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ABOUT CRYPTOCURRENCIES & MINING

What are cyrptocurrencies?

Cryptocurrencies are virtual currencies whose security and privacy are ensured by encryption. The most famous cryptocurrency is Bitcoin, but there are many others. They can be used for online payments, but are rapidly gaining popularity as an investment asset class?

What makes them valuable? How can they be an asset class?

The primary value of cryptocurrencies lie in the their limited supply. They are similar to gold or other natural resources. However since they are created by men we are even more ever of their finite nature. The secondary value lies in the actualy demand for cryptocurrencies. Bitcoin became the vehicle in China for people to transfer funds out of the country. The Palestinian Territory where there’s no sovereign currency Bitcoin is used as payment. People who don’t trust their government with fiscal responsibility turn to cryptocurrencies. Some new, up and coming currencies will serve only in online derivatives trading or other financial transactions.

How many other cryptocurrencies are there and why are there so many?

Wikipedia lists 710 different cyrptocurrencies, but most of them are defunct or irrelevant. There are new ones being offered at ICOs (initial coin offerings) on a regular basis. Banks and financial institutions feel threatened by cryptocurrencies and the blockchain technology that’s behind them. So they either try to create their own currencies or back new up and coming “coins” to keep pace with change. The day JP Morgan announced that they are backing Etherium the price of Etherium went through the roof.

Don’t the owners own all the cryptocurrencies at the launch?

No. Nobody owns them. They need to be mined first by miners like us. We sell them on the open market.

What is mining?

Mining can be summarized in one sentence. You get rewarded in cryptocurrencies for providing the technological backbone of the cryptocurrency networks. By offering special hardware and software to verify the validity of Bitcoin (or other currency) transactions you’re authorized to solve complicated math problems. Whoever solves these math problems first gets the coin.

What is co-mining?

Co-minning is community based mining where people gather their mining resources. Managed co-mining is a facility where many miners share mining resources, but own their own hardware.

Are many other miners competing for the same money?

Essentially, yes. Mining operations with bigger hardware parks and better computers have a better chance. Miners pool their computers together to compete together. If there are many miners on the market it becomes more and more difficult to mine. At Valhalla we use a large pool of mining equipment and we increase the size of our pool thus becoming more and more competitive.

Is it true that it’s not worth mining Bitcoin anymore?

Ever since Bitcoin got launched the minable supplies have greatly diminished. It is difficult and energy intensive to mine Bitcoin. For $100 spent on electricity you might only be able to mine $97 or $105. We mine other currencies such as Zcash, Dash, Digibyte and the time of this writing. However by the time you read this FAQ we might be onto some other currencies.

What other currencies does Valhalla mine?

We mine Dash, Litecoin, Zcash, Zclassic, Digibyte, Ehtereum, Ripple, Litecoin.

MAKING MONEY WITH VALHALLA

Isn’t this too good to be true? High yields investments like this sound like a Ponzi scheme.

It is true that many other companies offer Ponzi schemes in the name of cryptocurrency mining. We put our names on the company. We audit our numbers annually and we thrive to provide fully transparent financials to our clients. We’re holding monthly conference calls to update our investors. Our yields are indeed high, but we are convinced that these yields will be lower over the next 5-10 years.

It this a good time to get in?

Probably the best.

What do I get for my investment?

You will get your own cryptocurrency mining hardware, a Valhalla Miner 1, which is our favorite workhorse. It is based on a 6-core GPU technology.

Will you set it up and operate it for me?

Yes. We will install all our mining software and mining algorithms that enable us to mine various cryptocurrencies and report your daily earnings. We will look after your machine and maintain it. If there are technical issues our engineers will look after your rig.

What is Valhalla’s fee?

We believe that we can only be successful if you are successful. We charge a 15% commission on everything you mine. So if you mine $1000 worth of coins, our fee is $150. This way you can rest assured that we do everything in our power to maximize your mining potential.

Are there other charges?

Your machine comes with a one-year warranty. During this time there are no charges for parts or labor. After the warranty expires we charge a $60/hr repair fee. You’ll also need to pay for the electricity use of your rigs. This will be deducted once a month from your earnings. Electricity is around $4-$6 per day per machine.

How much money can I earn with one rig?

It depends on a lot of factors. We’ve created this chart to show you good and bad case scenarios. Our business plans calls for $22-28 daily revenue.

How do I know how much my machines have earned?

We provide online statistics. You’ll be able to check your performance and payout statistics online from August 2017. Before that, your results will be emailed daily.

What happens to the currencies that you mine and how do I get paid out?

Whatever currency we mine we immediately sell it for BTC (Bitcoin) at the end of each day. This way we reduce currency risk. We pay out our clients every Friday in Bitcoin.

What do I do with my Bitcoins and how do I collect them?

You need to open a Bitcoin trading account. It’s like a bank account. We directly deposit your BTC to this account. Here you can convert it to Euros, Dollars, Canadian Dollars, Yen or many other currencies. If you wish you can also connect an ATM card to your Bitcoin account.

Where can I open a Bitcoin account?

There are many online companies. We recommend Kraken.com

Why do you use Bitcoins for payments if you don’t even mine Bitcoin?

We believe that Bitcoin is the largest and most stable cryptocurrency. There’s always enough liquidity. Transfers are fast and easy. We also see tremendous upside in Bitcoin in the coming years.

 

ABOUT RISKS AND MANAGING THEM

What are the risks of this investment?

Currency fluctuation, hardware depreciation, mining saturation are the biggest risks. Please read our investment guide for a more detailed risk management analysis.

Is my equipment insured for fire, water, theft, earthquake damage?

Yes. It is fully insured during year one. From year two you will need to pay insurance for your machine.

Is there a setup fee?

No. There isn’t. Our best interest is to have your machine generating income.

Where is it hosted?

We currently have one data center in Budapest, Hungary in a former NATO storage facility that complies with the highest levels of security. We’re looking into opening a solar powered, green data center in the US.

What if there are no more cryptocurrencies to mine?

We are not afraid of this scenario in the next 8-12 years. Mining is not only looking for new coins, but it is also providing the backbone of cryptocurrency networks. It is hard to predict what will happen in this business in the next 12 years, but we believe within that time frame mining should remain profitable. We also believe that there will always be new currencies to mine.

What if a new mining technology comes on the market?

Technology changes fast. We currently don’t foresee any major disruption. We also see 7-8 year old mining rigs still generating healthy 15-20% annual yields. They are not fabulous, but still profitable. We keep our assessment of 15-20% hardware depreciation annually.

ABOUT WARRANTIES & MONEY BACK GUARANTEE

If I don’t like this investment can I keep what I mined and still get a complete refund?

Keeping the mining results for 29 days plus the price of the mining rig could lead to an abuse of the system. Whatever you mined will be deducted from your refund check. No matter what you will recoup your full investment.

What does the one-year warranty cover?

The warranty covers all defective parts or defective construction for an entire year. All parts will be replaced free of charge.

How much downtime can I expect for repairs?

If it’s common parts such as motherboards, GPUs, power supplies we usually have these in stock. Your system should be back online in 3-5 working days.

Will I be compensated for lost revenue during downtime?

When you lose money, we lose money as well. It is in our interest to get you back up and running as quickly as possible. However if you own a large fleet of machines we recommend getting business disruption insurance.

ABOUT LIQUIDATING YOUR INVESTMENT

What if I want to take my hardware home?

The machine is yours, and you may collect it any time. However we do make our money on the mining yields. If you withdraw your equipment before your first year on your mining contract is up we’ll charge you a $2.50 early withdrawal penalty for every missed mining day of the year. After the year is up you’re free to move your equipment without penalties.

Can I operate it from home?

Yes, but it’s very loud and generates a lot of heat and you need monitor it 24/7 to be successful. We do not sell our mining software. If you take the hardware home it will not come with any software.

What if I want to sell my hardware?

We will sell it for you. Either we will purchase it ourselves or will try to sell it to another client. Just let us know.

How much can I get for my hardware?

It depends on the current supply and demand conditions. We will try to find the best price for you. You may also sell it on Amazon or eBay. Recently we found a four months old Valhalla 1 selling on Amazon for $8200.

What are cyrptocurrencies?

Cryptocurrencies are virtual currencies whose security and privacy are ensured by encryption. The most famous cryptocurrency is Bitcoin, but there are many others. They can be used for online payments, but are rapidly gaining popularity as an investment asset class?

How much money can I earn with one mining rig?

It depends on a lot of factors. We’ve created chart to show you good and bad case scenarios. Our business plans calls for $22-28 daily revenue.

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