£16,000 ($23,209) for profitable Bitcoin Mining farm?

[Vociferous]

Hey guys,

I am quite new to this, but I was considering starting a bitcoin mining farm. I was considering investing 16k. Do you think it is worth buying the hardware and setting it up in a data center in Iceland?

I know the difficulty is going up for Bitcoin reducing profits by $100 per month? Anyways I was thinking about buying the s7 antminers. Perhaps a second hand SP50!?

Anyways, any help would be great.

Thanks


V

[SFR10]

IIRC electricity there is very cheap, so that would be the ideal thing to do if your after having your own mining farm. I would advise on Antminer S7 only but If I were on your situation, I would wait until the halving is done before starting to order these miners as their price will surely go down and maybe even new miners pop out that would be more efficient. IIRC Bitfury introduced a new chip that would probably be the first choice once released so don't buy yet.

[Vociferous]

IIRC electricity there is very cheap, so that would be the ideal thing to do if your after having your own mining farm. I would advise on Antminer S7 only but If I were on your situation, I would wait until the halving is done before starting to order these miners as their price will surely go down and maybe even new miners pop out that would be more efficient. IIRC Bitfury introduced a new chip that would probably be the first choice once released so don't buy yet.

Hey,

Thanks for your reply. I aim to start in September. So plenty of time to shop around for miners and best rental spaces in Iceland and paper work regarding taxation etc. I am currently emailing data centers in Iceland to see their monthly renting prices.

V.

[dropt]

IIRC electricity there is very cheap, so that would be the ideal thing to do if your after having your own mining farm. I would advise on Antminer S7 only but If I were on your situation, I would wait until the halving is done before starting to order these miners as their price will surely go down and maybe even new miners pop out that would be more efficient. IIRC Bitfury introduced a new chip that would probably be the first choice once released so don't buy yet.

Hey,

Thanks for your reply. I aim to start in September. So plenty of time to shop around for miners and best rental spaces in Iceland and paper work regarding taxation etc. I am currently emailing data centers in Iceland to see their monthly renting prices.

V.

Sept?  You can email them for curiosity sake, but I'm going to suggest that you rethink this.  Reward reduces by 50% in July and the difficulty is nowhere near done growing.  You simply cannot make solid market predictions that far out.

[cryptotore]

Could you link or PM me the firms you are e-mailing?
I'm looking for something similar myself!

Thanks!

[notlist3d]

IIRC electricity there is very cheap, so that would be the ideal thing to do if your after having your own mining farm. I would advise on Antminer S7 only but If I were on your situation, I would wait until the halving is done before starting to order these miners as their price will surely go down and maybe even new miners pop out that would be more efficient. IIRC Bitfury introduced a new chip that would probably be the first choice once released so don't buy yet.

We would need to know how cheap before we really recommend such a big investment.  Difficulty is just going crazy so I would want a really cheap electricity.

At this point I have my hobby mining area set up.  Wiring, cooling, a decent amount of PSU's.   These are things I have ROI'ed on already.  But for someone new they need to ROI on these things.... which add up so need pretty cheap electricity with current difficulty jumps.   They will have cost's besides miner on first setup.

[GreatNorthData]

We're located in Canada and far cheaper than Iceland.

[Vociferous]

IIRC electricity there is very cheap, so that would be the ideal thing to do if your after having your own mining farm. I would advise on Antminer S7 only but If I were on your situation, I would wait until the halving is done before starting to order these miners as their price will surely go down and maybe even new miners pop out that would be more efficient. IIRC Bitfury introduced a new chip that would probably be the first choice once released so don't buy yet.

Hey,

Thanks for your reply. I aim to start in September. So plenty of time to shop around for miners and best rental spaces in Iceland and paper work regarding taxation etc. I am currently emailing data centers in Iceland to see their monthly renting prices.

V.

Sept?  You can email them for curiosity sake, but I'm going to suggest that you rethink this.  Reward reduces by 50% in July and the difficulty is nowhere near done growing.  You simply cannot make solid market predictions that far out.

Hi,

Yes, the difficulty could indeed grow exponentially by September. Regarding the halving of the bitcoin reward, I was gutted to hear about by the way, I will still be making profit according to the calculations with an SP50 110 TH/S. I would have to buy two though to be making decent money (220 TH/S). But as you say the difficulty could grow, which would reduce profits, but I DO NOT want to rush into anything, I need to plan, research and be well prepared before investing. Smart investment.

[Vociferous]

We're located in Canada and far cheaper than Iceland.

What's the name of your company, what's your kwh price?

Thanks

[notlist3d]

We're located in Canada and far cheaper than Iceland.

I know it's not the best source.  But wikipedia shows average of  5.54 us cent's/kwh for Iceland - https://en.wikipedia.org/wiki/Electricity_pricing

Are you saying you can beat 5.54 cents per kwh?

[GreatNorthData]

We're located in Canada and far cheaper than Iceland.

What's the name of your company, what's your kwh price?

Thanks

Great North Data, $52/kW is the price for new reliable gear like S7s. E-mail me at james@greatnorthdata.com. Given you're talking about a bulk order we may be able to work something out.

[GreatNorthData]

We're located in Canada and far cheaper than Iceland.

I know it's not the best source.  But wikipedia shows average of  5.54 us cent's/kwh for Iceland - https://en.wikipedia.org/wiki/Electricity_pricing

Are you saying you can beat 5.54 cents per kwh?

Our starting price for S7s is $52/kw, which is roughly 7 cents/kwh. To my knowledge, no one is hosting in Iceland for less than 9 cents/kwh, except on a multi-MW basis.

[mwizard]

I will still be making profit according to the calculations with an SP50 110 TH/S. I would have to buy two though to be making decent money (220 TH/S). But as you say the difficulty could grow, which would reduce profits, but I DO NOT want to rush into anything, I need to plan, research and be well prepared before investing. Smart investment.

Where would you plan to buy the SP50?  They are not likely to be available via the normal channels.  Nice if they were.

As well what price did you assume for the SP50 when working out your profit?   It would be interesting to know your assumptions.

[Vociferous]

I will still be making profit according to the calculations with an SP50 110 TH/S. I would have to buy two though to be making decent money (220 TH/S). But as you say the difficulty could grow, which would reduce profits, but I DO NOT want to rush into anything, I need to plan, research and be well prepared before investing. Smart investment.

Where would you plan to buy the SP50?  They are not likely to be available via the normal channels.  Nice if they were.

As well what price did you assume for the SP50 when working out your profit?   It would be interesting to know your assumptions.

I will have to clarify with Spondoolies Tech, before confirming that :p. I was hoping one SP50 costs £13,970! Most likely you will correct me! :/

[Vociferous]

We're located in Canada and far cheaper than Iceland.

I know it's not the best source.  But wikipedia shows average of  5.54 us cent's/kwh for Iceland - https://en.wikipedia.org/wiki/Electricity_pricing

Are you saying you can beat 5.54 cents per kwh?

I confirmed with Bitcoin Miners UK that they have a fixed rate of 4 pence kwh in Iceland, which is 0.06 dollars? Is that 6 cents? At least that's what an online conversion calculator said. I'm surprised no one is biting their hand off for their miners, 10TH/S for something like £3500 and they are water cooled and have low power rating! I just figured with the SP50's coming out 10TH/S will be too small/out of date.

I'm even more surprised, that no one has looked into 3rd world countries for electrcity, have you seen India!!!!?? It's ridiculously cheap, or tehran.

[nichu]

i would suggest you spend money to purchase the coins rather than investing for a farm ,difficulty is increasing with passing time and its high time a new ASIC machine will be released by bitmain which will be twice faster than S7 . do take these things into consideration while investing into mining at this juncture of time.

[notlist3d]

We're located in Canada and far cheaper than Iceland.

I know it's not the best source.  But wikipedia shows average of  5.54 us cent's/kwh for Iceland - https://en.wikipedia.org/wiki/Electricity_pricing

Are you saying you can beat 5.54 cents per kwh?

I confirmed with Bitcoin Miners UK that they have a fixed rate of 4 pence kwh in Iceland, which is 0.06 dollars? Is that 6 cents? At least that's what an online conversion calculator said. I'm surprised no one is biting their hand off for their miners, 10TH/S for something like £3500 and they are water cooled and have low power rating! I just figured with the SP50's coming out 10TH/S will be too small/out of date.

I'm even more surprised, that no one has looked into 3rd world countries for electrcity, have you seen India!!!!?? It's ridiculously cheap, or tehran.

Sounds like you found a deal for 6 cent's if that is correct and a good hosting center.    Might look into it more spending on VAT there.  I'm hoping after having some good one will offer .05.... but we will have to wait and see.

On 3rd world countries its just a lot easier then it sounds.  Your talking about places that a lot have corruption, not stable electric grid, theft, etc.   So HUGE possible profit's but just as big problems and possible risks.   Some have done it in countries such as Venezuela is a great example.  As long as it goes smooth huge profits.  If you have a issue... hard to tell how bad it can go.

[QuintLeo]

Perhaps a second hand SP50!?

 Have to find a NEW SP50 around somewhere first - so far as anyone knows outside of Spondoolies themselves or possibly someone under NDA, they seem to not be in existance or production yet.

 There has been NO announcement on price on the things anywhere public that I'm aware of (I've looked), just quite a bit of speculative guessing.



 While 7 cents/KWH (US) is fairly cheap, it's not VERY cheap or even close. 5.54 is getting close to the VERY cheap range, but definitly is not VERY VERY cheap 3 cent/KWH or less like most of the major farms seem to have access to - and if you expect to be profitable for the long term you've got to get at least fairly close to their ballpark.

[QuintLeo]

BTW - if the recent rate of difficulty increases continues, even at 3 cent/KWH an S5 will be UNprofitable probably in late May possibly sometime in June, the S7 and Avalon 6 will be bloody near unprofitable as soon as the halfing happens - and at higher electric costs it just gets worse fast.

[Vociferous]

Perhaps a second hand SP50!?

 Have to find a NEW SP50 around somewhere first - so far as anyone knows outside of Spondoolies themselves or possibly someone under NDA, they seem to not be in existance or production yet.

 There has been NO announcement on price on the things anywhere public that I'm aware of (I've looked), just quite a bit of speculative guessing.



 While 7 cents/KWH (US) is fairly cheap, it's not VERY cheap or even close. 5.54 is getting close to the VERY cheap range, but definitly is not VERY VERY cheap 3 cent/KWH or less like most of the major farms seem to have access to - and if you expect to be profitable for the long term you've got to get at least fairly close to their ballpark.

Yes, you are right, the SP50 are only available to large well funded projects (just confirmed with the website). Perhaps by September there might be one second hand, but as you say there is no price available, and the official sales team wouldn't give me one either haha! So I guess I am stuck with the S7's for now, unless a new miner comes out by September.

Also, I have no idea why the S7 with power supply are being sold for so much by other companies? In UK average price is around 1500-1800 pounds per  S7 unit with power supply. BUT, if I ordered from the official Bitmain website, it would only cost $986.34/655.92 pounds (batch 9) and even with VAT and duty import charges that is still only around 200 pounds extra (855.92 pounds) and they only charge 52 dollars for shipping! With the pound to dollar conversion, I would be saving a lot of money.

THAT IS LIKE 644.08 POUNDS CHEAPER! People on ebay are literally outbidding each other well into the 1000 + pounds area. Lol, people really over estimate the prices from the official company. Although for some reason the batch 9 is cheaper than the batch 3. 

Looks like India would be cheapest electrcity! I'm going to email energy companies there for quotes and research just how unstable the supply is and in general how corrupt it is.