=snip=
Even mega-scale mining operations with the cheapest electricity in the world cannot compete with PBmining and their free electricity generator.
They don't really offer free electricity, we are forced to give some BTC when we buy GHs but I don't know how many u
BTC they charge per GHs. Anybody?
~~MZ~~
MrTeal summarized it quite nicely:
The proof is that people are getting their payments every week, and this since January.
He's saying the offer is too good. Right now they are charging $0.60 per GH/s for a 5 year "guaranteed" contract. Out of that, they have to pay
1. Capital cost of the equipment
2. Capital cost of the facility its housed in
3. Maintenance and replacement of failures for 5 years
4. Power for 5 years
5. A normal profit
Just look at the power cost: Even if they somehow average 0.2J/GH/s over that time (3.5x better than anything on the market) and pay $0.04/kWh, that's 8.76kWh and $0.35 in power. Equipment costs are similar, even in bulk that's another $0.30/GH/s. That's just the initial investment in equipment, it says nothing of the additional investment needed to keep pace with efficiency.
If they are doing what they claim which is actually operating the hashrate they're selling, there's no way they can do so and still make money. If they actually are in Saskatchewan as they claim, the numbers are even worse as you won't get power anywhere close to $0.04/kWh.
Why do you think actual hardware manufacturers are charging more than PBmining for cloudmining contracts? Don't forget that they have huge discounts on hardware/electricity which PBmining doesn't (a few TH/s per week is hardly enough for any sort of bulk discounts/economies of scale).
http://en.wikipedia.org/wiki/Electricity_sector_in_Canada#RatesWith only ~3MW (assuming it's not a ponzi) PBmining would only qualify for medium power, so at best they are paying ~$0.07/kwh which is pretty bad compared to their competition in Iceland/Washington who pay as little as $0.03/kwh.
How does PBmining have the best contract prices while paying more than twice the price for electricity? How do they make a profit?
And the most important question: Why is pbmining mixing coins if they are supposedly legit? If anyone can give me a logical answer I'll leave this thread permanently.
