If you aren’t aimed at sale of bitcoins collected, how will you make profit? Due to what will you pay dividends to the investors?
Yes, it is a risky venture and we clearly state that from the very beginning. Majors risks are bitcoin price and difficulty ratio. This includes the buying power of the ICO, as well as equipment process, installation costs, etc. Yes, there is a chance that the data center will not be as profitable as we expect. Say, today’s rate of ETH is just half of what it was two months ago. This reduces the number of miners we can actually buy at the end of ICO if the price remains the same. The entire project may even fail for usual business or regulatory reasons.
If it will be unprofitable to mine bitcoin we will use 23% of output assigned for upgrades to switch to another cryptocurrency. And according to our plans, we are not going to interrupt mining process and as a result payouts. So, you can see, in that case, that we are following the idea of the profitable mining and would try to find the solution in any case.
There are certainly risks and they should not be underestimated. Future prices and exchange rates of cryptocurrencies are impossible to predict, as is mining difficulty, the evolution of legal regulations, future price of electricity, hardware, and other factors. We will do everything we can to mitigate these risks, but there is no way anyone can eliminate them. That is why our general advice is not to risk more than you can afford to lose. On the other hand, if we succeed, the gains could be double- or even triple-digit, it is may be announced due to our calculations.
That’s why I asked: Why are you fundraising in ETH, not in fiat? As you are saying yourself, with the current price of ETH, you can buy half of the planned miners...and putting your investors in danger. Moreover, I believe you will be paying for the equipment, maintenance, staff, rent etc in fiat. Why in the world would the company decide to fundraise in ETH?
Also, how is it possible that 4-5% of output will cover all operational costs, including electricity, when around 25% will go towards covering only the electricity, based on the price per kw/h stated on your website (EUR 0.065) and current mining profitability?
First of all, we are not fundraising only in ETH. We are also accepting fiat (EUR), as well as LTC and BTC.
Secondly, the 4-5% estimated operating costs do not include electricity, as stated in the White Paper. Please read it. It's important.
Third, let's not sow panic about mining profitability. First of all, Miner One will be buying top-of-the-line miners and will mine with an efficiency that will put other miners to shame. The current difficulty:BTC price ratio will have the effect of pushing out inefficient miners, leaving more room at the top for Miner One and others who know how to do it right.
Lastly, we do not expect the current difficulty:BTC price ratio to stay as it is over the long haul. Remember: Miner One is not a 1- or 2-month project, and we are not amateurs. Our team knows what it is doing. So if anyone has a shot at being successful, it's Miner One.
That said, it's important to keep the risks in mind. As we've said many times, it's a new and unsettled field with risks as well as great potential rewards. People who are looking for a sure bet with zero risk should look elsewhere.
Thank you for your reply!
Your target cap is calculated in ETH, so the price of ETH influences the final outcome of the fundraising.
You stated yourself that at the current price of ETH, you will be able to buy less equipment, so I think it makes more sense for you guys to calculate the target cap in fiat.
BTW I did read the white paper (I got the 4-5% information from there), FAQ etc.
https://prnt.sc/itmygdIf you check the link, you can see the 4-5% thing. So the electricity is not calculated in those 4-5%?
Also, at another page it says the operational costs are 18% (
https://prnt.sc/itn0co), I found the information confusing, so could you please clarify the total operation cost including electricity (at the current price of BTC)?
