Topic: Starting a new FPGA mining farm/contract! Cognitive Resurrected on[Havelock] - page 136. (Read 300686 times)

I wonder if anyone is using LTC for anything else then exchanging them to BTC. Sorry for the offtopic

namecoin != ltc, no merged mining is possible.

I do worry about the economy, but I suspect it will develop.

IMHO I think this is an error. In a post-ASIC future every GPU miner will probably move into LTC, increasing significantly the difficulty.

We have already watched this movie about the effects of a extreme difficulty increase over a currency which lacks of a strong economy to rely on: namecoins. Since merged mining came into scene price has only dropped. I would expect the same with litecoins.

GPUs are the past. Damn! as a GPU miner I invested in this asset just looking for protection again ASICs!  

Would it be possible to buy GPUs now for Cognitive and then after ASICs release sell them (at fair value) to Cognitive-LTC?

Interesting idea. Deprecate the old hardware from btc to ltc mining, and if that becomes successful you have a way to grow the company without diluting shares further. Makes sense to me now, thanks for clarifying. Sounds good.

For Bitcoin mining, I believe that GPUs will only remain profitable for those with free electricity.

Mining an alternate coin (LTC currently being the prime candidate) with GPUs should remain profitable into the foreseeable future. This is why I believe it's the right thing to do if we want to expand before the long ASIC wait.

Edit: It has been brought to my attention that I wasn't clear what currency the dividends will be paid in. GLBSE only supports BTC, so all LTC will be sold for BTC every week before dividends.

My only thoughts at the moment are:

• No firm decision can be made, and there may not even be enough information to draw valuable conclusions until we see whether or not BFL delivers. And if they do, delivery time is the next factor.
• I would enjoy seeing Cognitive grow without my shares diluting every time. I know this is sort of a separate issue and that the 100BTC would be a form of growth without dilution, but what happens after that is spent.

Will GPUs really be profitable after the difficulty hike and reward halving?

Shareholders: Where do you want to see Cognitive next?

I see a few options for us at the moment:

• Expand FPGA infrastructure

         - BFL: If we choose to expand via BFL we are protected from BFL's ASICs, but we will suffer a long wait time.
         - Non-BFL: Here we are essentially banking against BFL delivering ASICs on time. These boards are delivered within a few weeks, but might take longer to pay off than we have time for.

• Wait for ASICs

         - A few other companies are thought to be developing ASICs (I know of four including BFL and OpenASIC). A viable option is to wait it out.

• GPUs

         - A common reaction here is "what?", but this is a decent choice in my opinion. GPU mining still produces the most return when looking at mh:$ ratio. Even when ASICs are released we can switch to Litecoin mining (which will likely be more profitable then than it is now) or even sell the hardware and regain most of the investment. The only downside to GPU mining is the massive electricity consumption. I would need to take out whatever the electricity costs from the GPU revenue (keeping in mind electricity is dirt cheap here at $0.07/kwh).

There will of course be a proper motion before investing in more hardware.

I'm always interested in what you have to say!

-Garrett

Edit: Keep in mind we have just over 100btc ready to go, which would be enough for us to buy a quad FPGA or a good GPU rig or two without issuing any more shares!

Thanks for the update Garret! 

I typed this last night and forgot to post:

The BitMinter payout for last week did not go to the address I specified. I'm currently going back and forth with them but they keep insisting it was my error, which seems impossible. I'm only using them until I can move the Singles to a cgminer host where we have free reign over pools (hopefully tomorrow).

I'm going to keep fighting them until we get the coins!

 

Why so low dividends? Any issue while mining? Maths simply do not match 

The motion has passed!

Details here: https://glbse.com/vote/view/103

BTC100 will be deposited with Patrick shortly.

What was the results of the motion?

Thanks for the positive feedback

Cognitive-LTC is not going to exist. Instead, I will be focusing entirely on the original Cognitive.

Great news!!!!

That means 41.3 bitcoins per week (being conservative, current difficulty and 95% PPS assumed), which gives a fantastic 0.0052 dividend per share!

That's rad! Thanks for the update.

Our seven BFL Singles have arrived and are hashing. We now have a total hashrate of 13570 mh/s!

Here's a picture I took of all our mining hardware (before moving the Singles to their permanent location).



Because of personal circumstances, I need to pay dividends today. To compensate for this, I will include the estimated earnings for the remainder of the week out of pocket. What actually gets mined throughout the remainder of this week will be included in next week's dividends.

Cheers,
Garrett

A motion has been raised to deposit our extra funds with PatrickHarnett.

https://glbse.com/vote/view/103

Our Singles have shipped and should be hashing next week. This will more than double the dividends assuming constant difficulty!

I will raise a motion to deposit extra funds with Patrick.

Additionally: Quote from this thread.