Daily Paul Bitcoin Mining VentureSubmitted by allten on Wed, 03/06/2013 - 14:35
Submitted by allten on Tue, 03/26/2013 - 14:54. Permalink
There are still two things I'm waiting for before pulling the trigger:
1)A response from Michael N. for his support. It doesn't mean he has to endorse Bitcoins, but simply work with me to make sure the operation is carried out as described. (Note: The 10% in operation costs will go to www.dailypaul.com). If there is never a response then the venture name and details will need to be changed.
2) www.Butterflylabs.com is the company working on the latest and greatest mining equipment. They have created 65nm ASICs (You can google that for more info) just for calculating Sha-256 Hash Function which can be used for Bitcoin mining. Releasing new technology is not the easiest of task and is always met with setbacks and delays. Until they show a working prototype and are confirmed to be shipping to customers then the operation is a go.
This post is subject to change
Introducing Daily Paul's Bitcoin Mining Venture exclusively for its members. I have not discussed this with Michael N yet (don't know his contact info'), but if he agrees with the idea, I would like him to be the escrow holder for the funds for anyone that would like to get involved and have part ownership of Bitcoin mining equipment. Also, if Mike's interested, I would like him to have the equipment and manage it.
Here is the mining equipment to be acquired:
This product is not shipping yet, but should start shipping soon.
Total cost of mining unit is $1,299.00 + $34.00 Shipping = $1,333.00
There will be a total of 27 Shares per unit.
Price for each share: $50.00
This is how I envision it being run (subject to change):
At the end of each month, sufficient bitcoins are withheld to cover energy costs, repair costs if any, etc. The amount will be calculated with the 30 day bitcoin price average.
After that, there's a 10% fee for managing the miners that could go into the Daily Paul.
The remainder of the bitcoins are split up between the share holders and sent out to their Bitcoin addresses.
The equipment will stay in operation until it can no longer pay for its month to month operating expenses.
So, other than setting this operation up and helping out, I will also purchase the remaining shares so that we get full units no matter what (up to $1,200 dollars).
When I first started sharing Bitcoin with my friends and family, the first thing I did was get them into Bitcoin Mining. I believe it is essential to understanding the economics of Bitcoin mining before ever considering buying/selling bitcoins. The recent parabolic rise in Bitcoin has certainly fattened up my wallet a bit (going to buy some silver and fund this operation), but its not something I'm proud of on behalf of Bitcoin.
I present this opportunity to you, not just as an investment, but as an opportunity to learn more about this new technology. I'm hoping everyone one will get at least one share. I even encourage the most ardent opponent to get a share and learn more.
Bitcoin mining takes a considerable investment to do it alone and that cuts the majority of the people out because they wisely choose not to risk very much money in something so new and difficult to understand. That is another reason why I've been forming these mining operations. I've wanted to give anyone the opportunity to participate in Bitcoin mining with the best equipment on the market for a small reasonable price.
Please consider getting ONE share and please don't make biased posts in this thread. There are plenty others for that.
I hope someday you will see that Bitcoin has the potential to make Gold and Silver used as money once again. There are efforts underway to be able to transfer silver or gold certificates the same way you would transfer Bitcoins (using Bitcoin's P2P highly Secure and distributed Block chain database) that will be 100% backed and 100% redeemable.