Here is my interview with Guy Corem of Spondoolies and Marco Streng of Genesis.
I will have an interesting one with them as well on cloud mining in general and what risks and things are out there in the coming weeks as well.
Spondoolies-Tech Enters Cloud Mining Partnering With Genesis Mining
Decent bunch of people it seems.
I’m more interested in what people think of one of the statements he made regarding Cloud operators mining as well?
I for one, can’t really see the problem with it. PLEASE NOTE: Not PRE-MINING with customer pre-orders (that just blows), I mean’t buying hardware with their own funds, then mining with the portions that are not sold yet.
Company buys 5 PH of mining hardware. Hardware arrives, gets hooked up and can now generate income.
They start selling and as they are new, they sell 1PH of the 5PH in the first month. By month 2 they sold 2PH and by month 3 all 5PH.
However, if they weren’t mining in the interim with the remaining power, they would have lost a potential income of $60 000 per month per PH give or take. So total loss of potential income for that period would be > $500 000.
So as I understand it, its a nice sales tactic, to claim they don’t mine with the “unsold” hashrate, but essentially to me its a matter of liquidity. They aren’t planning on buying the PH of hashing, if it doesn’t get sold.
Guy at SP feels that spinning up more than you have sold to your customers is competing with them and does not serve the best interest of Bitcoin nor cloud mining.
That being said since they are a manufacturer they can spin them up very fast as needed.
They are also not just sitting on their miners they sell them so they are always moving and have more than one stream of revenue.
Still a very risky and bold move at the same time.
Yeah but there is a major difference between a Manufacturer mining, and a cloud service mining
I get that its BS for the manufacturers to mine with equipment, since that makes them second hand to start off with.
But that doesn’t equate to Cloud mining company, unless they are one and the same (KNC for example)
I agree but I know Guy never wants to be seen like KnC was with that whole mess.
I am going to bring this up with him when I talk to him again in a couple days.