Topic: I Am Unplugging My Bitcoin Cash Miners & You Should Too | ASIC Mining Is Dying - page 2. (Read 2641 times)

would you mind elaborating on some decisions you've made mainly based around navigating taxes better?

Taxes . . a complicated system that is always changing lol

Stick it on eBay as an auction. One man's trash is another man's treasure 

what do you do with ASIC if it noth worth to mine.

it can sell like vga card sell to gamer

what do you want to dothrow it away or keep it until btc price up?

Agreed Vegas have done quite well mostly because fluffy gives a rats ass unlike most of the other self serving devs bought off by ASIC money.

This is another example of why it's good to diversify your cards if you're building a farm. Jumping all in on 1080s for Equihash or RX 470s for ETH may seem good at the time but you're not able to ride out long dips like this.

yeah I sold off most of my cards and it's a lot easier to manage 20 cards instead of 500. I remember back when BTC was 13TH/s - I was a meaningful part of the network lol.

here is a small rig 2 vegas and a threadripper

https://www.nicehash.com/miner/1JdC6Xg3ajT3rge3FgPNSYYFpmf53VbtjeProfitability


0.0004 BTC/day
2.92 USD/day
Efficiency
100.00%


note 2.92 usd  and gear burns 550 watts  which is 13.2 k-watts  I don't push it  it is pretty quiet.   13.2 kwatts at 10 cents is 1.32 a day  which means 1.60 profit a day  x 365 = 584  paid back each year and  gear has 3 years of warranties.  

also for 6 months of the year it is free heating.   Now does it mean I will have 70 gpus this winter  no I will be under 20.

So last year OCT NOV DEC  and JAN   2018 were  wonderful.     This year not so much.

You dont have a 7 year write off.  Section 179 was 500K instant and up to 2mill accelorated BUT since new Trump tax laws hit Section 179 is gone and its just the law.  So you can write off instantly any amount with a few exceptions like a building etc.  If it can be removed and taken with you then it can be instantly depreciated.  A driveway for example can't.

Hope that helps and of course talk to you tax guy.  If he is not a dip shit he will be aware of this stuff.

The reason i built my 4mw building was because of the tax hits I can avoid.  Well not avoid just kicking the can down the road is a better analogy.

Yeah most miners don't understand business. Except when starting, most large purchases have to be depreciated off a schedule (ie over several years). Section 179. This is true for cars, XRay equipment, video cards (I've written off all 3). Sometimes the IRS will give you a tax cupcake like being able to write off 10K of depreciation from a car the very day you buy it, but after that it falls on a curve (why buying was better for me than leasing).

Most ASIC miners are trash after about 8 months - I can't even fathom trying to write them off on a schedule over 7 years.  Unless you're running a big farm or you really want to burn your personal tax liability mining under a business just is not worth it.

As we head into the last quarter of 2018 some dynamics:
1) All that pent up video card demand will eat up lots of those 1070/1080s that were used "temporarily" for ETH - I don't see these cards hitting rock bottom too quickly
2) Those poor 1060 3GB cards - man those are soon trash other than for mid level gamers (unless you're mining in Win 7). Hopefully nVidia tries to rip us a new one on RTX equivalent. I've populated as many game rigs as I could with 1060s - need to get rid of the last few stragglers. Even 144Hz monitors can't help support the price because anybody guying GSYNC is going to get at least a 1070.
3) This season the 144Hz craze (you can see it from all the posts in Reddit BAPC) will help eat up some of those RX580s. Vegas still have a home in Monero. If you haven't dumped your RX470/480s yet you've got some insane power rates.
4) RAM and SSD prices are dropping so people will build rigs for 4K systems. Console 4k is meh. Looking at the RTX pricing nVidia is not enticing people to buy new cards.
Plan you farm decommission appropriately. I made money as the market went up, and sold my gear at top prices - I'm still HODLing to pick up the coins. ETH dumping velocity from ICO addresses is still relevant.

A big issue with this (which is a whole other debacle) is that the tax situation is flawed which I won't completely open that can of worms right now . . AND ALSO the new 25% tariffs are insane, like the recent scammy 20k asic miner co zeon would carry a tariff of $5000 . . Hurting the case for mining even further

Sounds like he just simply hates crypto lol, I'd like to see some citations personally

Bro you need to get real. Did you think the future was we all gonna GPU mine with gaming cards making $15 dollar a day per  card and and all gonna drive off to the sunset in lambos.

Btc is so high in value and growth potential, it's foolish to use for daily currency. Only meant for big purchase. Your better bet is to use bitcoin cash for everyday currency, since the future is not as secured as Bitcoin best to use bitcoin cash

Anyways you sound like your a fiat hodler and I hope you Enjoy those gains.

I too also unplugged my miner last month and ended up selling it. It's just not worth it at this time.

Where I live, we dont pay taxes if buying coins, only if we profit from it, for example, if i buy 4k in coins, i will not pay taxes at all, if those 4k in coins become 8k or any other value above 4k within a year then i will pay 15% from anything i made after 4k. So for example, if coins are worth 4100 usd after a year and i bought at 4k and i sell then i will pay 15% of  100 usd which is 15 usd. As for mining is the same 15%, so all in all for me buying coins is a lot more profitable than turning my money on a double loss. Well, like i said before everyone has to make their own calculation and determine what is worth more, that is the reason i say mining to be profitable only if returns your money in less than 100 days, buying and selling is way more profitable for me. Last year I earned 2000% by selling and buying, my friend mining made only 150% and mining was profitable, imagine now that since march mining is not profitable at all and I'm still earning money from buying and selling and my friend, well, shut off his gpus.

To finalize, if coins crash from 4k to 2k usd, i will never pay anything until coins are above 4k and i decide to sell, if i dont sell then i will never pay taxes, as for mining, my friend shut off his computers because  first as the equipment is paid off, anything he mines is 15% tax + electricity, altcoins at these prices, he is losing on electricity and he needs to pay 15% of tax and plus equipment is being devalued , so this is actually a triple loss, probably if you think about is a quad loss.

Why does no one talk about the rate of ADOPTION...as in the actual USE OF BTC as a currency...
Well because it is a JOKE..total failure.
The rate of adoption is pathetic BECAUSE no one will buy or use it while it is so vulnerable to exchange speculators and MEGA FARMS who enjoy the cheap production and monopoly over it.
mega farms of cheap electricity have indeed KILLED BTC mining....and destroyed any chance of wide spread adoption.
Equally guilty are the parasitic exchanges and whale speculators.

I will NEVER pay for BTC or use it or accept it.
I'll mine the shit out of my tiny farm and sell most IMMEDIATELY and never upgrade or reinvest in gear again.

BTC died LONG AGO...People just don't understand that they are just profiting off it's funeral.
It NEVER had a chance...the rich banking power elite was NEVER going to tolerate loosing it's grasp on the power to CREATE MONEY.
They got caught napping but greed ensured BTC would be delivered right into their arms. And here we are.
Bitcoin core is OWNED by AXA insurance of Zurich...the chairman is a Bilderberg

I've re-read Phil's post about 5 times and it honestly doesn't make much sense (literally and financially).  Yes, spending on electricity will lower your tax liability on what you mined.  But only to the tune of 33% (or insert your tax rate here).  Maybe I have a different definition of mining at a loss, but I define it as spending more on mining than what you are earning, I.E. The money you spent could have instead been spent on buying the coins outright with the results of more coins.  Or in other terms, instead of pumping $10 in the claw machine to win the stuffed animal, you could have bought 2 stuffed animals for $10.  If you are mining, then you pay taxes on everything you mine.  But if you mine and hold, and the currency goes up, then you are still paying capital gains taxes, no different than buying it outright.

Eth devs looking at pushing back PoS 1-3 more years O_o

I’m just here for the Christmas moon rockets

It’s funny if you advise users to just buy, as a miner yourself they’ll say you are just saying that so that you can keep all of the mining profits to yourself!!

Phil I think you are focusing on a very important point that I left out for the sake of a shorter video. Electric write off and the way those expenses play into taxes.

Does anyone work with any tax professionals that tote themselves as experts with cryptocurrency. I’d love to see them weigh in

Bitcoin cash and bitcoin core btcc are alt coins and this video is based around sha-256 mining that while I talk about bitcoin the the video directly applies to many Alts!