Quote from: ricciolone on December 22, 2014, 04:10:56 PM

no, you have to consider the investment in btc non in euro!

Not sure if this is a Poe or not... If so, nice one, it's a great touch to completely fail to capitalize.

If it's not a Poe... well... ignore my jibe about capitalization, since that's really not part of the conversation.

The rest of my post assumes that this isn't a Poe. (I really can't tell if it's a Poe or not, so if it is, congratulations!)

When Pyra cashes out the bitcoins so that he can pay for the mining equipment, the rent, and the electric bill, he has to convert it to fiat currency. (He happens to convert them to US dollars).

Within days of getting your deposit, it has a set price. Today, that price would be around $320, depending on the exchange. 2 years ago, that was $13.

Pyra also can't travel to the future to pick up equipment that hasn't been made yet. This means that 2 years ago, Pyra was buying FPGAs.

$13 worth of FPGA equipment 2 years ago would have brought anyone about 40MHash/sec.

Today, that $13 would buy an ASIC, and would earn you about 19.2GHash/sec.

1 bitcoin 2 years ago gave Pyra the ability to buy 40MHash/sec. Today, 1 bitcoin gives Pyra the ability to buy 480GHash/sec.

Yes, the price of bitcoins has changed over the past 2 years. If Pyra had somehow created the mining pool without spending any BTC at the market prices that were available at the time, then perhaps it might be somewhere close to possible within some related alternate reality that we'd consider the investment purely in BTC.

However, the fact that Pyra has promised an eventual 110% return on the BTC without adjusting for fiat conversions is already well above and beyond the call of duty.