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Is anyone tracking the electric costs for mining? I would love to see the stats on that. What about using something like solar to power this? Then you would
by bigtunacan 9y ago
Is anyone tracking the electric costs for mining? I would love to see the stats on that. What about using something like solar to power this? Then you would have your upfront costs for the solar panels, but not have recurring electric costs?
- Analemma_ 9y agoThe biggest mining operations are Chinese and Russian farms getting their power through questionably legal arrangements, so those statistics probably don't exist and wouldn't have much relevance if they did.
- flashdance 9y agoYou can't bribe your way into 30 megawatts of power. The biggest mining operations have legal partnerships with local and national governments.[1] As well, Russia isn't a major place for bitcoin mining: instead, mining is mostly concentrated in Georgia (the country, not the state) and China. [1] http://ifact.ge/en/bitfury/ http://ifact.ge/en/bitfury/
- flashdance 9y agoI used to track where large bitcoin mines were. Mostly they're concentrated around cheap hydroelectricity, with major mines in Labrador (2c/kwh), Central China (varies, but <4c/kwh), and Georgia (unknown, bitfury likely has a special deal with the local government). A few exceptions are Northern China (coal grid @ ~3c/kwh) and Iceland (geothermal @ maybe 5c/kwh, this isn't too clear either). Solar panels are not effective for bitcoin mining, because hardware needs to run 24/7 (a shitload of batteries are needed) and the upfront cost is high.
- mparr4 9y ago> hardware needs to run 24/7 Why?
- epmaybe 9y agoI think they mean in order to actually make a profit it needs to be running nearly endlessly.
- simias 9y agoIt doesn't need to but given that the difficulty is ever increasing if you only mine, say, 1/3rd of the time you're at a disadvantage compared to 24/7 miners. Now if the price of solar electricity is completely free and bitcoin doesn't crash then mathematically there'll come a point when you'll break even but it might take a long while as the mining rewards keep dwindling as difficulty increases while you spend most of your time not mining. Eventually your miner hardware or solar panels will need maintenance and that will increase your costs. You'd have to do the math to see how long it'll take you to break even, but something tells me that it won't be nearly as competitive as those server farms using cheap hydroelectricity.
- cft 9y agoBecause miners are by far most expensive than electricity, and if you mine at 50% the effective miner's cost is 2x
- francisofascii 9y agoIt is very cost effective by those who don't pay for electricity directly. Plenty of older condo and apartment complexes do not meter individual customers. The electricity costs are a component of the condo fees. University housing is an example.
- acjohnson55 9y agoExternalize the costs; internalize the profits. That's the name of the game!
- mabbo 9y agoThe source of the power is irrelevant: you could be selling that electricity to the grid, or offsetting the cost of your home's usage. Buying a solar panel may eliminate the middle man, but there's still lost opportunity cost.
- bigtunacan 9y agoThe source of power may be irrelevant to you, but not to me. Where I live net metering is capped at 30% of my utility costs. So if I produce more than 30% of what I use the utility company sucks up the excess that I produce and keeps it for free.
- projectramo 9y agoThis is the #1 factor that pro miners look at. They pay between 0-3 c/kwh The problem is that you have the difficulty going up, and the capital costs. Track those three curves and you have a good sense of the window for profit.