Pics of Huge Hosting Mine Under Construction, (Dec 2015 Update: We've moved)

[Bicknellski]

More than just haters... people with a clue giving their expert opinion.

In other news, ASICSPACE fired their CEO, Damir Kalinkin, last week. I believe the exact process was that the shareholders held a vote of no confidence, then cleared out the Board of Directors (of which Damir was a member), and then the new Board fired Damir. In my (biased?) opinion, Damir was the worst part of ASICSPACE, and responsible for the most egregious misdeeds I have heard attributed to them. With Damir gone, I expect ASICSPACE to improve considerably. Robert is a nice guy, and I like him. From what I have seen, Robert wants to treat his customers properly, unlike Damir, who treats customers as a resource to be exploited.

However, I do not see how Damir can be responsible for the heat, airflow, and networking problems that ASICSPACE has had. He is not a technical person at all. Those issues were due to the decisions made by the engineer and contractors who built the facility and the person who oversaw them, Robert.

When I was at ASICSPACE earlier today, the conditions were considerably improved. The nine flexible ducts that were previously just neutral pressure outside-air intakes have now been connected to a 125 ton portable AC unit on a trailer, powered by what appeared to be a 400 amp 480V 3-phase connection. I didn't go into the cold aisles, but they appeared to be only slightly negatively pressurized relative to the hot aisles, maybe around 10 or 20% of what they had been at before. The general building interior (contiguous with the hot aisles) was strongly positively pressurized relative to the outside air, and the airflow out the open front door was very strong, maybe 50,000 to 100,000 CFM. The exhaust air from S4s felt like about 40 to 45°C, suggesting cold aisle temps around 30 to 35°C. Still high, but no longer unsafe. Most of the miners in their facility appeared to be on and hashing, although I did hear S4 beeps coming from somewhere.

ASICSPACE appears to be making a good faith effort to maintain proper operating conditions in their facility. They are putting a lot of money behind that effort. Unfortunately, they are spending it on the wrong things, like the air conditioning unit instead of a bunch of high-throughput fans. They don't need colder air, they just need more fresh air. However, the AC unit they are renting did come with a large fan inside, so there's that.

<snip the kitty>

I'll refrain from posting my electric rate, or the historic yearly electric rate increase from 1960 to now, or any valid refutations to a pessimistic troll hiding under the all-seeing vigilante bridge.

Your competition? No haters just realists.

The price of bitcoin has stabilized in recent months. This improves the perspectives of Chinese miners who construct new mines in the region with cheap energy.

A specialist on Chinese digital economy and the author of three books, Tim Swanson published photos of the new farm in his twitter:

The miners build their station in the place where energy is really cheap – and they pay just 0.3 USD per 1 kWh. This makes Sichuan a fertile ground for miners.

Swanson does not name the firm which is in charge of “bitcoin farm”, but a short search shows that the company in question is HaoBTC.

“HaoBTC is an interest-bearing multi-funciton wallet service. We provide interest-bearing wallet service as well as onchain multisig vault service.”
Presently the company promises a dividend rate at about 10% on any bitcoin deposit. It claims that their clients can take the money out of the wallet like fiat coins out of the pocket.

Now the company has invested in bitcoin mining. One of the creators of the new “bitcoin mine” and Forbes columnist, Eric Mu even promises to spend three months working at a new mine.

As CoinFox reported earlier, Chinese bitcoin companies continue to build mines all over the country. In the beginning of 2015 Motherboard site published a video about Chinese “bitcoin mine” place in one of the northern provinces of the country. The mining complex occupies several floors in the industrial building. Four people working in shifts supervise long lines of computers that produced bitcoins every hour. Owners of the business claim that despite all the difficulties with the status of bitcoin in China the business is profitable – and the new bitcoin mine in Sichuan confirms that this is a trend.

Source: http://www.coinfox.info/index.php/en/allnews/25-company/2066-chinese-wallet-service-builds-new-bitcoin-mining-station-near-tibet

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[LordPaco]

  Yet my miner's survived the ASICSPACE inferno. I could give a crap if you believe me or not. Damir got let go from ASICSPACE a month ago now, that's old news! He was only the spokesperson going around to conferences anyhow as far as I know. I'm not going to say anything about the boys at ASICSPACE or their build, or the expense of except for the fact they treated me very well as a client. Not that it matters as far as I have heard they have been at capacity for awhile now.

I suppose the dozen PM's I've received over the past month wanting to have a piece of my bathtub is a sign I'm doing it all wrong. (And to all of you guys, let me get my bath tub holding water first and then let me look into it.)

I have multiple businesses, employ several dozen people, and pay a lot of taxes. They are even managed well enough it allows me to take on even more. Not sorry for the cocky attitude I've worked damn hard and still do to say that. Every one of those businesses had a multitude of doomsayers with a chip on their shoulder when I started them. I'll post pictures pulling the 16 strands of 500kcmil wire here soon enough. Haters gunna hate.

The miners build their station in the place where energy is really cheap – and they pay just 0.3 USD per 1 kWh. This makes Sichuan a fertile ground for miners.

Your quote Bick must have a mistake. .3USD is not a good rate.
Even if it was a typo to .03USD I will still beat them. After demand charges and taxes which they may not be including.
I also tend to ignore expert opinions and discount any further criticism from them when I hear 'bitcoin is crashing and going away'

[Bicknellski]

<snip>

Yawn. Do what you gotta do. Believe what you gotta believe.

[Mikestang]

The miners build their station in the place where energy is really cheap – and they pay just 0.3 USD per 1 kWh.

Ahh, the power of a decimal place.  0.3USD/kWh is VERY HIGH, it's what I pay here in southern California.

I'm sure they meant 0.03USD/kWh...

[coinits]

The miners build their station in the place where energy is really cheap – and they pay just 0.3 USD per 1 kWh.

Ahh, the power of a decimal place.  0.3USD/kWh is VERY HIGH, it's what I pay here in southern California.

I'm sure they meant 0.03USD/kWh...

In Hawaii I think it is something like $0.35 per KWH.

[Bicknellski]

http://www.coinfox.info/index.php/en/allnews/25-company/2066-chinese-wallet-service-builds-new-bitcoin-mining-station-near-tibet

Code:

new #btc mining farm being built/expanding in 
Western Sichuan near Tibet with 0.2 RMB per kWh 
electrical rate 

$0.03 USD.

Code:

The man in the photo is Mr. WuGang, 
one famous BTC miner in China. More about him 
can be found at http://www.haobtc.com.

How many petahash you got? Large? Ya ok. LOL.

This is what you think you can beat compete with?





Wonder what the cost of their rigs is?

Evaporative cooling already installed.

Dirt cheap no doubt at cost for their miners. This one farm is a significant addition to the network your hobby farm is cute and far more expensive to cool and set up initially. Good luck you need it.

See how much they they will put on the nextwork?

Code:

Tim Swanson ‏ May 19
interesting, so ~2.5% of network hashrate. 

Yours? 2x or 3x production cost easily after shipping and set up.

[mavericklm]

Evaporative cooling in the mountains? ....

that .03cents electricity is nice

[LordPaco]

Yours? 2x or 3x production cost easily after shipping and set up.

I'm glad you can do that math for me (and them).   I am under NDA not to discuss my miner situation so sorry. Shipping is less than X% miner price though. I didn't know I have to be bigger than this mine to mine anything at all. Of course there are going to be tons of mines bigger and badder than mine. (haha good pun!)

1. My power costs are still cheaper (and by a large enough margin to make a difference especially at scale). And that includes taxes and all. If they are just reporting energy cost it is likely the actual cost is twice what they state.
2. My power reliability is amongst the most reliable in the world
    because of the area there is little to no natural disasters, unlike earthquake prone Tibet. It is why Google, Yahoo, and Microsoft are my neighbors.
3. Multiple redundant fiber optic lines + dark fiber availability. This too.
4. I get to live in the good old US of A and not behind the great firewall of China
5. I get to salvage used server equipment for almost free because I live in datacenter land and they upgrade every 5 years no matter what.
6. Option of using it as an actual datacenter with some redundancy modifications. Unused 'dark fiber' is a public resource here, not a good ol boys network only deal.
7. I get to help build the bitcoin community, in America, instead of internet armchairing, polarizing the community and generally spreading FUD and hate.

[Bicknellski]

I am sure you are under NDA.

Yup.

So were Matthew Carson and Terrence Thurber. Know those guys?

Fill your space.
Make your claims.

We will see where this ends up.

You won't be holding anywhere near 2.5% of the network.

[LordPaco]

Who says I need 2.5% of the network to make this work? Yes I am under NDA (in regards to miner pricing) the difference here is I am not asking for any of your money. I will fill the space shortly enough. Try to place any large order yourself. You will find a NDA is the first thing thrown at you.

[Bicknellski]

Evaporative cooling in the mountains? ....

that .03cents electricity is nice

That isn't the only such set of buildings out in the hinterland powered by 'unregulated' coal or hydro.

When I was out in Hong Kong last year met a few people and one in particular that was simply sourcing and brokering locations just like this for people looking at the cheapest set up in the world for farms. Mainly fabricators / wallet providers or exchanges like those pictured have been setting up for over 2 years now in situations just like that. If it isn't big enough you ain't making shit your economies of scale need to be sufficient to compete against these farms in China. Whoever your NDA is with I am sure they have more NDAs with people moving the same product to Sichuan. Good luck but when you start seeing claims like yours you know something ain't right. Sounds all too familiar.

These sites are sprouting up all over where unregulated power can be sourced. One little quonset in good old oregon/washington etc ain't going to be able to compete no matter what claims are made things since Sichuan are probably cheaper by factors compared to anything in the good old USA especially with regard to miner production and shipment. But I guess that Guy at Spondoolies is wrong or has changed his mind since last year.

A month later, what is happening with cryptocurrency mining in China? August 2014

Code:

"The trend is clear if you remove BitFury 2 
last DCs (June and August 2014): http://bitcoin.sipa.be/growth.png
At current BTC price and their machine cost, they’re almost 
loosing money at Georgia and Iceland" - Guy

Code:

For comparison, I reached out to Bob and asked him his 
thoughts on what Corem was stating.  According to Bob, in terms 
of Chinese manufacturers switching to self-mining:

They’ve already been doing that for the 
past two months. But not mining themselves, 
they’re all into coop mode now. The manufacturers 
issue the machines. The site operators invest 
on the sites. They split the income between them.

Your NDA which has a version of the Chinese style shared plan with company X (Avalon likely) that provides miners is nearly a year and a half behind the Chinese and you don't have cheaper hardware or space or electricity which means you won't have profit. See BitFury Georgia DC as the example that be comparable to anywhere in the US as you would both have to have units (chips or miners) shipped from overseas / overland from China. Bitfury was not breaking even in 2014... how are you going to break even in late 2015 or 2016 with sharp downward pressure still on bitcoin price? You won't. Cost of bitcoin production anywhere with anyone, even for the most efficient and cheap hardware fabricators, is greater than the current value of the Bitcoin being mined. Just one more sustained price dip and a few more Asicminer like disappearances will happen. You are going to lose whatever you invested most likely unless you are selling cloud mining to someone then you are still going to lose your shirt no one is going to buy your cloud mining.

[Mikestang]

Why do you have such an involvement in telling someone else how much they are going to fail?  He's got a plan for what he wants to do, it doesn't affect you, there's no need for your negativity.

[Bicknellski]

Why do you have such an involvement in telling someone else how much they are going to fail?  He's got a plan for what he wants to do, it doesn't affect you, there's no need for your negativity.

Opinions are not welcome here?

Oh I am sorry where is that written on the thread? Did I miss that somewhere? Only rah rah cheer cheer is it?


I think when people start using the NDA card and the wonderful plan we have is far better than what is going on in China because China is behind the great firewall etc... you need to have a long look at what they are trying to promote.

I post to add what I have learned from some of meetings and players I met have told me. All the power to him to prove me wrong. If you post claims in public don't expect everyone to be all happy happy joy joy. Sometimes people disagree and have a good line of argument why. I see a lot of certainty coming from him. Anytime I have talked with anyone with experience in the bitcoin world the thing you can bet on is uncertainty and you had better be careful not to overreach. This guy is way too optimistic.

[LordPaco]

Evaporative cooling in the mountains? ....

that .03cents electricity is nice

That isn't the only such set of buildings out in the hinterland powered by 'unregulated' coal or hydro.

When I was out in Hong Kong last year met a few people and one in particular that was simply sourcing and brokering locations just like this for people looking at the cheapest set up in the world for farms. Mainly fabricators / wallet providers or exchanges like those pictured have been setting up for over 2 years now in situations just like that. If it isn't big enough you ain't making shit your economies of scale need to be sufficient to compete against these farms in China. Whoever your NDA is with I am sure they have more NDAs with people moving the same product to Sichuan. Good luck but when you start seeing claims like yours you know something ain't right. Sounds all too familiar.

These sites are sprouting up all over where unregulated power can be sourced. One little quonset in good old oregon/washington etc ain't going to be able to compete no matter what claims are made things since Sichuan are probably cheaper by factors compared to anything in the good old USA especially with regard to miner production and shipment. But I guess that Guy at Spondoolies is wrong or has changed his mind since last year.

A month later, what is happening with cryptocurrency mining in China? August 2014

Code:

"The trend is clear if you remove BitFury 2 
last DCs (June and August 2014): http://bitcoin.sipa.be/growth.png
At current BTC price and their machine cost, they’re almost 
loosing money at Georgia and Iceland" - Guy

Code:

For comparison, I reached out to Bob and asked him his 
thoughts on what Corem was stating.  According to Bob, in terms 
of Chinese manufacturers switching to self-mining:

They’ve already been doing that for the 
past two months. But not mining themselves, 
they’re all into coop mode now. The manufacturers 
issue the machines. The site operators invest 
on the sites. They split the income between them.

Your NDA which has a version of the Chinese style shared plan with company X (Avalon likely) that provides miners is nearly a year and a half behind the Chinese and you don't have cheaper hardware or space or electricity which means you won't have profit. See BitFury Georgia DC as the example that be comparable to anywhere in the US as you would both have to have units (chips or miners) shipped from overseas / overland from China. Bitfury was not breaking even in 2014... how are you going to break even in late 2015 or 2016 with sharp downward pressure still on bitcoin price? You won't. Cost of bitcoin production anywhere with anyone, even for the most efficient and cheap hardware fabricators, is greater than the current value of the Bitcoin being mined. Just one more sustained price dip and a few more Asicminer like disappearances will happen. You are going to lose whatever you invested most likely unless you are selling cloud mining to someone then you are still going to lose your shirt no one is going to buy your cloud mining.

That's an awful lot of assumptions there. So many it made me chuckle. I have S1's that can profit here but not for long. But it would be silly as hell to run anything that inefficient or plan for it. I wasn't born yesterday. Those huge guys stuck with the old stuff only helps me. I appreciate your concern. At least I don't have to worry about competing with you.

[Bicknellski]

At least I don't have to worry about competing with you.

I think you need to worry more about your own vision not what "competition" you think you are in.

This ends badly. All it takes is a $100 Bitcoin for the next 12 months to wipe out a major portion of the mining sector top to bottom big or small.

Those guys with "old" units either dump them for e-waste get the scrap value and retool or sell them on the Chinese market or keep running them on the cloud hashnest style... or like Bitmain to those who might still mine at home lol.

What are you going to do when you get your units? Jump for joy that they are over priced and inefficient compared to the better units your NDA partner keeps for their bigger client with the huge farm in Sichuan? We do remember the Bitmine debacle I hope?

Wish you the best of luck but if you are going to be getting product and it isn't spondoolies or bitfury I suspect you might not be happy with less efficient stuff that is over priced.

[LordPaco]

At least I don't have to worry about competing with you.

I think you need to worry more about your own vision not what "competition" you think you are in.

This ends badly. All it takes is a $100 Bitcoin for the next 12 months to wipe out a major portion of the mining sector top to bottom big or small.

Those guys with "old" units either dump them for waste and retool or sell them on the Chinese market... or like Bitmain to those who might still mine at home lol.

I can pay the bills at less than half that amount at the current difficulty. And your right it will wipe out a huge chunk of mining. Even alot of those chinese farms. The one quoted above is the first one I've heard of under .05kwh in China and Bitmain would have to mine at a loss or have a huge fire sale. Point is my power rate will ensure I am one of the last standing in that case. Nothing risked, nothing gained. I never said anything about going in debt to do this.

Your assumptions regarding my miners are way off target.  

Like I said I wasn't born yesterday and I've been mining for many years now. I also got ripped off from BFL pretty good those bastards. But only once. Hashra got me too. I am familiar how scam ridden this sector is. That's why I am very careful to say what I say and ensure I only say it when I can prove it. I designed and engineered this whole 1MW layout myself. Scouting, procuring, permitting, site layout, coordinating with the county. It was not easy getting the county to sign on. Amazingly enough I am still under budget, except I am overdue I've also been invited to many large scale mining operations and had to sign a NDA to visit some of them. You don't have to believe me the proof is in the puddin' and I'm full steam ahead. Life is also happier when you are optimistic or at least see there is half a glass of water in there rather than half empty.

[timk225]

At least I don't have to worry about competing with you.

I think you need to worry more about your own vision not what "competition" you think you are in.

This ends badly. All it takes is a $100 Bitcoin for the next 12 months to wipe out a major portion of the mining sector top to bottom big or small.

Those guys with "old" units either dump them for e-waste get the scrap value and retool or sell them on the Chinese market or keep running them on the cloud hashnest style... or like Bitmain to those who might still mine at home lol.

What are you going to do when you get your units? Jump for joy that they are over priced and inefficient compared to the better units your NDA partner keeps for their bigger client with the huge farm in Sichuan? We do remember the Bitmine debacle I hope?

Wish you the best of luck but if you are going to be getting product and it isn't spondoolies or bitfury I suspect you might not be happy with less efficient stuff that is over priced.

I've been telling these people for over a year that they are pissing their money away and they refuse to listen.  Bitcoin price has gone in only one direction -- DOWN.  LordTaco and Dumbward are the two biggest failures-about-to-happen right now.  They will be the next JRose120's.  They max out their credit cards and dump their life savings into it.  They try to justify it by saying they can make money at $100 IF they have cheap electricity, or they can make money if they keep selling the old gear and buying new every few months.  If you have to do that, it's a bad deal!  One of these days they will wake up and there will be some big new government report about restricting or limiting bitcoin, the price will have crashed to $96 and dropping, and they will think "Tim was right".  I got out of mining after the price peaked.  I played with alt coins for a while then got out of those too while I could still sell my GPUs for a decent price.

And WHEN (not if) Dumbward and LordTaco fail, I'll be the first one in line to say "HAH!  I TOLD YOU SO!!!"!  

More money than brains.

[LordPaco]

You've been waiting three days to post that I'll bet.    Feel better? Regardless what you think of the outcome I will continue to post my exploits with industrial server computer equipment brought back from the dead and repurposed for something productive yet again. I am building, creating a space that can be used for many things not just miners. Having access to 1MW of power at half the already cheap commodity rate is nothing to laugh about no matter what the current plan is to utilize the energy. If you can't think of how to make cheap energy work for you then your a real idiot. The assumptions upon further removed assumptions and one track minds is so sad you can't see the forest through the trees. You will never make a buck with that attitude unless its somebody handing it to you for wages earned. Have fun with that.

[knowhow]

well i guess at the current worth of bitcoin no one wanna mine more the bitcoin,now there are a lot news coins coming that may reach a sucess in short time,but well for some reason they wont sucess ,even stand more than 1 year... soo nowadays mining i guess no longer profitable.

[virtualx]

well i guess at the current worth of bitcoin no one wanna mine more the bitcoin,now there are a lot news coins coming that may reach a sucess in short time,but well for some reason they wont sucess ,even stand more than 1 year... soo nowadays mining i guess no longer profitable.

Bitcoin just has a large market share at the moment and gets most media attention. There is no reason why another coin would not get a larger market sharing if it has great features and marketing. A lot of those coins simply offer no features over bitcoin and have no community, which is why they don't last very long.