Bitcoin Forum

Hi
I have access to somehow cheap electricity ranging from 0.006 to 0.015 usd cents per Kwh
and am thinking of starting some mining biz if it is worth it.
what would you do?

You're electricity rate is really good. With that, you should start by doing some calculations to look if it could be profitable for you to mine. You should look is there is some second-hand ASICs for sell around where you live.

Absolutely agree with this. New ones might cost too much. But be careful, learn things first, because when buying used ones you should know exactly what damage is unimortant and what is crucial. Buying second-hand ASICs is something you should have an expert around to assist you.

if i go with new ones what are my chances of reselling them and how much can i get back, 50% +/- ?. let's say a couple of S7's

Reselling will always give you 50% only even if you used less or more, it is upto you that how properly you will install it and what is the climate of the place where you are going to set it. according to that how less the diffculty is that much high you will receive the minning profit.

First you need a plan of course and you could start by telling us your budget and in case you have huge funds then I would advise to hire a manager to do all the calculation and plans for you and also hire a technician to monitor everything in case it's out of your knowledge and then you could go ahead and buy second hand asic miners since you already have a technician in which most likely knows what to do and how to check to see if it's functioning well or not. Your priority shouldn't be on how much percentage your going to get from reselling but rather from how much percentage your going to earn in the long run regarding the profit of this operation.

Not to mention Bitmain has been selling these S7s on a cheaper trend so those who bought it at first batch are having problems selling it even in 1/3rd of their purchasing price.

Hello,

No "green energy" and eco bullshit = cheap energy  ;D

If you have the money to invest in equipment you could give it a try...

you have basically free energy, you can buy some s7(5 months for roi) if you have the right investment or wait for the next gen

there is not much else you can do, few options here

Allways keep in mind that a btc crash can have your losses running in the thousands, other than that, good electricity prices!

As well as some calculating and head scratching I would also say get mining ASAP. Pick up an S5 and PSU, and get going up the learning curve. Research is good but you need to actually be mining to understand some of the problems and even the questions to ask.

Rich

For what you get S5's  are pretty good if you get a deal if you have very cheap electricity.  I know I sold my S5's for less then I was hoping.... good for buyers bad for me.   I did do it in a shorter amount of time as I wanted to take my previous gen gear and turn it into BTC.  I think you will find this becoming common with jumps. 

Also I found a LOT of miners that use ebay wan't Bitmain gear they sold fastest for me on ebay.   I would suggest you also compare SP20 and S5 when your buying.  SP20 if electricity is correct you could run higher speeds then S5.  Double check your electricity as it seem to low almost.  So double check before buying.

Your electricity price is excellent, possibly almost "too good to be true". You'll want to verify that your figures are correct, and you aren't off by a decimal point or two.

You'll also want to find out what your limits on this electricity (e.g. time of day, only 20 KWh per month, etc.) are. Also take into account the bigger you go on hashrate, the more heat and noise you will have to contend with. Will that impact you, or anybody else nearby?

You could easily buy way more mining capacity than you could actually deal with, even if you electricity bill is low.

As an example, if you are thinking of an S7, consider what it would be like to have a 1300W hair dryer running there round the clock. Will the noise and heat be a problem? I will also assume that you have reliable Internet access at the same location?

 Depends, hydro is quite green and often VERY cheap.

 Wind and solar to date though = EXPEN$IVE even with subsidies, though they're getting slowly better.

 Try selling a Batch 1 S7 for half of what they sold for new.

 People will LAUGH at you, as the current new batch S7 price has dropped well over 50% from Batch 1 pricing.


 That's just the most recent example - S5 pricing is an abberation because of the Spondoolies/Bitmain price war and should not be assumed as a norm.


 Then there's an extreme counter example - Gridseed 80 "Blades" were originally $3000, had dropped under $800 for NEW ones less than 6 months later - a bit more extreme drop than even the S7 has shown in a similar timeframe.

I am surprised to be honest some of first batches did not get some decent coupons.  It seems bitmain has changed for mindset of giving out coupons of good value to make up for it.

Just like batch 10 it's going to drop a decent amount again when batch 11 goes up I think. With difficulty changing so much it's hard to do pricing on gear.   If the price drops more then you mine... kinda stinks as a miner.  We live in interesting times that is for sure.

I'd see what kind of budget you had to see if it'd even be semi-profitable to mine Bitcoins / other coins.
Cause if you have a small budget it wouldn't mean anything.

 There were coupons for Batch 1 - but they were so short-lived that a lot of us COULD NOT come up with enough money to actually USE the damned things, especially when the S7 showed up with such short warning as it did.

I don't remember what the amount was but S5+ users also got coupons they were decent.  I sold half and gave half away.   Giving some away made me feel better as i had gotten coupons before.  It seems now day's it's all about selling them.  Also it is surprising how low last coupon was.  I think around 20 dollars or so?  So not really much at all.

And the hard part I see is difficulty changes the miner should be having decent price drops if difficulty changes.  Don't know if companies will follow or not.  But 20 one week, then maybe 12-13 this week is a ton.  Miners essentially lost 33 or more percent of earnings in two difficulty changes.... that is a bad number.   

But it get's worse Include the 5.8, and 9.12 before that we since January 13 we likely are talking about 47+ percent change.  We almost halved in a little over a month.  So I see mining gear as kinda hard right now unless we see some serious drops.  Which to be fair there have been drops in prices just not to that extent I don't think.

It depends on how much total power you have. If you have 10 kW or more, maybe it is OK to start mining. Otherwise, not worth your effort.

Word of advice,  do your legwork FIRST.

I had/have access to power <0.001$/kWh.  Gold mine right?  WRONG.

Okay what could go wrong? Well as others said do you have the wiring/service capacity for any sizeable amperage? Yes? GREAT....

Not so simple... Is it 120v only? Can you run 240v?  This affects your infrastructure costs and PSU choices.

Got power all figured out? Lets make some $$$$$.

Not so fast... You stick 10kw of any hashing equipment in an enclosed space, and best case scenario the gear has safe thermal shutdown, now you see your gear thermal cycling over and over because the room is too hot.  Worst case, you have a fire.

This isn't to insult your intelligence or capability.  But I learned the hard way that simply having access to cheap power and having capital to buy the hashing gear does not mean you will succeed.  The infrastructure, setup, lead time, shipping costs, it all factors in.  Cooling capacity (really think more in terms of rejecting/venting heat, not cooling), and power capacity are big factors.  

Do your homework, cross all your T's, dot the I's, then go back and proof read ALL your work, and then pull the trigger.  PM me if you want.

There is a lot of initial setup costs for a mining area.  That includes wiring, cooling, etc.   But the good thing is a lot of these are one time buy's and you can just replace miners with new generations.

On fire use proper guage wiring is best advice.  If you do most gear should also have a shutdown at a certain temp.  So between those two you should avoid gear as you will be actively cooling it if it's that hot.   

Just start small and grow is my best advice.  I know on cooling I had to keep tinkering till I was happy during summer.   It took a professional gable fan before I was was happy with exhust.  So it can be some tinkering on best setup for you.

Notlist3d is right, the cost of entry for a mining area isn't prohibitive, wiring, PSU's, etc are all (should be if done right) a one time buy.

I just wanted to emphasize that cheap power is only a portion of the battle, albeit a very important one in the long run.

You don't want to get into a situation where you sink alot of money into hashing gear without a proper plan to power it and deal with the heat. 

If you can square away those two things, you are probably going to make some nice coin.

Especially if you can execute your plan quickly.  One thing I have noticed is that in this industry, timing is critical.