Can you please elaborate on these two justifications. I'm having a hard time understanding the reasoning behind making the RRP contracts expire after one year.
1. "because that would drive up the cost per Gigahash for RRP to a level that would make the program too expensive for our customers."
How does reinvesting revenues drive up the cost of hashing power? Why does it matter where the BTC comes from? Seems to me that it shouldn't matter if the BTC that are being used to purchase available hashing power are coming from the RRP or elsewhere. Is hashing power sold through RRP sold at a discount?
2. "Additionally, if we somehow tied the RRP contract to previous contracts, it would significantly lower our customers' RRP contract ROI each month as the deadline of the original contract approached."
I guess this is assuming #1 is true? I thought hashing power was getting cheaper per GH as new mining hardware comes to market.
Shawshank,
Maybe I didn't do a good job of explaining. What I meant was that if the RRP lasted two years, it would make us have to raise the rates per Gigahash. For example, in January we have announced a $15 per Gigahash RRP. It would be higher if it lasted longer, and we don't think that our customers want to make that tradeoff.
On your second question, imagine that you buy a two-year contract and that the RRP expires at the two-year mark regarless of when you invest. That would effectively mean that you would only want to do RRP for the first few months of the two-year contract because who would do RRP at say the 16 month mark only to have it expire a few months later.
By making each RRP contract a separate contract altogether, it makes it easier for people to decide if and how they want to participate. It's completely voluntary one way or another.
If I am still not clear, please let me know and I'll try to explain it better.
Michael