Topic: SkepsiDyne Integrated Node - The Bitcoin Mining Company - page 48. (Read 104236 times)

The command line app for this is just to get started and let anyone who really wants to trade do so, we're working on a web interface that needs no install.

I am too old to learn these new tricks.  I can't make heads or tails of the stock trading site, and I don't think that I could use it at work anyway.

Anyone willing to be a broker?

Alternative future revenue stream for major miners with persistant peer connections to other major miners....

Small peering fees for direct connections to vendors who desire that their transactions hit the bitcoin 'backbone' in very few hops.

I would say that if the 750 shares didn't sell by the end of the month, I would purchase them all back and close up shop.  That being said, the minimum number of shares that I would require to sell before starting will probably drop as the exchange rate for BTC increases.

Interesting idea. 

If you estimate that 750 shares need to be sold to start the operation, what happens if someone invests and the initial 750 shares aren't sold?  Will the investor receive a refund?  Secondly, is there a timeframe to wait for the initial 750 shares to be purchased or start the project with whatever investment has been gathered?  I don't want to tie up a bunch of bitcoins waiting for 750 shares to be bought if it ends up taking months. 

Thanks!

I'm glad you mentioned this, I forgot to discuss the lodgings of the operation.  They will be housed in a large pole-barn with a 200 A breaker, and I will be utilizing the wonders of geothermal cooling to keep heat down (the ambient temperature in the hottest parts of the summer in the building is around 65 degrees F, so it stays naturally cool in addition to the cooling I will be providing.)  In the winter cooling will be a non-issue.  When the time comes, the breaker will need to be upgraded, both in the building and at the telephone pole, but I think that is a way into the future and will not cause too many problems in the short run.  I intentionally overestimated the consumption of each rig, as well as the price, in order to account for factors that I may not have thought of, such as the things you have mentioned.  The rig probably won't actually operate over 550 watts, but I think it's better to overestimate costs than underestimate them!

An idea that I'd been tinkering with myself in the past (although I was planning to personally fund it all from start to finish, but a distributed investment idea is very clever), that seems pretty feasible really.

One thing I'm not sure if you've factored in though aside from the raw power costs, which will actually probably be much lower than you anticipate (3x 5850s can generate 750 - 900MHash/sec and use about 500W for the whole system for example depending on overclock), is physical presence.

The 30 rigs you propose will need to be housed, that will require the physical space for 30 rigs. They will need to be powered as discussed as above, and in a typical household a circuit breaker can handle a maximum of 20A (in US, 120V*20A = 2400W), as well as having a main circuit which can handle between 100A and 200A for the whole house depending on how it was built (12,000 - 24,000W total for house), 30 * 500W = 15,000Watts (21000 if you really use 700W), or in otherwords even if you managed to split the rigs across every breaker, it's possible the house would then not be able to run anything else, like lights, refrigerator, dishwasher, microwave, etc. Speaking of other things that take power, cooling is one of them, 15,000 Watts is actually nothing to sneeze at, 15,000W-hours equals 54,594BTU. An average 3 bedroom 1440 Sq-Ft house would only utilize about a 41,000 BTU heater for the whole house (and you'd be running your 54.5kBTU heater 24/7), meaning you'd need to utilize a lot of airconditioning, adding both to the cost and power load (which you might be squeezing already).

Not trying to shoot down the idea, I of course like it, but just trying to throw out some other possible stumbling blocks you might hit upon as you aim for the future of the project.

Whoops, thanks for catching that error!


Yes, this was just a number I pulled out of thin air, and I haven't really decided on an exact number as of yet.  It would really depend on the changes in difficulty, so that the business would continue competitively mining.  That would probably be something that would be discussed and decided by investors.


Sure (@ $7.42/BTC, 157426.20629 difficulty):
Proposed rig ~$710
Theoretical power: ~710 Mhash/se
4,999 shares issued @ .75 BTC/share
~$27,819 or ~ 39 rigs
30*710 = 27690 Mhash/sec
Generate 50 BTC in ~6h 45m
~177 BTC/day, ~1244 BTC/week, ~4976 BTC/month (or ~$36,921 USD/month)

**Something I didn't take into account when calculating power costs: I have a variable rate where 10am-7pm is charged at ~15 cents / kWh and 7pm-10am is charged at ~8 cents / kWh, so that drastically lowers operating costs**

Rigs operate ~700 watts
504 kWh/day = ~$54/day operating cost
~$1500/month
Profit = ~$35421/month
45% growth = $15,939
Net Profit = $19,481 / month

10 shares = .001 stake
2625 BTC ($19,481) * .001 = 2.63 BTC ($19)
50 shares = .005 stake
2625 BTC ($19,481) * .005 = 13.13 BTC ($97)
100 shares = .01 stake
2625 BTC ($19,481) * .01 = 26.25 BTC ($195)

Once again, I think it is important to stress that I will be striving to have investments pay for themselves in 4-8 months.


As far as projecting difficulty increases, I'm no expert on the subject, but from studying several graphs as well as the effects of difficulty jumps on network power and the exchange rate for BTC, I think that even if the total number of Bitcoins generated falls (which is to be expected), the actual worth will be more than enough to compensate for the difficulty increase.  In the future (very long term here, thinking decades), mining will switch from Bitcoin generation and be about fee collection.  Less Bitcoins will be generated, that is a given, but more people will use fees and the worth of individual Bitcoins will increase to offset this.

As far as staying competitive, I believe that this is a relatively unique idea at this point, simply because of the scale proposed.  It's one thing to have a few computers running in your apartment where you aren't paying for utilities, but when the landlord realizes that you're using a whole lot more power than was calculated into rent, that will quickly end.  As far as power-efficient custom hardware, that would definitely be something worth looking into, and part of the growth fund taken from profits may be invested into R&D for something along those lines.  Once again, that might end up being something to be discussed among investors.  Eventually, as the business grows, the power consumption will overcome the current supply and will need to be upgraded, at which time the costs will drop (this is how my power company works, with larger consumers getting better prices.)  Once again, I think that discussion between the shareholders about new and more efficient rigs to use would be an excellent way to keep the business from going stale.


This is by far my biggest road block: I've lurked for far too long.  I am open to suggestions on how to help alleviate the trust issue, I think that it is very important and that this won't pick up off the ground until we can get past it.  A logical argument would be that I have much more to gain from following through with the deal than fleecing a bunch of people, because the money to be made is better than the money to be invested.

I’ve noticed your calculation for 50 shares is wrong, it should be 14.8 BTC.

An 15% investment in growth per month seems low to me, as the difficulty is rising much faster. Could you provide an update of those numbers with current exchange rate and difficulty?

Also, a projection of 1) difficulty and return of Bitcoins and 2) more details on future competitiveness (others have advantages such as free electricity or power-efficient custom hardware) would be interesting. Perhaps upgrading to a location with lower electricity costs, more efficient hardware etc.

Thanks for doing this, I’m definitely interested in investing in such a venture. My only real issue here is trust, as you aren’t very reputable on this forum yet.

GLBSE is UP, sorry about that, something I was doing had choked the server (it actually was up but had frozen).

Everything is working, go ahead and go crazy with it.

Here is the asset details for those interested in having a look.

http://dev.glbse.com/cgi-bin/asset?id=4813709653f9d4b4060d045fb1ebef1ef1a1895cb585d076c9553955e1005399.xml

View source if you can't see normal xml.

Also folks, don't forget to check out the trustworthyness of the issuer, and whether the gpg public key in the asset contract is able to verify the asset clearsignature.

These are up for sale.

SKEPSIDYNE INVESTORS ARE CURRENTLY VOTING ON LIQUIDATING THE COMPANY

Due to the low prices BTC has fallen to, it has become unprofitable to operate the machines, so a motion has been put up to liquidate the company and pay out proceeds back to investors.  This vote will be up until midnight Tuesday, November 22nd.  If you are investor and have any questions regarding the liquidation, please post them here, PM me, or email me at [email protected].

-Tawsix