Quote from: dhenson on August 28, 2013, 04:45:00 AM

Quote from: FloatesMcgoates on August 28, 2013, 04:39:16 AM

Quote from: dhenson on August 28, 2013, 04:22:46 AM

Quote from: FloatesMcgoates on August 28, 2013, 04:17:36 AM

The IPO is just asking for way too much BTC, I have a feeling this will go the way of Hosted-Mining and end up DOA unless the initial price gets lowered and is replaced by some money from the actual founder in order to get his skin in the game.

If you run the numbers, this is actually a very interesting value proposition. There is plenty of room for growth considering they will be going live with 1PH when the network is forecasted to be around 3.5-4PH translating to an initial 20% of the network.

@ 20% of the network that's 800 btc/day * 65% for dividends = .0052btc/share per day or .0364/week (around 300%/year dividends over IPO price).

edit... As far as skin in the game, they have already stated they will be adding 20% hash rate out of their pockets with the dividends going 100% to investors until .65 is returned.

A few points:

-Surely having spent a fair amount of time around bitcoins and companies that deal in them, you cannot expect PETA-MINE to deploy on time.

-PETA-MINE does not have any additional revenue streams other than bitcoin mining. In order to maintain revenue, PETA-MINE would have to deploy an additional 20-30% of its total hash rate every 12 days. This equates to adding 200-300 Gigahashes the first time, then 240-390 Gigahashes the 2nd time and you get the picture. This is entirely non feasible given 35% reinvestment from mining alone.

-cryptx is as far as I understand not doing anything that any of us could not do. He is raising money in order to buy mining rigs - this is something that you and I or any average joe could theoretically do, so this is essentially a group buy with an extra fee.

These reasons are why I am skeptical of companies like basic-mining, cognitive, or peta-hash. It will be very hard to maintain any sort of network percentage and prohibitively expensive to keep up with difficulty increases. Real money is in making machines, not mining with them.

I'm actually quite optimistic about deployment schedule. Cointerra is unlike any chip manufacturer we've seen. One look at their team and all doubts of their ability evaporate fairly rapidly. If these guys can't deliver on time, no one can.

You are correct that anyone can do this, however you really need to scale up in order to effectively add new equipment with 35% reinvestment. If the entire IPO is sold, and they go live with 20% of the network they will be able to add approx. 17TH/day via their 35% reinvestment. (assuming they are paying 100% retail, which they don't seem to be).

I would like to see any sort of proof that they are not paying 100% retail. If cryptx were just paying 100% retail for this project, then there is absolutely no point in investing as we would be better off individually purchasing cointerra products.

Also, 17TH/day may sound great, but realize that we are dealing with percentages in a zero sum game. It will be completely and utterly impossible to maintain network percentage by reinvesting 35% of mining income. If that were possible, then everyone and their mothers would be doing it and causing a feedback loop making it impossible. As we have seen, ASICminer was unable to maintain 20% network percentage even though they produced equipment inhouse with no markup and had additional revenue through hardware sales. Do you really expect PETA-Hash to have a higher network percentage than ASICminer through simply buying machines through a third party? What about their ability to maintain any percentage they have? If ASICminer is struggling in the face of difficulty adjustments, what are the prospects for a company that has only 1 revenue stream that will only decline over time?