Antminer S9 back in stock! Buy some and have them hosted at SinoHash now

FAQ

Q: What is SinoHash and what does it do?

A: SinoHash is a Bitcoin and crypto-currency mining and hosting service located in P.R.China.

The company is registered in Isle of Man with the incorporation number []

The founder is Mu Xiaoliang, better known to the English-speaking audience as Eric Mu.

SinoHash owns and directly operates a one-megawatt mining farm located in Shimian, Sichuan province starting in November, 2016.

Aside from operating its own mining facility, by forming partnerships with multiple other mining firms, including Chengdu-based BitFountain, SinoHash is able to access to large pool of hash hardware and hosting capacity ready for consumers' purchase.

Q: How did you come up with the idea of building such a company?

A: Eric previously worked at a Beijing-based mining company handling the overseas marketing desk. During his year and seven months stint, he observed the market need for reputable service to help foreigners to access to China's low-cost resources. The culture gap and language barrier posed a forbiddingly challenge for most of them. Given Eric's background, it is easier to conduct due diligence and locate reliable hosting services in the market and build their own in a cost-efficient way.

In addition, the incumbent iteration of cloud mining has its shortcomings. Primarily, it is allowed to touch users' fund thus requires users to assume good faith of operators; in the case of SinoHash, user choose their own mining pools and the crypto rewards would be directly sent to this pool account, without going through the operator. Such an arrangement effectively mitigates the risk of operator running a Ponzi scheme-type of cloud mining.

To a lesser extent, since miners are directly pointed to the users’ pool accounts, the website sinohash.com, which only serves to provide information and facilitate payment, going down won’t affect users receiving their mining dividends. In case a mining pool cease to function normally, users can immediately inform SinoHash to switch to another mining pool thus limiting his or her loss to a brief period of downtime.

Q: Isn't China’s concentration of mining farm already a concern?

A: SinoHash’s choice of location is purely motivated by economic incentives. To be specific, mining in China has been consistently profitable over the past years owing to a number of factors that is hard to replicate in other geological regions:

Primarily, China's decade-long overinvestment in hydropower sector led to a surplus in supply. According to a recent government report, in Sichuan alone, 9.68 billion KWh worth of hydro power is wasted in the year of 2015. Logistically, Chinese mining farms also benefited from their short distance to manufacturers, enabling faster shipping, faster deployment and smaller repair cost, not to mention the 10% custom duty overseas customers are often subject to. China’s mining farms are exempted from VAT payment. The mining farms are usually located in remote, economic backwater, thus the labor cost (USD600 - USD700 per month ) is considerably lower not only compared with developed countries but also the coastal regions of China. The infrastructure used for mining has become standardized and their design optimized thanks to years of accumulated experience. In our own experience, we were able to build a

Today, China’s mining farms are exempted from VAT. They are usually located in remote, economic backwater, thus the labor cost (USD600 - USD700 per month ) is considerably lower not only than more developed countries but also the coastal regions of China. The infrastructure has become standardized over years and their design matured and optimized, enable one to build a fairly new farm within a week at a cost about USD 15,000 per megawatt. 

While SinoHash is geologically located in China, this effect is mitigated by the fact that SinoHash users can choose their own mining pool - you can mine an overseas mining pool using your miner hosted in SinoHash mine and this contributed to the decentralization. 

As much as we like Sichuan, we don't resist the idea of going to other regions outside China, granted that all important conditions are met. We are in talk with people in other parts of the world to explore the opportunity there.

Q: How do I purchase miners?

A: Users are encouraged to purchase miners directly on manufacturer’s websites. In terms of brand, Bitmain and Avalon are two most established Chinese ASIC mining hardware manufacturers. Bitmain, in particular, is the first to release a working 16 nm model and their products are released irregularly and usually sold out within days. When it comes to GPU mining, SinoHash has been conducting research to build the most cost-effective mining rigs using off the shelf parts. We will sell these hardware on our website once the research concludes.

For users who intend to host miners with SinoHash, they can buy the hardware new on the aforementioned two companies' websites and have them shipped to SinoHash’s mining operation according to the address provided on the website. Alternatively, you can also purchase the hardware on the website of SinoHash. While we never intend to make profit from being a resellor, we hope by facilitating your purchase, we can make your experience more streamlined. Given the special nature of Bitcoin and mining, most hardware products have no refund policy, yet at SinoHash we undertake to give 90% refund within one week of the purchase. Users can also buy in-use hardware from us. The price will be updated to the website. For larger volume that we don't have, we can help buy from market. Send an price enquiry on the Help window on the website, stating the number you want to buy and the models, then we will come back with a quote.

Q: How do you ensure security?

A: Security is paramount for our business model. Our mining farm is like a bank vault stored with customers' gold bullions and other valuables. We monitor the surrounding and inside the facility using multiple distantly controled webcams. Our farm is built on top of a second-floor building with entrance blocked and locked. We have dedicated security staff and the employees of our partner hydropower station are also on site 24 hours a day. We also have established a dedicated and growing insurance fund in case of unlikely events. 

Q: How do you ensure transparency and trust?

A: SinoHash intends to build an auditory board consisted of volunteers who will visit the facility regularly. The auditors will be bitcoin enthusiasts of multiple nationalities who live in China and have reputable careers - fund managers, diplomats, and startup entrepreneurs. For them, the motivation will be a large part for the health of the community. Most board members are people who Eric regularly meet at the Beijing Bitcoin Meetup, which he coorganizes. The purpose of the trips will be to verify informaiton of interest to users. They will not be paid for their time but will have their travel expenses reimbursed by SinoHash.

Q: How do I track my shippment? How long will it take?

A: In case users intends to buy brand new miners from a manufacturer, such as Bitmain, the average shipping time based on our experience is one week.

Users can track the shipping status using a variety of Chinese services, the easiest would be typing in the track number on Baidu, the top search engine of China, assuming the user can read or understand Chinese language.

Once we have received the shipment, we undertake to use best effort to put these miners in state of operation. This typically requires less than two business days.

In case users intend to purchase miners owned by SinoHash, this will typically takes a few hours.

In case users intend to purchase miners from a secondhand dealer. The process will be similar to buying from manufacturers directly and one week should be expected.

Q: Do you mine other currencies?

A: Blockchain and cryptocurrency is brand new and nobody has a crystal ball as to who will be the champion in the future, so here at SinoHash, agnosticism and pragmaticism are two guidling principles. While the majority of our hardware mines Bitcoin, we operate a small percentage of GPU miners as well. With our users, we intend to give them the flexibility to choose whichever currency to mine.

Q: Do I have to mine until the profit becomes zero?

A: No. Not every miner is a long term bull. Many mine for a specific amount of time and then divest their hardware to lock in their profit. This can be done quite easily given China’s booming mining industry, there is a liquid secondhand hardware market where every day thousands of secondhand miners are changing hands. Once a user inform us his intension via Help or email, we will give you a quote to purchase your miners. If you agree, we will send you the fund based on the agreed upon price wthin one business day. 

Q: I don’t have sufficient fund to pay for one miner, can I still use your service?

A: We are aware that as a new service, and it will take time to grow user confidence. In case you are not comfortable to pay for an entire miner (this only apply for users who choose to buy using our website ), thus we are offering the option of paying an upfront 50%, you will get the miner for a month, during which you will receive the proceeds in your designated wallet. Afterward, you have the choice of either divest or pay the other half and own the miner and continue mining. If this is too complicated, think about a property mortgaging - the bank agreed to give you a loan using your house as collateral.

Q: Do you do other businesses aside from mining?

A: We have no intention to expand to other sectors. Our only goal is to provide globally available and most cost-efficient mining. We want to be the champion of cost effectiveness and will refrain ourselves from pursuing anything that can potentially increase operational cost thus running the risk of undermining this goal.

Q: How do you determine who to partner with?

A: There are a large number of large mining farms and they are very experienced and well-known in China. Given that we are based in China, it is easy to conduct due diligence. We have very rigorous screening process and only pick the ones that meet our demanding standards. Once agreement is reached, we will send dedicated employee to their facilities to ensure the security of our hardware. 

Q: What if there is a theft or other events of disastrous outcome occur causing loss of users’ trusted hardware?

A: The relationship between Users and SinoHash is one of custodian relationship, in which SinoHash holds customers' assets for safekeeping to minimize the risk of their theft or loss. In case of theft or loss, the company will liquidate its remaining assets and other means available to compensate the affected users. A police investigation would be called for and if the founder and operation team would be culpable had they been proven of having conducted some wrong doings.

Q: What model should I buy? 

A: The mainstream models are currently Bitmain S7 and Avalon A6. Their manufacturers have ceased to produce new units and moved onto the next generation, though they are both abundantly available in the secondhand market with proven reliability and may prove to be good value for their lower prices. 

Bitmain’s S9 is the most power-efficient model in the market and is expected to be the champion for a long time. 

The tradeoff is that you have to pay a premium for it.

Q: How long should I expect to get my investment back?

A: Like all forms investments, no return is guaranteed. But our experience is less than 12 months ROI in most circumstances.

Q: What If my miners break down? 

A: Despite that the technology has matured considerably since its early days, mechanical failure sometimes does happen. If you purchased new models from manufacturers, such as Bitmain, your miners come with a three-month warranty.  

In the situation where your broken miners are rejected by Bitmain, SinoHash undertakes best effort to repair your machines. Most problems can be solved with low cost, such replacing a broken fan, some may be pricier, such as replacing a burned hash board.

Q: How is the hosting cost calculated? 

A: Our monthly charge is calculated based on the following formula:

30.5 (average number of days per month)*24(hours per day)* Number of KW the specific model consumes*RMB0.30 per KWH (price per KWH + operational cost+ margin )*X(the KWs that the specific model consumes )

For example, a S9 13TH model's monthly hosting cost is 30.5*24*0.3*1.35