I actually just finished building a small datacenter myself only thing left I need to do is get the meter installed and run the electrical. Debating on doing an IPO just not sure the best way to approach it quite yet still sourcing which miner to use. Fingers crossed they will keep it at my residential rates. If anyones located in ohio and would like to check the project out send a PM!
When everything is all finished I'll be taking photos and offering hosted miners and possibly realistic priced contract mining and can not wait to show it off! pbmining to me i smelt pyramid scam from the get go and will fall off the face of the earth within a year.
Topic: Making your own mining farm and distributing shares? (Read 1095 times)
I've been on cryptostocks and I've seen quite a few mining farm shares, where you can buy a share that is proportionate to a certain amount of mining power on that farm and gain money via dividends. I was wondering how it's profitable for the owner of that farm?
Well that's easy, you sell it for more than it mines of course. So if you have shares with enough mining power to product 1BTC over the course of the contract, you sell them for say, 1.5BTC and pocket the difference. Maybe tack on a maintenance fee too just for good measure. An even better way to make money is to not mine at all. Since you are charging more than you pretend to mine, you can just run a calculator to estimate what you should have mined and pay your "customers" that amount and keep the difference. If you're particularly greedy you can even still charge a maintenance fee.
Usually you have to show prove of your mining farm in-order for people to believe in it, best way is to do it via the crypto stock and have really low electricity and people would invest in it.
Companies like pbmining have categorically refused to offer ANY proof of mining and they have people lining up to buy.
I've been on cryptostocks and I've seen quite a few mining farm shares, where you can buy a share that is proportionate to a certain amount of mining power on that farm and gain money via dividends. I was wondering how it's profitable for the owner of that farm?
Well that's easy, you sell it for more than it mines of course. So if you have shares with enough mining power to product 1BTC over the course of the contract, you sell them for say, 1.5BTC and pocket the difference. Maybe tack on a maintenance fee too just for good measure. An even better way to make money is to not mine at all. Since you are charging more than you pretend to mine, you can just run a calculator to estimate what you should have mined and pay your "customers" that amount and keep the difference. If you're particularly greedy you can even still charge a maintenance fee.
Usually you have to show prove of your mining farm in-order for people to believe in it, best way is to do it via the crypto stock and have really low electricity and people would invest in it.
I've been on cryptostocks and I've seen quite a few mining farm shares, where you can buy a share that is proportionate to a certain amount of mining power on that farm and gain money via dividends. I was wondering how it's profitable for the owner of that farm?
Well that's easy, you sell it for more than it mines of course. So if you have shares with enough mining power to product 1BTC over the course of the contract, you sell them for say, 1.5BTC and pocket the difference. Maybe tack on a maintenance fee too just for good measure. An even better way to make money is to not mine at all. Since you are charging more than you pretend to mine, you can just run a calculator to estimate what you should have mined and pay your "customers" that amount and keep the difference. If you're particularly greedy you can even still charge a maintenance fee.
Say that you've calculated that over, say, a 1-year term (long time in the Bitcoin mining world), investment and ongoing costs combined means you should be getting about $1000/month. That's $1000, not some Bitcoin amount, because the warehouse wants $, your landlord wants $, your baker wants $, and you purchased the equipment in $.
You may or may not get that back from mining and selling the mined Bitcoin. So you offer shares, 10% for $150. 10 people buy into it, because the $150 still appears to be a good deal compared to competitors / buying and running their own hardware, especially since you bought in bulk and thus were able to get better pricing. Now you get $1500/month, no matter what the exchange rate is doing.
At least, that's how I imagine it works out for farms - if they can get enough BTC themselves, believe that they will continue to get enough from it, and they would make less from selling shares... then obviously selling shares makes no sense whatsoever.
The argument is similar for hardware manufacturers, of course. Unless they're staunch believes of the Bitcoin system and want to see it grow in stability, then the only reason to sell the hardware rather than locating and running it themselves is because they much prefer the guaranteed (pre)payment over the 'if all goes well' BTC returns.
People with Block Erupters should adopt selling mining shares, really
You may or may not get that back from mining and selling the mined Bitcoin. So you offer shares, 10% for $150. 10 people buy into it, because the $150 still appears to be a good deal compared to competitors / buying and running their own hardware, especially since you bought in bulk and thus were able to get better pricing. Now you get $1500/month, no matter what the exchange rate is doing.
At least, that's how I imagine it works out for farms - if they can get enough BTC themselves, believe that they will continue to get enough from it, and they would make less from selling shares... then obviously selling shares makes no sense whatsoever.
The argument is similar for hardware manufacturers, of course. Unless they're staunch believes of the Bitcoin system and want to see it grow in stability, then the only reason to sell the hardware rather than locating and running it themselves is because they much prefer the guaranteed (pre)payment over the 'if all goes well' BTC returns.
People with Block Erupters should adopt selling mining shares, really
I've been on cryptostocks and I've seen quite a few mining farm shares, where you can buy a share that is proportionate to a certain amount of mining power on that farm and gain money via dividends. I was wondering how it's profitable for the owner of that farm?
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