CoinTerra Is Now Offering Bitcoin Mining Contracts Out Of Their State-Of-The-Art Datacenter

Journalist:
May 12, 2014
CoinTerra’s Ravi Iyengar

CoinTerra today announced the immediate deployment of their state-of-the-art tier-3 compliant datacenter.  From this data center, CoinTerra plans to offer Bitcoin mining contracts to individuals around the world whom are unable to mine in their own homes due to constraints with mining hardware imports, high electricity costs, or nagging wives.  They are offering contracts as small as 12 months at 200 GH/s for $999 all the way up to 24 months at 1 PH/s.  According to Dr. Timo Hanke, CTO of CoinTerra, Inc., CoinTerra has a distinct advantage over its competitors:

“Unlike other cloud mining solutions, CoinTerra builds its own hardware, so we can rapidly deploy multi-Petahash solutions on-demand to the datacenter. The systems are monitored by a team of experienced engineers, assuring twenty-four seven uptime in a controlled and secure managed environment.”

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[dropcap size=small]O[/dropcap]ther large ASIC manufacturers, of both Bitcoin and Litecoin mining variations, often have to bid against each other for foundry time at the limited amount of large-scale foundries around the world that can produce mass quantities of 28nm ASIC chips.  CoinTerra is based out of Austin, TX and has taken a front seat in Austin’s “Silicon Hills” technology community.  CoinTerra was a large sponsor of the Texas Bitcoin Conference, which was also held in Austin, back in March.  Austin is just one of the large metropolitan areas within Texas.  The Bitcoin community in the Dallas/Fort Worth area, the San Antonio area, and particularly the Houston area have all been growing rapidly over the last few months.

CoinTerra mining contracts are available on their website; they currently have the lowest price per GH/s on the market, which is their luxury as the first mover to deploy an entire data center capable of taking advantage of economies of scale.  Soon, other cloudhashing services around the internet will see an adjustment in the $/GH/s spot price.  However, unlike open cloud hashing markets where users can buy and sell their GH/s (likely TH/s in CoinTerra’s case) at will, CoinTerra customers will be locked into a year long contract, or worse, a two year contract.  If the last two years have been any indication of the future path of Bitcoin difficulty, then your difficulty projections into 2015 are severely inaccurate.  The Bitcoin difficulty changes roughly every two weeks.  Most recently, the Bitcoin Network difficulty changed to 8,853,416,309. This represents a several digit growth rate in the last year alone.  However, the good news for every Bitcoin miner is that the daily growth rate of the Bitcoin Network hashrate has been slowing recently.

Bitcoin Mining Contracts Become More Popular

CEX.io was one of the first services in the world to provide affordable Bitcoin mining contracts to the masses.  In addition to hosting miners at datacenters for users around the world, CEX.io provides a spot market for users to buy and sell their purchased hashing power.  However, CEX.io does not design, manufacturer, or assemble the miners and as such does not always have the most cutting edge hardware.  In contrast, large ASIC manufacturers such as CoinTerra or KnCMiner which was the first to announce plans for a tier-3 datacenter solely dedicated to hosting the company’s own miners to be rented out to users, should be able to offer lower prices.  With Scrypt ASIC companies such as Zeusminer and Alpha Technology both announcing hosted solutions as well, the rise of Litecoin Mining Contracts is also imminent.

Last modified (UTC): May 13, 2014 00:16

Caleb Chen @bitxbitxbitcoin

Caleb is a graduate of the University of Virginia where he studied Economics, East Asian Studies, and Mathematics. He is currently pursuing his MSc in Digital Currency at the University of Nicosia.