Management/maintenance in mining. | Bitcointalksearch.org

hZti

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Quote from: mikeywith on March 20, 2023, 03:44:51 PM

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Bitcoin is really changing the game even for how crime is happening

Electricity theft is an old thing, even with the new technology where most power meters are electronic and you can't slow down the spinning mechanism, people figured out ways to use EMPs to modify the meter or stop it altogether, so IMO, BTC mining hasn't changed anything in that regards, people just improved the result of their stealing.

Steal electricity is a very old crime and can to some extend be easily done. But to steal electricity in some remote location where you are not present yourself is a new level. You can basically steal electricity at one point of the world and mine bitcoin with it. Your location is however in an totally different country and with the mining profits you can then buy legally energy. It is basically like an infinite energy storage and transfer setup.
Same could also be used legally however. You have solar power during the day, that you use to mine bitcoin. During the night you buy electricity from the city with the mining profits.

mikeywith

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Quote from: hZti on March 20, 2023, 12:13:27 PM

Best would probably to go find those remote mining locations and set up your own pool details.

That would be a double charge, it's like stealing a stolen car and then driving it around town, besides, while those farms are in a remote place, they do have some level of security, so it's not like anyone can easily break in, you are going to need enough time and tools to break in.

Quote

Bitcoin is really changing the game even for how crime is happening

Electricity theft is an old thing, even with the new technology where most power meters are electronic and you can't slow down the spinning mechanism, people figured out ways to use EMPs to modify the meter or stop it altogether, so IMO, BTC mining hasn't changed anything in that regards, people just improved the result of their stealing.

hZti

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Quote from: mikeywith on March 19, 2023, 04:11:52 PM

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The funny thing is the government would sell those confiscated gears on auction and guess who would buy gears that don't make any profit if the power bill is paid?

Of course, this illegal probably everywhere, and you will be facing two types of risks, one is the police, and two is theft since those locations are remote and hard to secure, so in a nutshell, nobody should do it, but many people have been doing it for years, just goes out to show that if your power rate is that low (in their case is zero) little no management is needed.

Bitcoin is really changing the game even for how crime is happening. Seems like it really brings out a lot of new flaws in the systems. Best would probably to go find those remote mining locations and set up your own pool details.

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Quote from: hZti on March 16, 2023, 10:11:41 AM

Is this really happening with the power theft?

It is, I have seen it before, they go for the lowest dollar/th mining gears, and those usually ROI in 2-3 months, with the cabling and whatnot, they would be looking at 4-5 months ROI, it's a hit and run, they would deploy a few small farms here and there and hope for the best. When 4-5 months have passed anything that was not captured by the police will be running at 100% profit.

The funny thing is the government would sell those confiscated gears on auction and guess who would buy gears that don't make any profit if the power bill is paid?

Of course, this illegal probably everywhere, and you will be facing two types of risks, one is the police, and two is theft since those locations are remote and hard to secure, so in a nutshell, nobody should do it, but many people have been doing it for years, just goes out to show that if your power rate is that low (in their case is zero) little no management is needed.

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Is this really happening with the power theft?
I quickly calculated the profits of for example an S9 and the profit would be around 1 USD per day. So if you buy the S9 for 50 USD from China (current price for bulk) you could make a profit is you can have the miner sit for 2-3 month.
Its illegal and obviously such illegal stuff hurts bitcoin, but actually could work.

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Quote from: hZti on March 16, 2023, 07:12:31 AM

Good management can basically only ensure that you get the profit that you are supposed to get. If you have bad management you will have downtimes etc. which will decrease your profit.

Exactly how it works, which is how some illegal farms in some countries where they steal power in some remote place, drop a container, and never revisit-it again, leave it there till the police find it, still making some good profit, on other hand, some perfect management that runs a legal farm in EU where the power rate is 20 cents per kWh will not be making any profit.

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Quote from: mikeywith on March 15, 2023, 03:59:26 PM

So my question is, how would better management magically makes your mining gears generate more profit? it just seem like he is trying to sell a product of some kind.

Good management can basically only ensure that you get the profit that you are supposed to get. If you have bad management you will have downtimes etc. which will decrease your profit.
What the OP describes really does sound a lot like advertising, because obviously your machines will only run at the adverstised hashrate. He is still right that they can only remain at that hashrate if they are take care of. Would be interesting to see some calculations if some kind of management will really give you a quicker ROI.

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Quote from: philipma1957 on March 15, 2023, 02:39:35 PM

Bad management can fuck up a lot.

Sure thing, it's not even up for debate, but this is what's written in the OP

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wow I can't believe this machine has given me so much profit over the years than I could have ever imagined

So my question is, how would better management magically makes your mining gears generate more profit? it just seem like he is trying to sell a product of some kind.

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Bad management can fuck up a lot.

but adequate management and great circumstances can do well enough.

Great management and great circumstances will do more than adequate.

Here is an example of piss poor management SVB bank

Bet on interest rates Dec 2021 they purchased a huge amount of bonds paying 1.5%

Rates went higher and higher and higher all of 2022 and so far 2023

so 40 billon bond paying 1.5% drops to 36 billion in value as compared to a 40 billion bond paying 4.5%

they had all of 2022 to bail and not get crushed by the bad bet they made in dec 2021 they kept hoping for a pivot to lower rates they never got it and busted out

poor management crushed a bank with over 200 billion in total assets.

Time layering of bond investments Ie don't do all 40 billion you have on one purchase on one date.

If they simply did 4 billion a month for 10 months in a row then sold the worst one and purchased a better one they would have been fine.

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Quote from: Lida93 on March 10, 2023, 03:43:01 AM

"wow I can't believe this machine has given me so much profit over the years than I could have ever imagined",[/i] such statement as expressed is connected to good management and maintenance over the years and nothing more or less.
In conclusion what am saying is that there's a key role good management/maintenance plays in terms of profit making for miners as it is with cheap electricity fees, only that the former is time bond while the latter is straightaway.

Ha? good management only ensures smooth operations and low downtime, it doesn't magically increase your profitability, if electricity price vs management were to have scores over 10, it would be 8/10 for electricity rate vs 2/10 for management, you can't say those two are of the same importance, give someone who has a mediocre management skills 1MW at 2 cents kWh, and give someone with 50 years of management the same 1MW for 6 cents, the former will make you more money.

Of course, there is a thin line difference between not-so-perfect and totally useless management.

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Recently I took a shallow review on most of the posts concerning mining/miners relating to profit making based on low fee electricity charges and location. And for most, no body is talking about "good management/maintenance" as another hidden means to keep ROI flowing for as long as possible. Not that I don't agree that electricity charges consumes much of the supposed profits miners expects to make from mining based on the expenses that they have ran into in getting every equipments needed for mining.
But I observed there's a way also miners can make profit but on a longer time, that's progressive to cover up on all expenses made and more through good management of the available resources/equipments. A better management of your equipments ensures a longer time frame usage and the more the years goes by the same the profit follows. I have heard people say "wow I can't believe this machine has given me so much profit over the years than I could have ever imagined", such statement as expressed is connected to good management and maintenance over the years and nothing more or less.
In conclusion what am saying is that there's a key role good management/maintenance plays in terms of profit making for miners as it is with cheap electricity fees, only that the former is time bond while the latter is straightaway.

Topic: Management/maintenance in mining. (Read 188 times)