Quote:
Originally Posted by Amnorix
Right, my moderately interesting story:
I was approached with an investment opportunity to buy into a company that is going to go "mining" for bitcoins. Apparently, there are relatively few ways to generate more bitcoins, and this is one of them. It gets harder and harder, however, to performj/solve the complex algorithms necessary to "mine" more bitcoins, so you need significant infrastructure and computing power.
Without going into too many details, these guys had it pretty well thought out. They had a site that formerly supported alot of computers for some big company, so it was already had the right HVAC and floorspace configuration etc. It was also supplied by cheap hydropower, as electricity is one of the biggest overheads you can have when you're doing this kind of thing, given the consumption by the mainframes.
The concept was they would generate bitcoins, then spit them out to the investors pro rata as they were mined.
Waaaay too many moving pieces for me so I'm out. Risk all around. Execution risk, price risk of the bitcoins, regulatory risk. Noooo thanks.
Sounded like a grand slam or strikeout scenario. Not for me.
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I probanly would have bailed, too. Like I said 5 years ago, there isn't really any real use for the buttcoins if you don't have any illegal activities to partake in.
That's enough of a red flag to laugh about the long term viability of them. Nevermind the 1 buttcoin you just accepted for expensive merchandise is now worth half in 30 days.