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I kind of wonder if the profitability of these types of companies are based on perf/watt, or more directly electricity cost. Sort of how the electricity of min
by m463 3y ago
I kind of wonder if the profitability of these types of companies are based on perf/watt, or more directly electricity cost.
Sort of how the electricity of mining a bitcoin is orders of magnitude more expensive than just buying a bitcoin.
- Bayart 3y agoYeah, cloud computing is a streightforward energy efficiency business. That's why the pricing of enterprise hardware is always pretty frontloaded.
- dannyw 3y agoIt’s certainly not orders of magnitudes higher. A S21 Hydro can do a terahash for 16 joules. At the current difficulty, you need approx 525,000 kWh to mine a bitcoin. At $0.16 a kWh, you’re looking at $84k to mine a bitcoin, worth $63k. That’s not orders of magnitudes higher. If you can get cheaper electricity and are willing to pay the capex then you can make a profit.
- m463 3y agowow, thank you for doing the math. I guess I haven't been keeping up with bitcoin vs electricity cost. I was going to buy a bitcoin miner when bitcoin was ~$500 and in short order the electricity cost of running the miner exceeded the cost of bitcoin and started getting worse. Now with bitcoin value > 1000x ... hmmm. maybe my assumptions are plain wrong.
- justinclift 3y agoLooks for corresponding auction bids on any solar panel farms getting liquidated? :)
- nothercastle 3y agoI would think so although at the very low end I could see it being a per core post instead of compute. Unclear how much of the cost is hardware vs energy vs infrastructure. I would assume hardware is the cheapest part but I could be wrong