Topic: [HAVELOCK] SCRYPT 4 GH/s hosted scrypt mining project by CRYPTX - page 9. (Read 64118 times)

Yes, there are many variables affecting ROI predictions for this project, so let me bold a key part.

The other way to look at this is: if ROI predictions are so difficult, why are investors considering to throw good money (the bulk of the value of SCRYPT at this point) into more mining?

im assuming everyone is voting #2?

You can't make any predictions about ROI unless you know what the difficulty is going to be in the future.

The way I see it, you need to figure out the best use for that reinvestment fund while ignoring the fact that you currently have miners running. It is illogical to think that you should expand operations just because you have "reinvestment" funds at hand.

Can new miners reach ROI with low risk while paying $0.25/Kwh? The best use for the reinvestment funds will not change regardless of whether the existing miners swim or sink. 

Baffling as it may seem to you, PETA shareholders were better off with higher dividends than by reinvesting. Because the PETA reinvestment would have never paid back the initial investment amount.

Right, but that's exactly what I'm getting at; there's zero information to support the claim that a temporary high dividend would sudden cause the share price to spike. And why would it? That's what I'm trying to draw out of you, the why in all of this. When you take away the reinvestment, you're literally taking away the support for the fund. It is impossible (rationally speaking) for the share price to do anything but drop as dividends dwindle to BTC0.0.

The baffling notion behind all of this is that we actually have a working example of what happens when you dump the reinvestment for 100% dividends. As many have noticed, PETA's share price has not gone 'to the moon'.

I do, however, agree with the latter statement...they (or apparently 'we' given how this has been going so far) need to work out a new strategy, which includes replacing inefficient equipment before it's completely worthless. The only way we can do that is if we have something to replace it with. And the only way we can purchase new, faster, more efficient equipment before selling the old, semi-worthless stuff is with...you guessed it...a reinvestment fund. 

I suppose that's the one point I'm trying to drive home in all this, and something I'm not sure many people are grasping -- Funding from revenue set aside for future purchases is what governs the direction of the mining farm (or in PETA's case, loans from investors too). It determines how quickly you can grow. It determines what hardware you can purchase. It determines the quantities and bulk discounts on hardware. If you don't have enough of it, taking advantage of new hardware purchases becomes difficult. If you don't have any of it, it becomes impossible.

+1

""So...you're opting to empty your savings account for that fleeting moment where you think you've done well...and then start up your savings again? Why not just maintain the savings in the first place?

Besides, that's unfortunately not one of Cryptx's options. Once the savings account is emptied, it's not being opened again.""

If the machines and everything needs longer time and thought, then what would help the share price, which the savings being sat in a pot is not doing right now,

is full payouts, and crazy high dividend would help the share price massively.

Crypt x needs to listen and do this. Empty the savings fund for 4 weeks max until they can work out the machines strategy and possible even sell any inefficient equipment before it loses all value. I am on my common sense here and logic. There is no other way if the project is to be any kind of success for people.

So...you're opting to empty your savings account for that fleeting moment where you think you've done well...and then start up your savings again? Why not just maintain the savings in the first place?

Besides, that's unfortunately not one of Cryptx's options. Once the savings account is emptied, it's not being opened again.


And with that, just because Cryptx is running the farm improperly doesn't mean reinvestment isn't necessary (I assure you, it is). Don't focus on the team because that will just lead to endless frustration, impairing rational decision making in the process.

As an ex-farm operator, my advice is to focus on the fund's assets instead. Right now they're operating somewhere around 46-47 A2 Innosilicon miners. At 4U each, and consuming ~750W, we can assume they have enough space for 4-6 full server racks (42-44U each) depending on additional equipment, and can support more than 35,250Wh in continuous power. Combined with ~$45,000 in cash, there's quite a bit to work with here, and a lot can be done to turn this around. The question at this point is how?

The way I think about it is to imagine yourself standing in a datacenter staring at the racks of miners. The reality is that you're in a good position to do quite well for yourself, so with the cash in your hand, what's the best way to grow / update the current operation? There's always a miner that's bigger, better, faster, cheaper, cooler, and/or more efficient out there (either on the market or under development), you just have to find it.

No but I've seen CryptX running one. And I don't want them to run it anymore.

Just had another look at the prospectus and we hv mined like 20% of what the projection for this week is on their chart. I guess nobody knew LTC would drop so much but hey, they should have known better than me, thats for sure.

We should go with option 3 for 2 weeks and then revert to re-investment and updating machines over time. Thats the only logical way forward I see.

I see you've never run your own mining farm before...

Reinvestment is a lost cause.

If we had distributed last reinvest fund insted of buying (to cryptx?) more hash power, we would be richer now.

Why does everyone wants to keep digging their own grave ?

Distribute the fund among shareholder and save what can be saved, that's the only solution. Other options are delusions.

PS: indeed, div decrease is more than LTC/BTC + diff increase... indeed, no word from ScyptX... Who cares ?? not cryptX actually...

Not entirely true. Purchasing energy efficient equipment (at least more so than the previous A2 purchases) doesn't double their expenses. Think of it like purchasing a 1TH/s @ 500W miner and adding it to your existing 1TH/s @ 1000W miner. Suddenly you have twice the hashing power, but only 50% more energy use.

Speaking of fees though...anyone else notice that the fees have been increasing little by little over the weeks even though no new equipment has been added? Last I checked, energy use is typically stable when you have a constant amount of hardware running 24/7...considering the prospectus clearly states a fixed expense of $0.25/kWh.


From what I've been able to gather, I think you're right. I actually purchased a 1MH/s Hashlet from them yesterday as a test, and so far it seems to be going well (hashing on their ZenPool). I also noticed that the price has gone up...yesterday I spent $15.99 per 1MH/s, and today it's $19.99. Promotional period perhaps? In any case, I'd proceed with caution until we know more about it. Blindly investing BTC90 into "the cloud" doesn't sound like the smartest idea at the moment.

Well...it doesn't seem like many people realize what it is, myself included, so this could be all wrong.  But to me, it sounds like they have some hardware (much like cex.io does) and they sell you the output of the hardware (a certain amount of mining power).  But, they can change out the hardware in the future with more cost efficient hardware, and in turn, pass the power savings onto you.  You could also change to different hardware possibly and mine a different algo.

They seem to be trying to package the hashlet as a brand new piece of hardware, but I am not thinking it is.  They probably just have a couple of large data centers with a lot of hardware in them and then they sell it to you and can switch out new machines in the future once they are invented.

im not sure i understand the hashlet, you can change the algo in it and mine different coins

Not necessarily double fees.  If we buy hashlets then the hosting fee will be a lot less than what we are paying cryptx.  It's an easy comp out for them as they don't have to really do anything in terms of setup and what not, but it would increase weekly payouts as we would have less hosting fees, we would have zenpool which somehow is making more than other multipools, and we would benefit from having coins stored with them and gaining interest on deposits.  Overall its a win win for us to go with them.  And, assuming that they hashlet can be adapted and changed in the future with either new hardware or to a new algorithm, it would increase the overall longevity of this asset.

Now the only downside is whether or not GawMiners is a scam.  There is lots of evidence going both ways, but I would hope cryptx would do some diligence before blindly investing that sum of btc.

Is there any future in scrypt/altcoin mining anyway (denominated either in btc or usd), or is it a sinking boat?

rough calculations:
we double the hashing power
we double the fees
we double the dividends.

looking at the las div, still looks pretty bad

They'll be profiting regardless of what happens to investors. That's the way they've set it up. Dumping the reinvestment fund kills any chance of this fund expanding and puts us in the same position as PETA, and that hurts us, not Cryptx. They'll pull in fees and hosting costs until the hardware can't mine enough to cover those expenses.

At least now that they're looking into the GAWMiners there's a chance for growth. With the current reinvestment fund (and at the current BTC/USD price of ~$500), we can purchase 62 54MH/s miners, adding 3,348MH/s to the current ~4,000MH/s we're working with. How is that a bad thing?

I think  CryptX  meant War Machine  because the vaultbreaker are not released yet.

the current price is 1600$  for 100 MH/s  in hashlet form.  The Price will drop in the next days as it happend before.

http://gawminers.com/pages/hashlet

current payput for 100 MHs/24h  is about 0.065 BTC which is actually pretty high!

They even promised an intern Market to sell the hashlets as well as more integrated Algorithm..

Edit: link, spelling