large scale mining advice

[Tetzuro]

Hey everyone,

i wanted to get some advice in my current sitch with mining

not too long ago i got into mining ETH and LTC and have made 2 rigs and some profits.
upon some of my buddies hearing about this, now they want to invest. each of them are proposing to spend 10k each on mining gear, expecting me to throw 10k too and....i guess have me do all the fucking work...

in my head im thinking i can take that 10k and make my own miners and take all the profits...would there be any plus to me merging my miners with theirs?

im wondering if im better off solo like i have been?
any advice?

thanks!

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[Marvell1]

Hey everyone,

i wanted to get some advice in my current sitch with mining

not too long ago i got into mining ETH and LTC and have made 2 rigs and some profits.
upon some of my buddies hearing about this, now they want to invest. each of them are proposing to spend 10k each on mining gear, expecting me to throw 10k too and....i guess have me do all the fucking work...

in my head im thinking i can take that 10k and make my own miners and take all the profits...would there be any plus to me merging my miners with theirs?

im wondering if im better off solo like i have been?
any advice?

thanks!

Do what I do , take thier money have them pay for all the infrastructure, power , hosting space , cables network , etc and also charge them say 10-15% maintinace after they have hit ROI

from that point on youre sitting pretty, they basically helped you set up your farm for free, and 10-15% of thier profits (after power costs are deducted) makes sure you dont feel like a tool for doing all the work

[adamvp]

You can set up every individual rig separately..
It is better to have all in one place . You can make better cooling, lower infrastructure cost etc.. and everyone from third of you can choose another wallet adress, mining pool and algorithm.
So divide infrastructure cost but make separare mining rigs

[RentGPU]

You can do what i did , i didn't make them pay in any of the setting up costs , i built everything and i have free electricity , after building everything i charged them 1/3 of thier profits to host the rigs in my place and taking care of everything and the offer was fair enough for them.

[deadsix]

You can do what i did , i didn't make them pay in any of the setting up costs , i built everything and i have free electricity , after building everything i charged them 1/3 of thier profits to host the rigs in my place and taking care of everything and the offer was fair enough for them.

1/3rd whoa, fuckers I was doing business with had difficulty coughing up 10%.

[Tetzuro]

awesome advice guys! thanks so much! i had a feeling i was gonna get jerked around if i didnt put some research in...what you all are saying seems like a viable business model

[Tetzuro]

i kinda presented this idea to one of my buddies but he's getting pissy

he said the forum is bullshit lol and that if we combine our rigs wed get a higher hash rate and our investment would come back sooner....mind you this is coming from someone who has never built a rig...

im just not sure if id make my money back sooner if i went into and investment farm with him because of a higher hash rate

[jasondeadz09]

Thank you for that advice.

[Elder III]

You can do what i did , i didn't make them pay in any of the setting up costs , i built everything and i have free electricity , after building everything i charged them 1/3 of thier profits to host the rigs in my place and taking care of everything and the offer was fair enough for them.

If you are doing all the work of both setting up, hosting, and maintenance that 1/3rd is more then reasonable. I'd not even consider going lower then that if I was in your shoes.

[RentGPU]

You can do what i did , i didn't make them pay in any of the setting up costs , i built everything and i have free electricity , after building everything i charged them 1/3 of thier profits to host the rigs in my place and taking care of everything and the offer was fair enough for them.

If you are doing all the work of both setting up, hosting, and maintenance that 1/3rd is more then reasonable. I'd not even consider going lower then that if I was in your shoes.

Buying , setting up , hosting(paying for electricity and bandwidth),running(they don't know anything about mining except it's name),maintenance, handling all money transactions until they recieve liquid money , incase someone hit ROI and want a resell thats my job too

[kisk]

i kinda presented this idea to one of my buddies but he's getting pissy

he said the forum is bullshit lol and that if we combine our rigs wed get a higher hash rate and our investment would come back sooner....mind you this is coming from someone who has never built a rig...

im just not sure if id make my money back sooner if i went into and investment farm with him because of a higher hash rate

No, combining all your rigs would have no change on your ROI. If you build 1 rig the full RIO might be 3 months. If you build 10 rigs the RIO is still going to be 3 months if everything stays the same. Sure, you have higher hashrate overall, but total investment $$ is higher as well. 1 + 1 does not equal 3 (at least in mining terms).

At this point I would already say forget it to your friend.. This early on in the game and he's already saying he knows it all. That's bad news. Do your own thing, maybe offer advice or a flat fee to build/setup.

[szafa]

My roi in lbry is far far away.But possible.

[Ayers]

You can do what i did , i didn't make them pay in any of the setting up costs , i built everything and i have free electricity , after building everything i charged them 1/3 of thier profits to host the rigs in my place and taking care of everything and the offer was fair enough for them.

i would never host anything if you are asking 33% of my revenue, this is stupid crazy man, would kill my profit 100% and roi would take much longer, and asking 33% isn't very different than mining with very expensive electricity, so why i should mine in your facility? i just keep mining with my expensive electricity

[KaydenC]

You can do what i did , i didn't make them pay in any of the setting up costs , i built everything and i have free electricity , after building everything i charged them 1/3 of thier profits to host the rigs in my place and taking care of everything and the offer was fair enough for them.

i would never host anything if you are asking 33% of my revenue, this is stupid crazy man, would kill my profit 100% and roi would take much longer, and asking 33% isn't very different than mining with very expensive electricity, so why i should mine in your facility? i just keep mining with my expensive electricity

Let's say a really busy person wants to invest a million dollars into hash rate. He'll need to take time off to setup the facility, and perhaps manage the farm full time. He may not have the skills to do it himself and his time is valuable.

So he partners with a person who has the time and knowledge to manage his investment. It's similar to hedge funds where they charge 2% management fee + 20% performance (profits).

Not saying 33% is justifiable or anything, but just pointing out both parties can benefit from such arrangements. If electricity is free (say your partner hydroelectric power), 33% is OK imo. Simply send your partner cheap 290/380/390, poor hash/watt but great $/hash cards.


Also, in December last year an Rx 480 only made $1 a day, and it costed me $0.50 to run with my expensive electricity. That's 50% gone, not 33%.

[Katadin]

You can do what i did , i didn't make them pay in any of the setting up costs , i built everything and i have free electricity , after building everything i charged them 1/3 of thier profits to host the rigs in my place and taking care of everything and the offer was fair enough for them.

i would never host anything if you are asking 33% of my revenue, this is stupid crazy man, would kill my profit 100% and roi would take much longer, and asking 33% isn't very different than mining with very expensive electricity, so why i should mine in your facility? i just keep mining with my expensive electricity

20-33% of the profit is more reasonable.

[RentGPU]

You can do what i did , i didn't make them pay in any of the setting up costs , i built everything and i have free electricity , after building everything i charged them 1/3 of thier profits to host the rigs in my place and taking care of everything and the offer was fair enough for them.

i would never host anything if you are asking 33% of my revenue, this is stupid crazy man, would kill my profit 100% and roi would take much longer, and asking 33% isn't very different than mining with very expensive electricity, so why i should mine in your facility? i just keep mining with my expensive electricity

Thats because you know how to build a rig and mine yourself , they don't know and don't even have time to do , at first i charged 10% but it turned to be very low considering the effort i am doing , and they don't help in any sh*t , that why i pumped it to 33% and they just accepted it with no questions,because they don't do anything except taking 2/3rd of thier investments profits at the end i am better than a bank.

[Ayers]

You can do what i did , i didn't make them pay in any of the setting up costs , i built everything and i have free electricity , after building everything i charged them 1/3 of thier profits to host the rigs in my place and taking care of everything and the offer was fair enough for them.

i would never host anything if you are asking 33% of my revenue, this is stupid crazy man, would kill my profit 100% and roi would take much longer, and asking 33% isn't very different than mining with very expensive electricity, so why i should mine in your facility? i just keep mining with my expensive electricity

Let's say a really busy person wants to invest a million dollars into hash rate. He'll need to take time off to setup the facility, and perhaps manage the farm full time. He may not have the skills to do it himself and his time is valuable.

So he partners with a person who has the time and knowledge to manage his investment. It's similar to hedge funds where they charge 2% management fee + 20% performance (profits).

Not saying 33% is justifiable or anything, but just pointing out both parties can benefit from such arrangements. If electricity is free (say your partner hydroelectric power), 33% is OK imo. Simply send your partner cheap 290/380/390, poor hash/watt but great $/hash cards.


Also, in December last year an Rx 480 only made $1 a day, and it costed me $0.50 to run with my expensive electricity. That's 50% gone, not 33%.

what you say it's true when the profit is very low, but the profit now is high, one gpu is making $5 per day, if i give to him 33% i'm losing $50 a month for each gpu, this is crazy dude and much more than my current electricity

[KaydenC]

You can do what i did , i didn't make them pay in any of the setting up costs , i built everything and i have free electricity , after building everything i charged them 1/3 of thier profits to host the rigs in my place and taking care of everything and the offer was fair enough for them.

i would never host anything if you are asking 33% of my revenue, this is stupid crazy man, would kill my profit 100% and roi would take much longer, and asking 33% isn't very different than mining with very expensive electricity, so why i should mine in your facility? i just keep mining with my expensive electricity

Let's say a really busy person wants to invest a million dollars into hash rate. He'll need to take time off to setup the facility, and perhaps manage the farm full time. He may not have the skills to do it himself and his time is valuable.

So he partners with a person who has the time and knowledge to manage his investment. It's similar to hedge funds where they charge 2% management fee + 20% performance (profits).

Not saying 33% is justifiable or anything, but just pointing out both parties can benefit from such arrangements. If electricity is free (say your partner hydroelectric power), 33% is OK imo. Simply send your partner cheap 290/380/390, poor hash/watt but great $/hash cards.


Also, in December last year an Rx 480 only made $1 a day, and it costed me $0.50 to run with my expensive electricity. That's 50% gone, not 33%.

what you say it's true when the profit is very low, but the profit now is high, one gpu is making $5 per day, if i give to him 33% i'm losing $50 a month for each gpu, this is crazy dude and much more than my current electricity

That is true. There are 2 options for the guy with $1 million.


1) Find a guy with the ability to manage rigs, then hire him on salary. Rent and setup the facility (cooling, electricity etc). $1 million is like 500 rigs I guess, 1 guy can handle it, you may need to hire another person in the future. You take the upside, but suffer more during times of low profit. If you have $10 million, well you got a lot more work to do.


2) Be partners with somebody. Your money combined with their time, know-how, and very cheap electricity. Their compensation is 33% profit. If you want to invest another $10 million, leave it to your partner to expand facility, hire employees etc. Sleep well knowing that your partner's interest is the same as yours; he will do his best to maximize profit simply because he gets paid more. However you make less during times of high profit.


Unfortunately choosing option 1 in times of high profit, then option 2 in times of low profit is not possible. People with 60 hour work weeks who make millions a year may see option 2 to be better. In a sense it is less risk too, if the partner has cheap electricity.

[RentGPU]

You can do what i did , i didn't make them pay in any of the setting up costs , i built everything and i have free electricity , after building everything i charged them 1/3 of thier profits to host the rigs in my place and taking care of everything and the offer was fair enough for them.

i would never host anything if you are asking 33% of my revenue, this is stupid crazy man, would kill my profit 100% and roi would take much longer, and asking 33% isn't very different than mining with very expensive electricity, so why i should mine in your facility? i just keep mining with my expensive electricity

Let's say a really busy person wants to invest a million dollars into hash rate. He'll need to take time off to setup the facility, and perhaps manage the farm full time. He may not have the skills to do it himself and his time is valuable.

So he partners with a person who has the time and knowledge to manage his investment. It's similar to hedge funds where they charge 2% management fee + 20% performance (profits).

Not saying 33% is justifiable or anything, but just pointing out both parties can benefit from such arrangements. If electricity is free (say your partner hydroelectric power), 33% is OK imo. Simply send your partner cheap 290/380/390, poor hash/watt but great $/hash cards.


Also, in December last year an Rx 480 only made $1 a day, and it costed me $0.50 to run with my expensive electricity. That's 50% gone, not 33%.

what you say it's true when the profit is very low, but the profit now is high, one gpu is making $5 per day, if i give to him 33% i'm losing $50 a month for each gpu, this is crazy dude and much more than my current electricity

What gpu is making $5/day please be accurate in your numbers , also i am charging a percentage not a fixed charge so if profit is some time higher it's more profit for me too thats logic.
Also: if i am unfair like you are saying , i just give them an offer why they just accepted without questions???!!, because it's fair enough for them they just get an interest with clean hands , all the work is done by me.

[Elder III]

I believe that the GTX 1080 Ti can bring in $5/day mining MonaCoin right now. That's a $700 GPU though, so the initial cost alone is offputting to many.

In regards to my comment earlier about 33% being fair that was referring to 33% of profits (just to be clear).  Cheers