Topic: PBmining - legit? - page 18. (Read 67909 times)

Slightly confused by this:

So are you saying it costs $4,380 per hour for them to mine that much?  $4,380 for 5 years worth of mining?  What are you saying it costs?

If you are saying it costs $4,380 per 5 years, which I highly think you are  You realize you are making a terrible claim then correct?

$4,380 / 5 = $876 per year, or $73 dollars per month.

Now, I am just going to grab 1 miner that purchased a contract through them.

Customer 13022 purchased 7500GH/s from there probably about 3 weeks ago, maybe 2, who knows.  That person spent probably 30BTC to pay for that, which with today's cost is roughly $17,100 dollars.  Keep in mind this is just 1 customer. 
Now roughly again, just roughly saying 7.5 TH/s costs probably around 27BTC.  Which leave them only in 3 BTC profit.  Which is roughly $1,710 dollars.  Well that is good they nearly covered there whole electric bill with 1 customer for 5 years.  Imagine if they had 2 customers, oh wait they do, so that covers that cost of electricity.  Now lets say they spend roughly $100,000 on staff/website costs, cooling, mining per year(Which I am wayyyyyyyyy over shooting)  That means they will need about 10 customers per month to maintain that in the example I used:  They have roughly 200-300 people who have purchased over  1000 GHs.  These people spent anywhere between 3.6BTC and 36BTC.  Lets just average it out and say they 15 BTC per person and take the minimum of the people(200)  15*200 = 3000BTC from these people(which is an understatement)  They probably make anywhere between 1BTC and 4 BTC from all of these people.  So lets say they make an average of 2BTC per person.  200*2 = 400BTC *570(USD) = $228,000 they made from just this people this year.  This is covering electric cost and the staffing cost by quite a bit.

So don't use math as an example if you aren't good at it, bottom line.

Some lovely basic math, cheapest area in the US for electricity widely agreed is Washington at around $0.10 per Kwh.

Currently ASIC hardware efficiency is around 1w per GH/s, things like Terraminers much worse anyway so anyway 1w per GH/s... 1000GH/s = 1TH/s at PB's current price around $2000 ($2 per GH/s)...

Cost to run the TH/s for 5 years in electricity alone in the one of the cheapest regions in the world... with zero magical free hardware, free cooling, free giant mega mine, free insurance, free staff just electricity is $0.10per Kwh x 24 for the day x 365 for the year x 5Years because that's what they say.

This is... and please work it out... $4380

Regardless of payouts. Irrefutable evidence they are not doing what the claimmmmmm. Boom

This is not opinion or speculation, oh I think they're dodgey blah blah blah... It's pure mathematical fact.

Current investors better get busy on the Affiliate program to keep getting payouts.

that's why we call this gambling
try it now, and profit later (6months?  )

still confuse PbMining legit or not, so many speculation here but since i read until now they still paying, if only they were willing to explain where they are able to generate aka coin we might be easier but it seems they accidentally let all this controversy growing

They quote at the current rate it should be roughly 6 months before you see your investment back, and after that will be all profit.  I haven't done the math to confirm this but it seems fairly accurate...

Yeah, but the market can't keep growing by 13.7% forever.  You have some big jump right now because BFL, KNC, Black Arrow, are all shipping at the same exact time plus it's very likely Bitmain is burn in testing their S3's.  So we get this huge difficulty jump, and the next one will be big to take some residual from that (Though not as big as this next one.)  After that though, I think we'll see a pretty slow incline.  Partially because many miners are being switched off as the new ones get added.  It keeps rising, but 10% every week?  Not likely.  Maybe for six months at best, but it can't keep compounding.  That would defy the laws of nature.

The price they charge may change and it may have been more appealing in the past, but the price of bitcoin is irrelevant since you are paying and being paid in bitcoins.  All you need to know is how much it's costing you in BTC and how long it will take to get those BTCs back. 

Under the present cost charged by PBming, it would take you +1 year to earn your BTC back.

They modify the rate all the time so that it is more appealing.  You're looking at it now with a known difficulty jump coming up around 30% plus a declining coin value, so the metrics won't work in your favor right now.  But a week or so ago when people were looking at smaller adjustments to difficulty and a coin above 600, that rate probably looked good.

I don't understand why anyone would use PBming.  Am I missing something?  Right now, they are offering mining at 0.0036 BTC/ghs.  So 1 Th/s would cost you 3.6 BTC.  If you estimate it out using:

http://www.vnbitcoin.org/detailcalculation.php?name=Bitcoin_Mining_Rig&startdate=2014-06-24&costperunit=2160&wattperhour=0&gigahazarate=1000&daytoincrease=12&testlopfirst=5&diffincrement=13.25&bitcoinperdollar=588.38&electriccostinput=0.00&begindifflevel=13462580115

You will see that it will take you more than one year to get to 3.5 BTC.  So after a year, you've still not broken even and although the contract is for five years, the last four years will be basically worthless due to the difficulty going up so high. 

Unlike mining with fiat currency, where the price may go up and justify spending more than you will make back at today's price, with this you're paying in BTC so all you need to do is figure out how long it will take you to get your initial investment in BTC back. 

I just don't under stand why anyone would sign up for this.

74,1 GH/s Piggy bonus ^^
Not bad at all...

Hello,

here is an update on my experience. To refresh everybody's memory: I started (I think) around End of Feb/Beginning of March, investing 8.9 BTC at pbmining (yes, there is a ref code in that link).

I have to this day been paid 8.2 BTC and will very likely break even next week.

Now I do know this does not proof anything regarding whether this website is legit or not. The only thing that I can say is that I got my money back and I still mine at about 0,3 plus change BTC per week.. So for the coming months I will generate a not too bad share of coins week by week. And it's more than I expected it to be. This can change if diff levels increase at higher rates, of course, but at this time I am more than happy that I risked my fiat.

To be honest: If this is a Ponzi it is the first one I ever came across where I generate a gain. And I am not one of the first ones that used pbmining, I don't think that I am an early adopter of them.

The golden rule stays (as mentioned so many times by others): Don't invest if you can not afford to lose your investment. BTC is still a very very new market and it will take a few more years until it matures.

Happy mining,

iFlash

Basically one of the biggest scam in bitcoin history. A company from Cyprus that scamed investors for milions of euros. Looked it up on the forum and in the media in general.

yeah agree, basic advice in investment world
but it's better to find out how that investment works before invest there so we can reduce the risk
what is Neo&Bee anyway?

They seems to be more legit then Neo&Bee until now, but you never know when thei may decide to pull the plug.
An advice that is so offten preached in the Bitcoin world bo so little practiced: Never invest more than you can afford to loose!

yeah i think that's very well made
since they planned their "virtual mining" 7 months ago. only a few people doubt about their scheme, so many people join it and make this ponzi works like magic

i bet they never do it
since they don't have more than 700 TH/s actual mining hardware
too bad, newbie who only know a few things about bitcoin think invest in pbmining will make them rich

Genesis Mining takes a very open approach. Everything can be found somewhere. PBMining is about as closed as can be.

Difference, in my opinion, is the startup. Genesis Mining was set up by professionals and was to be a professional business from day -1.
PBMining was setup by an individual who wasn't 100% sure of his efforts, and maybe more importantly, not 100% sure of the public's... friendliness if things went wrong. You only have to open a random thread here on Bitcointalk to find examples of nutcases you wouldn't want on your doorstep.  I'm still hoping PBMining turns more professional one day, though to what end. They pay flawlessly every week (with or without other investors' coins). Having a name and an address attached to that means nothing much. Any business can go to pieces, and some will. I don't think I need to name examples.



By the way, the cryptomining-blog.com still mentions my old Genesis Mining discount code, MEC, which is no longer valid. There's a new one in my signature, or search around the forum for other discount codes.

They seem to be taking the opposite approach of PBMining ... So if they are real, what does that say about PBMining? 

I have been researching these cloud mining services and honestly I found so many different opinions. CHecked several reviews... Checked the cloud mining services' websites, and threads here on the forum. My finding is that PBmining is among the best, however, I found many bad opinions too, and there is another company, Genesis Mining, which seems more trustworthy to me. The got excellent ranking on www.cloudmining.guru, I found this a couple of days ago: http://cryptomining-blog.com/2706-trying-out-the-genesis-mining-scrypt-cloud-mining-service/
and they explain all concerns you guys are contemplating about here on their website FAQ.

A scammer accused them of not being legit, not having a farm, etc. and their reply was super cool and funny. Look at this!
https://bitcointalk.org/index.php?topic=467587.0;all
just scroll down and read the scammers posts and then the company's reply... Priceless

They are actually paying a little about the theoretical payout ... much like it is from real mining.   .00019754 BTC / 5 GHS / Day vs  0.00018677 / 5 GHS / Day.  That doesn't mean it isn't a computed payout, but it is interesting.    The B.Mine at Havelock is purely theoretical mining and it cost more than pbmining  GHS at about  ~.02 BTC / 5 GHS.   (~ 10% higher )   It has an advantage that it can be sold and you can also buy B.SELL to take a short position, so the pricing is probably on par.

Still I have to believe the PBMining isn't legit and therefore as risk of suddenly disappearance.   If something sounds too good to be true, it probably isn't true.