Topic: SinoHash second facility opens for preorder - page 7. (Read 13624 times)

did someone tried the $40/month plan? realistically, can it be profitable?

Very interesting thread about pcfli - didn't read through the whole thing but wish it had a happy ending.

Right now not too concerned with competition - unlike these companies you listed, SinoHash is intended to be small and nimble and I am not ambitious like most of them as I only wants to do one thing that is run the farms properly and reduce unnecessary costs (synonymous to creating more profit for customers ).

During my previous job I witnessed how a five-member startup growing into a medium sized company with enough staff to fill up a significant section of a floor in an office building in one of the more expensive areas of the city. Complexity increases. Bureaucracy increases. Operational costs increase. I think I can avoid some common mistakes such as prestige spending, developing products not needed by the market, etc.

And what I do is differentiated enough. One of my clients is a Bitmain executive who is planning to send a few miners to be hosted here - had I been a more sensationalist writer, I can make a headline like Bitmain executive ditches HashNest for SinoHash  

Eric,

1. Equipment prices are rising.
2. Award for the block solution is decreased by half.
3. Payback time is longer.
4. To earn reasonable money you have to accept greater market risk and invest more.
5. It is possible to earn money by using the GPU.
6. To make money you must have cheap energy. These points are located primarily in China, but not only. Usually this is far from the investor. This increases the risk.
7. The language barrier.
8. There are new products. Cloud Mining expands -it is simple.
9. Equipment failure grows.

You are replying to points: 3,6,7. But there are still many barriers: 1 and misunderstanding of the topic. Just a lot of people do not understand the differences and nuances. It is very important that competition in this market is growing. We have: hashnest (hash and pacmic) ViaBTC, Haobtc, BW, Interest wallets. Again, most of China.
I would recommend the topic about [lee group] pcfli: https://bitcointalksearch.org/topic/lee-group1150-the-group-buy-of-hosted-bitmain-s7-473t-online-on-27th-jan-1283287

At the moment, we have two main products:
-hash power and hash market (cloud mining)
-pacmic.

You have a great opportunity to introduce new products to the market. You will still have a lot to write explaining the action.

The SinoHash project was launched with the vision to bring profitable mining to the bitcoin masses.
Two weeks down the road, I realized that this is not going to benefit the masses - the numerical majority of the community as much as the whales - those who have a bitcoin wealth and higher risk tolerance. Right now, two of my clients account for 80% of the miners hosted in my farm while the rest account for less than 10%. When a strong motivation of doing this is the prospects of working for myself so it was not my intension just working for the few wealthy clients.

I do however received some email inquiries from people belonging to the first category and they expressed interest but also concerns.

They are small investors who are interested in mining but have less risk tolerance. Many have experience investing in cloud mining.



Here is one example that involves a certain Ed.  

I first knew Ed because he paid for two S9 hosting packages through the SinoHash website - which is the monthly cost for hosting one unit of S9 ASIC miner manufactured by Bitmain Tech at SinoHash Penthouse.

Ed never contacted me after he made the purchase and seeemed to have forgotten the matter altogether.

After a few days I decided to contact him explaining the idea of SinoHash. The monthly hosting package is something that you need to pay for after you already have a miner hosted with us - think of it as owning a mobile phone and toping it up monthly to use it.

This was never the case with Ed.

I wrote him and offered to refund him if he misunderstood the idea.

Turned out I was right. Ed replied that he thought he was buying something else - He said he previously invested in cloud mining and assumes that by paying he bought some shares.

I asked him if he was interested in buying a miner and has it hosted with us.

He said that he didn't feel comfortable investing in a whole unit of S9, which requires a considerable initial investment of 1700 dollars - apparently too much for him.

Ed's case is not incidental as there are many people out there like him - they want to invest but are daunted by 1700 dollar initial investment.

Would there be any ways to serve them?

First idea that came across my mind is to have a group of miners, say 100S9s and divide them into 10,00 "shares". Each shareholder can own as little as 1/10 of the total value of a S9 and they will be entitled to 1/10 the daily dividends of the miner.  

The second is rent to own - which requires investors to pay a monthly increment until they paid the full amount of a miner so they will own the unit.

Right now I am still working on the details, but if you have any good suggestions, I am all ears.

Congratulations! I'm contacting you via PM in few hours.

Hi BobTrade,

What you asked is a reasonable question and nobody should take offense by anything reasonable and rational.

Here is my thinking: While the business of hosted mining is fairly new, the underlying relationship between me and my clients is not - it is essentially a trustee-beneficiary relationship. And since I am neither immortal nor impervious to the multitude of misfortunes and tragedies of life, I should make provisions for them.

What I plan to do is that at some point (should be over the next few months), I will name two or more individuals as successor co-trustees so the management of the operation will continue after I die or otherwise find myself in situations where it becomes evident that I can't continue my current role.

SinoHash is still an infant - its first iteration the 1MW Penthouse has been fully operational only for two weeks. While I have great hopes of it, I hope everyone to be patient, as I am. Meanwhile I encourage you to continue sending your suggestions as I think this should be a project that belongs to the community and has the potential to start a new movement.

Right now I am the main guy behind it with the help of a few friends who, despite their great contribution, were not paid in money  (they do have scores of S9s hosted in the place tho ) - And at the current scale and profitability level, it would be hard to hire someone competent with good bilingual communication skill and also interested in crypto to work full time. However, as the project grows, I envision SinoHash will be a truly international and globalized team wtih sound corporate governance structure and a legend in the history of Bitcoin.

BTW, my UK lawyer just emailed me the business license for SinoHash (registered in IoM) - so from now on, we are officially a company.
 

Hi Eric,
I'm very interested in your business but I have few questions that I'm worried about, even if i'm pretty confidend your idea is genuine and you're a good man. I apologize in advance if the questions have been already answered somewhere.
Since there's no any implicit form of insurance, even if you wrote could make a sort of "private" insurance, covering the hazards with your money. What happen in case (please don't get offendend) something bad (really bad, try to understand me) accidentaly (and unfortunately) will happen to you? Do we will have a new referent? I mean, its important.

Thank you for the information about the package.
Yes it's true. You've earned nothing so far.

I am grateful for your support and trust but not sure if I can give u a discount - I have yet made any money from you by facilitating you to buy the unit directly from Bitmain Cn.

BTW, the order was shipped from Bitmaintech's Shenzhen factory.

This is real deal.
These are real money.
In addition, this confirmation is in my mailbox. As soon as the equipment will be installed I will inform here how things are going.

.....

Eric, here should be a discount for risk

I really do hope that this is real deal done here and this guy usenet is not alt of OP. After this transaction, i've put the thread to the watchlist and we'll see how it will go from here.

Thanks Eric!

Got the money. Shipping should take about a week. Will install as soon as it arrives.

I sent the rest:

https://blockchain.info/tx-index/8ceec63eaed85f6140eb46430a7a11b7f92c8599a023732ccface864b65cbf0c

Pls confirm.

Got it

Please confirm that you receive testing 0.01 BTC

https://blockchain.info/tx-index/43f789721724498209d2259b5e7225201f39c33eed4e0f53c2c7d12c7db5cec2

Confirm.

After you send the coins, plz publish the tx id here.

Hi Eric,

I'm interested and decided to buy one s9 and hosting from you.

Please confirm that you are interested.

I think that it can make me happy and then your next customers as well.

I previously worked at a larger mining firm and at one point they were considering insuring their hardware due to popular demand, but eventually came to the conclusion that it was not practical to do. I am proposing to insure using my own fund in a verifiable way. But I need some more specific suggestions.

All clients signed contracts and they have accepted that if force of nature causes losses that can't be avoided, they would waiver their ownership; I would prob go bankrupt both in terms of money and reputation and unlikely to gain trust from the community again.

These in one of the pics are not S7s but A7s made by Avalon - the value of each unit is about USD 750 each