Quote from: captgnh on April 30, 2014, 12:03:21 AM

Quote from: brian_23452 on April 29, 2014, 10:16:51 PM

Quote from: tempestb on April 29, 2014, 09:17:17 PM

Quote from: brian_23452 on April 29, 2014, 08:29:51 PM

None of that applies to a 5 year mining contract, since they are under contract to continue to provide the hashing power for 5 years whether it is economical to do so or not. This is simply basic math, the total proceeds from hashing for the entire 5 year contract come to be less than what it costs to purchase.

I don't think that's correct. The current cost of a gh on PBMining is 0.0056. https://tradeblock.com/mining/a/702307c1fb

It's profit by August forward. Assuming current BTC price remains constant. This is better than holding.

(Assuming not a ponzi for the purpose of this discussion only.)

I've already explained the apex where mining is worth more than holding, but you need a value around $4,000 for that to work out. Which isn't likely.

Nevermind, I think I see why people buy these things, they don't get basic math. According to the calculator YOU linked to, 1gh/s purchased at 0.0056btc will never return 0.0056btc. Ever. I do see where you made your mistake, if you run the calculator starting in April it will eventually return more than 0.0056btc. But of course April is already over. Starting now, since pgmining doesn't seem to offer a time machine on their website, you can expect to get around 0.004 btc back by August.
Regarding your second point, you keep saying that if the price of btc goes up it makes this a profitable move. It doesn't. Obviously the dollar value of the btc you get back would go up in value, but then so does the dollar value of the cost you paid. One last time, paying 0.0056btc now to get 0.004btc later is not a good deal! And makes no difference what the btc is worth in dollars. But Im a very generous person. If you think it is such a good deal, I promise to give you 0.004btc in august for every 0.0056btc you give me now. Any reputable escrow service you wish to use.

The dollar value of the cost I paid does not go up. It remains the same. If the BTC I am mining goes up so does my profit. Perhaps you need to re-think your argument. It is flawed. According to you, no one mining is making any money. What would happen if everyone stopped? If I listened to people like you, I would do nothing but purchase coins. Then what? Without miners, you have nothing. So get over it.

Huh? You aren't buying the shares with dollars. You are buying them with bitcoins. This really isn't that difficult to comprehend.
You and I each have 0.0056 bitcoins. You buy one of these shares. I don't. Bitcoin goes to the moon, and hits 10,000 dollars by august. You have 0.004btc worth 40 dollars. I have 0.0056btc worth 56 dollars. Why is this so difficult to comprehend?