Topic: Mining as a business?? - page 2. (Read 2991 times)
I believe that very simple but accurate calculations are realy necessary to answer the profitability question
one huge difference is probably that with a business you are obliged to declare your income to the IRS if you are in the USA, with casual mining not so much
i don't think they will ever check a random dude running a single antminer s9 in his mommy basement...
the other is releated to the cost and a proper place to run the miner with proper cooling solution, there is a huge investment to do with the business way
i don't think they will ever check a random dude running a single antminer s9 in his mommy basement...
the other is releated to the cost and a proper place to run the miner with proper cooling solution, there is a huge investment to do with the business way
There are several important questions to ask at this point in time, for this question:
1. Are you a chip foundry, or do you have close ties to a chip foundry such that you can get ASICs at ~fabrication cost? And do you have access to smart people who can design a more efficient SHA256 engine? The first is much more important than the second.
2. Do you have access to megawatts of power at industrial pricing? You're a perfect customer for megawatts of power - you have a totally constant demand, and can sign up for all the load shifting/peak shaving programs, as long as they're more profitable than your hardware, because there is literally no harm in reducing power consumption on demand.
3. Do you have access to some way of dumping a few megawatts of heat without paying anything (or pretty close) for cooling? Ambient air exchange in a cold area with cheap power is probably the best option, though the throttling of ASICs in hotter temperatures (100+C ambient) is probably cheaper than paying cooling for that hardware.
If you can safely answer "Yes" to all 3, absolutely. Go at it. But you wouldn't be asking here.
If not? Well, good luck. You probably won't make money, but the tax writeoffs from the losses could be useful.
1. Are you a chip foundry, or do you have close ties to a chip foundry such that you can get ASICs at ~fabrication cost? And do you have access to smart people who can design a more efficient SHA256 engine? The first is much more important than the second.
2. Do you have access to megawatts of power at industrial pricing? You're a perfect customer for megawatts of power - you have a totally constant demand, and can sign up for all the load shifting/peak shaving programs, as long as they're more profitable than your hardware, because there is literally no harm in reducing power consumption on demand.
3. Do you have access to some way of dumping a few megawatts of heat without paying anything (or pretty close) for cooling? Ambient air exchange in a cold area with cheap power is probably the best option, though the throttling of ASICs in hotter temperatures (100+C ambient) is probably cheaper than paying cooling for that hardware.
If you can safely answer "Yes" to all 3, absolutely. Go at it. But you wouldn't be asking here.
If not? Well, good luck. You probably won't make money, but the tax writeoffs from the losses could be useful.
If you have access to free electricity or at least low electricity then that's a good start already. The problem that everyone in the mining business is the cost of electricity, next is man power of course you can't man your business alone 24/7 and going back to electricity cost its not only the mining rigs that will need electricity, you also need to cool down your mining rigs unless you live in a place with cold weather.
Mining bitcoins as a business can be very expensive at initial. Before involving yourself in this field, you should calculate how much electricity does your farm or miner consume.
This helps you to comprehend, collate your provisions of profits from your miner.
This helps you to comprehend, collate your provisions of profits from your miner.
At the moment, it is not a viable business opportunity, unless you have millions of dollars to start big. However, as the most advanced technologies are being used to manufacture the ASIC miners, the jumps in hashing power (for a given power consumption) is starting to slow down.
For example, in 2013-2014, for the same amount of energy spent, you can have 5-10x more hashing power if you wait a little longer, because more efficient miners are being made. That was the time when the ASIC manufacturer will "delay" the delivery of their products as they can use them to generate bitcoin for themselves.
For example, in 2013-2014, for the same amount of energy spent, you can have 5-10x more hashing power if you wait a little longer, because more efficient miners are being made. That was the time when the ASIC manufacturer will "delay" the delivery of their products as they can use them to generate bitcoin for themselves.
This is why GPU mining is so much better than ASIC!
Mining can be made as an good business profiting big, but it needs a very big investment even for a small scale mining farm. Profitability depends upon the electricity consumption charge provided by the government. In the past Venezuela served as a good region to profit big, but now the economic fall has caused a severe fall in mining process.
At the moment, it is not a viable business opportunity, unless you have millions of dollars to start big. However, as the most advanced technologies are being used to manufacture the ASIC miners, the jumps in hashing power (for a given power consumption) is starting to slow down.
For example, in 2013-2014, for the same amount of energy spent, you can have 5-10x more hashing power if you wait a little longer, because more efficient miners are being made. That was the time when the ASIC manufacturer will "delay" the delivery of their products as they can use them to generate bitcoin for themselves.
For example, in 2013-2014, for the same amount of energy spent, you can have 5-10x more hashing power if you wait a little longer, because more efficient miners are being made. That was the time when the ASIC manufacturer will "delay" the delivery of their products as they can use them to generate bitcoin for themselves.
I did some searches and couldn't find anything directly related to what I was looking for...
But any how, anyone set up their mining activities to be a business? I'm coming from the US perspective... like, buying the equipment, renting an office, running the machines, registering as a business, etc.
It was just an idea, but basically the difference between a hobby miner and someone who actually wants to turn it into a small business, etc.
Any thoughts? Any experience?
But any how, anyone set up their mining activities to be a business? I'm coming from the US perspective... like, buying the equipment, renting an office, running the machines, registering as a business, etc.
It was just an idea, but basically the difference between a hobby miner and someone who actually wants to turn it into a small business, etc.
Any thoughts? Any experience?
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