Topic: I Am Unplugging My Bitcoin Cash Miners & You Should Too | ASIC Mining Is Dying - page 3. (Read 2641 times)

For those who’s power costs are too high - look into budget billing. It lowered my monthly power to 1/3 of what it would have been.  Problem is, you have to sign up before you start mining

You are the one that manages your gains or losses, in the end of the day its your decision.

No you fail to see long term mining  ie year after year after year has completely different tax laws  then buy and hold.


You have lots of good info  but sometime you don't know what you are talkng about.

I will mine at a loss for August and Sept.  At that point I will start more reduction of mining.

I already know  what I am willing to lose from August to December this year.  About 1k So far I lost 300 in August.

The 1k simply  will reduce my early year profits and reduce my tax bill.

While buying 4k in coins does zero to help tax bills and tax planing.

This is USA law I know many places have different laws.
But for me to mine and hold the coins  say spend 4k  on power to earn 3k in coins

Gives me  more tax benefits then to buy 4k in coins and hold them.

Mining and holding  the 4k allows me a 4k power cost for taxes this year.

Since taxes are 33%  4 k power cost saves me  1333  which makes up for the 1k lost   4k power- 3 k coins - 1 k loss

   the  cost basis for the 3k in coins  will be zero when I sell    So I gain 333 this year    and when I sell in later years I will pay more tax.


buying 4k  and holding does zero.  this year.  when I sell  cost basis is 4k

Buying and holding the 4k spent  allows me no  power cost for taxes this year.  So I gain zero this year and when I sell in later year I will pay less tax.


This is a big reason for mining at a loss and you leave it out.

So don't.

This gives me a possible  1 to 2 years of loss without issues  for tax benefits  to be taken now.

You say mining at loss? only idiots do that cause it was explained countless of times that doing that you are at double loss, anyway, i do believe there are idiots out there but not as many as you trolls think, 70% of total eth hashrate are asics and asics never mine at loss where gpus is not totally negative at 0.10 per kw, whereas gpus give $0.15 per 30 mhs on eth, asics like the f3, given the same $0.15 to asics + another $0.20 the electricity they save  then we can come up with $0.35 per 30 mhs, so each 1.5 ghs f3 give around 20 usd, without any hard work whatsoever, to carry on till market recovers.  The only ones still earning money here are asic manufactures, whereas gpu miners get $0.15 per gpu, asics miners like bitman f3 are earning 20 usd per asic, not bad if you ask me and like i said before this crash is due to that, bitmain was earning 100 usd per eth asic, not to mention the other asics which were making much more money, asics destroyed everything again, if there were no asics then eth right now would be around 3k usd minimum.

If you guys look at the hashrate charts

https://etherscan.io/chart/hashrate

You would think we would get like a 50% hashrate reduction, instead we just get a small dip which is either variance or people who switched to mining ETC (or XMR).

Same thing happened in first quarter of 2015. BTC hit like $150 from $1000 a year ago and there was one difficulty reduction period, and the rest of the year remained in a flatish uptrend till the end of 2015.

Seems there are many who believe in the technology and are just mining at a loss just to get some BTC.

That is the problem trolls fail to see, they actually dont ever see the costs of something, they only see what something could possibly return and that tends to be the worst possible outcome in the long term. Another mistake trolls are doing is selling gpus 3 times less or more than what they have paid, if is not profitable then simply turn off everything, use the money to buy coins and then once it becomes profitable again turn them back on, in the end of the day people buying the coin will make mining profitable again.

Remember all those new users who joined last year and we told them to hold off on mining and instead buy coins if they wanted to take risks - well failure to head that advice now I see a lot of posts of new users cursing at crypto.

I know the crypto world is 10x as fast as the fiat world as far as growth and volatility, but what sensible person thought ETH would sustain $5k and BTC would hit $100k so that rigs could pay themselves off in a month. It's almost as bad as the housing bubble.

Sit still, remain calm, turn off the miner (if you're paying over 10 cents/KWH), and see where we are in 6 months. There will be no arise chikun moon rockets under the Christmas tree this year (my opinion anyway). Hopefully 2019 more reasonable ICOs and possibly ETH POS (with corresponding price increase) will make this endeavor worthwhile.

Phil you are forgetting about a lot of costs.  Yes if it were just electricity you would be correct.  You have property taxes, rent/mortgage, insurance, and a very expensive internet connection that absolutely cannot go down.  Then you have switches with 70,000 ports that also cannot fail, cisco routers, firewalls, physical security.  Network engineers to build the network, pen testers, monitoring software.  I'm sure even I am forgetting some things.    Look I'm not saying there aren't big farms out there, I know there are, but this is not as lucrative as you are making it sound.

https://mtstandard.com/news/local/cryptowatt-bitcoin-mining-operation-up-and-running-south-of-butte/article_8bad2d96-5721-5697-8b01-be5e435cddee.html

Why is this in the altcoin mining section?!

bitmain has been for sometime clearing its s9 mining warehouses for sxx 7nm, bitmain is 3nd in line after amd. Whoever is buying s9 for mining right now are for a huge blow, matter of fact, anyone buying mining equipment is for a blow.

The numbers I am giving for 3 to 5 cents money  are exactly why btc diff is jumping.

For years many people said the big money farms are making moves to take over.

Well now they are.

Okay player a tells me he has 100 mega watts at 4 cents.

he wants cheap s9's is everyone unable to read math.

S-9's 10 % fail in a year

okay 100 mega watts = 100000 k watts  or 70000 s9's

he can get them with a psu for under 500

more like 450  so he has power for 70000  he buys 80000   giving him 10000 spares.

This is happening in multiple locations I know of 1 for sure 2 as a maybe  and bitmain is building 2 farms which means even cheaper then 450 for an s9 and a psu.

the guy with 70000 s9's mining makes 2.20 a day for each one  that is 154,000 .

Yeah he needs  more like guards and staff   so knock off 14,000  he makes 140,000 a day.  that pays off 311 s9s a day  all 80000 paid in 257 days.

I know futures alter.  but with 3,4,5 cent power  it is not a big deal.

and new gear so far does 79 watts a th  vs 100 watts a th.

Exactly, It's a hard pill to swallow. The numbers don't look good or favourable for the small-scale miners. I guess no one can stop bitcoin's centralization. I am never this pessimistic but your statement just got me! Damn you BR!


People who have anything less than 0.10 KW/h can continue to mine, I will be turning off my rigs soon, as a small-scale miner, it doesn't make much sense to me to keep mining. Especially at 0.15 KW/h. My smaller rigs with 4 Cards each, They are making around 50 cents a day after taking care of their energy bills. that leaves we with 15 bucks after a month of mining! I am just 1 riser break away from being in profit to being in Loss.


Exactly! these numbers don't mean shit! They are the purest form of Speculation. I remember when I made a few new rigs in Jan, They were predicted to break even after 15 months, Now the ROI is nowhere near those figures. Whether its GPU mining or ASIC mining, Unless you are ready to mine at the loss in the near future it's not worth investing in it. It can go the opposite way as well, there is no guaranteeing it. Maybe we will see another bull run at the end of this September and some miners will make their ROI, but as I said earlier there is no guaranteeing it, Its pure speculation.

You have forgotten several things in your calc:

1- Cooling.
2- Rent.
3- Shipping.
4- Customs duty.
5- VAT.
6- Overhead.

The breakeven point takes far more than a year considering these factors alone. Remember Bitmain only offers a 6 month warranty.

Dont get me wrong, if you have extra investment capital and willing to risk it, the payout will be better than most investment tools within a two year time frame. BUT . . .

Buying BTC on the next dip is a hundred times better than going into a mining venture.

As always appreciate you bringing some numbers to the table Phil. Agreed as expected those with cheap power will be the only survivors but really across the board no one is making very impressive returns in this market. Yet somehow.. difficulty continues to climb.. who’s plugging even more machines in? Lol

My posts get deleted in the bitcoin section so I centered the post around an alt coin aka bcash. I agree with you.

I’m not trying to sell, just saying if someone still decides to... here you go lol

A viewer of my D3 review wanted to purchase my D3 for several thousand (last year), I told him this isn’t a good idea I’d rather just send it to auction and whatever happens happens.

He insisted on buying it I’d rather give the best input I can, but also be credited when relevant if possible. Need USD to pay the bills lol

That is a big difference in terms of THS as the S9 actual version can do 14 THS and 22 THS is more than 50% improved performance. However for this to be the case in the profitability section we need that these new ASICS to have a 50% lower power consumption and then we will see real profit and huge increase in difficulty.

For the GPU miners I think it is a dead market right now unfortunately, rightfully to be turned off from the users.

It is not dead it is thriving for large 3 to 5 cent mines.

I know of a 100 mega watt and a 70 mega watt pair of sites being built.

Both places have access to 4 cent power..

Do the math these types of builds are happening where ever a 3 to 4 cent contract  for power is available.

It will crush little miners.

I was offered a 5 megawatt 1 year contract.but the project stalled.

Not sure I am onboard for that much power anyway.

It is about three thousand s9s..

A little more then I want to manage.

Well, if 50% of the people stop mining, profit would go up double. No way everyone will stop mining at the same time, its just funny. Also 22THS Asic 10nm coming soon. Who say its dead ..

hmm, if everyone stops mining btc, btc chain will stop moving... you know what follows, right?

Until and unless the market goes back to the times of ATH of BTC and alt-coins, there won't be much profitability going around.
If this continues to be the case, more miners will shut down their rigs because there is no use in keeping them mining even if it makes break even as its just unnecessary strain on the miners.