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Author Topic: [BTC-TC] [[LTC-MINING]] - GLBSE LIST RECEIVED - BTC-TC TRANSITION COMPLETE  (Read 64008 times)
burnside
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July 16, 2012, 04:17:17 AM
 #1

LTC-Mining by burnside

was at: https://glbse.com/asset/view/LTC-MINING
now at: https://btct.co/security/LTC-MINING
website: http://ltc.kattare.com/ltcmining.php

Introduction:
LTC has gone up in price a lot lately, definitely enough to start getting into LTC Mining.  Recent developments on the LTC scene have brought GPU mining into the mix, just as GPU mining is starting to become unprofitable in the BTC market.

The very first LTC Mining Bond:
This is the first and currently the only mining bond that can bring you profit from LTC.  

Summary:
Each bond issued represents a minimum of 1 kH/s ongoing hashing.  More bonds will be issued as demand dictates.

All bonds sold will be maintenance free.  All power, internet connectivity, hardware maintenance, and LTC to BTC conversions will be managed by burnside.


Additional Details:
I will be brining additional capacity online as the bonds are sold, with a 1 week lag for purchasing equipment, configuring it, and deploying it.  Dividends will still be paid during that time by using existing hashing gear.

Each bond will pay out earnings every 4-10 days with a targeted average of every 7 days.  To keep things simple, all bond-backed hashing will be directed at the burnside Mining Pool (ltc.kattare.com) using it's own account with it's own wallet.  On payout days I will be converting all LTC in the LTC-Mining wallet to BTC on public exchanges and then distributing the resulting BTC to bond holders on the GLBSE.  I require a wide berth in the payment interval because I wish to maintain a stable price for the security and I must maintain a flexible schedule should any family or day-job issues arise.    

The bond will not expire.

Because I am taking on a very possible risk (eg, difficulty doubles, exchange rate drops) whereby the cost of operating the hashing pool will become a liability:  

    I reserve the option to repurchase bonds at 105% of the highest traded price over the last 15 days.

    I reserve the option to shift mining resources to alternate crypto-currencies should profitability in LTC
    diminish and an alternate crypto-currency become more profitable.  Should I exercise this option, all bonds
    will be converted to a hashing rate determined to be as profitable or more profitable than the LTC equivalent
    as of the day of conversion.

And because I would like to somewhat future-proof this bond:

    To grow the operation I reserve the option to issue additional bonds at a price I will determine.

    I reserve the option to use alternate mining pools, should anything happen to the burnside Mining Pool.

    I reserve the option to increase the hashing value of each bond should there be a significant shift in the
    market. (eg, much as ASICS have done to BTC)


Cheers.


I'm not a Coinbase fan -- I placed a buy order, they took the funds out of my account, then a week later the price went up and they canceled the buy and closed my account.  You've been warned.  Use a different exchange.
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burnside
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July 16, 2012, 04:34:07 AM
 #2

Who are you?

I am burnside.  I am a long time linux systems administrator with 15 yrs experience system administration and programming experience.  I have ties to the website hosting industry and access to the associated resources.  (datacenter facilities, hosting, etc.)

I am relatively new to cryptocoins, but since discovering cryptocoins a few months ago I've worked on several projects.  I've rolled out an LTC mining pool, reprogrammed a large hosting company to accept BTC, issued securities on GLBSE, and have been mining LTC at well over 2,000 kH/s for some time now.  I believe now is the time to offer up LTC bonds.

I've had a public presence on the internet since 1997 and I'm not going anywhere any time soon.  I will keep your investment safe and will follow the terms of the contract.  If you have any questions please feel free to ask.

Where is the hashing coming from?

I currently operate hundreds of servers in a website hosting cluster.  These servers may be retrofitted with GPU's for hashing.

New servers I build will be outfitted with GPU's for hashing from the outset.

All hashing will be coming from hardware directly managed.  NO HASHING WILL BE CONTRACTED OUT.

You can see the farm mining at anytime on the burnside LTC Mining Pool at http://ltc.kattare.com/stats.php under username LTCMINING.  Worker details and account balance is publicly visible here: http://ltc.kattare.com/ltcmining.php

Do you plan to verify?

I've tried to verify my company in the past, we're online in the State of Oregon corporate listings, on the BBB website, on Duns & Bradstreet, US/EU Safe Harbour Certified, Trustwave Certified PCI Compliant, etc.  However GLBSE wanted my ID with my home address on it, dob, etc.  Didn't seem like a good idea to be sending that around the internets.  I've connected with GLBSE on Linked-In, sent them my phone number, and worked with them via email.  Hopefully they'll update those on the security.

What is LTC?

According to the creators of Litecoin, it is "Crypto-Coin silver to Bitcoin's gold".  It's intended to be used in micro-payment situations where it doesn't make sense to get out the wallet for BTC due to the differing value scales.  It has recently seen a surge in popularity.

What if LTC crashes?

If LTC crashes, a shift to directly mining BTC could be put to a vote.  For example, each 1kH/s LTC bond could be converted to a 1MH/s BTC bond.


What is the dividend interval?

There will be a dividend every 4-10 days.  It varies somewhat but my goal is to average once a week.

How much should I invest?

No more than you can afford to lose.


I'm not a Coinbase fan -- I placed a buy order, they took the funds out of my account, then a week later the price went up and they canceled the buy and closed my account.  You've been warned.  Use a different exchange.
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July 16, 2012, 06:52:26 AM
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Good idea. I had thought about applying my gpus to this post asic also. Best of luck to you on your IPO, I may nab a few shares myself.

Looking for safe diversification? YABIF: Good Returns, Low Fees, Low Risk.

GLBSE
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July 16, 2012, 07:07:57 AM
 #4

Now I wish glbse supported litecoin investments using litecoin

burnside
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July 16, 2012, 07:16:00 AM
 #5

Good idea. I had thought about applying my gpus to this post asic also. Best of luck to you on your IPO, I may nab a few shares myself.

Definitely worth looking into reaper if you haven't already.  If you need a pool, check out ltc.kattare.com.   Grin

I'm not a Coinbase fan -- I placed a buy order, they took the funds out of my account, then a week later the price went up and they canceled the buy and closed my account.  You've been warned.  Use a different exchange.
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July 16, 2012, 07:19:39 AM
 #6

Now I wish glbse supported litecoin investments using litecoin

A few more of these and maybe we can convince Nefario to add LTC support.  Probably wouldn't be all that hard and it'd be a huge win for the LTC scene.

I'm not a Coinbase fan -- I placed a buy order, they took the funds out of my account, then a week later the price went up and they canceled the buy and closed my account.  You've been warned.  Use a different exchange.
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July 16, 2012, 07:37:41 AM
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A question, I know this is a bond but I want to ask.

Do you own the servers you are going to be putting the GPU's in or do you just administrate them?

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burnside
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July 16, 2012, 07:46:30 AM
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A question, I know this is a bond but I want to ask.

Do you own the servers you are going to be putting the GPU's in or do you just administrate them?

Good question.

Servers considered for the project are owned outright.  Servers on lease, dedicated servers, colocated servers, 1U servers, most 2U servers, and servers requiring higher levels of security would be excluded. 

Cheers.

I'm not a Coinbase fan -- I placed a buy order, they took the funds out of my account, then a week later the price went up and they canceled the buy and closed my account.  You've been warned.  Use a different exchange.
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July 16, 2012, 07:48:26 AM
 #9

Now I wish glbse supported litecoin investments using litecoin

A few more of these and maybe we can convince Nefario to add LTC support.  Probably wouldn't be all that hard and it'd be a huge win for the LTC scene.

Dont know if thats going to happen  Smiley

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July 16, 2012, 08:11:53 AM
 #10

Total network speed according to pool-x at this moment is 212.9 MH/s
1500 * 1 kH/s = 1.5 MH/s would be added.
214.4 MH/s is the new network speed with your bond.
Each bond will give 1/214400 network speed.
576 blocks/day = 28800 LTC/day is mined with the total network.
28800/214400 = 0.13432836 LTC/day is mined with one bond.
0.00550746 BTC/day with the exchange you quoted. (1 LTC is 0.041 BTC)
0.49 BTC / 0.00550746 BTC = 89 days ROI.

Is it really to good to be true or do I make a mistake somewhere in my calculation?

/edit
According to BTC-E 1 LTC = 0.006699 BTC.
So that gives,
0.00073981 BTC/day with the exchange you quoted. (1 LTC is 0.041 BTC)
0.49 BTC / 0.00073981 BTC = 662 days ROI.
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July 16, 2012, 09:44:17 AM
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I was wondering when this would happen.. good luck!

burnside
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July 16, 2012, 09:50:10 AM
 #12

Is it really to good to be true or do I make a mistake somewhere in my calculation?

/edit
According to BTC-E 1 LTC = 0.006699 BTC.
So that gives,
0.00073981 BTC/day with the exchange you quoted. (1 LTC is 0.041 BTC)
0.49 BTC / 0.00073981 BTC = 662 days ROI.


Yes, too good to be true.  I transposed the LTC/USD exchange rate.  Crazy tho, all the way up to 0.006699 LTC/BTC in the time it took me to write it all up today...

Exchange right now:
1 LTC = 0.0064 BTC
Per your earlier equations, you would get 0.13 LTC/day/bond.
That's 0.00078 BTC/day = 628 days ROI.

You're right, not good enough.  Just since I ran the numbers this morning (projected difficulty 6.2) the next difficulty estimate has hit 7.  Lots of hashing power shifting over to LTC.  Things are changing really fast.

The good news is that there's a bit of slack in my business plan.  I was wanting to get more expensive GPU's for their density.  (Less GPU's overall = less maintenance)  I can alter GPU models and get to a 0.40 BTC price point I think, I just have to put them in a lot more machines, that gets closer to a mid-lower 400's ROI.

Hard to say exactly where things will end up with the exchange rate, but it's been outstripping the difficulty increases, and if that trend continues things will improve further.  Personally, I'm going way long on this one.  I've already deployed ~4,000 kH/s and today I ordered another $3k in hashing gear and will have it operating just in time to start paying dividends. Cool

Cheers.

I'm not a Coinbase fan -- I placed a buy order, they took the funds out of my account, then a week later the price went up and they canceled the buy and closed my account.  You've been warned.  Use a different exchange.
burnside
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July 16, 2012, 09:51:39 AM
 #13

I was wondering when this would happen.. good luck!

Thanks!

I'm not a Coinbase fan -- I placed a buy order, they took the funds out of my account, then a week later the price went up and they canceled the buy and closed my account.  You've been warned.  Use a different exchange.
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July 16, 2012, 09:52:30 AM
 #14

I had considered doing something similar to this at one point, but was too busy to establish it at the time. Best of luck to you.

And...
Now I wish glbse supported litecoin investments using litecoin

+1

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burnside
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July 16, 2012, 10:02:23 AM
 #15

I had considered doing something similar to this at one point, but was too busy to establish it at the time. Best of luck to you.

And...
Now I wish glbse supported litecoin investments using litecoin

+1

Thank you.  I have Cognitive holdings myself.  Don't get too distracted!   Cheesy

I'm not a Coinbase fan -- I placed a buy order, they took the funds out of my account, then a week later the price went up and they canceled the buy and closed my account.  You've been warned.  Use a different exchange.
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July 16, 2012, 06:37:56 PM
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Personally I feel like the price is too high (but people are placing bids so what do I know Tongue)

You also have to remember that selling around 1700LTC a week is going to drop the price quite a bit.

Good luck on your IPO though, I will be rooting for you.
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July 16, 2012, 07:57:32 PM
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Personally I feel like the price is too high (but people are placing bids so what do I know Tongue)

You also have to remember that selling around 1700LTC a week is going to drop the price quite a bit.

Good luck on your IPO though, I will be rooting for you.

Both good points.

To the first point - I've tried to make it as attractive as possible while still making it worth taking on the personal risks.  The one that really worries me is what happens if the LTC/BTC exchange drops below the cutoff where I'm pulling in enough to cover the cost of power.  Not that it'd make or break me, I have the personal resources to deal with that, but the potential is there for this to end up costing me significantly.  Thus with this security, I'm betting heavily on the future of Litecoin.

To the second point - I've sold tens of thousands of LTC over the last couple months.  (I started with CPU mining when the difficulty was ~1.1)  Even in my largest sales, it did not drop the price for more than an hour or two.  I'm not sure where all the demand is coming from, but there is definitely lots of demand out there right now.

Cheers.


I'm not a Coinbase fan -- I placed a buy order, they took the funds out of my account, then a week later the price went up and they canceled the buy and closed my account.  You've been warned.  Use a different exchange.
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July 17, 2012, 01:15:29 AM
 #18

We're on the IPO page now.

Official GLBSE URL: https://glbse.com/asset/view/LTC-MINING

Two days to liftoff!

I'm not a Coinbase fan -- I placed a buy order, they took the funds out of my account, then a week later the price went up and they canceled the buy and closed my account.  You've been warned.  Use a different exchange.
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July 17, 2012, 01:22:45 AM
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To the second point - I've sold tens of thousands of LTC over the last couple months.  (I started with CPU mining when the difficulty was ~1.1)  Even in my largest sales, it did not drop the price for more than an hour or two.  I'm not sure where all the demand is coming from, but there is definitely lots of demand out there right now.


Just curious what exchange(s)?  Roll Eyes

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July 17, 2012, 01:40:18 AM
 #20

Just curious what exchange(s)?  Roll Eyes

BTC-e & Vircurex.  I've used both a bunch.  I just go wherever the exchange is the best.  Both are easy to get LTC and BTC in and out.

Cheers.

I'm not a Coinbase fan -- I placed a buy order, they took the funds out of my account, then a week later the price went up and they canceled the buy and closed my account.  You've been warned.  Use a different exchange.
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