McAfee’s MGT Goes Into Bitcoin Mining, With Massive Amount of Hardware

[OmegaStarScream]

To date, MGT has mined over 90 Bitcoins so far, at $611 each. At this exchange rate, MGT has earned over $50,000 in mining revenue and is continuing its mining operations. Now, MGT is beginning Phase Two of its mining plans and hopes to reach 5 PetaHash of mining power by the end of 2016’s fourth quarter.

I'm not that much into mining so I can't say for sure how big is 5 PetaHash but I consider it as a good thing , that way , chinese mining farms will have less control on the market.

source : https://cointelegraph.com/news/mcafees-mgt-goes-into-bitcoin-mining-with-massive-amount-of-hardware

[Meuh6879]

ooooh, it's cute.
5PH/s.





Reality : https://bitcointalk.org/index.php?topic=18313.msg16504656#msg16504656

[MingLee]

To date, MGT has mined over 90 Bitcoins so far, at $611 each. At this exchange rate, MGT has earned over $50,000 in mining revenue and is continuing its mining operations. Now, MGT is beginning Phase Two of its mining plans and hopes to reach 5 PetaHash of mining power by the end of 2016’s fourth quarter.

I'm not that much into mining so I can't say for sure how big is 5 PetaHash but I consider it as a good thing , that way , chinese mining farms will have less control on the market.

source : https://cointelegraph.com/news/mcafees-mgt-goes-into-bitcoin-mining-with-massive-amount-of-hardware

That's not a bad mining power, however it is still peanuts compared to the rest of the network. I don't know how long they've been going at it, but regardless of however long it has been as long as their at least getting a net positive return on their work so far I don't think they'll stop.

5 PH/s, as I said, is ehh.

[gentlemand]

I do not get what they're trying to do. $50,000 probably doesn't cover their PR bill, let alone electricity, equipment and premises. They must know something the rest of us don't.

[countryfree]

When did they start?
If they're making more than 50 BTC per month, I say it's good. I wonder how much they invested. If they think long term, and don't have the need to sell fast what they're making, they will be successful.
I would be happy to do the same thing, but you need serious money to become a miner nowadays.

[gentlemand]

When did they start?
If they're making more than 50 BTC per month, I say it's good.

The article says late June, but I'm not sure whether that was the actual turning on of the machines. And it's $50,000 to date, not per month.

[shinratensei_]

I do not get what they're trying to do. $50,000 probably doesn't cover their PR bill, let alone electricity, equipment and premises. They must know something the rest of us don't.

That's not a net profit, right? I don't think it's already cut by a various factor is needed for do a mining activities like your said.

[gentlemand]

That's not a net profit, right? I don't think it's already cut by a various factor is needed for do a mining activities like your said.

No. It's purely the amount of coins they've mined so far. I seriously doubt they'd be in profit just on running costs, let alone initial outlay, but I'm sure they're better qualified to price it up than I am.

[Wind_FURY]

These are baby steps taken by a possibly huge mining operation in the future. I see that the article in the OP did not mention that  Erik Voorhees and Roger Ver are both part of MGT Capital as an advisor and the other as the company’s advisory board chairman respectively.

This might be a long term plan to get some control of Bitcoin's future to their hands. I believe both people mentioned are supporters of Bitcoin Unlimited. I also believe that the Chinese miners are a hard nut to crack in terms of getting support away from the core software.

[franky1]

90 bitcoins is only 7 blocks.(12.5btc reward x 7)

if running since late june, knowing bitcoin averages 144 blocks a day and calculating all of july, august, september
its only 7 blocks out of ATLEAST 12096 potential blocks.(atbest, i could have added on a few more days for end of june and start of october)

which is only 0.057% ATMOST blocks are solved by mcafee.

also mcafee doesnt have 5peta. which my maths also works out to be rational assumption(of only having 1peta).
and also substantiated by

Now, MGT is beginning Phase Two of its mining plans and hopes to reach 5 PetaHash of mining power by the end of 2016’s fourth quarter.

(hopes for christmas, not actually have now)

in short. if mcafee had 5peta 3 months ago and measuring it against the stats of antpools 300peta..
if all was a fair utopia, mcafee "should" have got ~32blocks over 3 months if it had 5peta. not 7

in short id say mcafee has probably 1peta hash right now.

[franky1]

and at a retail price of $1600 for a single 13terrahash asic. costing $124k to get 1peta
and knowing they only got (90btc)$50k return for 3 months
we can work out the potential income

after all due to difficulty changes of ~7%(7.5% average of last 2 months)
and saying they got 90btc total
it breaks down as "possibly" something like this (based on 2 weekly changes)
18.0x   - mid july
16.7x   - end july
15.5x   - mid aug
14.4x   - end aug
13.4x   - mid sept
12.5x   - end sept
=~90btc
and this next fortnight will be under 12btc for a fortnight. and decreasing.
which if you work out would take a year to break even.

so im presuming they are hoping to hoard the coin and have each coin at $1200 next year to 'double' their investment. rather than spend it as soon as they got it.(as that would make no sense)

[pooya87]

it is a bit disappointing when you compare their hashrate to others but it is good to see others are still entering bitcoin mining business, and it is not just a couple of Chinese mining farms centralizing mining business.

[Yakamoto]

That's an ok beginning for a larger company interested in Bitcoin mining, but I am curious as to whether or not they're actually going to be able to make money off of their investment rather than just break even. Having been mining for about 6 months and netting ~90BTC isn't bad, but it likely could be better. Chances are they're using this as a trial run.

[franky1]

That's an ok beginning for a larger company interested in Bitcoin mining, but I am curious as to whether or not they're actually going to be able to make money off of their investment rather than just break even. Having been mining for about 6 months and netting ~90BTC isn't bad, but it likely could be better. Chances are they're using this as a trial run.

spending the coins as soon as they get it = possible to break even after a year.
hoarding the coins waiting for deflation = possible profit when the fiat value of bitcoin rises

[Kakmakr]

When did they start?
If they're making more than 50 BTC per month, I say it's good.

The article says late June, but I'm not sure whether that was the actual turning on of the machines. And it's $50,000 to date, not per month.

If, they have been mining since June, they would have mined for more or less 4 months. This gives them a Gross income of +/- $ 12 500 per month. I would say, that is not bad for a experimental phase in their operation. If I was them, I would have done the same. Invest a little bit at the start, see if it is profitable and then expand.

You do not jump into something without testing the water. ^smile^

[Dassi]

McAfee had better be using really cheap electricity if it hopes to compete with the Chinese miners because that is one reason they are the leading miners.

[franky1]

McAfee had better be using really cheap electricity if it hopes to compete with the Chinese miners because that is one reason they are the leading miners.

wrong
chinese miners are competing because they MAKE the asics.
EG
every $1600 asic sold to mcafee, bitmain can make ~$400 asics..
meaning they can hand one to mcafee and keep 3 for themselves.
meaning they can hand one to mcafee and keep 2 for themselves leaving $400 spare to pay electric
meaning they can hand one to mcafee and keep 1 for themselves leaving $800 spare to pay electric

electricity costs
at 10c/kwh= 13cents an hour, = $3.12 a day, = $1,138.80 a year
at 5c/kwh= 6.5cents an hour, = $1.56 a day, = $569.40 a year

meaning even if mcafee can get 5c electric. unless they make the rigs themselves, mcafee's upfront costs are $2169.40 ($1600 asic + $569.40 electric)
bitmain however
receives $1600, makes 2 rigs gives one to customer, keeps one. and still has $800+ to pay off in full their year of electric as well as spare for wages
meaning they start off with NO costs. and every block they solve is 100% profit

[Milkduds]

Find he is a hard man to understand which way he is looking to go when it comes to creation/investment. Like he considers himself a chess master and leading the public one way well pulling a defeat on the other side of the table.
Would think this issue between him and DOTcom will help promote both parties when the day comes for them to turn a large profit. Whatever is being planned would have to have a smaller window than 2 years I would think,just based on his age alone.

Funny how China is always brought up when it comes to the electricity,really has become a factor that is overriding bitcoin. Be interesting if we could alter that aspect and free bitcoin a tad.

[MingLee]

Find he is a hard man to understand which way he is looking to go when it comes to creation/investment. Like he considers himself a chess master and leading the public one way well pulling a defeat on the other side of the table.
Would think this issue between him and DOTcom will help promote both parties when the day comes for them to turn a large profit. Whatever is being planned would have to have a smaller window than 2 years I would think,just based on his age alone.

Funny how China is always brought up when it comes to the electricity,really has become a factor that is overriding bitcoin. Be interesting if we could alter that aspect and free bitcoin a tad.

A lot of it comes down to the rate of energy production to be honest. With expensive electricity in America and so due to a lack of excessive production (more than partially brought forwards by a care for the environment and thus limits on production daily) it is far easier for miners in China to succeed because they keep a lot more of their money and can put it towards new mining hardware and so when required.

[lumeire]

McAfee had better be using really cheap electricity if it hopes to compete with the Chinese miners because that is one reason they are the leading miners.

They probably already have, they won't get their feet wet into this business without knowing this as well as the risks IMO. Anyway it's nice to know there's another player in the block.