You are not promising the profits of bread here or profits of miners here, you are promising the mining proceeds of 100 MH/s. Like gigavps's new offering, friedcat's MOORE, etc. They might have actual hardware behind them, they might not, it doesn't matter, we're not talking about hardware, we are talking about equations. Network hashrate / offered hashrate.
For a company like bASIC-MINING, it would be fraud to not actually have the hardware yet claim you have. But that is because you are buying into a mining company.
This is comparable to a dividend swap, and is just another way of wording a difficulty future. You do not need to own the underlying assets to offer, and it would not be fraud.
I am not doubting you have the hardware
+1 to the explanation.For a company like bASIC-MINING, it would be fraud to not actually have the hardware yet claim you have. But that is because you are buying into a mining company.
This is comparable to a dividend swap, and is just another way of wording a difficulty future. You do not need to own the underlying assets to offer, and it would not be fraud.
I am not doubting you have the hardware
This offer is ONLY for the amount of output that 100MH/s would produce. NOT for the hardware backing it or the output of owned hardware. As long as you pay out based on what 100MH/s would earn it's on the up and up, that's why there's no subtraction for operating costs either, the coin based returns are being sold, not 100MH/s of hardware.
