poby

Any Bitcoin Miners Here?

13 posts in this topic

I'm invested in bitcoin and ethereum and I've been thinking lately of building a mining rig.  Bitcoin home mining requires a dedicated ASIC that will likely be out of date in 2 years and be worthless.  But most alt coin mining can be done with an upmarket GPU (graphics card).  I've researched and to build a decent rig with 6 GPUs will cost me around $3000.  Roughly what the latest bitcoin ASIC (antminer S9), would cost.  But unlike the ASIC, the graphics cards will still have some residual value when they are no longer able to mine economically.

Just for fun, I've been mining monero on my laptop and making around 20 cents a day.  Probably using more than 20 cents in electricity but as a proof of concept, it's got me interested in more.

It would likely take at least a year for profit to overtake the initial $3000 rig cost, so it's a venture not without risk.  But once the hardware cost is paid for the rest is profit until the 6 graphics cards need to be replaced with newer faster ones.  The only running cost is electricity which as mining difficulty increases, will likely make the cards uneconomic eventually.  Even old cards would continue to be viable if you had a spare kilowatt or 2.  (I don't)

PROs

1. It's fun!  There's the fun in building and tweaking it, and then there's the fun in having a box that sits there day in, day out, earning money.

2. ???

3. PROFIT

CONs

1. Largish initial investment.

2. Black swan event that makes home mining no longer viable especially if it occurs within 12 months.

3. Ethereum will change from POW to POS some time this year which means all those home miners mining ethereum will probably switch their rigs to mining other alt coins.  This will mean a massive influx or processing power which will likely greatly increase the block difficulty resulting in much lower profits for all.  This is my biggest concern.

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Bitcoin is unregulated and is used, for instance, in purchasing illegal drugs on the darkweb.

The very recent ransomware attack on the National Health Service here in the UK demanded blackmail payment in bitcoin.  An expert on TV described this kind of crime as robbing a bank with almost no chance of being caught, because of the untraceable nature of bitcoin.

I suspect that bitcoin and other cryptocurrency may become subject to legislation in the near future, but when or even if that happens is anyone's guess.  Let the buyer (or miner) beware.

This from google:

cryptocurrency

noun

A digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.

"Decentralized cryptocurrencies such as bitcoin now provide an outlet for personal wealth that is beyond restriction and confiscation"

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Many countries already have varying degrees of cryptocurrency regulation.  When I buy bitcoins in Australia, I need to have a registered account with full ID requirements.  But then the first thing I do with my coins is send them to a bitcoin laundry to remove all traces of my fingerprints.  The coins I get back from the laundry cannot be connected to me or my original purchase.  I keep those coins secure in my totally anonymous offline wallet which is on an encrypted hard disk.  The cool thing about my wallet is that I can throw away the hard drive and still be able to recreate my wallet (and the bitcoins within) using a 13 word passphrase I have memorised.  

The above doesn't mean I'm doing anything naughty with my bitcoins.  I just don't like Big Brother keeping an eye on me.  I don't think there is any way of stopping people from using bitcoins anonymously.  It's like downloading copyright stuff.  IF you careful, it's virtually impossible to be caught and there's virtually nothing the government can do about it.

Current market value of all cryptocurrences is over 50 BILLION USD and growing at a rapid rate.  While it's definitely a high risk investment, I can't really see how the government can stop it, or even regulate it in any meaningful sense.  I think only a massive hack can slow it down (which has happened before).

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What if you just buy bitcoins instead of equipment to make bitcoins?

At the average speed $3000 would be $6000 next year.

Eth has raised nearly ten fold in a year.

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26 minutes ago, rep1 said:

What if you just buy bitcoins instead of equipment to make bitcoins?

At the average speed $3000 would be $6000 next year.

Eth has raised nearly ten fold in a year.

Yeah!  I've thought of just buying more eth and btc cos mostly likely the price of both will double in the next 12 months or so.  But it would be more fun to build a mining rig and watch it daily create money for nothing (and chicks for free).  Maybe not as profitable as simply buying more coins but it's good to diversify and besides, I have too much time and not enough to do with it.  Building a rig would be fun!

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but electricity is expensive here. Solar power?

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I thought home mining was already not really viable but I'm not the researched in it.

 

 

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50 minutes ago, TheWhiteKnight said:

 

I thought home mining was already not really viable but I'm not the researched in it.

 

 

Yeah the days of bitcoin mining with GPUs is long gone.  The only way to do it now is with a dedicated ASIC that is designed purely to mine bitcoin and will never have any other purpose.  To make matters worse, The economic life of an ASIC is only around 2 years as newer faster models hit the market causing mining difficulty to increase, making the 2 year old ones no longer viable.

But mining other altcoins like ethereum, monero, dash, etc are viable as their design is ASIC resistant and GPUs are ideal.  The same obsolescence occurs but the cards can be sold with some value as a 2 year old upmarket video card is still useful for advanced gaming.  Also, only the cards need to be replace as the replacements cost is somewhat less than buying an entire ASIC.

I'm thinking of building my rig in July when we go back to Australia.  A 6 GPU rig generates over 1kw of heat and needs a lot of cooling.  Good for a cold Melbourne winter.  Not so good in the hot humid condtions here.

It's a gamble but the worst that can happen is I lose the $3k hardware investment but allowing for selling the used GPUs, it's probably more like a $1500 loss.  And every day I successfully mine, eats away at the capital investment until after around 12 months it's fully paid for.  After that it's all profit.  At least until mining difficulty increases and reduces the income to equal electricity cost.  IF things continue as they have over the past few years, I should get at least twice back in profit what the rig cost to build.  But if not, well it will have been fun while it lasted.

 

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not thinking about mining but i am thinking i will buy a little here and there .. not a ton just a few bucks here and there of out of budget money so to speak .. if they do well the kiddo can have them someday

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I was into Bitcoin and Litecoin 4 years ago - MINING is useless as you dont get the necesary calculating power to get good results.
MINING is only profitable if you have FREE ELECTRICITY - as Bitcoin is nothing other than ELECTRICITY transformed into Bitcoin !
As your MINING hardware gets hot you also need propper cooling - thus here in the philippines MINING is BULLSHIT - better do that in countries like Norway where you can use waterpower to generate the electricity and its already cold enough not to need extra cooling.

Investing in BITCOIN today is nonsense as the course is high and its totally speculative - to become a millionair with bitcoin you should have bought them 7 years ago .... Sad I didnt do that.

To make a money TODAY invest in FOREX - only with a couple of silver and gold trades I earned 500 Euro the last 2 weeks - with an invest of just 7000 Euro - so thats a good 7% in 2 weeks !

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