Bitcoin Forum

Will you take a big loan for building a mining farm this days? Is this a good idea or playing with fire? Someone is trying to talk me into this but I think its wise to share the thought on here.

Big loan I would say not advisable at all.We are near the end of the so called Ethereum mining in September and a lot of developments may happen,maybe for the good of the mining or for the bad of it,if it is this second option then it is clear taking a big loan for building farms is a mistake.

However I would say a small loan to build one or two GPU rigs is never wrong,as I think most of us has the possibility to pay the loan even if mining for the moment is not profitable,actually it is profitable to mine and even after Ethereum mining there is RVN and ETC who are the next best things to mine.

Overall I would say it only depends on your point of view,above I described what I would do in such situation.

If you're posting on Altcoins section, I suppose you're not talking about BTC mining.
And this is not a good time to take a loan to invest in mining because ETH is almost doing the transition to POS, nobody yet have the asnwer about the future of mining, maybe will be good with another coins, new coins or a stronger coin POW rising, but the fact is: ETH is going to POS, most of miners are mining ETH and it's the most profitable at the moment, if all miners point to another coins, rewards will reduce a lot.

Why not start small and see how it goes, there's no reason to start big at this moment.

I will only take a loan that I can pay back any time I want, meaning loaner won't get on my neck for a long period of time, this thing is pretty risky because many issues can rise after you build a farm, mining rewards can still go lower too. . its not a healthy idea.

For my signature idea, I would apply for one. Right now I have a loan request open in long term offers though that's on salary advance.

How much does your electricity cost? If it's more than 5 cents, then forget about mining and any mining credits. There are no promising coins for mining on video cards, and there is a lot of competition in mining with ASICs.
Read this
https://bitproit.com/gpu-mining-profitability-after-ethereum-merge/

Right now is the worst possible time to do this. I don't think you could of found any worse time than now. First of all interest rates are rising and loans of any type will be expensive. Especially given this isn't a mortgage or even a car and there is no colleratal and its unsecured.

Second in a few weeks, ETHEREUM will move to POW and tons of the miner revenue will be gone. Farms will be shutdown. There will be little to no money to be made. You can switch to Bitcoin ASICs but many large farms will do the same. Just forget this idea.

While this can be a scenario I don't prefer to think this tragically.If we think this way it looks like only Ethereum mining is profitable when in fact Ethereum mining is right now the most profitable but there are tons of other coins that are profitable.Even if all the ETH hash rate point to this coins it will distribute at a much higher rate at the next most profitable coins,number 2 and 3 now but then it will leave other coins profitable for people to mine without problems.

Mining will continue with ETH or without it as this has been the case since early days,just because ETH used to be the most profitable coin to mine does not mean that there will be no more profitable coins to mine.

I am very worried about ASICs in the Ethereum blockchain. Then it will go to mine Ethereum Classic and we will lose another coin for mining. And the rest of the coins cannot give a good profit to such a large number of video cards. Mining will not die, but the number of miners will decrease.

Same here but if miners keep decreasing isn't that a good thing? It will give room to less difficulty and still make GPU mining a reasonable investment, also if the chain split happens maybe Asic miners might be finally death with.

What do you guys think is the best altcoin to mine right now?
We usually prefer staking over mining especially VEMP with it's crazy APY :D

Ethereum or ETC, mining isn't always about the best coin to mine its more about the more profitable coin to mine, unless you want to hold your coins for a long term, if that's the case then you can swap your ETH or ETC for others like ravencoin or Ergo.

Such decision should be taken based on couple of parameters. It's risky anyway but mining is a serious business so it can be started through a loan.

1. Cost of electricity
2. Interest rate on loan
3. Detailed profitability calculation to see monthly profit after paying electricity bill and loan installments
4. Cost of hardware
5. Maintenance cost of hardware

Unless you have these data points in front of you, it's not wise to say a blanket no.

That's a hard no if ypu are asking me.  Taking a loan out for something that is so volatile is crazy.  You can screw up your next 5-10 years finances betting on mining.  Grow slow.  Buy more and more as you get more money and grow your farm.  Mining is even more volatile than just straight buying bitcoin if you ask me.

My answer is NO, that's a high risk investment plan that can land you in a big trouble, the first mistake I made with crypto mining is leading some money to buy graphic cards, the first time I started building the rig I mistakenly killed a GPU, it was a disaster, and later bear market ruined everything, I paid the debt two years later and that's because the person that loaned me the money understands me very well, if not it will be more disheartening.

the interest is like electricity bill that needs to be paid.

it can be ROI'd if you time it right just at the start of the bullrun. in crypto timing is everything, and yes it is RISKY.

if you made money (you level up in crypto) just stop with loans and debts. pull every money from your pocket.

You took the loan at a wrong timing it seems, if miners bought graphic cards in 2020 around November they would have made a lot through out 2021 and ROI'd with extra gains on ground, this is what a perfect timing looks like, in the end you will be able to pay your loan and be a proud owner of a mining farm or rigs.

also think about the loan "interest" as an additional "electricity cost" to make things simple

if your electricity is 0.04 now it is 0.08 putting loan interest in mind. yes it is profitable in a bull run.

"timing" is a gamble too. make sure you are not 100% into that loan, make sure you have a hedge.

Thorough calculation must be made considering all cost including loan interest, electricity bill and many more before going into such. Moreover considering those factors and calculating profit doesn't guarantee success. This is cryptocurrency, it may be funny atime. Borrowing huge money which you can't easily pay if things doesn't turn out as plan isn't a good idea.

I do not recommend it at all, now certain problems are forming with mining, then the rate is low, or soon the most profitable ETH coin will switch to POS, the risks are now greater than ever, borrowed money needs to be invested in a less risky type of activity

Wait for the beginning of the next bull market if you want to take a loan, now is a very bad time for taking a loan since Ethereum mining is coming to an end, we still don't know how mining will play out after ETH is no more.

As now there are 2 options. You can set what you want recive BTC or ETH.
If you set ETH then it will mine on dwarfpool (dagger hashimito) and send you eth.
If you set BTC then it will mine on nicehash (dagger hashimito) but send you btc. <- this option has like 10% less profit due to low profitability on nicehash but its for people who dont know what ethereum is and they want btc instead.


I think that custom pool will be possible soon but first i have to make other more important stuff like:
- short youtube video and some screenshots from installation and how it works
- auto mail notifications (like rig has been booted and some info about it - how many GPUs found etc)
- separate line OS version with 15.12 AMD driver (for 3xx/2xx/7000 cards and overclocking, powertuning stuff)
- basic Dashboard on website where you can login and see status and for now basic info about your rigs

If you have any ideas, problems or you badly need some option, let me know.

dwarfpool :) The pool was good, but it has been closed for a long time.
I read your post and took me back to the most wonderful times for mining 9 years ago :) I hope you weren't in a coma for a long time because ETH is now using the POS algorithm.

I do not think that taking a loan is the way, you can always buy for example shared miner on circlehash, which is avaiable for every budget, and the nyou can buy some more everytime you wanna invest again. Eventually, you will have the whole miner.

circlehash smells like a scam!
Well-known miners have a cost of electricity of 2-4 cents, while circlehash has a cost of 20 cents.

1. Basic Cost Structure
Electricity costs refer to the expenses incurred from the consumption of electrical power to run mining machines.
At CircleHash, we operate with a standard electricity cost of $0.2 per kilowatt-hour (kW/h).
https://www.circlehash.com/page/electricity-costs

And at this price, mining is not profitable, but it is profitable to sell miners to beginners. Then newcomers will be told that mining is unprofitable and will be offered to send the purchased miner at a price that will be higher than the market price.