Topic: Starting a new FPGA mining farm/contract! Cognitive Resurrected on[Havelock] - page 61. (Read 300686 times)

Cognitive is not a real company. We are free to suggest and discuss ideas even if it looks uncommon. We don't have any obligations unless we decide to.

What?! How do you even justify that? Of course they are entitled to the back dividends...

Unclaimed shares still have an owner, and it's not another party who hasn't purchased those shares. Why doesn't Cognitive do like every reasonable and professional company and use REVENUE to pay for staffing? Or better yet, Garr takes some of his shares and uses that as payment for the additional staff.

Is there a financial statement out yet? The one promised what, December 2nd?

Should unclaimed shares should be entitled to "back dividends"?
How about we create an Unclaimed Shares Reserve and use the dividends from these unclaimed shares to pay for staffing. In the event that the shares are claimed, the owners then receive their shares back but no back dividends. Thus decreasing the staffing budget as well.

I agree with with terabyte here, there are just way too many logical reasons why unclaimed shares have remained...unclaimed.

As other people have said earlier in this thread it is very unwise to go around taking ownership of other member's shares. Not to mention how sketchy that is. Those unclaimed shares need to be held in a reserve...



Seems like nobody cares of this massive mismanagement only a short period ago. I tried to bring some attention on numerous very real issues only a couple of pages back with no responses. 

I support this plan.

The main problem with this is, would we invalidate those shares so they can never ever be claimed?  If not, then it's really just a loan that could be called in any time, and if yes, then we are literally taking people's shares.  We don't know if these people are dead, in a coma, on a 6 month cruise around the world, or what...

After Cog.F and Cog F2 convert, there will be a total of 1,023 unclaimed shares.
I move that we vote to determine whether we want the unclaimed shares to be used as a means of paying for additional staff.

I vote yes

Thanks for all your calculations and estimates theterabyte.

Regarding the investment we already invested in GPU, that is great.
Now, could we consider cloud mining of CPU coin ?

It is extremely fast to setup : a matter of minutes and low risk as you pay per hour of use. No delaying, no scam.
You only mine when it is profitable. What do you guys think ?



 

CoinTerra TerraMiner IV became unprofitable at +300,000,000,000 dificult (with actual BTC price), and other old ASIC too.

Tilikum?

Adequate.

Hi Garrett,
Just wanted to check in and see how things were coming along with getting an explanation for the (lack of) dividends back in October/November.

Thanks in advance for taking the time to respond.

btcboston

That's only true because bitcoin went up another 4x in value though.  We really paid 680BTC * ~200$/btc => $136,000.  If we make 134 BTC today, that's pretty close to an equivalent return.  If you want to invest in BTC, just buy BTC - you don't need cognitive for that - if you want to own mining equipment however, COG is a great way to do that.  If BTC goes up in value, BTC might have been a better investment than mining equipment - but that doesn't automatically make it a BAD investment.  Maybe bitcoin stays around $1000 for the next year so a year from now a 6-month-breakeven miner would beat just buying bitcoins - nobody knows the future.  A good investor adds exposure to several investments which are hedged.


That is probably true - I think that's the best explanation for our investment in scrypt miners - there wasn't a more logical bitcoin asic to buy at that time.  COG should probably hold on to their BTC for at least a few months now to see which way the price wars go, unless a particularly good deal comes along.

Ehm. We already missed two weeks (13 Jan an 24 Jan). Which means accumulated BTC is less by 246 BTC, i.e. we only get only 134 BTC.


If this math is right and mining will start in the end of January, we get only 20% of bitcoins back. Which demonstrates that purchase of mining equipment is a hedge rather than investment. (I.e. buying mining devices and not keeping any bitcoins is just dumb.)


Maybe it is better to wait a bit, taking the above into account, and taking into account that multiple companies will be producing 28nm devices in large quantities: that will start a price war.

Been thinking a lot recently about the network growth thing.  Here are some more (completely out-of-my-ass and opinion based) thoughts:

Imagine in 6 months or so, the difficulty is 54,200,922,354 (30% per period projection).  At that time, 2TH/s will yield about 0.25BTC per div period.  If BTC is still around $1000/BTC, that is $250 every 2 weeks.  That means a $6000 2TH/s machine will cost 12 months to break even (and even more if the difficulty continued growing at 30% per period).

So obviously 2TH/s machines won't sell at $6000 each.  What price would they sell at?  Well, 6 month break-even is the absolute highest most people would consider a "good deal".  If we assume negligible network growth (which is obviously not the case, so we are low-balling it here) 6 months means 12 div periods means $3000.  add in 10% network growth and you are probably looking at more like $2000.  There is also cost-of-power to consider.  With all the sunk costs taken care of, can cointerra sell 2TH/s machines at $2000 and still turn a profit?  Probably yes.  But they won't be making so much money "hand over fist" to make investments in even more sunk costs, so they will make a constant number, rather than an increasing number, of machines, in all likelihood.

When GPUs went crazy exponential, part of why that happened was manufacturers were able to produce a LOT of GPUs and computers.  The infrastructure was pre-existing.  Also, people presumed that their hardware would be able to run for a long time, and if it become uneconomical, could still be used to play games or sell used.  ASICs won't look like that.  They are single purpose, and every company that has produced ASICs has sold out and been limited not by number of orders, but by manufacturing capacity.  110nm ASICs from AsicMiner would already be useless if the value of BTC hadn't increased as it did (thus lowering the relative cost of power).  Even as it is now they are likely to become uneconomical in the near future.  The thing is, theoretically, 28nm should never become uneconomical unless it was to be replaced with an even more efficient design (which for reasons I stated previously I think is very unlikely any time soon).

(calculation:  5W = 330MH/s, at current difficulty you produce 9.271602390864709e-05 BTC per day which at $1000/BTC is ~$0.092 and 5W means 0.005 kW*h, which is 0.12 kW*h per day, which at $0.15 per kW*h costs $0.02 cents per day.  If my numbers are correct a USB block eruptor is currently only producing 4x more money than it consumes, and when BTC was 100$/BTC it would be producing half what it consumes, i.e. no longer economical to run).


(the block eruptor blade is 75W for 10.7GH/s.  At current diff, produces 0.0030 BTC per day, or ~$3.01.  75W = 0.075 kW*h => $0.27 per day cost to run.  If BTC was at $100 per BTC, then a block eruptor blade would net only 3 cents per day and be a single difficulty bump away from being uneconomical)

(the same calculation for cointerra's 2TH/s 1200W device, on the other hand: 0.562BTC/day, or $562 per day at $1000/BTC, 1200W => 1.2 kW*h => $4.32 per day to run.  Even if BTC was still $100/BTC, it'd be producing more than 10x the power it uses, and as things are today, it produces 100x the power it uses).

All of this is evidence that the time very well may come when the network grows linearly, 2-10% per diff cycle, or even less, simply because if the network did keep growing at the rate it is, even the most efficient miners would lose money and people would sell them or turn them off (except those who get free/cheap power), putting natural limits on the network size.  And, once that occurs, existing hardware will last longer and be more profitable to hold on to, while buying new hardware will have risk and little additional reward.  At that time, all those other things I said about why COG > personally buying hardware become true.

(Disclosure: using the post-COG.FX numbers, I own roughly 1.6% of COG)

Looks like a $100/share is right around the corner!

Disclosure: I own ~0.7% of the company.

How often would you be upgraded and ordering more power?  The 28 TH is only good for a few months... March-May is when the dividends really start to fall off.

I just have to send Havelock an email and they will handle the conversion promptly.

The current share totals for all assets are:

Cognitive: 10420 shares, 9577 of which have been claimed.
COG.F:     100 Contracts, 96 have been claimed
COG.F2:   100 Contracts, 95 have been claimed

Initially, COG.F2 was set up to sell 600 contracts, but only 100 sold before moving to Havelock, therefore the remaining 500 still "for sale" did not transfer.

Theterabyte, I believe you are correct that hiring some help will be in the best interest of Cognitive. Whether this is for PR purposes, programming infrastructure, or anything in between, I don't know yet. To date, whenever I have needed help with something that pertains to Cognitive, I have paid him or her out of pocket.

I am having some electrical work being done to our current warehouse, converting some 240v lines into 120v, in preparation for our new hardware. This will be completed on Tuesday of next week, the same day our Litecoin rigs will be complete and hashing. I will be posting pictures and potentially video of the completed setup.

With regard to the time necessary to continue operation of Cognitive, I know this has been an issue for the past six months. As some speculated even a year ago, university has been a distractor from Cognitive. To counter this, I am taking a schedule of classes that only occur two days per week, Monday and Wednesday.

With additional focus on Cognitive, and a bit of hired help I am determined we can restore Cognitive to the state it once was.

Hey, you were pumping it, remember?