What are medium and large mining operations backup plans?

fanatic26_

full member

Activity: 294

Merit: 129

Quote from: OgNasty on August 06, 2018, 12:34:38 PM

If you never recoup your costs going solar, you are definitely doing something horribly wrong. Even for a non-miner, solar is a no-brainer for anyone who owns their property in a sunny area and doesn't plan on moving in the next decade.

The only way to be successful with mining as your sole source of income is to constantly upgrade and expand. If you want to run 100kw forever and subsist on a base salary, sure it might work out for a while. If you want to be successful that is just not the way to go. 100kw of mining gear might make pennies in 5 years while you are still paying off that solar bill, eventually going underwater on it. Even right now 100kw of gear is a pretty mediocre salary all things considered.

tke1600

newbie

Activity: 29

Merit: 2

There are large risks for medium operations too. Maybe even more than those who have cheap rent and electricity with larger mines. Difficulty is not slowing down with the price drops either.

OgNasty

donator

Activity: 4760

Merit: 4323

Leading Crypto Sports Betting & Casino Platform

Quote from: fanatic26_ on August 06, 2018, 10:41:13 AM

Well if you are going solar you are already doing it wrong and will most likely never recoup your costs. That is just a dumb idea.

If you never recoup your costs going solar, you are definitely doing something horribly wrong. Even for a non-miner, solar is a no-brainer for anyone who owns their property in a sunny area and doesn't plan on moving in the next decade.

fanatic26_

full member

Activity: 294

Merit: 129

Quote from: weedle622 on August 04, 2018, 12:23:03 PM

"almost no risk" other than the $200k of sunk cost into solar panels, the time spent, and all the non-miner hardware and setup costs.

It seems like running ASIC's for deep learning is the best backup plan I've heard of.

Well if you are going solar you are already doing it wrong and will most likely never recoup your costs. That is just a dumb idea.

weedle622

newbie

Activity: 11

Merit: 0

Quote from: fanatic26_ on August 02, 2018, 03:34:29 PM

Honestly 100kw is only enough to run like 60 miners. Its not like you need a full building or some special land. You can modify a pre-fab shed to do what you need and just stick a panel on the outside of it. There is really almost no risk for a setup that tiny.

"almost no risk" other than the $200k of sunk cost into solar panels, the time spent, and all the non-miner hardware and setup costs.

It seems like running ASIC's for deep learning is the best backup plan I've heard of.

fanatic26_

full member

Activity: 294

Merit: 129

Honestly 100kw is only enough to run like 60 miners. Its not like you need a full building or some special land. You can modify a pre-fab shed to do what you need and just stick a panel on the outside of it. There is really almost no risk for a setup that tiny.

philipma1957

legendary

Activity: 4256

Merit: 8551

'The right to privacy matters'

Quote from: weedle622 on August 02, 2018, 10:27:45 AM

I'm talking about a worst case scenario (For example it becomes illegal in a mining operations area).

But yes I'm curious what non-mining revenue streams people are pursuing or would pursue.

build out for mining will always be a risk.

the only safe build out is solar and that is safe in the right states not in every place.

Since the real assets created = the solar facility not the btc or any coin.

To be able to do this means you need land and good government rules in your area.

Steamtyme

legendary

Activity: 1554

Merit: 2037

No matter what the business end of things are, if it fails you still have the building and land. I assume these would be owned if you had a large enough mine, otherwise you would be at the mercy of the property owner and that seems crazy.

So if all your mining gear becomes obsolete, you still have the infrastructure that you built or bought as well as the land. Those items will always carry a value.

If mining becomes illegal, you can at least sell the hardware to recoup some costs... if it's a decent time for hardware sales.

Considering it's all hypothetical, you could turn your facility into secure storage. I remember someone converted an old airport hanger that shut down in a town where I lived. I got a tour once and everyone stored their classic cars, or RV's there.

Also just to ad, seeing as you are now considering this investment... Don't invest more than you can afford to lose, as there may be tough times.

BitMaxz

legendary

Activity: 3374

Merit: 3095

Playbet.io - Crypto Casino and Sportsbook

I think there's no other way or sell all your miners to cut all of your losses then the facilities and power contracts maybe you can find someone to take your contracts so that you can cut your losses before the mining becomes unprofitable in the future.

Honestly, here in my country mining bitcoin and altcoin is not profitable, but I still mining because it is my hobby and also to contribute on the network and hoping in the future bitcoin can be more profitable.

weedle622

newbie

Activity: 11

Merit: 0

Quote from: fanatic26_ on August 02, 2018, 10:17:55 AM

Crypto will never be unprofitable if you know what you are doing. You dont place all your eggs in one basket you need multiple revenue streams to be a successful company.

I'm talking about a worst case scenario (For example it becomes illegal in a mining operations area).

But yes I'm curious what non-mining revenue streams people are pursuing or would pursue.

fanatic26_

full member

Activity: 294

Merit: 129

Crypto will never be unprofitable if you know what you are doing. You dont place all your eggs in one basket you need multiple revenue streams to be a successful company.

weedle622

newbie

Activity: 11

Merit: 0

For those who have put major investment into land, facilities, and power contracts, what is the backup plan to save your investment if cryptocurrency becomes unprofitable?

I know any mining hardware investment is out the door. I'm more curious about what non-mining operations people plan to move into. Server farm?

Context: I'm exploring building out a smaller 100kw operation, but want to have a backup plan for my investment if I'm stuck with 100kw of cheap power, facilities, and land.

(First post so apologies if this isn't the right area mods. I searched for similar threads and didn't see anything.)

Topic: What are medium and large mining operations backup plans? (Read 281 times)