Topic: Gigamining / Teramining - page 102. (Read 216450 times)

GIGA has taken on significant risk and the profit, if any, he earns the the reward for combining capital and labor in his entrepreneurial endeavor.

There are still significant risk factors which he has not yet completely overcome, besides just difficulty plunging as you point out, so to presume he is going to get paid is not necessarily a correct assertion.

For example, the hardware could fail and the warrant either not be effective or BFL could fail to perform on it.

But there are other larger risks that I can see.

It really is obvious in hindsight....wish I had seen it sooner. 

The only way Giga could get hurt on this is if difficulty plunged.....which seems preposterous with the coming technology changes. 

He went massively short on the value of hashes, and is gonna get PAID. 

Welcome to my ignore list

Then I will make it my trademark, so you can stop reading it.  

May I ask why? I find it easier.

I'm pretty sure, he will have big competition. The best for him will be to stay out of mining.

"nothing more" and having the foresight to invision such an endeavour functioning profitably!  Jealous too, I are. ;p



@DILLIGAF, I'd give ya anything else, and Giga is certainly not a foolhardy businessman. But a ponzi? Even if any of the prescribed situations are true, to label it a ponzi would require the forethought to structure it as such. I just don't see it.

Giga is going to clear 100K for doing nothing more than buying hashes at $.60 per MH/s, and selling them at $1.20 per MH/s.  

Insanely jealous does not begin to describe my feelings!

Gotcha.

Giga is going to clear 100K for doing nothing more than buying hashes at $.60 per MH/s, and selling them at $1.20 per MH/s. 

Insanely jealous does not begin to describe my feelings!

I was responding to ciuciu saying that Gigamining would go down if Pirate did, by showing that even with conservative numbers that Gigamining could make a ton of money even without Pirate. He just puts quotes under his text instead of on top so it looks a little funny.

So what was your point in the first place?  I said he is obviously paying out of pocket, and it is hella shrewd.  You disagreed and said only if he is invested with Pirate.....but now you are agreeing with me?  

My head is spining.  

I think your assumptions are pretty off.

1)  he only issued 10K of the bonds at 1 BTC.  I am sure the other 30K were issued near market price.
2)  the exchange rate has been demonstrabley higher than $5 on average since GIGA floated the bond in April.
3)  he has only paid out a total of 4,057 BTC in coupons thusfar (I have no clue where you came up with 15K), some of which is covered by his current farm


Here is a more realistic look at the situation:

1)  Giga floats a total of 40,000 bonds at an average price of 1.1 BTC
2)  Giga converts 21,818 BTC @ an average of $5.5 to purchase the 8 mini rigs
3)  Cancels 4 of them and gets a refund of 60K

So this is where we are at the moment.....put yourself if Giga's shoes.  What would you do?

You now have 18,125 BTC left from the bond issuance (44,000 - 21,818 - 5,057), as well as the $60,000 in cash from the refund.  With the coming ASICs, you KNOW difficulty is going to massively increase, hugely depressing the coupon payments.  

Assuming NO increase in difficulty (which is silly), you only has to pay out around 450 BTC a week (remember you have over 100 GH/s producing).  That means you can pay coupons for 40 weeks before exhausting your BTC taken in on the issuance, and STILL be left with $60,000 in your pocket.  

I think we all know what you would do.......