AMHash1: Cost-Effective Mining Contract - page 76.

galdur

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Quote from: MichaelBliss on January 30, 2015, 12:56:29 PM

Quote from: galdur on January 30, 2015, 12:39:29 PM

...you are in effect lending the operators money...

Most people here have the intellectual capacity to interpret this correctly.

Except, you are not in effect lending them money.

If you were, you would expect all of your money back, plus interest. That's not what's happening, is it?

You are in effect paying for hashing power.

You must have heard of ROI. People are talking about it all the time all over these threads. Check it out.

MichaelBliss

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Quote from: galdur on January 30, 2015, 12:39:29 PM

...you are in effect lending the operators money...

Most people here have the intellectual capacity to interpret this correctly.

Except, you are not in effect lending them money.

If you were, you would expect all of your money back, plus interest. That's not what's happening, is it?

You are in effect paying for hashing power.

galdur

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...you are in effect lending the operators money...

Most people here have the intellectual capacity to interpret this correctly.

xhomerx10

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Quote from: galdur on January 30, 2015, 12:20:50 PM

Quote from: xhomerx10 on January 30, 2015, 12:16:40 PM

Quote from: galdur on January 30, 2015, 11:06:33 AM

Quote from: MichaelBliss on January 30, 2015, 10:54:37 AM

Quote from: galdur on January 30, 2015, 07:36:54 AM

Quote from: Mabsark on January 30, 2015, 07:33:30 AM

Quote from: galdur on January 30, 2015, 06:13:18 AM

TheRama, when you buy those cloud mining contracts or units or whatever else it´s called, you are in effect lending the operators money to upgrade their equipment or expand their current one or other things they need money for.

When you buy cloud mining contracts off a manufacturer, you're not lending them money, you are essentially buying miners and having them run them for you at a lower cost.

That´s your perception Mabsark and that´s fine. I have a different view which suits my objectives.

No, that's a fact. Changing views won't change the underlying reality. (i.e. things don't become real because you think of them).

Like I said a few times already (clearly necessary to repeat because of dubious reading comprehension of some) it´s my view. I don´t care if it´s a fact or not this view simply works for me and my decisions in this marketplace.

When you convey potentially flawed information to others as factual you should expect protests. I think you do expect that and that you can be a bit of a troll at times.

Where am I supposed to have stated that my opinion regarding this matter is factual ?

Right here -

Quote from: galdur on January 30, 2015, 06:13:18 AM

TheRama, when you buy those cloud mining contracts or units or whatever else it´s called, you are in effect lending the operators money to upgrade their equipment or expand their current one or other things they need money for.

So, it´s really just a question of ...

galdur

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Quote from: MichaelBliss on January 30, 2015, 12:18:04 PM

Quote from: galdur on January 30, 2015, 11:06:33 AM

Like I said a few times already (clearly necessary to repeat because of dubious reading comprehension of some) it´s my view. I don´t care if it´s a fact or not this view simply works for me and my decisions in this marketplace.

I was talking about Mabsark's comment - calling it "a fact", not your view.

Dude you can think of AMHash as a type of peanut butter if you wish, but you shouldn't be surprised when people correct you for calling it that. The moment you start discussing with others, it's necessary to deal with facts and reality. Of course people will want to correct your inaccurate description; it's a public forum. We can only deal with objective reality, this is a bitcoin forum not a poetry slam.

Look, I don´t care if people think a debt instrument/share that trades on an exchange and pays a dividend is a slice of bread and think that´s a fact. Grin

galdur

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Quote from: xhomerx10 on January 30, 2015, 12:16:40 PM

Quote from: galdur on January 30, 2015, 11:06:33 AM

Quote from: MichaelBliss on January 30, 2015, 10:54:37 AM

Quote from: galdur on January 30, 2015, 07:36:54 AM

Quote from: Mabsark on January 30, 2015, 07:33:30 AM

Quote from: galdur on January 30, 2015, 06:13:18 AM

TheRama, when you buy those cloud mining contracts or units or whatever else it´s called, you are in effect lending the operators money to upgrade their equipment or expand their current one or other things they need money for.

When you buy cloud mining contracts off a manufacturer, you're not lending them money, you are essentially buying miners and having them run them for you at a lower cost.

That´s your perception Mabsark and that´s fine. I have a different view which suits my objectives.

No, that's a fact. Changing views won't change the underlying reality. (i.e. things don't become real because you think of them).

Like I said a few times already (clearly necessary to repeat because of dubious reading comprehension of some) it´s my view. I don´t care if it´s a fact or not this view simply works for me and my decisions in this marketplace.

When you convey potentially flawed information to others as factual you should expect protests. I think you do expect that and that you can be a bit of a troll at times.

Where am I supposed to have stated that my opinion regarding this matter is factual ?

MichaelBliss

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Quote from: galdur on January 30, 2015, 11:06:33 AM

Like I said a few times already (clearly necessary to repeat because of dubious reading comprehension of some) it´s my view. I don´t care if it´s a fact or not this view simply works for me and my decisions in this marketplace.

I was talking about Mabsark's comment - calling it "a fact", not your view.

Dude you can think of AMHash as a type of peanut butter if you wish, but you shouldn't be surprised when people correct you for calling it that. The moment you start discussing with others, it's necessary to deal with facts and reality. Of course people will want to correct your inaccurate description; it's a public forum. We can only deal with objective reality, this is a bitcoin forum not a poetry slam.

xhomerx10

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Quote from: galdur on January 30, 2015, 11:06:33 AM

Quote from: MichaelBliss on January 30, 2015, 10:54:37 AM

Quote from: galdur on January 30, 2015, 07:36:54 AM

Quote from: Mabsark on January 30, 2015, 07:33:30 AM

Quote from: galdur on January 30, 2015, 06:13:18 AM

TheRama, when you buy those cloud mining contracts or units or whatever else it´s called, you are in effect lending the operators money to upgrade their equipment or expand their current one or other things they need money for.

When you buy cloud mining contracts off a manufacturer, you're not lending them money, you are essentially buying miners and having them run them for you at a lower cost.

That´s your perception Mabsark and that´s fine. I have a different view which suits my objectives.

No, that's a fact. Changing views won't change the underlying reality. (i.e. things don't become real because you think of them).

Like I said a few times already (clearly necessary to repeat because of dubious reading comprehension of some) it´s my view. I don´t care if it´s a fact or not this view simply works for me and my decisions in this marketplace.

When you convey potentially flawed information to others as factual you should expect protests. I think you do expect that and that you can be a bit of a troll at times.

galdur

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Activity: 616

Merit: 500

Quote from: MichaelBliss on January 30, 2015, 10:54:37 AM

Quote from: galdur on January 30, 2015, 07:36:54 AM

Quote from: Mabsark on January 30, 2015, 07:33:30 AM

Quote from: galdur on January 30, 2015, 06:13:18 AM

TheRama, when you buy those cloud mining contracts or units or whatever else it´s called, you are in effect lending the operators money to upgrade their equipment or expand their current one or other things they need money for.

When you buy cloud mining contracts off a manufacturer, you're not lending them money, you are essentially buying miners and having them run them for you at a lower cost.

That´s your perception Mabsark and that´s fine. I have a different view which suits my objectives.

No, that's a fact. Changing views won't change the underlying reality. (i.e. things don't become real because you think of them).

Like I said a few times already (clearly necessary to repeat because of dubious reading comprehension of some) it´s my view. I don´t care if it´s a fact or not this view simply works for me and my decisions in this marketplace.

MichaelBliss

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Activity: 526

Merit: 500

Quote from: galdur on January 30, 2015, 07:36:54 AM

Quote from: Mabsark on January 30, 2015, 07:33:30 AM

Quote from: galdur on January 30, 2015, 06:13:18 AM

TheRama, when you buy those cloud mining contracts or units or whatever else it´s called, you are in effect lending the operators money to upgrade their equipment or expand their current one or other things they need money for.

When you buy cloud mining contracts off a manufacturer, you're not lending them money, you are essentially buying miners and having them run them for you at a lower cost.

That´s your perception Mabsark and that´s fine. I have a different view which suits my objectives.

No, that's a fact. Changing views won't change the underlying reality. (i.e. things don't become real because you think of them).

galdur

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Activity: 616

Merit: 500

Anyway, a few words on current AMHASH trading. No units presently but waiting. What bothers me is this bloody constant overhang of BTC potentially crashing any minute. Too much uncertainty. But I think the market is pretty much fairly priced. If the bid were at the ask I´d probably buy a little.

galdur

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That´s all well and good. I´m just describing my perception of these things. Which in turn affect my demand for yield and my participation in the price discovery of the AMHASH units there at Havelock. I simply view those units as debt instruments, well maybe a bond-share hybrid. It doesn´t really matter as my yield demand is concerned. It pays a dividend, other places it´s called a payout. AMHASH is tradeable most other places these instruments are not. Otherwise it looks pretty much the same to me.

Mabsark

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Quote from: galdur on January 30, 2015, 07:36:54 AM

Quote from: Mabsark on January 30, 2015, 07:33:30 AM

Quote from: galdur on January 30, 2015, 06:13:18 AM

TheRama, when you buy those cloud mining contracts or units or whatever else it´s called, you are in effect lending the operators money to upgrade their equipment or expand their current one or other things they need money for.

When you buy cloud mining contracts off a manufacturer, you're not lending them money, you are essentially buying miners and having them run them for you at a lower cost.

That´s your perception Mabsark and that´s fine. I have a different view which suits my objectives.

That's not just my perception, that's the reality of the situation.

Quote from: amhash on October 25, 2014, 03:48:24 AM

Quote from: blo8i on October 25, 2014, 02:24:18 AM

i just hope we start to see some Dividends from the AM shares SOON. i can´t see hwo we will see Dividends form this farm? only form the first "5000000" sales. but after that? what then?

Selling hashrate is another way to sell devices and chips , so shareholders can get profit from this farm absolutely.

AM have ASICs and miners to sell. You can buy Prisma 2's and have them shipped, buy a PSU and pay your own maintenance costs, or you can buy hashing power from those devices that are being maintained by AMHash (which is cheaper for most people).

Either way, you end up with X amount of hashing power and Y costs, and the only real difference is that you control your own miners.

galdur

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Activity: 616

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Quote from: Mabsark on January 30, 2015, 07:33:30 AM

Quote from: galdur on January 30, 2015, 06:13:18 AM

TheRama, when you buy those cloud mining contracts or units or whatever else it´s called, you are in effect lending the operators money to upgrade their equipment or expand their current one or other things they need money for.

When you buy cloud mining contracts off a manufacturer, you're not lending them money, you are essentially buying miners and having them run them for you at a lower cost.

That´s your perception Mabsark and that´s fine. I have a different view which suits my objectives.

Mabsark

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Quote from: galdur on January 30, 2015, 06:13:18 AM

TheRama, when you buy those cloud mining contracts or units or whatever else it´s called, you are in effect lending the operators money to upgrade their equipment or expand their current one or other things they need money for.

When you buy cloud mining contracts off a manufacturer, you're not lending them money, you are essentially buying miners and having them run them for you at a lower cost.

galdur

hero member

Activity: 616

Merit: 500

TheRama, when you buy those cloud mining contracts or units or whatever else it´s called, you are in effect lending the operators money to upgrade their equipment or expand their current one or other things they need money for.

So, it´s really just a question of yield demand and whether it´s a buyer´s or a seller´s market. And yes, the lower the price of BTC the higher the risk of the yield of those debt contracts going to zero and the contracts becoming worthless.

Market sense: As a result, based on current market conditions demand the highest possible yield and therefore the shortest possible term of ROI. I think .7%/day or ca. 140-150 days is reasonable as a yield floor.

TheRama

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Quote from: thevictimofuktyranny on January 29, 2015, 10:45:36 PM

Quote from: TheRama on January 29, 2015, 10:10:44 PM

Sorry if this is a super newbie question, but I am trying to understand what this is...

Please let me know if I got this right:

The bitcoin mining difficulty is constantly increasing as more people are competing to mine the same # of bitcoins and the number of "mine-able" bitcoins decrease.

AMHASH1 is a contract for the use of the current mining equipment on hand right now and AMHASH1 will never upgrade its equipment through their servicing fee. This equipment will eventually be made obsolete because of the mining difficulty issue. Once the equipment becomes too inefficient to produce a profit for the contract holders they will cease operation, the shares will no longer pay a dividend and will become worthless.

The primary variables that affect how long the cloudmining contract can continue and produce dividends is the price of BTC and the rate of the increase of the mining difficulty. Contract holders are just speculating that the contract will eventually at least pay dividends worth at least 100% of the price of the contract before AMHASH1 inevitably goes out of business.

Is this roughly how this works?

Close enough to sound true, without being true Cheesy

Difficulty goes up; difficulty goes down Roll Eyes

Gen 3 AMhash, will continue to pay a dividend until the maintenance fee (electricity + labor) exceeds the dividend for 10 days: This is called the 10 day rule Tongue

Gen 3 AMhash will definitely cease at the next Block halving in the middle of 2016. Therefore, it is possible that dividends could carry on for 1 year 6 months.

BTC price determines the size of the dividend. Current difficulty determines the size of dividend.

AMhash never goes out of business, merely the Gen 3 mining equipment in the Bitcoin farm you are buying a share in, ceases to produce coins exceeding the maintenance fee.

AMhash can build new farms e.g. Gen 4 mining equipment Bitcoin farm in the future for themselves or for us or for big investors Grin

Recently, there was 5% decrease in mining difficulty, which increased the dividend a little bit. Before that, the BTC price fell below $209, which greatly reduced the dividend. The latter always has the biggest impact on the dividend.

Hope that helps, whatever decision you are contemplating Wink

Appreciate it. That actually clarified a lot for me.

Cheers.

thevictimofuktyranny

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Quote from: TheRama on January 29, 2015, 10:10:44 PM

Sorry if this is a super newbie question, but I am trying to understand what this is...

Please let me know if I got this right:

The bitcoin mining difficulty is constantly increasing as more people are competing to mine the same # of bitcoins and the number of "mine-able" bitcoins decrease.

AMHASH1 is a contract for the use of the current mining equipment on hand right now and AMHASH1 will never upgrade its equipment through their servicing fee. This equipment will eventually be made obsolete because of the mining difficulty issue. Once the equipment becomes too inefficient to produce a profit for the contract holders they will cease operation, the shares will no longer pay a dividend and will become worthless.

The primary variables that affect how long the cloudmining contract can continue and produce dividends is the price of BTC and the rate of the increase of the mining difficulty. Contract holders are just speculating that the contract will eventually at least pay dividends worth at least 100% of the price of the contract before AMHASH1 inevitably goes out of business.

Is this roughly how this works?

Close enough to sound true, without being true Cheesy

Difficulty goes up; difficulty goes down Roll Eyes

Gen 3 AMhash, will continue to pay a dividend until the maintenance fee (electricity + labor) exceeds the dividend for 10 days: This is called the 10 day rule Tongue

Gen 3 AMhash will definitely cease at the next Block halving in the middle of 2016. Therefore, it is possible that dividends could carry on for 1 year 6 months.

BTC price determines the size of the dividend. Current difficulty determines the size of dividend.

AMhash never goes out of business, merely the Gen 3 mining equipment in the Bitcoin farm you are buying a share in, ceases to produce coins exceeding the maintenance fee.

AMhash can build new farms e.g. Gen 4 mining equipment Bitcoin farm in the future for themselves or for us or for big investors Grin

Recently, there was 5% decrease in mining difficulty, which increased the dividend a little bit. Before that, the BTC price fell below $209, which greatly reduced the dividend. The latter always has the biggest impact on the dividend.

Hope that helps, whatever decision you are contemplating Wink

xhomerx10

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Activity: 3808

Merit: 7912

Quote from: TheRama on January 29, 2015, 10:10:44 PM

Sorry if this is a super newbie question, but I am trying to understand what this is...

Please let me know if I got this right:

The bitcoin mining difficulty is constantly increasing as more people are competing to mine the same # of bitcoins and the number of "mine-able" bitcoins decrease.

AMHASH1 is a contract for the use of the current mining equipment on hand right now and AMHASH1 will never upgrade its equipment through their servicing fee. This equipment will eventually be made obsolete because of the mining difficulty issue. Once the equipment becomes too inefficient to produce a profit for the contract holders they will cease operation, the shares will no longer pay a dividend and will become worthless.

The primary variables that affect how long the cloudmining contract can continue and produce dividends is the price of BTC and the rate of the increase of the mining difficulty. Contract holders are just speculating that the contract will eventually at least pay dividends worth at least 100% of the price of the contract before AMHASH1 inevitably goes out of business.

Is this roughly how this works?

The AMHash1 contract will expire based on predetermined variables that are clearly laid out in the first post of this thread. How you come to the illogical conclusion that AMHash1 inevitably goes out of business and who are you going to believe if you get both answers to your question?

TheRama

newbie

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Sorry if this is a super newbie question, but I am trying to understand what this is...

Please let me know if I got this right:

The bitcoin mining difficulty is constantly increasing as more people are competing to mine the same # of bitcoins and the number of "mine-able" bitcoins decrease.

AMHASH1 is a contract for the use of the current mining equipment on hand right now and AMHASH1 will never upgrade its equipment through their servicing fee. This equipment will eventually be made obsolete because of the mining difficulty issue. Once the equipment becomes too inefficient to produce a profit for the contract holders they will cease operation, the shares will no longer pay a dividend and will become worthless.

The primary variables that affect how long the cloudmining contract can continue and produce dividends is the price of BTC and the rate of the increase of the mining difficulty. Contract holders are just speculating that the contract will eventually at least pay dividends worth at least 100% of the price of the contract before AMHASH1 inevitably goes out of business.

Is this roughly how this works?

Topic: AMHash1: Cost-Effective Mining Contract - page 76. (Read 304259 times)