Quote from: jimmothy on September 04, 2014, 10:33:05 PM

Quote from: blunthammer on September 04, 2014, 09:51:02 PM

You can mine profitably so long as you build a business model that insures it. Thinking you can buy a couple of rigs and put them in your garage in scottsdale AZ from June-September and profitably mine is not going to work. Mining at scale and placing bigger bets to buy in is what is required. Fewer and fewer people will have the balls resources or desire to go bigger and bigger to get a seat at the table.

The coin foundry value prop as I understand it is:

The sites are there ready to go in a real building.

You overnight rigs today, you are mining in 24-36 hours with whatever rigs you can mount and turn on
How many BTC can you mine with 1 MW in 24 hours? (I don't know)
Is it enough to cover the cost for that day and the weeks required to squeeze 58% premium over mining 1MW of BTC?
Those are the business questions that need answering.

Someone who wants to put 500 rigs in the site over the next 8 weeks seems to think it's a screaming deal. Dallas will be gone by 9/30 or sooner. New rigs are shipping and they want the jump on the hash rate to get going now vs, trekking around eastern Washington for 2 weeks to find a building. Then another 4 weeks to have a utility design a distribution system for them and drop in gear to step down the voltage, and then coordinate rack implementations, cable runs, and wiring installs (2 weeks) before the rigs get there and then have the people, process, and space to unpack rigs and get em racked.

It's all super easy until you start...

I'm sorry but you sound like a used car salesman. Are you the same person who designed the website? (who clearly has no clue how bitcoin mining works)

Your company is offering a horrible deal, no question about it.

A 12 month contract locked in with such shitty rates would mean a guaranteed loss of ~$0.5m assuming you have free hardware and it starts mining today.

Nobody gets free hardware so a more reasonable estimation would be a loss of ~$1.3m.

http://btcinvest.net/en/bitcoin-mining-profit-calculator.php?diff=27428630902&dcosts=0&diff_mincrease=15&blpbtc=25&dhsmhs=1000000000&diff_mincreasedecrease=3&btcusd=487.49&dpowcon=1000000&btcusd_mincrease=1&pcost=0.175&calcweeks=32&dleadtime=0&action=calc

Jimmothy, thanks for the guidance. I know the coin foundry guys and I know data centers. I clearly don't know as much about mining as most of the folks on here, I haven't had the time in Bitcoin that I have had in data centers.

If it's a totally shitty deal, what's a good deal? What makes it a good deal?
I have to assume that not everyone owns the fastest rigs. What if they did? What if they owned more efficient rigs? Why doesn't everyone just run those? Why aren't those the standard? What do you use?
Is the only unit of measurement the Kw or Kwh?
What does an efficient design of a rig or a facility do to the profitability?

I appreciate the link to the mining calc. Where do you mine? At what scale? How do you get a good deal?

What I don't see calculations for in that calculator are CapEx allowances, rent, taxes (ad velorum, sales, utility), debt service, insurance, infrastructure/tenant improvements, wiring, ducting, cabinets, labor, permits, security (physical & logical), and legal. Telecom services, shipping, travel, and all of the other things that are material costs of a business.

So what makes a great deal and why? I know you don't speak for the global community, I am curious...