2 ms·

It is entirely impossible to say. First off, your electricity price will determine how much (if any) profit you'd make. Most bitcoins mines are in areas with ve

by WJW 4y ago

It is entirely impossible to say. First off, your electricity price will determine how much (if any) profit you'd make. Most bitcoins mines are in areas with very low electricity prices for this very reasons and if you are not, it might be outright impossible to profitably run a mining rig. Obviously, the price of bitcoin over those two years would be very important to your income and assuming a price of 60k (where it was a few months ago) would result in a very different outcome than the same calculation with the current price of 30k. Bitcoin has been very volatile since basically forever, so it is very difficult to predict of your scheme would be profitable.

nradov 4y ago
This is why Bitcoin miners located in Kosovo where electricity is "free". They're supposed to pay, but due to the political situation the power company can't disconnect deadbeat customers. https://balkaninsight.com/2021/05/12/in-north-kosovo-mining-for-bitcoin-on-free-electricity/ https://balkaninsight.com/2021/05/12/in-north-kosovo-mining-...
- danans 4y ago
  Even "better", the electricity in Kosovo is almost 100% lignite coal-based: https://bankwatch.org/beyond-fossil-fuels/the-energy-sector-in-kosovo https://bankwatch.org/beyond-fossil-fuels/the-energy-sector-...
Canada 4y ago
> First off, your electricity price will determine how much (if any) profit you'd make. No it wouldn't. The electricity cost is a factor, but it's not that significant compared to the capital cost of the equipment, the price of which fluctuates depending on the expected profit. You can also see this with GPUs, but it's far more pronounced with Bitcoin mining hardware which has no other use.
- FabHK 4y ago
  Source? In fact, any breakdown of mining costs would be quite informative.
  - Canada 4y ago
    Source is doing it before, and being friends with people who have done it at scale. Just go ahead and try to do it. You will find that it's not possible to actually order stuff from bitmain when mining is profitable at their list prices. It's almost as if they just run the machines themselves when it's profitable, and deliver orders when that is more profitable than using them. So there is effectively a "spot" price for the machines where sellers who have inventory try to extract as much value as they can. Thus, the capital cost is more significant than electrical. (Obviously within reason, but paying 5 cents or 10 cents per kw/h is less relevant than capital cost) I should say though, after the 2018 crash S9s could be had in bulk for $100 each, where they were selling for over $3000 only months earlier. So maybe the flood of these out there makes my experience outdated.

by WJW 4y ago

nradov 4y ago

This is why Bitcoin miners located in Kosovo where electricity is "free". They're supposed to pay, but due to the political situation the power company can't disconnect deadbeat customers. https://balkaninsight.com/2021/05/12/in-north-kosovo-mining-for-bitcoin-on-free-electricity/ https://balkaninsight.com/2021/05/12/in-north-kosovo-mining-...

danans 4y ago
Even "better", the electricity in Kosovo is almost 100% lignite coal-based: https://bankwatch.org/beyond-fossil-fuels/the-energy-sector-in-kosovo https://bankwatch.org/beyond-fossil-fuels/the-energy-sector-...

Canada 4y ago

> First off, your electricity price will determine how much (if any) profit you'd make. No it wouldn't. The electricity cost is a factor, but it's not that significant compared to the capital cost of the equipment, the price of which fluctuates depending on the expected profit. You can also see this with GPUs, but it's far more pronounced with Bitcoin mining hardware which has no other use.

FabHK 4y ago
Source? In fact, any breakdown of mining costs would be quite informative.
- Canada 4y ago
  Source is doing it before, and being friends with people who have done it at scale. Just go ahead and try to do it. You will find that it's not possible to actually order stuff from bitmain when mining is profitable at their list prices. It's almost as if they just run the machines themselves when it's profitable, and deliver orders when that is more profitable than using them. So there is effectively a "spot" price for the machines where sellers who have inventory try to extract as much value as they can. Thus, the capital cost is more significant than electrical. (Obviously within reason, but paying 5 cents or 10 cents per kw/h is less relevant than capital cost) I should say though, after the 2018 crash S9s could be had in bulk for $100 each, where they were selling for over $3000 only months earlier. So maybe the flood of these out there makes my experience outdated.