The original Hashnest PACMiC v1 contract was very popular with investors and Hashnest sold out the original subscription in one month. Due to demand Hashnest has just opened subscription to their new PACMiC v2 contracts.

Hashnest PACMiC v2 Available Now

Hashnest PACMiC v2

As before the price is 1.0 bitcoin per TH/s. This new round of Hashnest PACMiC v2 will offer users 0.45 satoshis per second, per outstanding bitcoin, in bonus payments until the contract expiry in 120 days. PACMiC v1 paid out 0.7 satoshi per second. The original PACMiC v1 provided approximately 22% return per year if you turned on the Auto-Rebuy option for the contract. We calculate the new PACMiC v2 will only return about 14% per year.

Due to the lower return of the new Hashnest PACMiC v2 investors are enrouraged to compare options:

  1. Buy bitcoin while price is low. If price should dip below $200 buying and holding bitcoin might provide more profit than the PACMiC v2.
  2. Consider purchasing Antminer S5 GH/s on the internal exchange at Hashnest. If you purchase a PACMiC contract your funds are locked in for four months, while you can sell S5 GH at any time on the exchange.

How you allocate funds depends on your outlook for bitcoin price in the next 6 to 12 months. If you expect bitcoin price to remain flat at about $200 to $250 buying Hashnest PACMiC v2 will provide you a good return on your investment. Not as good as the original PACMiC v1 but decent. Certainly much better than a certificate of deposit, with somewhat higher risk of course.

However, the return on your PACMiC v2 contract may not be as great as purchasing Antminer S5 GH/s on the Hashnest exchange. And if bitcoin price turns up and a new bull market begins you would profit more from buying and holding bitcoin or selling the S5 contracts at a profit.

Another option would be to open an interest bearing wallet at HaoBTC. For wallets with less than 10 bitcoin you will be paid an annual interest rate of 6%. If you can afford to deposit 10 bitcoin you will earn 14% APR for 4 months or the same return as PACMiC v2. Your funds are not locked in as you can withdraw at any time. The longer you leave the deposit the greater the return up to 15.58% for a full year.

Having a hard time wrapping your head around how PACMiC v2 works? I have reprinted the best explanation I know of originally posted at Bitmain Talk:

Ok we’ve had this discussion before. I know because I’m the one who raised hell until I got the correct answer and here it is:

1 PACMICs is 1 THS of an S5. You own this 1 THS for as long as it takes to earn back the 1 BTC you invested and absolutely no longer. There is no maintenance, so you earn the full0.00961979 BTC for each day you have it. This works out to about 103 days that you get to keep it.

After that 1 BTC is returned you are done, you get no more from the contract and it shuts off.

Now of course there are difficulty changes that will change your payout, when I bought mine it was0.01 BTC daily. Since no one would loan anyone 1 BTC only to be paid back 1 BTC over 100 days later, they give you an “interest” payment that they call a “profit”.

You are paid a PROFIT of 0.45 satoshis per second for the entire duration of your contract. This is interest and it works out to 0.0003888 BTC daily. This amount is fixed, it is not tied to pool luck and it is not tied to difficulty level increases, although if the difficulty level does increase or the pool luck takes a crap, the number of days your contract would run increases, so you get the same daily interest payment, but you get more days.

If the difficulty level stays the same and 103 days is the total run of the contract, then you are looking at a total PROFIT of 0.04 BTC. If you assume that the $290 level holds, difficulty stays flat and pool luck is average, that means an investment of $290 today becomes $301.61 at the end.

A PACMICs is a bet that the pool rate will have bad luck and/or that the difficulty level will continue to increase or that bitcoins of the future will be worth substantially more than they are now. All of these events make your PACMICs position much more attractive.

Now here is where it can get confusing and this is where I ended up raising hell since I sold it to my business partners based on what they were saying at the time which was different than how it actually works …

Autorebuy!

You would think that with auto-rebuy turned on, that your principal would increase by0.00961979 BTCdaily. This causes some awesome compounding effects and makes the math so very much more attractive. In fact if this were the case you could easily turn 1 BTC into 3 BTC over a period of 180 days (assuming 80 days of availability for compounding).

Sorry, that’s just not how this little system works. Instead the0.00961979 BTC is used to buy more hashing power. As soon as you turn auto-rebuy back off or it turns off automatically, then all of that hashing power is used to speed up the payback period. Since your profit here is based on number of days that the contract runs, increasing the hashpower reduces the number of days until you get your coin back. This KILLS your profits, you have less days to collect your profits, i.e. less days of interest to collect.

To offset that a little, they do add the “interest” or “profit” directly to the principle so your principle increases at a rate of0.0003888 BTC daily for each BTC invested for each day you have auto-rebuy on. Let’s do the same 180 days calc. 80 days of compounding and up to 100 days beyond that to payoff. At the end of 80 days you have ~3 THS of capacity that only needs to earn back 1.0311 BTC in principal. You will have 1.05 BTC at the end of 6 months for each BTC invested, but the contract actually completed in about 120 days.

So the best way and only reason to consider buying a PACMICs is if you don’t mind giving Bitmain a low interest loan for about 100 days.In exchange you have a little bit of a hedge against difficulty increases and bad pool luck. Don’t put substantial amounts into it, it’s a bad deal all around.

I personally think loaning bitcoin to traders using liquidity swaps at Bitfinex will earn you much higher returns than investing in either HaoBTC or PACMiC v2 and is what I use and recommend for idle bitcoin.

  • Ahmad Fakrul Radzy Mohd Norddi

    pacmic v3 has released with 0.8 satoshi/BTC/sec and the price for 1 TH also only for 0.666BTC. Is it a good deal ?

    • Better deal than v2 and even v1. You could expect 23% APR if you turn Auto Buy on. I think v3 is a good hedge against stale bitcoin price in a trading range.