Hi! I want to Mine can you help with my due diligence?

Gens09

sr. member

Activity: 434

Merit: 250

Quote from: MMC14 on June 28, 2017, 07:23:58 PM

First time poster to the forums, any information from veterans would be really appreciated.
My goal is to begin mining on a fairly large scale. I want to lease a small warehouse. I've found one with a transformer that can plug the unit with the required electricity.
my investment money would allow for 74 antminers9's, roughly 1000 th/s. Where I live power is 0.10 kw/h roughly 97700w for all of those units to be firing off.
If it isn't obvious I am at the early stages of researching my business plan and these are rough numbers.
My question is, what am I overlooking, would this be profitable? Basically Anything a veteran could offer would be massively appreciated.

In mining diligence and patience is a must. We must also a mile wise because in mining we are all expecting for an increase in its value for a nice profit. This is a high risk investment as other peoe would quote.

Iranus

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Quote from: MMC14 on June 28, 2017, 07:51:14 PM

This is invaluable. Thank you for your response. After reading I do have a ton more questions lol.
I do have an irl friend of many years who is ready to go in 50% with me.
If I am able to get around the first pitfall of receiving the units, maybe by not making a bulk order;
would it/could it be risk cancelling to rent out the mining power, instead of mining coins for ourselves?
Thus ensuring a steady income regardless of bitcoin fluctuating value? (excluding a complete crash and death of the bitcoin, God forbid.)

In bulk amounts that might be hard. You could try Nicehash, but you can't know that your income will be steady.

You can't really start a cloud mining service, because almost everyone assumes they're scams (99.9% of them are), and you'd have to put a huge amount of work into something that's properly regulated/is legitimate.

As a miner on a large scale, you're essentially a speculator as well. If the price doesn't continue rising, then the difficulty might catch up with the price, at which point mining naturally becomes only just profitable. If the price rises so much that the difficulty flies up, your machines might seem inefficient and you wouldn't get the profits anymore.

For now, you would get profits in ~6 months as Amph points out, but because of the difficulty it's unrealistic to expect that to actually happen. I still think it's a moderately good investment, but you have to appreciate that this is a high risk/high reward choice for you.

Amph

legendary

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you have profit with that electricity, just use the calculator, it's not difficult, one antminer can currently roi in 7 months with that electricity or even 6

assuming that diff will double in 6 months and triple in 1 year, like the last year, you need more than 1 year to roi, which could be bad

but you can always sell your gear, the s9 is still the best miners, should be easy to resell

carlfebz2

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Quote from: Velkro on June 28, 2017, 08:15:47 PM

Quote from: MMC14 on June 28, 2017, 07:51:14 PM

This is invaluable. Thank you for your response. After reading I do have a ton more questions lol.
I do have an irl friend of many years who is ready to go in 50% with me.
If I am able to get around the first pitfall of receiving the units, maybe by not making a bulk order;
would it/could it be risk cancelling to rent out the mining power, instead of mining coins for ourselves?
Thus ensuring a steady income regardless of bitcoin fluctuating value? (excluding a complete crash and death of the bitcoin, God forbid.)

Again, thank you so much for your response, I am very motivated to venture into this haha I suppose I am that one who cant just sit!

Renting mining power is even worse. Its like i will sell you idea how to make millions of dollars for $39.99 Wink

. If it would be profitable they wouldn't sell it to you. They earning then not you.
Profit from mining is never steady income because mining difficulty increases steadly and sometimes very fast up. So your profitability going down always.
You must invest all the time to keep up with difficulty in hope with cheap electricity will make you profit.

This is only the main drawback on mining bitcoin because difficulty does increase overtime which means profits would be more lesser and lesser as the time pass by but seeing on the price of electricity on their place seems very cheap which you can actually be profitable but you should always think off and make calculations regarding on expenses (maintenance,rent,crew) If you saw that you are gaining and even possibly reach roi later on then it would really be a good venture for you.

Velkro

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Quote from: MMC14 on June 28, 2017, 07:51:14 PM

This is invaluable. Thank you for your response. After reading I do have a ton more questions lol.
I do have an irl friend of many years who is ready to go in 50% with me.
If I am able to get around the first pitfall of receiving the units, maybe by not making a bulk order;
would it/could it be risk cancelling to rent out the mining power, instead of mining coins for ourselves?
Thus ensuring a steady income regardless of bitcoin fluctuating value? (excluding a complete crash and death of the bitcoin, God forbid.)

Again, thank you so much for your response, I am very motivated to venture into this haha I suppose I am that one who cant just sit!

Renting mining power is even worse. Its like i will sell you idea how to make millions of dollars for $39.99 Wink

. If it would be profitable they wouldn't sell it to you. They earning then not you.
Profit from mining is never steady income because mining difficulty increases steadly and sometimes very fast up. So your profitability going down always.
You must invest all the time to keep up with difficulty in hope with cheap electricity will make you profit.

MMC14

newbie

Activity: 2

Merit: 0

This is invaluable. Thank you for your response. After reading I do have a ton more questions lol.
I do have an irl friend of many years who is ready to go in 50% with me.
If I am able to get around the first pitfall of receiving the units, maybe by not making a bulk order;
would it/could it be risk cancelling to rent out the mining power, instead of mining coins for ourselves?
Thus ensuring a steady income regardless of bitcoin fluctuating value? (excluding a complete crash and death of the bitcoin, God forbid.)

Again, thank you so much for your response, I am very motivated to venture into this haha I suppose I am that one who cant just sit!

Velkro

legendary

Activity: 2296

Merit: 1014

Quote from: MMC14 on June 28, 2017, 07:23:58 PM

First time poster to the forums, any information from veterans would be really appreciated.
My goal is to begin mining on a fairly large scale. I want to lease a small warehouse. I've found one with a transformer that can plug the unit with the required electricity.
my investment money would allow for 74 antminers9's, roughly 1000 th/s. Where I live power is 0.10 kw/h roughly 97700w for all of those units to be firing off.
If it isn't obvious I am at the early stages of researching my business plan and these are rough numbers.
My question is, what am I overlooking, would this be profitable? Basically Anything a veteran could offer would be massively appreciated.

Im astonished with your bravery. I wouldn't have balls to throw so much money on such risky business.
First point of failure is delivery of antminer's. They can postpone delivery to mine with your device.
Second is price of electricity + warehouse + crew to aside from you protect and keep all machines running.
So much better would be to just buy bitcoin in your comfortable chair and wait couple years.

But there are poeple that can't sit, they want to do smth, good luck

MMC14

newbie

Activity: 2

Merit: 0

First time poster to the forums, any information from veterans would be really appreciated.
My goal is to begin mining on a fairly large scale. I want to lease a small warehouse. I've found one with a transformer that can plug the unit with the required electricity.
my investment money would allow for 74 antminers9's, roughly 1000 th/s. Where I live power is 0.10 kw/h roughly 97700w for all of those units to be firing off.
If it isn't obvious I am at the early stages of researching my business plan and these are rough numbers.
My question is, what am I overlooking, would this be profitable? Basically Anything a veteran could offer would be massively appreciated.

Topic: Hi! I want to Mine can you help with my due diligence? (Read 1147 times)