Topic: SinoHash second facility opens for preorder - page 8. (Read 13624 times)

They would, or they are scratching their heads? Though a minor way of words, such is quite a big difference. Though by the looks of your style of communicating, I am inclined to lean towards the "would". No offense meant in any way.

So, if "would", you said that around 80% of the pictured hardware consists of 80% clients S9's and that all the S7's are solely clients. S9's are indeed like $1600 machines, of which accordingly to your own saying you once said you personally own around 25 of them, hence currently you must have like 125 pieces of S9's hosted, equaling a total value of $200.000 in S9's alone.
S7's are around like $370 machines, and with 60% of total acclaimed available capability currently occupied of between 700 to 800 units, this would equal anywhere between a rough 295 and 355 pieces of S7's, averaging a rough worth of $120.250 of S7's.
So currently your company is responsible for assets worth of +$300k alone, potentially ending up anywhere between a rough 0.5M and 1M. Your company is responsible for that, and you're acknowledging (which is appreciated) that such an amount is at risk due to the absence of insurance?

My point is, you are quite trackeable. And, you are responsible for quite a bunch of other people's stuff. Plus, I believe your intentions are genuine and that you have a 'warm heart' towards the Bitcoin and such. So if currently insurance companies prove to be a pain, I would say to just install those damn (anti) fireballs  

My girlfriend is from Slovakia and a few months ago while visiting her family, was there some picnic where fireman's show how this ball works in action. I was impressed!
It can actually be a good solution..

To address your concern, I have been considering to buy some of these - https://www.youtube.com/watch?v=VkGGR1o9IC8

Not yet but we can potentially arrange something - really hard to get insurance companies onboard though - they would scratch their heads trying to understand why some noisy metal boxes are worth 1600 dollars each.

I've seen several burned farms, and sorry if I missed this information, but is there any insurance company that gave you insurance for all that stuff, or maybe you give some other guarantee in contract with your clients?

Most of the S9s - I would say 80%, and all the A7s are clients.

It looks really amazing! And it seemed that this is not a good time to build a farm .. 
I keep my fingers crossed for the success of your project!

How many % of this mining rigs is yours, and how many own your clients?

We are currently 60% of our full capacity only two weeks after official launch; the demand is going strong as bitcoin prices.

Best of luck. I was the first to post on HaoBTC's thread and I hope this is also the start of something as awesome!

Q&A with Eric Mu, Chinese bitcoin miner

http://supchina.com/2016/12/06/eric-mu-bitcoin-mine/

The digital currency Bitcoin was invented in 2008 and began making headlines in 2013, attracting converts and speculators alike. Bitcoins are “mined” using powerful computers that solve mathematical formulae to generate pieces of computer code that represent financial value. The process of mining them profitably requires such immense computer power that “server farms” full of hundreds of machines, all accompanied by fans blowing nonstop to keep them cool, must be set up in warehouses.

Once created, Bitcoins are tradable in some markets, though many countries have banned or restricted the use of Bitcoins, and the People’s Bank of China (PBOC) banned commercial banks from dealing in the currency in 2014. Nevertheless, China has become one of the world’s leading markets for and producers of Bitcoin.

In 2013, the price of one Bitcoin exceeded $1,000. As irrational exuberance over the virtual currency subsided, the price fell to below $200, but in recent months, it has been on the rise again. It’s currently back up above $750.

We talked to Eric Mu, a Chinese entrepreneur who runs SinoHash, a Bitcoin mining facility in China, and says he became engrossed with the idea of a monetary system that could bypass the state. China provides a natural place for Bitcoin to take off, Mu believes, and he has staked out his plot in the virtual mining community while Chinese regulators have been content with a soft approach.

Jeremy: What is SinoHash, and what is your role?

Eric: SinoHash is a Bitcoin mining facility based in China. Like other mining facilities, it generates revenue in Bitcoin by running a large amount of dedicated computing equipment that consumes a large amount of electricity — one megawatt in our case. In the Bitcoin system, mining serves the function of securing the network against fraudulent transactions and miners are rewarded for contributing this utility.

SinoHash is also a miner hosting service — customers buy hardware equipment and ship them to our facility. We operate them and charge $0.045 for every kWh of electricity their machines consume. This service is not unique for people who are familiar with the space. There are facilities located in the United States, too. Our facility is located in Shimian, Ya’an Prefecture in Sichuan Province. The decision was made mainly due to the cool climate and cheap power supply.

Our cheap electricity is a main draw for clients. Also, most households don’t have the space or time required for the upkeep of a large number of mining rigs, which generate a great amount of heat and an unpleasant level of noise. But we have appealed to a small group of investors and it has been fairly lucrative over the past few years.

Jeremy: How did you get into the Bitcoin business?

Eric: I first learned about Bitcoin in 2013 and quickly grew engrossed with it. The idea of government-less currency resonated with me and I began to look for ways to get more involved. I tried a few jobs at Bitcoin startups and this eventually led to building my own Bitcoin mining facility and hosting service.

Jeremy: How would you describe the Chinese government’s attitude to and regulation of Bitcoin and other cryptocurrencies?

Eric: The Chinese government doesn’t have an explicitly formulated attitude as far as I know toward Bitcoin and the industry at large. There is evidence that it is concerned with a potential speculative bubble, which is often attributed to its ban of banks from directly handling Bitcoin-related business. Some government departments, the People’s Bank of China in particular, have recognized the innovativeness of the technology and dedicated resources to studying it, in an apparent bid to apply its underlying technology — blockchain — in building its own digital currency. When it comes to mining, there is little regulation and interference. Personally, I think that Bitcoin has outgrown the stage where a single government can profoundly affect its development, so I am not too concerned with the Chinese government’s attitude.

Jeremy: How many people do you estimate are trading Bitcoin and other cryptocurrencies in China?

Eric: Due to the nature of Bitcoin, there has been lack of reliable data in this regard. There is a small group of frequent day traders — my guess is a few tens of thousands. Meanwhile, there is a much larger population of people who occasionally buy and sell to fulfill a need. They often do this through face-to-face transactions or social payment tools, which is very hard to monitor. I, for example, often facilitate people to buy Bitcoins using WeChat payment. I have a friend, an American expat living in Beijing, who regularly buys Bitcoins worth tens of thousands in yuan every month through me, and he has done this consistently for at least eight months.

Jeremy: Why has Bitcoin become so popular in China?

Eric: China has all the right conditions for it to grow. Here are some of what I think are the most important factors: a large internet-savvy population, cheap and abundant hydropower, mature electrical manufacturing, capital control and a depreciating currency. Historically, the savings rate is much higher here and Bitcoin has proven to be a resilient store of value. But I wouldn’t advance the argument that Bitcoin is more popular in China than elsewhere. Some of the most well funded startups in the space are probably in the United States.

Jeremy: How much do you think one Bitcoin will be worth in one year’s time?

Eric: I think it has a good chance to exceed the USD1,000 mark once again. After that, the sky is the limit.

The website has yet been officially launched. I just decided to put it there for the purpose of gathering feedback and to have an online presence. I do get paid by customers but through my personal bitcoin wallet and we sign old school contracts. Still need to get the company incorporated so users can pay using credit cards.

In case someone intends to buy a miner and have it host for 12 months, simply pick one from the "available miner model" collection and buy 12 hosting monthly packages that match the chosen model.

The hosting cost includes electricity, ventilation, networking, etc. basically anything except the hardware itself, which you need to pay seperately.

No other costs involved.

The reason that I use antminer for avalon is that I can't find one that is consistent in style with the antminer pics and being obsessed with aesthetics, I decided to make it unprofessional, quite deliberately.

Hope this answers your questions.

Your hosting prices and electricity fees are somewhat confusing for me. Let's say I would purchase a miner (S9 + PSU) through your site, what other costs would I face? The hosting costs for the specified model, the electricity fees, or both?



PS: You have a picture of an Antminer set on your Avalon product. You might want to change it, as it looks a bit unproffesional

I suggest you do some research before making a misleading statement like this - 0.045USD per kWh hosting fee is very competitive in the market and is the cheapest I ever know.

The USD10 per 24 hours trial is just for people who are curious about the procedure and is not intended to be a regular offering.

The mining hardware has retained its value fairly well for the past four months at least - if you have purchased any mainstream model in mid-July, be it A6, S7 or S9, you wouldn't lose any money and can expect to resell your rigs the same price you paid. Meanwhile, all the coins you mined during the interval minus the cost is your net gain.

I totally agree with your point of if any user is taking his service then he wont be in profit but will be straight away 3$ loss , then why i dont think that any user will try to invest in mining firm where it is clear before investment that he will be in loss of 3$ or what ever but it is clear that the users who ever are going to take service from the OP will be clear in loss and never get profit only OP will be getting profit from the users investment.

So i think that it is clear that who ever is investing as fools or over smart users.

Update:

SinoHash one-megawatt mining farm will be fully functional tomorrow. Still have some space left.

Update:

Already have 160 miner space booked - 500 more and we will max out and close this thread.

In case anyone here is interested in purchasing secondhand miners and have them hosted at the SinoHash facility, here is the quote from some reputable secondhand dealers operating in China.

Avalon A6 without PSU RMB1,750
Bitmain S7 4.45T with original PSU RMB2,350
Bitmain S7 4.73T with original PSU RMB2,500

Note that the prices fluctuate and by the time I post, these prices may no longer be available thus such info is only meant to be used as a reference.

Thanks for the kind words.

One thing I would like to add aside from ponzi-proof is that compared with hashrate contracts whose value evaporates as long as profit drops below breakeven point, the advantage of owning your hardware is that even you can no longer mine profitably, you can still sell to those who can and China being where most hashrate concentrates and some people can get free (but illegal ) electricity, you can always expect to sell quickly at relatively high prices.

So you are the founder of sinohash,since you have been here a long time you can now how everything works in this business,and nice to know that you are addressing each concern I bookmark your service and will calculate on it's profitability..

Those surveillance cameras are going to help to keep this business running