Renting Space For Mining

superskid

@haitch said in Renting Space For Mining:

@vier23 I agree to sell some of my storage, look at the earnings calculator, and that tell me I should earn X burst. Because of the downtime while I replot for the buyer - I'll sell it at X + 10%. The buyer earns the expected amount X - they paid 10% of X for losing money.

The model simply doesn't work unless either the storage owner has no interest in utilizing their capacity for themselves, or the buyer is an idiot. There is no rational reason for selling at less than it's potential value, and there is no rational reason for buying at higher than potential earnings.

That calculator does not know for sure how fast the network will grow. So if I take 10% less today it could end up being more if everyone starts throwing more TB to it. There is just no way to predict the future but one thing is for sure, you can't go broke locking in a profit, even if it't not the most in a perfect scenario.

superskid

@haitch said in Renting Space For Mining:

@vier23 I have the capacity to earn on average $1. To make it worthwhile to me - I'm going to sell that capacity for $1.10. The buyer can expect to earn $1, but will pay $1.10 for that capacity. See the problem ?

Here is where I disagree, I am confident I am adding TB for WAY below most people, because of that I would take the $0.90 let the buyer have the $1.00 and add more TB at lets say $0.30 when others are adding them for $0.60 (last 2 numbers totally hypothetically but the makes the point)

haitch

okay - I have somewhere between 250 and 300TB. I'll rent them out at 80 Burst/TB/day. Price is variable on Burst pricing.

superskid

@haitch LOL, you're a long term guy.

My asset is selling TB for $35 a TB and that INCLUDES all the power, hardware, and maintenance fees to run it. And it locks in that amount of storage if a drive ever goes down. I do think that is cheaper than most people can do it themselves for.

I think I am going to start selling and shipping drives for people that just like doing it themselves and don't want to do the asset. I'm thinking I will sell for $30USD a TB plus shipping.

But if anyone else wants the long term game and doesn't want to buy and ship I will sell blocks of 100TB for $27 USD a TB

haitch

@superskid Good luck with your asset. But as an american new home influenced capitalist - why would I sell my capacity for less than I can earn from it?

superskid

@haitch said in Renting Space For Mining:

@superskid Good luck with your asset. But as an american new home influenced capitalist - why would I sell my capacity for less than I can earn from it?

Don't, buy more drives from me. Putting up a marketplace thread now, just doing some weights and measurements of different drive packages.

gpedro

@haitch the only thing in renting the space is that as mining is based on luck, you can earn the expected or not and if you rent you will earn the amount you ask every day, so it's more stable income... example:
You expect to receive 1$ per day mining but if you got unlucky you can earn just 0.1$, also if you got lucky you can earn 3-4$ too, so it's a gamble... Now let's say you rent at 0.9$ to someone, that way you will receive 0.9$ per day everytime they are rented what makes it more stable and you loose the risk by transfering all the risk for who is renting it for you and they will take the risk for just 10% of expected profit, so it's kind of risk management?!

RichBC

@gpedro At the end of the day it has to be a zero sum game and in any reasonable run of time the main determinant of what you earn is how many TB do you have.

So if the Renter makes more than the "Going Rate" then the Owner makes less and if the Owner makes more than the "Going Rate" the Renter makes less.

In practice as the Owner is calling the shots he would be stupid to make less than the going rate so it's always has to be the Renter that looses out....

Perhaps to simplistic a view, but it's my experience of any sort of Miner Rental.

Rich