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Re: Big bucks post# 51783

Friday, 04/24/2015 1:52:56 PM

Friday, April 24, 2015 1:52:56 PM

Post# of 57991
A little accounting and logic should be brought into the picture.

We see your revenue projections. What does the expense side of the ledger look like?

As many have pointed out here, there was a proposal by Brett to lease hashing power. Interesting concept.

If I owned a printing press that could (legally) print $ 100 bills why wouldn't I run my press 24 x 7 and keep those bills for myself? I would lease that capacity to print $ 100 bills because...why?

BTC mining is similar with one big added variable: unlike the value of a $ 100 bill, the price of BTC can fluctuate. I suppose if I had 3PH of mining I could "lock in" a fixed profit by finding someone willing to take the risk of BTC price fluctuations.

So, if BTC value stays the same, Lessee makes a tiny profit from the miners. If the price of BTC goes down, Lessee loses his shirt (and ultimately walks away from the deal).

The only scenario where Lessee (MELY) wins big is if the price of BTC goes up significantly.

So, the cost of the 3PH lease is a HUGE factor. I doubt such an arrangement will be very profitable for MELY unless BTC soars in value.

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