Topic: Bitcoin Miners Face Leanest Month of 2024: August Earnings Hit Year’s Low (Read 655 times)

Which is a laughable claim because if someone truly had "free and unlimited" electricity, that would be a golden opportunity to mine Bitcoin with a very big advantage. Tell Jihan Wu you have a source to free electricity and definitely he'll be paying you a percentage of coins mined to give him access. It's guaranteed profit.

but it wont be producing 1btc a day, nor 1btc a week, nor 1btc a month so you thinking that it would be producing multiple trillions quickly is in error

in 2124 it would be producing only 9 sats per block as a reward, which over a year would be 9*52500=0.00472500btc a year
also within 12-100 years alot of other economics both on fiat side and btc side would kick in, but yet again i need to take things slowly and spoonfeed the baby steps details first

but can you atleast acknowledge that bitcoin is not going to stop mining this year or this decade and has many decades to go of mining.... if you can acknowledge that concept then we can dig deeper into the more economic details that will occur in the future

so far you think bitcoin in this year is a "dying horse" without realising that in human years its a tween and not even an adult. with far more years to go compared to years already passed

so do you accept the concept that bitcoin can continue mining for more then 120 years and only 15 years have passed so far, so not really a "dying horse"

extrapolating that to the next 25 4-year cycles seems somewhat dubious though franky.  even you yourself would have to admit that there is no way that in 100 years from now bitcoin is going to be able to keep up that pace of 200% growth every 4 years. if it did it would be worth around $2,013,265,920,000 in 2124. That's right, 1 btc would be worth 2 trillion dollars.

you only get free electricity at your own house and you have to buy the equipment. no partnering with someone where they send you free equipment. the hardware costs alone might be hard to break even on before the hardware stopped working. that would be your biggest challenge. that and all the noise you generate. so you would have to spend money trying to stop the noise from bothering you and your neighbors. and keep a low profile so that authorities didn't try and stop you from running a commercial operation in a place zoned for residential. it won't be as easy as you think!

i'm not even sure that if someone was able to get free unlimited electricity that they would guaranteed to be profitable mining bitcoin.

the reward can still continue halving for another hundred years
yep ONE HUNDRED YEARS

the reward halves every 4 years, but the market price of those rewards moves forward more then 200% in that time

enjoy
..or stick with fiat that only offers 4-8% a year (17-34% in 4 years compounded)

Could be worse you could be staking ETH that only gives you 3.5% before expenses and that will keep going down as more people stake.
That is the joy of PoS coins you have to keep putting money into it to get money out of it so there is effort and expenses involved.
It's not like some free magical internet money thing. That as we all know never lasts

the reward can still continue halving for another hundred years
yep ONE HUNDRED YEARS

the reward halves every 4 years, but the market price of those rewards moves forward more then 200% in that time
look at the range in the last cycle $15k-$70k thats 500%

meaning there is more money to be made

enjoy
..or stick with fiat that only offers 4-8% a year (17-34% in 4 years compounded)

you would expect the pace of that type of activity to be slowing way down now. its like trying to get onto a dying horse.

The supply of Bitcoin and some Altcoins to be mined is getting thinner. Several countries in the world have opened up large-scale bitcoin mining businesses since 2015 so that Bitcoin and Altcoins that are currently mined are getting harder, this is what causes miners' income to decrease from year to year.

Free and unlimited electricity? I believe you could mine using older and second-hand hardware if you're lucky to have such an advantage over other mining farms. Because we're talking hypotheticals, you probably could build a partnership with Jihan Wu and tell him to provide the ASICs and you provide the electricity for a 50-50 split on all mined Bitcoins. You're like a quasi-central-bank printing money for free to be distributed.

i'm not even sure that if someone was able to get free unlimited electricity that they would guaranteed to be profitable mining bitcoin. because the hardware costs is so high. the hardware might stop working before they break even.

i'm not even sure that if someone was able to get free unlimited electricity that they would guaranteed to be profitable mining bitcoin. because the hardware costs is so high. the hardware might stop working before they break even.

Plus there's mining hardware depreciation and obsolescence. Turning off and limiting your miners to mere eight hours a day loses its opportunity to breakeven on the hardware cost which must be done as quickly as possible. In this industry, cheap electricity is the biggest requirement to succeed. No access to cheap electricity means losing against the other more efficient miners who do have access. It would absolutely be more profitable to buy the DIP, and HODL with the capital and relax by being a passive investor.

its not just electric.. its hardware cost too
if the 2 year ROI on asic hardware expectation is based on 24hour of sat acquiring.. reducing mining time by 3 means hardware ROI of the asic takes 3x longer because you are getting 3x less sats per day (if doing your 8 hour mining)
to recoup that expense

but now you see why some places like hawaii will just buy coin at any price even to the ATH premium

People including myself are obsessed with money (earn as much as you can and spend as low as you can), so people will vote the number one.

Most people don't really care with high-low hashrate, centralization or decentralization because they always happy when government start accepting Bitcoin as legal tender, whales purchase Bitcoin in large sum, leaving their coins in CEX in order to not pay mining fees, staking in CEX rather than earn nothing etc.

At least even though I care with profit and loss, I don't mind to hold my coins in non custodial wallet.

i'm not sure its absolutely necessary to do the 3x power draw. just run your miner for 8 hours per day and that reduces the cost of your solar system and the size they take up. if you can't make money doing that then i doubt you can make any money by scaling that up. but you are right, hawaii is probably a better place to vacation or buy bitcoin than try and mine it.  

solar is great for normal household power utility.. especially if you plan to live there for many years to ROI the solar investment.. after all a few led room lightbulbs, a tv and a fridge freezer only uses say 1kwh so dont need many panels for basic minimalist living(candlelit nights)

but a asic is over 3kwh so need 9x1kwh panels to be a 1asic hobby miner (average EFFICIENT sunlight is 8 hours meaning 3x power draw to take in enough to use on demand and store for use later of the other 16 hours without good efficient sunlight).. then you look at the limited roof and backyard space to fit them.. and then look at the cost of panels and installation and delivery to remote islands, and suddenly the math shows that you are not going to ROI that panel investment in 2 years at todays bitcoin prices either

researching and mathing things out is great.. try it

if that's the case have they ever heard of solar power? maybe they need to invest in some solar panels on their roof i am sure it will be very much worth it. they'll be saving a huge amount of money.

you live in hawaii and you have strong sunlight all day long and yet you don't even realize that it is the solution to your high power costs. strange.

right now there are people living in the pacific islands (japan/hawaii) where electric is upto $0.50/kwh

to me hobby miners are not professional miners contracted into mining as a full time task. they just play around when the time is right. they are more likely to jump to crapcoins that are sha-PoW when times are bad for btc profit. and market buy btc when its cheaper to buy coin rather then pay electric at a loss
hobby miners dont do business plans of a 2 year budget, prepaid.. hobby miners are more short term dipping in and out when the time is right


right now there are people living in the pacific islands (japan/hawaii) where electric is upto $0.50/kwh meaning their mining costs is upto $290k/btc if they mined.. so they are not going to mine but will happily buy bitcoin at any price below their mining cost (todays price -> up) because buying from the market is cheaper then mining.. they wont just "mine at a loss" as that is just bad math, bad economics

look at the specific electric costs per state/region/country and then do some maths on electric cost + hardware cost(2year lifecycle) and calculate each state/region/countries mining costs per btc and you will soon see who is a guaranteed market buyer and which countries drop in and out of mining due to the volatility this year of $50k-$75k market and then what countries are doing industrial electric cost mining where they can continue mining even in the $50k range of cost
the numbers will surprise you and educate you more into the sway of sentiment between miners and market buyers

also when you do the calculations of each country you start to see the measure of the max mining costs on the planet, where even the most expensive mining can mine if the price went high enough and would then cause even those market buyers to stop being market buyers where by all the buys would dry up and set the next ATH premium because everyone would then profit more if they mined so the sentiment switches

enjoy doing some math