Hashnest 's newest PACMiC Cloud Mining Contract

[hashnest.com]

Hashnest's newest PACMiC Cloud Mining Contract

Hashnest website has been offline for scheduled maintenance and site upgrade between March 4 and March 5, 2015. This upgrade has significantly improved upon the Hashnest family of products. The new site boasts more features and an improved user experience. Users are able to access more powerful hashrate management tools and view more detailed and transparent statistics about their owned GH/s and payout information.

In order to continue being at the forefront of innovation in the cloud mining industry, Hashnest has launched its newest product from Hashnest, the Payout Accelerated Cloud Mining Contract, or PACMiC. PACMiC aims to lower the level of risk-exposure for the cloud mining user. PACMiCs do not have electricity or maintenance costs subtracted. In addition, Bitmain will pay 0.7 satoshis per second in profit for each 1 BTC contract owned. This works out to an estimated approximately 22% in annualized return of investment.

About PACMiCs

Each PACMiC represents one terahash of mining power, and is sold for 1 BTC. The contract goes into effect immediately upon completion of payment. Once the contract is in effect, users will immediately begin receiving mining revenues equivalent to owning 1TH/s of mining power; payouts made will be according to AntPool’s PPLNS method. Payment of electricity fees and machine maintenance costs will be assumed by Bitmain.
   
Each time a PPLNS payout will be prior to pay for the profit per the rate of 0.7 satoshis per BTC per second, the remaining will be paid back to the principal.
The contract expires automatically upon the repayment of the original 1BTC purchase price. Hashnest director Rob Zhang points out that with the payment of 0.7 satoshis per 1 BTC of capital remaining to be paid back, users can earn approximately 22% in annualized return of investment.

With the PACMiC, 100% of mined coins are given back to the contract owner, allowing users to earn their starting capital back quicker than traditional cloud mining products. Traditional cloud mining products will use between 40% and 90% of the mining revenue for the payment of electricity and maintenance costs, slowing the rate at which capital is earned back and leaving the user with net revenue of between 10 and 60 percent of the coins mined by their GH/s.

Additionally, a 1BTC PACMiC contract represents 1 terahash of mining power, making the PACMiC cheaper than traditional cloud mining contracts. Traditional cloud mining contracts generally prices one terahash of mining power between 1.5 and 2 BTC.

If a user were to buy 1000 BTC of PACMiCs, they would receive 1 petahash of mining power. At present bitcoin network difficulty, on the first day the user would receive approximately 11 BTC in mining revenues, which count towards paying back the 1000 BTC in capital, and an additional 0.604 BTC of profit. On the second day, assuming same difficulty and pool luck, the user will again receive the same amount, ~11 BTC, in mining revenue, but this time the profit paid will be slightly less than on day one, while the amount paid back to the principal will be greater than on day one.

With PACMiC, users no longer need to worry about high electricity fees or soaring difficulty. Mining can become a low-stress, low-risk activity.



The introduction of the PACMiC from Hashnest contributes to the diversification of the bitcoin mining industry. Until now, there were only two ways to experience bitcoin mining: with physical hardware, or with traditional cloud mining contracts. The PACMiC introduces a third way.

Mining with actual hardware means holding fixed assets. During the life of the hardware, one is free to use them according to their own wishes (e.g., mining at a loss but because one wants to support the Bitcoin network). Mining with actual hardware also means one is responsible for electricity bills and requires manpower to deploy and maintain the machines.

With traditional cloud mining platforms, like Hashnest, a user merely needs to purchase a contract to expose himself to mining revenues. Users also save on shipping fees, purchasing PSUs, and the physical effort involved with deploying machines. In exchange for these conveniences, users must pay additional service fees, as well as accept that their contracts will be terminated due to difficulty increase or falling bitcoin price. Furthermore, the contracts will never be reactivated.

PACMiC’s unique selling point is that priority is placed on ensuring users earn back their initial principal, while remaining as simple as traditional cloud mining offerings. The reasons that earning back capital can be accelerated are firstly that the hashrate is cheaper than with traditional cloud mining contracts, and secondly that there is no maintenance fee involved; these reasons in addition to the additional profit payouts made. PACMiC is most suited for mining hobbyists looking primarily for stability and a predictable income stream from their cloud mining. If a user continually rolls over revenues into new contracts, they can estimate earning approximately 22% annualized ROI on their contract purchase. However, PACMiC holders may only enjoy mining benefits during the time that their contract is active; upon contract termination the hashing power reverts to Bitmain’s ownership.

Users may use the short URL hash.vc to access the Hashnest platform.

[hashnest.com]

PACMiC Terms
 

What is a Payout Accelerated Cloud Mining Contract (PACMiC)?
The PACMiC is a new value-added cloud mining service product from Hashnest. The PACMiC is an electronic contract structured in a new way. BITMAIN will pay all the maintaining cost of the mining rigs, and all the mining revenue will be used to pay back the PACMiC owners. When the principal is not fully paid back, it will share profit with buyers. When the principal is paid back, the mining rigs will belong to BITMAIN. Both principal and profit payments will be made to the contract holder based on the mining revenues of AntPool. Since PACMiC will not bear the maintenance cost, so the payout is accelerated.

Purchasing a PACMiC
In the initial sales open day, one PACMiC will be sold for one (1) bitcoin. Each PACMiC represents one terahash of hashing power. The contract will become active immediately upon receipt of full payment.

Computing principal and profit of an PACMiC
As soon as the PACMiC is activated, payouts will be made through Hashnest in accordance with the mining revenues generated by AntPool’s PPLNS payout method. Profit payments will be made beginning with the first block found by AntPool after the contract’s activation. From the first block until the contract’s expiry, profit will be accumulated every second.

Profit Calculation Method
Unpaid principal (BTC) * 0.7 (satoshis per BTC per second) * time to find a block (seconds).
For every block found, the remaining payout after the profit is paid will count towards the principal payment. After each principal payment is made, the amount is subtracted from the amount of remaining principal.
Please note: information on blocks found will only be transfered to Hashnest.com from AntPool after receiving six network confirmations. Because of this, profit and principal payments will be on a slight delay from the network.

Contract Suspension
If after 120 days, a PACMiC has still not recovered the initial capital for its user, and is not mining enough revenue to pay for its own electricity cost (fixed at 0.098 USD per kWh, calculated using an ideal AntMiner S5 hashing at 100% uptime per PPS payout), whether because of difficulty increase or BTC price decrease, the PACMiC will continue paying out for ten days as though it were running, even if the machine is turned off. If these conditions persist for ten continuous days, the contract will be considered temporarily suspended. During the suspension period, mining revenues and profit payments will also be temporarily stopped. If after the suspension period, difficulty has dropped or bitcoin price has risen, making mining possible again, the contract will be reinstated and pick up where it left off.

Contract Expiry
The contract expires at the moment that the principal has been paid back in full.
BITMAIN may pay extra Bitcoin to the owner of PACMiC before the principal has been paid back in full, which will accelerate the payout even more.


FAQ

Q: Can the PACMiC be sold or transferred to other users?
A: No, PACMiCs may not be traded on the exchange.

Q: Do PACMiCs deduct electricity and maintenance fees?
A: PACMiCs do not deduct electricity or maintenance fees, the payment of which is assumed by BITMAIN. All mining revenue from the contract is used in the repayment of principal and in making profit payments.

Q: Can I redeem my PACMiC before contract expiry?
A: No. The contract will be closed automatically at the time that the principal has been repaid in full. Contracts may not be terminated prior to this.

Q: What is the repayment period to profit ratio like?
A:  The repayment period is dependent on the difficulty level of the Bitcoin network. Assuming a stable network difficulty, the PACMiC initial cost can be paid back in approximately 105 days. Estimated annualized return on investment is 22%. ( (0.7*10^-8)*(365*24*3600)=22%).
However, due to the unpredictable nature of the network difficulty, it is impossible to accurately predict the exact length of time repayment will require.
Since releasing our first product in November of 2013, Bitmain has always concerned itself with ensuring that users are able to earn a profit and that payout amounts are accurate. Trustworthiness is a cornerstone of our reputation.
 
Q: If AntPool experiences bad luck, will this affect profit payments?
A: Profit payouts are calculated using the amount of unpaid initial cost, and are unrelated to the pool luck of AntPool. Changes in pool luck will affect the speed at which the cost is repaid.
 
Q:How does the user make profit?
A:Profit is calculated by the formula: unpaid principal (BTC) * 0.7 (satoshis per BTC per second) * time to find a block (seconds). Mining revenue will be prior to pay for the profit, the remaining of mining revenue will be paid for the principal.

Q:When does the user start to get the profit? Where does the profit go?
A:Profit begins accumulating when the first block is found after contract activation. Profit will be paid to user’s wallet on Hashnest.com
 
Q: How much the customer can get after the contract expires?
A: The principal plus the profit. However, the profit cannot be determined before the contract ends.You can find more info at Q: How does the customer make profit?
 
Q:When does the contract end?
A:When the principal is paid back in full.
 
Q:Is the PACMiC really risk-free?
A: Like all forms of bitcoin mining, there is a certain level of risk involved. If network difficulty unforeseeably skyrockets, or if the price of bitcoin drops too much, the Antminer S5 units backing the PACMiC may not be profitable to run and be forced to go offline, in which case contracts would be suspended (possibly indefinitely) and the user may not recover the initial cost of the miner. However, the AntMiner S5 is currently the most power efficient bitcoin miner available on the market, and would be among the last to be forced to power down under unfavorable market circumstances. It is our comprehensive evaluation that the likelihood of PACMiC holders not recovering their initial cost is indeed quite low. We ask that all users please understand the risks inherent to any sort of bitcoin mining, and also to understand that there is no such thing as a risk-free product.

[BITMAIN_Janet]

what about the speed of repayment on the principal?   Does that slow down like profit? stay the same? or speed up?

Under the same diff, in case of 1 BTC investment, PPS payout, mining revenue is 0.01077264BTC in day one (1), the profit is 1BTC* (0.7*10^-8)*(1*24*3600) =0.0006048BTC, then unpaid principal after the payout distribution in day one (1) is 1BTC-(0.01077264BTC - 0.0006048BTC)=0.98983216BTC.

Day two (2), the mining revenue is still 0.01077264BTC, the profit is 0.98983216BTC*(0.7*10^-8)*(1*24*3600)=0.00059865BTC, then unpaid principal after the payout distribution in day two (2) is 0.98983216BTC- (0.01077264BTC - 0.00059865BTC)=0.97965817BTC

...

I think the speed of repayment is up, under the same mining revenue condition, the profit is less due to the unpaid principal becoming less as the contract goes on.

[BITMAIN_Janet]

If you do some digging you can see a  good percent of cloud mining services were scams form the beginning or were so insanely overpriced.

CEX.io for example was always 10x any reasonable price for ghs yet people not understanding kept buying.

Others went to cloud mining services that never proved their hashing but offered amazing deals that later turned out to be ponzi schemes.

There are very few surviving bitcoin cloud services but remember Hashnest is owned now by bitmaintech.

It is one of the only reasons I use hashnest as you can verify they are mining and also they make the equipment.

Bitmaintech was an probably the best company out there for giving customers a chance to roi on equipment months ago.  They have got a little more greedy but are again showing signs that they truly are trying to offer their customers the best deals and chance to ROI in my opinion ( hope it continues getting back to how it was ).   

In short in my opinion Hashnest is one of the best value true non scams ( as much as you can be certain in todays wild west of bitcoin ) out today. 

You never know what will happen or what company will fall apart next but Bitmaintech/hashnest is the one i feel most confident about.  Next would be probably Cryptsy/mintsy ( new and have not used them yet but they have cryptsy's name behind them it looks )  also cryptsy/Mintsy charge more then Hashnest it looks at the moment.  Lastly would be Spoondilies/genesis mnining... Spoondoolies and genesis mining from what I know have not had much bad press ( but again I have not bought their new offers and are more expensive then bitmain/hashnest )  I have an old contract I tested on genesis mining I bought .10 th that is still paying to date ( but will never see roi because was bought at the wrong time.

Lastly, in my opinion I believe with the competition out today, slowing network difficulty, and more stock offerings vs 6 month preorders that never arrive and the slowing tech leaps in asic designs it is becoming one of the best times to start mining.  The only thing I would be careful of is there is one more tech leap inc before I think that variable slows down.   The bitfury chips etc....  Although I highly suspect hashnest is starting to take advantage of that in their newer offerings. 

[BITMAIN_Janet]

PACMIC missing some block payments again...

I wasn't going to post as they have been eventually been being paid, however, these are taking a while and still not paid.

Blocks for PACMIC not paid for my contract yet

346734
346741
346753
346756
346761
346786
346789


After last night's update it looks like new blocks are being paid right so far but still missing these older blocks.

I will update when these non paid older blocks have been paid.

hi

all of blocks has been paid, please check it again, or pm your username in hashnest

These were for the pacmic contract. 
Private message sent with my hashnest username

Thank you very much!

dear chunkyjunkie  sorry for that .i will check with the engineers tomorrow

Please be assured that this does not affect your earnings

That is fine, I appreciate you looking into it for me.  Look forward to your service after the bugs are ironed out

Have a great day!

Just an update as promised all blocks up to 346911 have been paid for my PACMIC and are current.

Hoping they fixed it and going forward there are no more missing ones that get delayed.

Thanks to the Bitmain representatives for checking and fixing the missing blocks.

[seriouscoin]

Bitmain, Does this scammer and thief currently work for you?





Do confirm and dont try to ignore

[BITMAIN_Janet]

Hello miners, this is my first thread here and I decided to write finally because of recent actions by Bitmain team and miners reactions in chats.

I know that recently (5th of March 2015) Hashnest has made a website changeover which led to some coding pitfalls in the front end and experienced S3 cloud account earnings miscalculations, as one of my friends runs it and has reported miscalculations, nevertheless Hashnest team has kept its promise and refunded the miscalculated earnings/maintenance of Bitcoins. I personally hold a blend of S4 and S5 therefore I really did not experience any downside of the changeover.

Unexpectedly on the 11th of March 2015 all of us who are on Hashnest received an email saying that the network might or has been compromised by DDoS attackers and that the company has initiated to take strategic steps to protect its users from the compromise and establish a security layer. There was a level of uncertainty and doubt weather it was held true, but after seeing that the company has started to implement CloudFlare protection layer to their services made the points clearer that something is being done about it, the question arose in me, exactly when it would get done? I nervously monitored with my mate https://www.antpool.com/poolStats.htm pool and block mining performance stats and correlated that with the recently low luck which reached its low of 57%. Also we took a peek preview in https://blockchain.info/pools?timespan=24hrs and saw that at one point during the day the AntPool went to 8% market share, compared to what it originally was around 15% few days ago.

Then in order to find out more what I decided was that I called customer service help desk directly to find out what the situation is at present time with the outage and the technical issues Hashnest had ran into. An American service representative Joe answered to all my questions regarding the outage due to the facts described above, also there was a network failure as Hashnest has got miners in multiple locations, in the US, Europe and China. We all logically know that all pool works in a network as a chain and if there is an outage somewhere then we will experience an overall hashrate drop. Thankfully that is being fixed. And my point here is that I am glad that there was somebody to take my call and answer my investor related questions. I give credit to Joe.

Now at the time of writing 12th of March 2015 the front-end protection layer has been implemented (good): http://prntscr.com/6fp49s
The Antpool's hashrate distribution percentage has gone up by 2% from 8% to 10% in few hours (good): http://prntscr.com/6fp4js
And the duration of getting a block has beneficially reduced, and the Antpool's hashrate has gone up getting closer to the original speed of 60 PH/s (good): http://prntscr.com/6fp6s1
Lastly, after fixing the reported network attack and failure, the Antpool's luck has skyrocketed from lowest experienced during outage 57% to cosmic 178% (good): http://prntscr.com/6fp78c

WHAT I WANT TO SAY HERE IS NEVER PANIC, ALWAYS LOOK AT STATISTICS, COMPARE MULTIPLE SOURCES BEFORE YOU MAKE ANY JUDGEMENTS. I GET NERVOUS TOO, BECAUSE IT IS MY MONEY THERE, MY FRIEND HAS MONEY THERE, HOWEVER KEEP CALM AND LET THE ENGINEERS DO THE JOB AND SORT OUT THE SYSTEM.

p.s. I believe in Hashnest because I have visited Bitcoin Expo this year, spoken with developers, monitored other cloud mining companies out of which 95% I found is scam, so my suggestion to everyone is always rely on statistics, thorough research, and credible facts, rather than "free cookie today, no wallet tomorrow". Good luck mining!

Thanks for sharing.

Bitmain is one of the few companies I trust, but all of them make me nervous. 
Coinbase and cryptsy are about the only other 2 I have any trust in as well.

[hashnest.com]

Dear Users,

Thread is closed due to the "off topic", users can not easily find the info they need exactly. Please join the discussion and suppot for PACMiC https://bitcointalk.org/index.php?topic=991928.0