So you recently purchased some Bitcoin miners and you’re having them hosted through someone you met briefly online through a referral from a guy you don’t know. Three phone calls later and after speaking to a couple of business references, you’re now about to ship $100k worth of mining equipment to a PO Box in Nevada…to a complete stranger, God Bless the Internet.
Unfortunately, the scenario I just laid out is all too common, and why most of the people on this planet think we have a screw lose but you can only do so much reference checking before you have to eventually send someone a lot of crypto. But I’m not here to talk about this portion of this awkward part of the mining experience…I’m talking about the contract you sign when you drop off the miner to to be “Hosted” yeah that paper, did you read yours? Well if you did, then you probably have some questions like me, and I’d like to hear people explain to me their thoughts on the matter cause I certainly have a strong opinion.
If you can relate to the above situation then you’ve dealt with an off-site “host” for your miners, maybe your wife wouldn’t let you keep your Mini Doge on the nightstand or your 70something Dad who lives in the in-law suite can’t hear Fox News. on volume lvl 99 cause the S17 you keep in the closet is cranking 24 hours a day at 75 Db. Whatever the reason, you’ve decided to move these hot, noise machines out of the house, at the very least for a cheaper electric rate, and honestly I don’t blame you.
Well, after reading what is most likely unidentifiable next to the contract Tito Jackson made Michael sign when he was 5 or Don King had Mike Tyson sign as well. At one point in the docket it even forces me to agree to a 3rd party audit if I’m suspected of money laundering. Money Laundering!? My guy, I’m already 100k in the hole before flipping the “On” switch and if a criminal is taking all these extra steps and willing to wait literally 15months-2 years before even breaking even then in my jailable opinion he shuould keep it. But what if you’re not money laundering ( If you didn’t pick up the sarcasm, I’m not), well then you got privacy issues. I even said, "Hey buddy I’ll show you I pay taxes, I have my returns, but I’m not submitting to random audits and get this, "Complete control over customers miner if reached out to via phone and not responded to in what would be considered a “reasonable time frame determined by x host”. So you’re telling me while I’m shredding Lake Tahoe I got to worry about bringing a SAT phone because I might get my position in Bitcoin mining liquidated because I missed a phone call? It’s around this partstrong text when I realize whoever wrote this is probably insane…
Clearly, these are extremes…but in this day and age…before you sign a contract you have to think 10 steps ahead. Basically think of every possible way you could get f*cked by the recipient of whatever you’re signing and imagine them doing just that because these days people are litigious, lazy, don’t wanna work, so I’ll sue your sorry ass and they’ll do it because you didn’t return their phone call for two days apparently. I mean why put that crap there? Seriously, do people really sign this? I mean I know mining host locations are tough to find, but I think I’d rather pay a residential electric rate in CA, (0.35ckwh on super peak baby!) before I sign away all my rights to ever get my property back in even the slightest of disagreements. I’m not kidding when I say the way the contract is written he could force me to pay him…to set it up, which he advertises is covered BTW, no mine anything, bill me for downtime, and leave me a voicemail and when I don’t return it with 48 hours, he could be mining to his BTC address from MY machine…hah! F me right!?
The contract also completely holds them harmless of any damage incurred while on their facility or theft, but they brag about having live security 24/7 and cameras! I felt more exposed than Louis C.K at a matinee after reading that contract.
Now I’m fairly new to the space, but is this B.S normal? I know for a fact there are good small farms, good sustainable, even eco-friendly farms, and of course there are the farms the news covers that’re stealing electricity by the HECTA-WATT and enslaving poor defenseless PS4s and graphics cards… And we wonder why miners get a bad name? Besides the price of well…anything gaming related I don’t hate them, in fact I love the tech, love the concept, I crunched the numbers and it made sense to me, as a financial deciision but this is the LAST farm I found available that would take under 300 miners for under 0.8c kwh so my options are go with every cell in my body and run faway from this contract and never look back, or am I being a little too hard headed and this is just the way it is…because if this is common I should open a mining location.
One last thing that is a red flag to me…the location is in NV, they sent me a big Youtube video that looks like it was made in 1992 with a guy explaining electricity and Nevada tax breaks on crypto, so ok I’m liking what I see…but when I asked via email if I could come to the facility to check it out (genuinely curious) they put in the contract and I quote, … “Client holds no lease or term with the facility and has no right to visit the property without prior written permission which is at the sole discretion of the facility” . So…let’s just say they’re secretive in nature, I mean I get that right? I complained about a 3rd party tax man poking around, who can blame them? Well here’s where it got weird…
Line items in this contract were such that odd time frames were given (usually unrealistic and short in my opinion) and in my opinion would make it difficult for the signee to abide and thus put that individual in breache. It was so bad that to me it looked intentional ,I mean these machines are a lot of money and people do weird stuff for money…up to and including manipulating the court system in their favor to seize your property, heck the Govt. does it all the time in seizures from drug trafficking arrests. It’s honestly scary that they can do that with no recourse.
Ok so that’s my story, call me paranoid but this scares the living sh* t out of me. I’d like to hear your experience, and if I’m the only guy in the world with the stage 5 Patrick Bateman for an ASIC Miner Host…cause just when I think I’m about to start cashing in…I run into a potential serial killer.
I just want to mine Bitcoin.
- Do you know of a hosting location that has space for 5x S19s and another 5-10 L7’s? I’d love to hear from you! Looking for a location as soon as possible for ~07c kwh