Quote from: smoothrunnings on March 30, 2014, 07:40:41 PM

Have you every bought co-location space in your life to store your own servers? They charge you per-circuit and not for the power you use. There is at least one state in the US that has the lowest power costs out of all the other states that would be a good place for setting up cloud mining sites. There was a story recently on YouTube of a guy who setup his own mining in this state; which they wouldn't name; in a co-location, he was making 8 million a week in Bitcoin mining and was using 1mw of power. (Yes..Mega Watt)

Quote from: Wesly on March 30, 2014, 10:19:54 AM

Quote from: organofcorti on March 30, 2014, 06:45:36 AM

Quote from: xstr8guy on March 30, 2014, 03:49:15 AM

I don't understand - 4Thps for $10000 vs 3 Thps for $11000 ? How much do you think electricity costs will be?

I don't know about everyone else but I've reached the limit of what my house can hold, physically and electrically. I also happen to live in a desert environment and it's starting to get pretty warm during the day.

So it's time to rid myself of my first gen gear to make room for the newer miners arriving soon. But then, I'm back at (or above) my max capacity. And with cloudmining suddenly becoming competetive with hardware sales, it couldn't come at a better time for me.

Think about it, 3TH for $11,000 for 5 years = 3kw * 24hr * 365 days * 5 years * 10-cent kWh = $13,140 for electricity alone = -$2,140 (loss) for PBMining? That's not even considering the cost of Bitcoin hardware? (Wait, where did they find the money to pay for the 3TH miner if they can't even pay for electricity?) Where is money to pay for A/C cooling (unless they are in the Arctic Circle), data center cost (or at least renting out a space), Internet, power redundancy for a large operations, administration... Where is any evident of their rapidly growing mining operations? Have they provide proof that they are paying people from freshly minted bitcoins and not simply transferring from new investment from new victims? Looks and smells like a classic ponzi to me. You might eventually get out with your original money or even make a little bit if you are one of the first victims, but you know what happen to all ponzi eventually once they can't keep the growth rate up...

Check out the PBMining thread: https://bitcointalk.org/index.php?topic=484355.100

Quote from: MrPiggles on March 20, 2014, 03:38:54 PM

You're the third (i think) person to make their first post in this thread in defence of PBMining.

https://bitcointalk.org/index.php?all=;topic=100696.0

Ponzi Indicators
1. High rate of return - Tick for PBMining
2. Provides no evidence of business activity - Tick for PBMining
3. Business activity is "speculation" - no
4. Steady rates of return - PBmining pays the theoretical rate per gh
5. Increasing demand for capital - MAJOR tick, jumped from 14th to 64 in weeks....

Unlike a regular business which has its largest demand for capital at the start, the ponzi starts off with a very small amount of capital ("refuses" deposits), and then grows rapidly. An increasing demand for capital makes sense only if the business can show what the money is being used for. A ponzi will need to have its capital grow at a standard rate that exceeds the withdrawals, whereas a legitimate business will have a varying rate of investment.

6. Operator hides their identity - Big tick for PBmining (I have found out who they are)
7. A Super Majority of Non-Investors view it as a Ponzi - Not sure, but certainly many people think so.
8. They advertise a "Limited Availability" tick for pbmining

I'd add 9 - offer referrals to bring in new business - and 10 - use shill accounts to pump their scheme.

They tick 6 or 7 out of 8 for the "how to spot a ponzi" thread list, and 8 or 9 out of 10 if you add my two to the list.

Yes, I can confirm, there are places in the USA, where electricity is as low as 2.4cents per kilowatthour. Hawaii is 43 cents after all the fees, etc, so we looked early on... Chelan, Washinton, is a hydrodam town, and such a place. There are others.
If you persue Chelan; steer clear of Chelan mini storage; the manager is dishonest, and attempted to over-charge us, and added for services he was not even involved in performing.