Topic: SkepsiDyne Integrated Node - The Bitcoin Mining Company - page 27. (Read 104236 times)

Update: still waiting on some of the computers, everything should be here by tomorrow evening and up by Saturday.  I'm still looking to see which pool we should switch to, and if anyone knows of a good pool with > 1 Thash/sec and no fees, please post!  I have a lot of big ideas I'm working on but there is so little time in the day!  I'll be pretty busy tomorrow too, so I won't be able to post until late again.

I believe he gave an estimated % growth, rather than a percent spent. I'm not sure exactly what it was, but it may have just been for an example anyways.

Pretty much the benefits are the same as having a mining contract, someone else runs, maintains, and cools the rigs.  I suppose that a slight benefit over mining contracts would be that with shares, the "contract" never ends, you would just have to sell your shares.

There's also voting, of course.

I haven't been following this thread in great detail. I thought I remembered reading that the OP's decided to give 100% of earnings back as dividends. If that's not the case, what % is currently going back into new hardware before dividends go out?

Also, what is/are the other benefit(s) of investing in a mining operation aside from profit?

It isn't so much the business or even the industry really... It's the individual rigs.

Until all the IPO shares are sold, we'll be seeing a rapid growth in hashing power.  We're leaving it up to Tawsix to spend these funds to bring in efficient and powerful rigs.  Once all the IPO shares are sold, or they start selling at an extremely slow rate, generated BTC will have to be put into purchasing new hardware.  The idea is that by then, mining has scaled up to the point that x number of rigs can be purchased every week, month, or quarter.

Remember that dividends are split up among IPO shares that are SOLD, not counting what goes to paying for Tawsix's shares.  15 shares will have a much lower percentage stake then what they have now. x shares out of 2000 lose 60% stake in the dividends when it comes to x out of 5000. Don't worry though, because as shares are sold, rigs are bought. Just be sure to calculate what % you will be bringing in...

• Now
• When all IPO shares are sold
• When all of Tawsix's shares are paid for

What's your point?  You are still comparing apples to oranges.  For this to be profitable, you need to make back your initial investment first, then you can start talking interest.  It might happen.  This seems to be much better run than the dishwara mess.  Of course, if you can find someone to buy your shares, more power to you.  But that is far from a guarantee.  You are investing in a business that becomes less profitable every day.  That's not a bad thing, it just means your calculations of value need to account for it.

It has already been stated that investment in new hardware will always be needed to keep up with difficulty. Which means that a certain percentage of generated BTC will be put into new hardware. Just as BTC will need to be used to pay for the electric bill as well as other expenses.

Also see...


Investing in a mining company has other benefits than the hopes of profit, if that was the only reason, I would have been mining by myself.

To yesterday's posts:

Will the new rigs be able to produce 1000+ Mhash/sec per piece ? Yes.

how about an irc channel with a password sent to all investors using a motion or something like that? To be honest I do not have enough time or a regular enough schedule to put together an IRC channel and be in it daily to answer questions, etc.

What is the max # of rigs you will be able to support in current facilities? Space-wise: >> 300.  Electricity-wise: 40.  Then we'll need a service upgrade (which comes with better rates, on the bright side.)

how many rigs can be cooled using the cooling methods currently being employed ? At least the first 40, then we'll have to see how expandable it is.

What problem did you have? Idle worker, disconnections.  Played with it for about an hour, then put them back on BTCmine.

I think it would be useful to know what timezone SIN is operating. EST (-5 GMT)

We've passed 200 BTC paid out on BTCMine! Let's hurry up and get out of there before it gets any higher! Working on it

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Update: Waiting on the cards for the second computer, so that won't be up today.  Other than that, everything else seems to be arriving on schedule.  I'm still looking around for a different pool than BTCmine, it is unfortunate that BTCguild does not work for us.  We may temporarily switch completely over to Bitcoins.lc just to get onto a no-fee pool for the time being.  I would appreciate any suggestions for pools with > 1 Thash/sec and no fees.

A note: the current situation is exactly why I proposed SIN: we've reached a higher difficulty but price of BTC hasn't followed.  This means that there is less ability for current miners to expand and less incentive for new miners to join.  However, because SIN is still getting investments (as well as still producing a sizable sum of BTC) we can continue expanding.  In fact, this week (the week following a huge increase in difficulty) will be the largest expansion this company has seen since the initial 5 rigs.  Once again, I would like to thank investors for their faith in this venture.  As Bitcoin makes history, so will we.

My bad. I do know what deflation means. That was a typo. I am sometimes dyslexic like that, embarrassing myself by typing out either an antonym or homonym of the word I am thinking of.

I don't think you know what deflation means.  The USD deposit will have lost value (purchasing power) due to USD inflation, an increase in the USD money supply.  This is one of the problems that Bitcoin has the potential to fix.

I think it does count as getting your deposit back. Any time you put in a deposit and get it back it has most likely lost value due to inflation. You're pointing out the obvious.

To some, probably to most, guarantee of getting a deposit back beats uncertainty of an investment where you might get a high return at first but no guarantee of ever breaking even or getting back your deposit.

A lot of people call bitcoin a Ponzi, which while there are similaries and I can see why they would say that, is technically incorrect. But a mining company like this one one step closer to a Ponzi. The returns are guaranteed to go down due to difficulty. Quoting an annualized rate of return is bogus because is not reasonable to assume that the rate of return so far will not either decrease or increase wildly over the remainder of the company's 1st year. Just to point out the risk involved, in order to maintain the current level of return , new mining hardware has to be continually added to keep up with difficulty. This means new investment is regularly needed to purchase more mining hardware, just to maintain an initial rate of return.

Of course that comes with the standard disclaimers that both BTC value as well as difficulty could either increase or decrease. No one knows, and what you are doing when you invest here is essentially making a bet on what will happen with those two factors. Plus you also play a juicy premium to have the mining company run the mining for you.

EDIT: Fixed typo deflation -> inflation.

Very nice explanation against insider trading, and why it should not be done, even in bitcoin companies.

Glad to see there are others who recognize the wild west nature of bitcoin and fight back against the morons who fuel it.

thanks why id like to know what the builds are. If he told us we would be able to tell him how to make it more efficient it is. Or if he took our suggestions. a base rig is pretty much the same getting the cards is the hard part.

sempron140
1000w-1200w psu (1200w isnt over kill some cards take a lot more power or he might put a dual core and 3x single core cards then  1200W would support it)
2gb usb stick
1gb RAM
mobo personally i like the MSI 890FX-GD70

then rest is just cards and how cheap you can get them.

We've passed 200 BTC paid out on BTCMine! Let's hurry up and get out of there before it gets any higher!

Maybe, but how many are selling shares in there efforts?

Yeah, no wonder he wants to call it a "trade secret". He'd catch a lot of flack for building inefficient miners. There's nothing special about those builds. There are hundreds of people on this forum that could build better systems.

If you store USD in a bank account your returned deposit will have less purchasing power than your initial deposit thanks to inflation.  If you get less purchasing power back from your bank, I don't think that really counts as getting your deposit back.

At a bank you get your deposit back.

I worked it out on the first dividend payout - for an earlyish investor at 0.75btc per share the first dividend payout represented around 30% annualised return. The second dividend payout brought the annualised returns around 40%.

Good point...

It's more than you would get for interest at a normal bank account.