Topic: Thinking of large sum of money into mining. Need opinions (Read 3823 times)

It always a problem but now it is at make it or kill it levels.
He is right because back in the day it was affecting how much you make, now it is affecting IF you can make any money at all. So, if any of those happens you may never ROI at all. That is why it is more important now than ever.

These points you make are not relevant at all... Transaction fee's have always been uncertain, Halvings have always been known, uncertainty in the political scene have always been an issue.

Yes, but Bitcoin mining is pretty risky to get into now because:
-You don't know what transaction fees etc. will be in the future so your income will not be consistent.

-In 4 years there will be another 'halving' in which the rewards for mining a block will be cut in half, making it harder to profit.

-You need to consider exactly how resolutions to block size issues are going to affect mining.

Fortunately what will make you profit is holding the Bitcoin you earn, as it is most likely that the price will rise over time.

What do you think of Bitfury? Is that not in the west?

You might be able to make a bit of profits with the price of bitcoin rising with the difficulty, but again it's up to your electrical price. ROI will be a little long but with time the price of BTC will rise and you'll make a profit in the end most of the time.

Holding is nice and can net you nice profits but it's also a little bit risky. Trading can be worthwhile if you're willing to put time into it.

The difficulty is rising too fast. It is better to buy the bitcoin directly.

i am not sure how much you can get when you decide to mining, you said you have 100k to invest in mining section, then i think you will need high-end hardware to mining because this is the only way to can earn much of bitcoin than other people. but in mining, you need to wait before you can earn much of bitcoin like 3-8 month or maybe less, beside that you should calculate how long you can get ROI.

i think you need to thinking to make investment in other way so you don't have to wait to long to get ROI but its up to you.

Yea we actually looked into some old alcoa locations due to the fact that they already had so much heavy power ready to go but ended up going another direction.

I tend to look at things from a larger business point of view and I think thats my disconnect with most of the people on this site. Personally I wouldnt consider what you have a farm, thats still something you could run out of your basement. I may be a bit jaded in that respect because I manage thousands of machines daily so my sense of scale in the industry doesnt match up with many other people.

I totally agree a quality mining setup will give you a better return than just sitting on BTC at present. We are at a time where there will not be improved miners coming out for quite a while so anything purchased today will have a longer shelf life than pretty much any miner in the past. 100k will get you a manageable starting point to get into the mining game. As I stated before it is a small enough number of machines that a single person could run the business no problem. Heck if you didnt want to do the monitoring on a place like that yourself I could come out and setup a server to remote into and I could manage/monitor it all for the right price.

 *goes around and counts*


 As of right now, I have 5 ASIC and 15 dedicated GPU rigs of various types mining, and the machine I'm typing this on part-time mining makes 21 total units.

 The BULK of my income comes from the 5 ASIC and 11 of the various GPU rigs - the other GPU rigs are entirely "left-over" parts from my Litecoin GPU mining days or "what I had lying around" and while they're profitable they're not making a lot.

 I would classify this as a "small farm" or "small miner" setup.

 My TOTAL investment is well under $30k - I think it's under $20k a bit but haven't crunched the full numbers for last year yet.

 A fairly large chunk of the "investment" is paid off, it's my more current *higher profitability* gear that I've not had long enough to be completely paid for though.

 I wasn't aware Alcoa moved so much offshore but I don't find the idea shocking.


 I do NOT believe that 100k invested in Bitcoin right now would return more over the next 2 years than getting a serious well thought out small-to-mid-sized mine going with that same money. The BULK of the recent Bitcoin price rise came with the Chinese exchanges were allowed to start accepting payment in Yuan for Bitcoin purchases back around November a year and change ago - which was a ONE time event that more than doubles Bitcoin pricing in a month and has allowed the continued weakness in the Yuan to fund ADDITIONAL Bitcoin price rise since then (excluding the short-term panic drop when the Chinese "Central Bank" (owned by their government) turned around and announced that they decided to "investigate possible market manipulation and other issues" with the major Chinese exchanges).



 If I had 100K to work with (INCLUDING my outlay for the current setup), I'd find a much bigger place with a lot more electric to work with and move a lot more towards doing what I WANT to do, without having to worry about continued growth just to maintain my current income level. Among other things, ALL of the pre-RX AMD stuff (and possibly my pair of RX 470s as well) would shift to hammering out MooWrapper/Dnet blocks (I can almost break even doing that via GridCoin, but can't afford to do so at this time)....

In my opinion it is not worth to invest in mining 100k and run a farm. The best choice is to buy Bitcoins for 100k sit and watch how the price is doing. You will get more returns than mining BTC. Just think if something goes wrong you will lose all your investment but having BTC you can just sell off everything and move on. Running a farm is very expansive business. You need invest not only in electricity but also in security. Why you want do this?

Alcoa moved most everything they do offshore so they didnt have to deal with EPA regulations and all that other fun environmental protection stuff the civilized countries have implimented.

I think there is confusion between us over the terminology.  I am not sure what you consider a 'smaller miner/farm' as people on this site tend to call their 10-20 unit setups a farm.

 How odd that many of us smaller farmers ARE in fact able to compete successfully - and no, I'm not in Chelan Coubnty though I am in one of the other 2 adjacent "very low cost" counties.

 I've been profitable enough since I went full-time as a cryptocoin miner this past summer (after moving from Iowa) that I am currently looking for a bigger place with more electric available to expand into (I'm currently pretty much electric capasity capped in my current place) - if that's not able to compete with success as a small miner, then you have a VERY odd or a very NARROW definition of "success".

 For you information "residential" and "small business" all-up rates in Chelan or Douglas counties are quite close to the final "all up" cost for industrial-scale users - they ALL come in at under 3c/kwh (Alcoa might have managed to negotiate under 2 for the very large Aluminum smelter complex they used to have in Chelan County, but I'd not BET on that after their up-front costs and usage fees were included There has to be SOME reason they shut that one down in favor of others elsewhere - possibly transportation costs for the ore and resulting products)
 This is not factoring in the "high density surcharge" stuff that Chelan recently implimented that pretty much only affects large Cryptocoin mining farms, though it would appear that existing farms are getting hit with that on a "phase in" basis rather than immediately.

 Grant County isn't quite good for small scale farmers, the residential and small business rate all-up is about half again the all-up rate for larger users - but at 4.5c/kwh or a hair less ALL UP, it's still easily possible for a small miner to make good money.


 I can't seen any possible VALID reason for you to say us small miners can't compete here, given the actual facts of the matter.


 Outside of the 3-county area, you MIGHT have a point about it being hard for small miners in the US to be competative.

 

There are a number in the pacific northwest that have been mentioned many times over. Go look at all the places in Chelan County WA alone. Smaller farmers cant really compete, you need to go big to get the good electricity rates. Its been that way for a while but so many people are not willing to accept it on this forum for whatever reason. Before you say I am WRONG please tell me what is so incorrect about my statement and I will gladly explain my position.

 Care to explain the large farms known to exist in the Western Hemisphere that ARE still competing?

 Care to explain how many of us smaller farmers can still compete?

 Your statement is WRONG on far too many levels.

This is 100% wrong. You need to seek out some people with actual industrial mining experience if you want answers to these questions. Honestly a 100k build might net you 60 machines with power supplies if you went with new S9/T9s. You can run the entire business by yourself at that point. There is very little maintenance to do with such a small number of machines.

P.S. Someone mentioned R4's. Stay as far away from them as possible. The price per GH is higher than either the S9 or T9 as they are for the ultra foolish home miner that doesnt care about making a profit. Also a quick search of the hardware section will confirm they are extremely unreliable.

imho its easier to just get btc & get return immediately as its an uptrend now. mining is only profitable to those that stand close to manufacturers of asics, plus have cheap labour & cheap elecy. basically being in the western hemisphere you can barely compete. so not worth it.. stay out of alts until you are fully aware what is their purpose in crypto world. good luck friend.

When prices were over $1,100 the math said yes. Now that prices are at $900 you would think its no. But I'd say that in the future it will be worth it. It always been an ebb and flow based on supply and demand.

keep in mind ,since u have a good size farm, when ur done with the gear, u could and are prob going to sell ur gear to someone with lower eletro rates than u. that will boost profits just a bit, u can use that to upgrade  and rinse and repeat. thats how the game is played now, hand me down gear.

Well, before two days ago, mining could have been super profitable for anyone. When the prices hit $1,100 a bitcoin that would totally be a profitable price to cash out any bitcoins you would be mining. But going back to $800, maybe you should think twice before you do. Maybe trading is quite better to invest in. Just buy bitcoins itself, at its prices right now, it's a steal.

 Bitcoin difficulty does NOT drive Bitcoin price at all.
 There is a long-term mild correlation of price driving difficulty, but NO correlation the other way around.

 The REAL correlation long-term is "profitability limits difficulty rise".