Bitcoin Forum

Chinese Bitcoin Mine That's Making $1.5M a Month

6 of these locations in china secure and process 3% of the Bitcoin transactions.

http://motherboard.vice.com/read/chinas-biggest-secret-bitcoin-mine

 

How much of that would be profit at today's prices? I don't know what Chinese electricity prices are.

Video says that their electricity costs are $80,000 a month. I think that is per location, but not sure.
Good video, i enjoyed it.
Thanks.

Is it Discus Fish anyway ?

They have there own generator and as such depend on the oilprice, the real cheap black shit like they use on the big ships

That's actually brilliant.

They sure won't be making 1.5 million a month with these current prices. I wonder when this was filmed? I watched the trailer earlier today but will watch the whole thing when they put it on their YouTube channel.

it was made when the price was $375

Oil is cheaper now so electricity may have gone down for them and difficulty has leveled off so they probably are making less but not that much less in profits. In addition on must consider them phasing out their old hardware and using newer hardware which could make them even more profitable as difficulty increases has flat-lined.

One neat thing is they don't have a heating bill as office and housing is nice and toasty. Would be better if they recaptured more of that heat though, perhaps they will do so to increase profits for future mines?

The authors of the article sounded surprised that the operators live on site. That's actually pretty normal in China. I have a sister-in-law who is a rep for Chinese manufacturers and she's had to get used to that on her trips to China.

Granted their electricity costs are down, as well as BTC profits, but I wonder how viable they are when the cost of the frequent upgrades of their ASIC hardware is thrown in. I expect to see a good chunk of the manufacturing capacity for BTC mining hardware to disappear in 2015, along with serious consolidation between the hardware manufacturers. Unless the price spikes back up.

Leave it to the Chinese to maximize output. They do it in farming and manufacturing, why not Bitcoin.

Awesome video , ~ 4'000 bitcoin per month it is very great. The unique problem now it is the low price of it, but maybe they can hold a part ( and pay the electricity bill +  "workers").

Amazing! So these are the guys that appeared on several crypto media... They have nice farms going on! Seeing it in video just made me even more amazed.

Hope they keep up, even with declining prices. I wish I had such farms, haha ;D

a lot of shit. it's only the BTC propaganda

the daily revenue is around 1 MIL per day for ALL the miners. maybe these chineses are the only miners. :)

the article says they make 1.5 million per month, not per day. even with the price drop, theyre probably still making 750k usd per month or so, which isn't bad at all.  :D

What is sh*t is having to be told by a newb you commented sh*t, nothing new though mayax hey.

Colder, business is business and you're right that isn't at all bad  :)

Thanks to Vice we saw a bit of life in China, but the video is a bit confusing. In the intro they say that the mine generated 4050 BTC in November and the owner of the miner says that they generated ~100BTC per day which would equal to ~3kBTC per month. Either they run into a big loop of luck or something is wrong.

they  lie, of course. :)

I watched the video and thought he said they made 1.5 $m since they opened. Video was filmed in October 2014, and factory had beeen open a "couple of months"

Cost of operating is 80000$ monthly

looks like a massive fire hazard.

In August bitcoin was worth $600+, about twice what it was worth during the October low. Their profits must have dropped considerably since then.

There have been a few that burned down. They should keep their fire safety in check otherwise..BOOM

Looks impressive. Just wondering, if it's such a secretive operation, then why would they allow anyone in to their facility in the first place?

I think there are only few BTC farms around.

there is only 1 mil USD /day for all the BTC miners. it is almost impossible to make profit unless you have free electricity. :)

Very nice operation they have going there... 
One could only hope they don't always dump on the market, and it would be wise of them to at least hold a decent percentage of that as Bitcoin.

Anyone can join the miner. ;)

"Strangely, the mine’s workers actually live inside the facility itself, returning home just four or five days a month.

In the summer months, temperatures inside are in excess of 100 degrees, and a persistent, deafening buzz is always present due to the dozens of industrial fans required to maintain a steady temperature for the site’s 3,000 ASIC miners—custom-built computers specifically built for mining bitcoins. "

How can they even survive?  :o
Do they have like special sound-proof living quarters? I can't even stand one miner running, the constant humming drives me nuts... I guess it's no big deal, if they are making ~900,000USD at current rates.

These farms seem to be well maintained, and don't forget they have people there 24/7. In case anything goes wrong, it can be quickly controlled.

I think smaller home miners have as much fire hazard as this farm :)

Yeah I saw this documentary last night. Totally scary and eerie the vibe i got from that building, that noise is really mesmerizing.

I'm thinking : how  someone can sleep in that building? It is crazy  :-\... I can't.

The amount of miners in just one facility is already huge, let alone 6. I wonder how would they keep up with the maintenance of so much devices. And the heat generated would be huge with the increasing difficulty and dipping prices, the chances of profit are lower now.

The living and mining area are separated.

the profit is almost zero IF you have to pay the electricity. Do not forget that they have to buy NEW hardware every year.

For folks saying their profit is lowering/no profit... For me, they seem to be doing good, they would have already shutdown if they weren't having HUGE profits ;)

As for maintenance... Well, 24/7 maintenance, what's better than that?! ;D

I don't think so as they state in the video that their computing power is good for 3 percent of the network.

DiscusFish aka F2Pool has a far higher percentage of the network.

that movie is from August 2014 when the price was around of 450

what movie, what are you talking about? am i missing something, because the article is posted on this year

Yes, but would it be published if they were closed? I find that odd...

they didn't close yet. I am not sure how they are paying all the bills with the actual BTC price

Exactly. They didn't close it. Yet :) So they're still in profit.

This is so cinematic. I would love to see a full movie that happens in a bitcoin mine like that.

you can maintain a company from "your" pockets for a while too. it doesn't need to have a profit. there are many companies who are on loss for years...

Nice video.  Thanks!

You simply have to know when to stop. This is not a company, and they haven't got that many employees, so it's easier for them to just shutdown, unlike a normal company. They just turn everything off and sell the hardware (there's a market for such machines, as you can see in this forum)

If you're running something from your own pockets indefinitely, then it's simply not worth it, whether it's a company or a mining facility.

These guys aren't like us, they're here for pure profit. They accept no failures, and they only take pure profits. They can't afford to be like a home miner that simply says "oh well, BTC/USD is down, I'll just wait to see how this goes, and I'll mine with a loss until then". Mining at a loss for these guys doesn't mean a few dozen of dollars/month lost. It can mean hundreds of thousands of dollars lost. It's just too much at steak for something like this to mine on a loss :)

It is possible that they are part of discus fish and they mine for them. Since it is a pool, they can very well be a part of them and mining with other miners.

And yes, a lot of people underestimated the actual mining cost. I mean these guys are just here for the profit. they wouldn't even bother what happens to bitcoin. And definitely if mining for loss, they won't be for sure will continue their operation. and that's a fact.

mining is a business just like mining gold/silver
you invest in the equipment and have all running costs, if old outdated machinery or bad managent you go out of business

They are around for profit, yes, but if what the manager said is true, he cares a lot about Bitcoin, as he has 50% of what he owns in Bitcoin...

The guy in the interview said that he has ~50% of his assets in bitcoin so I would say that he somewhat cares about what happens to bitcoin.

their electricity cost must be through the roof though. but it seems they get more than they spend

Or maybe black market oil. Hope they're not buying oil that comes from ISIL controlled areas.

I'm curious that how much does miners cost for mining a coin, $150? $200? still profitable?

Im seeing all these news about China considering banning bitcoin. What the hell are these guys going to do then?

Continue mining.  Nothing is going to happen from the PBOC.

China's been banning Bitcoin for 4 or 5 years already, if they'd want something completely banned, they'd do it by now, being a Communist country and all.

Thats a pretty big amount. Do they still make such a big amount today ?

Well but they are hurting BTC trust specially among chinese citizens if they keep putting out all these ban rumors.

I am also into dystopian films.

China has not banned bitcoin at any point of time. It is just restricted and regulated. Individuals can still buy and sell bitcoins or trade with other individuals. There are still some bitcoin companies based in China. AFAIK, the banks will not allow transactions relating to Bitcoin. Bitcoin cannot be banned completely, people will always be able to bypass and use it .

electricity is hell cheap in china , china offering cheap electricity to other countries as well and in their own country they they have more cheaper electricity cost then they are offering