keept has a value. So If you buy and sell for the same price your devidents payments are pure profit.

[jamesg]

Gigamining is moving to 200Gh in bonds.

More to come.....

[Daily Anarchist]

Gigamining is moving to 200Gh in bonds.

More to come.....

Is Gigamining insured against theft, either by state or non-state criminals?

[Daily Anarchist]

Gigamining is moving to 200Gh in bonds.

More to come.....

I'm curious how this works. When you first issued bonds you had an IPO and sold X amount at like 1 BTC per bond, right?

How do you go about selling new bonds? Do you simply place a sell order on the open market and get people to buy them? If so, at what price? Or do you have specific individuals that buy them? And if so, at what price? I'm just curious about how things work.

[sunnankar]

Is Gigamining insured against theft, either by state or non-state criminals?

This would be an interesting question to have GIGAMINING give an answer on which the market could then begin to rely upon.

This is a perpetual bond where the coupon is tied to the amount of production at that difficulty.

There is nothing about there needing to be any actual hardware, let alone any insurance, for the bond to be valid. Any claim of actual hardware 'backing' the bond or any insurance for any represented hardware is to provide confidence in the ability of the counter-party to service the bond but the contract imparts no rights to the equipment or whether that equipment is insured.

HYPOTHETICAL EXAMPLE
It may be helpful for people to consider the following possibilities when attempting to value a bond for both the GIGAMINING issue and other instruments which are offered since mining bonds are ripe for a Ponzi scam. The reason is because the various counter-parties should not all have such similar interest costs which implies a similar 'credit rating'. Higher quality counter-parties, like GIGAMINING or BITBOND in my opinion, should result in greater bond premiums (How To Value A Bond).

Let us assume for the sake of argument that a meteor crashes into the data center and destroys all of Gigamining's equipment or if the equipment fails and is not covered by warranty. Gigamining is still individually liable for the coupon payments. Should he default on payments then a lawsuit could be filed, Nefario's verification information via subpoena could be demanded and a judgment against Gigamining could be obtained.

If GIGAMINING represented owning or possessing the hardware and never actually had any hardware or rights thereto and if it were done with an intent to induce reliance then that would constitute fraud and could be pursued both criminally and civilly. Then in defense GIGAMINING would provide receipts, pictures, videos and testimony that he actually had the hardware. For example, I have personally seen the GIGAMINING hardware so I could function as a witness that he was actually in possession of the hardware although I could not attest to the veracity of whether he owned it or had rights to it, etc. because I do not personally know that.

[stochastic]

...Should he default on payments then a lawsuit could be filed...

It is very hypothetical if you think any judge is going to hear a case about losing a virtual currency.  I consider anything denominated in bitcoin as a game and I treat it as such.  This game gets bigger and better everyday and we are all participants that contribute to the design and the gameplay.

[sunnankar]

...Should he default on payments then a lawsuit could be filed...

It is very hypothetical if you think any judge is going to hear a case about losing a virtual currency.  I consider anything denominated in bitcoin as a game and I treat it as such.  This game gets bigger and better everyday and we are all participants that contribute to the design and the gameplay.

There is nothing hypothetical about it and there is a long tradition in the common law of countries such as the United States, UK, Australia and many other jurisdictions. For a contract to be formed there must be offer, acceptance and consideration. Consideration can be anything of value promised to another when making a contract and can take the form of money, physical objects, services, promised actions, abstinence from a future action, and much more.

In this case, the promise of a coupon payment equal to the processing power relative to the difficulty is of value and pretty easily determinable for damages purposes.

On another note, yesterday I had lunch with two attorney friends and Bitcoin was the topic of conversation. Both mainly focus on asset protection and estate planning but one has extensive experience securitizing all types of assets. And we did have some tangent discussions on the securitization of mining bonds.

So as the Bitcoin economy continues to 'grow-up' I think we will only see an increase of professionalism from the participants and ventures.

[VEscudero]

So as the Bitcoin economy continues to 'grow-up' I think we will only see an increase of professionalism from the participants and ventures.

I hope so.
In the last months there has been a clear trend in that direction but still there is a long way to walk.

[Cablez]

Thank you gentlemen for your answers, this is becoming much more clear.

One final question about this statement:
"This is a perpetual bond where the coupon is tied to the amount of production at that difficulty."

So it seems that when you purchase a bond it locks you in to a difficulty level while you hold that bond. 

How would all this be kept track of as it looks like an accounting nightmare with so many bonds out there?

Thanks again for the help.


@giga - Will be real cool to double your capacity with just 4 mid-size boxes!   Will you show any pics of all the goodness?

[JWU42]

@cablez

Take a look at http://gigamining.com/ and review the embedded SS.  It will help explain further I think...