Topic: [GLBSE] Feedback wanted: Gigamining, the first 5Mh/s mining bond (Read 26518 times)

New thread for the launch of the bond. -> https://bitcointalksearch.org/topic/gigamining-teramining-75802

In case anyone was wondering what equipment was going to be used to service this bond, here is the official mockup from BFL.

I agree that competition is not a bad thing and I think it's great that Inaba is coming forward with an offering.

Well - so much for using today to work up my own GLBSE offering -- the space is a tad crowded 

And I noticed the substantial difference in the pricing of the offer as well.

I'll take this opportunity to chime in.

First, gigavps is simply offering a service providing a set income (5Mhps @ PPS rate income) in return for certain conditions (~1BTC per 5Mhps). To many here, this looks to be a good offer. To others, not so good. There is no right or wrong here. Everyone's needs are different. For those who don't want the hassle and expense and risk of running their own farm, this may be a good opportunity. For those who don't mind getting their hands dirty, this may not be so attractive. The key point is that this is an OFFER. If you like it, then buy. If not, feel free to consider other options.

Consider a simplistic example: Say a person wanted to purchase the equivalent of 830Mhash (the hashrate of a BFL Single going for $600). That is 166 bonds (830/5 = 166). Let's assume the bonds go for 1BTC, so it would cost 166BTC. Now 166BTC is currently worth ($4.92x166) = $817. That is a $217 premium over the price of a Single, or 36%. So the first question might be: why pay $817 for 830Mhps when I can buy an actual 830Mhps Single for $600? Well ...

What are the running costs of a Single? One would be electricity. Assuming $0.10/kWh, a Single would cost $0.20 per day to run, or $74/year. After 3 years of operation it would have cost $222 to run, equal to the premium gigavps is proposing. And this assumes it does not suffer an out-of-warranty hardware failure during that 3-year period.

So from this it doesn't look like a bad deal. One drawback, however, is that the buyer has no control over where the hashes go. If they owned a physical Single, and mined at GPUMAX (for example), their income might average closer to 1.2x-1.4x PPS. Under this condition, the Gigamining bonds look less attractive.

Obviously, this is an individual decision. Gigavps's offer may look attractive for some, and not so attractive for others. Neither is wrong.

I notice that Inaba is offering something similar on GLBSE (https://bitcointalksearch.org/topic/glbse-bfls-bitcoin-mining-sales-75433). Competition is never a bad thing.

Thanks kakobrekla.

I will be working over the weekend to tighten up things on glbse.com and getting the release strategy ready. Stay tuned.

I'm in.

Excellent, looking forward to it.

I am going to work on the particulars over the weekend and should have an announcement sometime early next week.

Hey Giga,  when are your shares coming to market. 

How do you get $.07 electric in FL?

Go back to your cave.

The sheeple lining up to be fleeced, it is a beautiful sight..

My coins can't wait to roll in!

So it sounds like everyone wants to get started sooner rather than later.

As for verification of my has rate, I took a screen cap of my farm monitoring webpage. -> https://i.imgur.com/ctnX9.jpg

You'll notice all GPUs are underclocked as it's getting a little hot here in FL.

I guess it's time to talk with Nefario and get my glbse.com account verified.

Watching...

Keeping my eye on this 

You should issue them in batches (like 1000-2000 each, for example), and issue them as you feel comfortable you have the leeway to do the weekly payments. Also, give a heads up before you do it (~1 week in advance?), so that investors can prepare.

EDIT: You should also check how GLBSE handles issuing shares/bonds in batches...

If the price would be set at 1 btc and the bonds are available soon, i'd like to reserve a few