Topic: btt - page 38. (Read 407343 times)

And in the meantime the price per share just goes down and down and every day i'm telling myself i'm gonna wait for it to go back up before i sell so i won't have a massive loss. And every day my loss gets bigger
Not blaming anyone but myself here by the way. The price just went up with every miner they bought. Till i bought shares and that day it stopped and went down.
It's just quite frustrating.
Sell now? Get those last few Bitcoins back before it drops even more? What to do?

Hey creativex, not sure what your standards are for buying ASICs, like price-wise, but here are a couple I found:
http://toronto.kijiji.ca/c-buy-and-sell-computers-Bitcoin-ASIC-Miner-Avalon-82GH-s-W0QQAdIdZ513386640 <-- He might be able to talk down a bit, ad has been up for over 2 weeks.
http://alberta.kijiji.ca/c-buy-and-sell-computers-Powerful-Bitcoin-miner-BFL-Little-Single-30GH-S-IN-HAND-W0QQAdIdZ517428676 <-- 30 GH/s for $2500, again *might* be able to talk down a bit

But Kijiji recommends to always do in-person transactions. I guess escrow is an option? Not sure you want to do that route though.

But just throwing out ideas.

Also: If a scrypt FPGA or ASIC is created, do you have plans to invest early in them creativex?

Thanks for the awesome job today as always BTW!

Hi iCEBREAKER. I'm afraid I've already alienated a number of shareholders by investing in LC and AM. Tough to imagine the uproar if I went for something pretty much designed to lose over time. I'd likely have some abuse coming too in that instance.

Cheers. 

Hi weezerfan. I'd very much like to simply calculate how many avalons we'd need to add on to keep up with difficulty each re-target and go out and source them, but that won't work as we'd eventually go broke. Safeguarding shareholder value is much more than just maintaining a consistent dividend payout. I have to run each and every purchase candidate through my own common sense detector to determine if we're likely to at the very least get our money back out of this gear before I have to unplug it to stop losses from expenses. We're at a crossroad here where those on the cutting edge are transitioning to 2nd gen ASIC equipment and just like the previous major equipment shifts(CPU --> GPU --> FPGA --> ASIC) there's a lot to gain or lose. I believe we have to keep sufficient powder dry so that we can make significant purchases of gen2 gear when it's actually available.

What FMG points out in the post following yours is accurate, but, if we play it smart we don't have to be victimized by the laws of big numbers. Sure while it would take 17 avalons to double our hashrate now, a single cointerra unit would more than double our hashrate in Dec or January. We just have to not shoot ourselves in the foot before we can get there. In between I see potential in bitfury's products for October delivery and possibly knc's products for November delivery to possibly tide us over.

Also I think it's important to keep in mind that while the law of big numbers applies to our hashrate, so too it applies to everyone else's and the global network itself. It's not hard to believe the global network can expand by 3%/day for a few quarters after new technology revolutionizes mining, but the amount of capital required to sustain that growth long term eventually makes it unsustainable unless the exchange rate grows along with it, which in turn would make older less efficient gear profitable longer.

Cheers.

Thank you FloatesMcG, kind of you to say. It saddens me somewhat to have to disagree with you after such a nice lead-in. While obviously nobody can keep up with difficulty increases step for step right now(not even FC), nor should they beat themselves to death trying, we all know this kind of expansion cannot go on forever. It will go on until the market is saturated, pre-order queues dry up, and mining margins thin significantly. If you take the pulse of the forum just now it's easy to see attitudes changing from "ASIC ANYTHING = TAKE MY MONEY NOW!" to "2Th/s for $16k? pffft...overpriced". Remarkably that vendor quickly lowered their pricetag in response. For now I'm just holding on and trying to make decisions that ensure we at least break even on every purchase.

It was never my intent to build a company based on scavenging gear, it's just my mechanism for adapting to the current market forces. There just isn't a reliable supplier of in hand original equipment that's priced in such a way that there's still enough meat on the bone to justify the risks. This will change in the near future IMO, and the people with dry powder will benefit. Love what's going on over at bitfury for instance.

I work and travel a lot in addition to this gig, which has btw, consumed a whole lot more of my time than I'd originally intended, but it's also been mostly fun. I'd consider doing something closer to the source if I quit my day job. I could see the benefit in ordering raw chips and assembling my own boards at least.

Cheers.

Tired, it's been a ridiculously long day. I still haven't deciphered the difference between what I posted and what you posted.

I'm going to get some coffee...come back here and umm...read your riddle buddy.

What about TAT.VIRTUALMINE?  Hashes on demand!

Keeping up with difficulty will be hard, especially since each miner brings diminishing returns.

Say for example basic had 10% of network (again, just an example) at 10TH, and wishes to maintain its percentage
If network difficulty goes up 20%, Basic would need to add 2 TH
Network difficulty increases again by 20%, Basic would need to add 2.4 TH
Network difficulty increases again by 20%, Basic would need to add 2.88 TH
Network difficulty increases again by 20%, Basic would need to add 3.45 TH

As we are already seeing this have a major effect on the business - In order to keep up with difficulty increases, creativex would have to add 5 avalons every 12 days. Clearly, this is a near impossible task given the dearth of supply and the unreliability of buying the machines in the first place.

Related to this post, I was wondering what your plans are for the future in terms of keeping the dividends similar to current returns? I'm not really asking "how" you plan on doing it (that's a whole separate task) but  more so do intend to keep dividend payouts similar to today's rates? I know there are no guarantees, and I'm not asking for one but it would be nice to know if what you say in your business statement on the site about maintaining shareholder value directly relates to dividend rates. If that's the case, I feel great about investing with your company. We really only need to worry about keeping up with the difficulty, but that's not too hard.   

Creative, I believe you are one of the most communicative and capable members around here who run a bitcoin mining related company. Unfortunately, I do not believe that simply buying hardware from 3rd parties in an attempt to maintain network percentage can be profitable in the wake of monstrous difficulty increases. Have you ever considered expanding from simply scouring the internet attempting to find cheap 3rd party hardware to actually taking the step in taking part in the manufacture of your own ASICs?

Do you mean to say:
You've divvied up the dividend from ASICMiner in to 7 equal dividends and will add to each day's dividend beginning with today's dividend.

I couldn't help myself. 

Divs weren't off by much today at all.  But thanks for the heads up.

Mining revenue is off a bit today due to a problem with the computer feeding the minirig and singles. It was down nearly two hours before I could get to it and get it sorted.

Also I've divvied up the disbursement we received from ASICMiner yesterday into 7 equal parts and will add them to each day's dividend beginning with today's. Details are available at the link to the company's shared spreadsheet.

https://docs.google.com/spreadsheet/ccc?key=0ArTS7AD--9SWdDNfb0lRNElqS1k1eGRoWEw2TGM4NlE&pli=1#gid=0

Cheers.

Thanx for the headsup, I'll look into it. I usually use searchtempest and lots of screens.

Cheers.

Hello Creativex,
You probably have a very nice craigslist search engine, but just fyi...
I have found one I like for the android phone called CraigsNotifica 3.27.
It allows for radius searches about a given zip code and multiple saved search groups.  It will scour every local craigslist in the U.S. if you want it to.

it has worked very well for me for the past couple of years.
keep up the great work.

Indeed. Our 2nd ASIC came from a chap that ran an ad on craigslist. I like to keep my eyes peeled for deals, but feel free to alert me if you see something that looks promising.

Cheers.

Trust me, creativex is all over this.

But if you ever see a deal that would pique his curiosity, post it!

Thanks for keeping us updated and making sure equipment is in tip-top shape. You have no idea how much it helps a project like this to have good management.

Also, not sure if you're into this creativex, but do you ever buy used ASICs from Craigslist or Kijiji locally? If you're in a larger center chances are there would be some for sale. If you feel like bartering with good reasons chances are you might be able to pick up a couple decent ones for a fair to cheaper price. But again, that's only if people are selling them locally and if you're interested in searching it out.

The new PSUs have arrived and before any of the overworked ones croaked! I've also put off some necessary equipment relocation projects until I could do it all at once and today's the day it seems. I'll try to keep any downtime to a minimum of course.

Cheers.

Thanks for the info - I really appreciate the transparency you offer. I wish you the best of luck!