Topic: Sad thing.. (Read 1242 times)

By autumn ya...its pretty well finished.

Mom and pop mining can not make money anymore?

To the op.  A lot about mining depends on the country you live in…  Mining in the USD vs buying and hold Crypto  coins has very different tax rules.

Under todays IRS guidelines buying 100 usd of any crypto coin is like buying a share of stock.  No issues on tax until you sell or trade it.

Mining a coin or any part of a coin creates possible tax issue to exact moment you earn it.

  If you are not in the USA  forget any advice above.

I have an accounting background , I have a degree in accounting.  I worked for the IRS for a bit. I have prepared tax returns.

 So  if you are usa based you need to consider tax rules just a bit more then some other countries.

For instance a year  ago  before the tax rulings of this year I would have told a guy with 2gh don't mine solo you may never earn anything at all.

Now if you have 1 usb stick  to mine with mining solo with it placing it on a network that the 2 watts it uses does not matter you have a life long lottery ticket . 

Here is a breakdown.  an antminer u-2 costs about 20 usd on ebay.


https://bitcointalksearch.org/topic/no-stock-free-shipping-antminer-u2-usb-sticks-uscanada-508876  it costs about .032  btc here that is about 15 usd.


just mine with it solo mining.  if you ever hit a block   the day you hit the block lets say a 25 coin block  at 440 usd a coin = 11000 usd

you simply pay tax on the 11000 usd about 40 percent  at the worst maybe 20 percent at the best.

  same if you buy a gridseed and mine ltc solo.



If you want to pool mine   the tax return is more difficult as each payout needs to be tracked and added up for taxes.

Since you have 1 stick  you should mine solo  you would never need  to deal with it on your taxes unless you won a block.

+1. Just buy bitcoin and hodl, it is more profitable and less risky.

simu mining bitcoin and altcoins is even less efficient then just mining altcoins.

seriously try using a calculator,

again, you will make more profit buying bitcoin using fiat and hoarding. compared to buying rigs and then selling bitcoin for fiat.

i might be buying a gridseed later and will simu-mine Bitcoins, PPCoins, and DogeCoin   

Here's hoping that your efforts pay off in the long run.  I always wanted to mine even at a loss but now I'm kinda glad I didn't bother.  I would have been nice to better understand how to mine though.

instead of putting extra money towards your electricity, consider maybe going to localbitcoins.com and buy bitcoin in small amounts

EG pay $1 and get 0.0023 then you can turn your miner off for 100 days.

100 days of usb mining, gpu mining exceeds $1 in electric. so do the smart thing, invest the $1 in bitcoin and not in your electricity company

You can try mine litecoins or some altcoins if you wanna profits. Bitcoin at this point is for megawhales with lots of ASICS and firepower.

You can see the gains compared by directly mining btc in this site:


http://www.coinwarz.com/cryptocurrency



The top 1 is more than 3000% profitable than bitcoin, and litecoin is 400% profitable

Nonetheless though, Even if you aren't making that much money, you may learn more within mining by doing so. You never stop learning.

+1 You are doing good job!
Consider using a faucets - might give you more that that

Keep going and you'll have your first cent!

i've been mining for less than a day at 2 GH/s and am already making a shitload of money
0.00002150   says Slush's pool    

edit:  ahaha "current block" is not permanent if you stop your miner (edit:  back to 0.00000001 made  )