Post
Topic
Board Mining (Altcoins)
Merits 1 from 1 user
Re: Advice needed: 80k USD mining adventure
by
fjzappA
on 30/08/2018, 19:31:00 UTC
⭐ Merited by Metroid (1)
So many unknowns, so much is un-knowable.
- I was in your exact position earlier this year.  I had rented 1000 Square feet in Texas, and had 100KW of 3-phase power available immediately and plans for more.
- As crypto dropped, I abandoned my plans, started selling my gear (still have a bunch) and shut down the facility. 
- I am converting cash into crypto rather than rent, and mining at home only, using only Z9-mini's.  All GPUs are shut down, and all S9's are shut down.

So what do we know?
- Hash rate of every worthwhile coin is the one thing that is actually mooning.
- Bitmain prices their products for ~1 year ROI, maybe a bit less.  In my experience, Antminer S-series will pay back 1X in a year, and never pay another 1X because of hashrate growth.
- Rising value of Crypto to Fiat, makes all of the above math look better than if it stays flat.
- Of course something new is coming from Bitmain.  S9 series is more than 2 years old.  It's time.

What can we do?
- Assume crypto is going to moon.  Buy Crypto because you can't mine crypto as fast as you can buy crypto.
- Assume crypto will drop.  Sell what you have and be done with it.
- Assume crypto will be flat.  Maybe mine if your costs are low enough, but need to recognize that you're in a declining return over time because of hashrate growth.

What should you do?  Be careful.  Even at 5.5 cents/kWh, be aware you're competing with people in China and other parts of the world who are paying much less or even not paying for their power.