Mining no longer viable even at the industrial level

[ittybittz]

Would be great to get views on this:

https://www.dropbox.com/s/q4dhp572wiqm9ho/Thoughts%20on%20Mining.pdf?dl=0

[xstr8guy]

A newbie posting links to Dropbox. Suspicious.

[ittybittz]

Why suspicious? I came across this elsewhere and want to get views.

[xstr8guy]

Then don't post a link to a file. No one in their right mind is going to open a file from some stranger. Just post the text from the file if you want people to read it.

[ittybittz]

OK, this is the conclusion they put after some analysis:

The mining revenue per machine has been declining at a rapid rate over the past year
• At current prices of c.$320 per BTC on a fully loaded, P&L basis, mining is almost certainly unprofitable
• On a cash basis, however, costs per BTC are c.$150-$160 and therefore having deployed the infrastructure the miners are likely to carry on mining and ‘keep the
lights on’ as long as prices stay above this level
• There is a self correcting cycle due to the dynamics described as follows:
It is likely that over the coming months and years, it is only the strongest and best capitalised miners that will avoid the
boom-bust cycle

[Nagle]

It's a relatively obvious analysis. Most of the info is from "blockchain.info". There's no sign that the author has any inside information about the operation of big mining farms, or what they're paying for hardware.

[Connor936]

A newbie posting links to Dropbox. Suspicious.

Even if it is not malware it could potentially leak your IP address, which the forum tries to prevent.

Either way, commercial mining is generally profitable as it is not very expensive to produce miners once the R/D has been paid for

[klondike_bar]

IMO ive been able to make a profit from my 10kW farm, which was built using about $2500 in costs (wiring, fans, shelving, PDUs, cables, switches, PSUs).

Im still running about 8.25 TH / 7.5kW and have only about 5BTC to go before I break totally even, considering electricity costs over the past year. At that point I will still have 4-5BTC worth of mining equipment operating and about $1200 resale value of PSUs/PDUs plus permanently installed 208V and 120V circuits where there were none before.

Its easy to see how an operation 10x this size could afford rent but not employment, and at 20x the size could likely cover a small paycheck for someone to provide management/servicing