Mining is Profitable ... for the Government

[Bitcoin++]

I've invested about EUR 2000 in mining hardware and paid about EUR 1000 in electricity.

Thus far I've generated Bitcoins worth about EUR 1500 and my miners are hardly profitable anymore. If I'm lucky I'll make another EUR 500, and if I am very lucky (Bitcoin skyrockets) I'll barely break even.

The producer, Bitmain, obviously profited. Even more so did the government. More than 20% VAT means the government got EUR 400 at the customs. Electricity has more than 50% tax. For some reason people believe that electricity pollutes and that polluting is okay as long as you pay the government for it. In total the goverment has made around EUR 1000 on my mining business. Personally I'm in minus.

"Thank you" everyone who keeps investing in hardware. We lose. Our governments win.

[data55]

I've invested about EUR 2000 in mining hardware and paid about EUR 1000 in electricity.

Thus far I've generated Bitcoins worth about EUR 1500 and my miners are hardly profitable anymore. If I'm lucky I'll make another EUR 500, and if I am very lucky (Bitcoin skyrockets) I'll barely break even.

The producer, Bitmain, obviously profited. Even more so did the government. More than 20% VAT means the government got EUR 400 at the customs. Electricity has more than 50% tax. For some reason people believe that electricity pollutes and that polluting is okay as long as you pay the government for it. In total the goverment has made around EUR 1000 on my mining business. Personally I'm in minus.

"Thank you" everyone who keeps investing in hardware. We lose. Our governments win.

I see "we" is used very loosely here.

I pay no VAT, use solar to power my miners, get the joy of knowing I'm helping the network, and I get to play with nice hardware.. Sounds like you got into mining for the wrong reasons or lost the bug.. Either way probably time for you to throw in the towel and move on..

[guitarplinker]

Exactly like data55 said. The governments don't need to affect mining at all if you really don't want them too. If you think like that you might want to think about selling off your hardware.

[jjc326]

It does sound like OP is depressed and rightly so, I mean he did something wrong, messed up his calculations or something, and now will have probably lost money on BTC by the time it's not worth mining anymore with electric costs.  I don't really think you should be blaming government though, I mean you did know what the costs were going in...

I have a bad feeling this thought is going on all around the BTC mining community, people just wanted a quick buck and didn't understand how hard it is to be profitable. 

Try my sig if you want a chance at profitability, it's a lot easier.

[philipma1957]

to the op you need to do hosted miners.  Many miners don't understand the tax laws and the accounting end of mining.

So they bust out.

There are a few good honest hosting spots that I use.

I won't plug them but they do exist.

[bitgeek]

For me bitcoin was always profitable whether I mined, traded or held.

But you are right. Mining like everything else is profitable for the government. You eat, drive a car, wash yourself, use a computer... Even when you die your family pays the government.
Don't worry about it and good luck with your miners

[HashFarmer]

I've invested about EUR 2000 in mining hardware and paid about EUR 1000 in electricity.

Thus far I've generated Bitcoins worth about EUR 1500 and my miners are hardly profitable anymore. If I'm lucky I'll make another EUR 500, and if I am very lucky (Bitcoin skyrockets) I'll barely break even.

The producer, Bitmain, obviously profited. Even more so did the government. More than 20% VAT means the government got EUR 400 at the customs. Electricity has more than 50% tax. For some reason people believe that electricity pollutes and that polluting is okay as long as you pay the government for it. In total the goverment has made around EUR 1000 on my mining business. Personally I'm in minus.

"Thank you" everyone who keeps investing in hardware. We lose. Our governments win.

Agree but this is how the world works..

[Alchemix]

You have to have a certain amount of empathy for the OP and many who share his view.
It does seem like the light at the end of the tunnel (in regards to ROI on mining gear) is getting further and further away.

[herebittybittybitty]

Plenty of people have made plenty of money by mining. A lot of us have cheap elec and no VAT. The profit margin is slender enough though that without that, it's not going to be profitable.

[Kprawn]

And still the governments are hesitant to accept crypto currencies. The income derived from spinoff businesses like these, are not taken into consideration, they just listening to the banking advocates and nay sayers advice. {Those that fund their election campaigns}

Yea, you right, they still winning.