@Piggles - My guess is that pbmining doesn't actually have an asic farm and they aren't generating any blocks. They're probably renting hashing power from someone else at a lower rate and/or using a mining pool. If they purchased asic hardware, and they're selling 1 gh/s for about $5, so that means they had to have purchased 1 gh/s for less than $5, minus maintenance (power, etc). You figure they want to make a profit, so add another 20% on top of that, right? Where is one going to get 29Th/s for about $3-$4 a gh/s? Right now, antminers are around $4 a gh/s, but they purchased equipment early on, just a few weeks ago antminers were about $15 a gh and that was the lowest. Let's say they purchased a bunch of hardware from KNC in November (650 gh/s @ 6000), that's still over $9 a gh. So, they either financed a lot of hardware on credit and have a 5 year payback plan to a bank or investor or they are banking on btc/usd(cad) will rise significantly. If you look at the early ebay sales for them, they were selling USB block erupters, so maybe they financed the farm that way. Either way, there is no reason why they can't tell you what mining hardware they use.
Here's the other kicker with cloud mining, you have to generate more sales revenue than your mining farm would generate through mining only for the owner, otherwise, what's the point?
Here's the other kicker with cloud mining, you have to generate more sales revenue than your mining farm would generate through mining only for the owner, otherwise, what's the point?
Exactly.
Until proven otherwise, 90% of these sites are scams imo.
They all accept bitcoin only, have forwarding addresses, are shady about proof they even mine etc.
