how can mining still be profitable even for the big farms - page 2.

btcmonster

member

Activity: 77

Merit: 10

but how do those that are not manufacturers make money?
a farm like this:

Quote from: ?? on ??

How about a panoramic?

That investment would never have been able to be able to pay back for the hardware and make a profit that is worth it.
How do they do it?? buy hardware then mine for some time and sell them on ebay overpriced?? thats how i did it when i was mining. however this is inefficient as u always would need to change cooling power management to fit new hardware stuff like that which would cause long down time if needet to be done correctly with cable management

mwizard

full member

Activity: 203

Merit: 100

No one knows what the costs of the hardware is to the big miners.

If you are a miner manufacturer selling to small consumers it is likely at least 30% of the sale price is to cover sales and marketing and the need to provide ongoing support. Selling to, and supporting, individual consumers is expensive.

But the big miner manufacturers can make extra miners very cheaply through volume manufacturing and bulk buying of components.

For example Bitfury, claim at least 20% of the entire bitcoin network is running from their data centres. They may be running more than 20,000 of their energy efficient BF3500 and BF4500 miners in their three data centres.

The BF3500 and BF4500 are made to be cheap data centre miners. They are not sold to the general public.

http://www.coindesk.com/bitfury-raises-20-million-asic-development-mining-output/

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xstr8guy

hero member

Activity: 784

Merit: 1004

Glow Stick Dance!

Quote from: btcmonster on October 11, 2014, 04:16:22 PM

Hi,
Was wondering how mining still can be profitable even with free power??
For example
the SP20 (1.7Th/s) goes for 1200$ and ships mid this month and will not earn the money back spent on the miner.
the antminer s4 (2 Th/s) goes for 1250$ and will not earn the money back spent on the miner.
how would this make a profit at all for larger mining companies and individuals?
Do they do special deals with the producers of the miners?
How do they still make money with overpriced hardware?
thanks

The big farms ARE the manufacturers of the machines... Bitmain, KNC, Bitfury, Cointerra, etc. That's how they do it. Wink

However, I don't think Spondoolies have much of a mining operation at this moment.

btcmonster

member

Activity: 77

Merit: 10

Hi,
Was wondering how mining still can be profitable even with free power??
For example
the SP20 (1.7Th/s) goes for 1200$ and ships mid this month and will not earn the money back spent on the miner.
the antminer s4 (2 Th/s) goes for 1250$ and will not earn the money back spent on the miner.
how would this make a profit at all for larger mining companies and individuals?
Do they do special deals with the producers of the miners?
How do they still make money with overpriced hardware?
thanks

Topic: how can mining still be profitable even for the big farms - page 2. (Read 3130 times)