Topic: Your thoughts on a $3.00 - $3.24 per GH/s per Year Bitcoin Mining Contract (Read 8905 times)

I got a contract for 4.5 /ghs  hopefully its not a scam :/

i wouldn't even spend 1 ฿.  not that i have that much anyway 

No, sorry. However, I am working to put up a 5 megawatt (mostly hydro and wind powered) green facility by the end of 2014. I will even have much better, hosting only, deals then. My contribution to the Bitcoin community will be to provide ridiculously inexpensive hosting solutions. Who would have imagined that I would be trading at $1,100 USD per Bitcoin in 2013.

if you need to cut costs, just change the contract period to 9 months.

i will buy this if this is available.

Does this exist?

Sounds good go for it and prove everyone wrong. i will agree though with the previous post that your costs at that level will be high, 629kW is a lot of power and alot of cooling. bit mining is a HOT game. Dose your data center understand this? do they have experience of running BitCoin Mining Rigs?

i personally do this for a hobby and something to keep me occupied , i also support this new style of doing business & god knows i hate the fucking EVIL banks.
More Details needed i dont think this is possible with current tech the margins are too close for something to go wrong, what insurance will you give if you get a weeks worth of DDoS ? or bitcoins fall massively in price?
can i cancel a contract at any point ? too many factors for me to invest in this . i dont have faith in other people im afraid

You are forgetting something which is very important, dissipating 629 kW of power will be handled differently by various data centers. If you are running a dinosaur of a data center which wasn't designed with high efficiency in mind, you will pay for it. I choose to host my equipment in a modern day data center with an efficient design.

There is one thing that you cannot deny in life, different people are good at different things. It is a fact of life.

I founded and sold 2 ISPs in my life one with a quite big hosting and colocation data center.

If he plan to use Cointerra devices is 1200 W +/- 20% each, the to cool down in a "regular" data center 2440 W per unit with the electricity cost Supercomputing is saying, what is not possible in most States and in just few countries he will need much more money, Is not the same to host 2 or 3 machines that create excessive heat and power usage in a Data Center, that is lost in all the facility, you have 95% customers using less than expected energy and cooling and one 5% over the limit at the end you dont care, If the same guy wish 50 racks all changes, and you review all after seeing your premium customers complaints about the Room temperature and after receiving the electricity bill, as a Data Center owner you call the guy and say "hey joe this is not working for us".

Bitcoin mining require a different Data Center, one where cooling is very cheap and probably uses the outside cool air in some way and outside air needs to be cool, and a lot of electricity, Electricity in bitcoin mining is like the Bandwidth in a regular data center.

We can discuss it if you wish but really Supercomputer has a nice idea but he is not considering many things in the costs area and not only in Data Center, he is doing the number like if a miner is a standalone server that you leave it there and works alone, and the equipment is almost experimental you require to manage the volume of machines he wishes 2 guys 24/7 on site, with knowledge of bitcoin mining, so you need 8 bitcoin mining admins, plus lets say one chief, how he is going to pay that?

The plan is a nice idea but needs a lot of improvement, total cost per machine will be over u$s 250 near $400 most probable.

TMC

Sorry but you need to understand PUE
http://en.wikipedia.org/wiki/Power_usage_effectiveness
Hes right on track, except I would charge a lot less to host than a data center

Sorry buy you need to review all the plan.

TMC

You can have such a guarantee in some countries

OP, ignore the snobs and thread crappers. $3 is an excellent price per Gh/s, and being a junior member does not mean anything for credibility. Yes, going forward with this there must be assurances, but _anyone_ must do such before I throw money at their direction.

However, $810 is too steep for entry level

Cooling is part of the Power Usage Effectiveness (PUE).

Thank You.

And the cooling? Cooling may double your electricity cost.

All the best

TMC

You are correct, but is not as bad as you make it seem. I already have all of the infrastructure equipment (firewalls, switches, servers, etc) because of my line of work

Power contract for the data center = $0.036 kWh
Power Usage Effectiveness (PUE) = 1.5
Device = 2 TH/s (2,000 GH/s)

DaysPerMonth = 30.4
HoursPerDay = 24
KiloWattHour = $0.036
DevicePowerUsage = 1.2 kW
PUE = 1.5

(30.4) x (24) x (0.036) x (1.2) x (1.5) = $47.28 per device per month.

 $47.28 is your base monthly cost per device, and you host 8 devices (9.6 kW) per rack = $378.24 per rack = ($0.024 per GH/s)

The data center charges me $933 per rack (at wholesale) per month. As you can see, this is excellent wholesale pricing for data center space and power.

So now let us look at the bigger picture for 1 year. To host 1 PH/s @ 1.2 kW per device, you need 63 racks = ($933 x 63 x 12) = $705,348.

I sale 1,000,000 GH/s for $3.00 per GH/s = $3,000,000 - $705,348 = $2,294,652

 $2,294,652 go towards the purchase of hardware at volume pricing plus I pay for the difference out of pocket.


I am betting that I will make enough in transaction fees for a net a profit of 5% ($150,000) or less over 12 months. Also I will have 1 PH/s of equipment at the end of the year and that is when I will start to make a decent profit. I already sold 100 TH/s to another early adopter last week with no BTC guarantees, 90% to go.

You are new...

Yeah Id love to play satoshi dice with such a guarantee too.. Guess what, its not gonna happen unless santaclaus goes in to hosted mining business (or bitcoin gambling).

Well may be or not a Scam, I feel is someone not considering all the costs, For january the best deal looks Cointerra for about u$s 3 per GH.

But to operate the miner 1 year costs another $3.

So the lowest possible cost today is like u$s 6 for January. BFL probably will shot Feb or March and will be a total loss.

You cant check many offers more "tangible" some will start mining in October if you still found some available contracts.

http://www.topminingcontracts.com

TMC

$3 per Gh/s is an excellent price for a mining contract, IMHO.

Edit: if this comes out as the equivalent of lending money at an unknown interest rate, from as low as 0% as up to whatever BTC worth can be made from the mining contract, then it may be a decent deal for ME. It's better than an investment fund. To each, his own.

I just want that a way is provided to be 100% sure that I get at least my money back.

You are correct and your logic still holds. Let us work out an example:

You sign up with zero BTC.

I calculate your percentage of the Bitcoin network's hashing rate as (0 x HashRate) = 0

At the end of the year, you will have zero BTC and you will be no worse of than when you started.