Friends coming at me with 40-50k to invest into mining rigs

[Subw]

Buying gpus are too late. Crypto is dying...  RIP profits

[1713499021]

1713499021

[1713499021]

1713499021

[RentGPU]

A friend wants to get into mining...he knows I use to mine Bitcoin...he has 40-50k to invest into mining rigs.


I told him about the risks...we are meeting later today to talk more about this.


He already has a warehouse...and 50k is not that much to him, but as a business person you never want to lose ANY money.


I think he can make the money back, but it may take 6-12 months; and as you miners know, NOTHING is guaranteed.



What do you think, bad time? Isn't it always a bad time?


Also, what should I charge, I will be doing everything including maintaining the rigs...I was thinking 15-20%.

Really , 50k now at this time , man you are taking too much risk for a bussines person, you should consider investing 5 months ago when everything was dust cheap

[n0madDurwhat]

A friend wants to get into mining...he knows I use to mine Bitcoin...he has 40-50k to invest into mining rigs.


I told him about the risks...we are meeting later today to talk more about this.


He already has a warehouse...and 50k is not that much to him, but as a business person you never want to lose ANY money.


I think he can make the money back, but it may take 6-12 months; and as you miners know, NOTHING is guaranteed.



What do you think, bad time? Isn't it always a bad time?


Also, what should I charge, I will be doing everything including maintaining the rigs...I was thinking 15-20%.

I am in a scenario very much like yours and am very curious as to where your head is at with it all.

For me, I've been mining as a hobby for a year and a half or so but have been into crypto since I discovered silk road lol.. But I was constantly trying to get my family to shift their holdings into something that offered a more secure store of value with an extremely high upside with prices rising over the years.

Now they've all shown up on my front door wanting to throw money at me lol

Trying to decide how best to go about this mitigating risk as much as possible as even though I have been fortunately successful trading, we all know it might as well be gambling some days. Your input would be greatly appreciated

[tleilaxu_eyes]

Honestly the smartest thing to do might just be wait 1-2 months, then make that decision.

[adaseb]

Tell your friends that other people have friends who also have 40-50k to invest.


Let them think about that for a minute...

If they are smart in business... they will know what that means.

[btcgolong]

remember 50k isn't that much for this person...so the risk is minimal.

It is tax deductible as well...



What should my "fee" be for setting this up and maintaining it?


Is 20% too much?

[BeerMan81]

He should just invest in the coins. But, he needs to actively monitor prices, new coins etc.

[blueMoonshine]

The real issue is sourcing hardware right now. Chances are it will take 3 months to find all the hardware you need.

Have the same issues with investors. I currently have $150K ready to go and build-out. But, hardware is a joke right now and mining hardware (GPUs and high wattage PSUs) is going through a huge change with 13 PCIe slot MBs that look as if Windows will be able to recognize all 13.

Then, RX Vega, and mining specific cards around the corner, makes it hard to want to scale out with available 6-8 GPU RX 560/550 systems.

If there was a way to get a hold of 500 RX 570s right now, would have already started. 4 major US distributors can only get me 560s/550s in bulk, 570s maybe once a week 15 at a time. Still not enough to drag big money in right now.

[Maxumark]

I will answer your question flat out.

Yes do it.
He provides the capital and space to run the equipment.
You source, assemble and run the equipment.
You split the income after expenses each month as the two of you agree 80 for him 20 for you or what ever you agree to.
He owns all the equipment and you are expertise.

Maybe don't just go GPU rigs, maybe throw in some L3+, or x11 miners too if you can so that you are diversified in the Algos and coins you can mine.

Get the agreement in writing and both sign it.

Just do it. Right or wrong, good or bad, profitable or not,  will not be known until 6 to 12 months have passed.

Then come back and let us know how it worked out. Maybe give us some updates along the way.

Good Luck!     

[Metroid]

Or just build a nice big fire and throw the money in.  It will probably be fun and totally worth it.

I think this will be much easier worthwhile and will save them from doing a lot of things and in the end will save them 50% money. Instead of losing 150%, they will lose just 100%.

[rdluffy]

Or just build a nice big fire and throw the money in.  It will probably be fun and totally worth it.

I think this will be much easier worthwhile and will save them from doing a lot of things and in the end will save them 50% money. Instead of losing 150%, they will lose just 100%.

Man, every post you say the same thing, why are you here on the mining section if you think it's not worth?
You are wasting 100% of your time

[Metroid]

Man, every post you say the same thing, why are you here on the mining section if you think it's not worth?

Saving noobs from themselves, remember that he created this thread and asked for an opinion and I gave mine and so many others, its his decision to mine or not to mine ropecoin. I advise, do not mine ropecoin.

[btcgolong]

I will answer your question flat out.

Yes do it.
He provides the capital and space to run the equipment.
You source, assemble and run the equipment.
You split the income after expenses each month as the two of you agree 80 for him 20 for you or what ever you agree to.
He owns all the equipment and you are expertise.

Maybe don't just go GPU rigs, maybe throw in some L3+, or x11 miners too if you can so that you are diversified in the Algos and coins you can mine.

Get the agreement in writing and both sign it.

Just do it. Right or wrong, good or bad, profitable or not,  will not be known until 6 to 12 months have passed.

Then come back and let us know how it worked out. Maybe give us some updates along the way.

Good Luck!     

Great post, thanks.

[winniethepool]

Really encouraging post. I did the same thing last month.

I will answer your question flat out.

Yes do it.
He provides the capital and space to run the equipment.
You source, assemble and run the equipment.
You split the income after expenses each month as the two of you agree 80 for him 20 for you or what ever you agree to.
He owns all the equipment and you are expertise.

Maybe don't just go GPU rigs, maybe throw in some L3+, or x11 miners too if you can so that you are diversified in the Algos and coins you can mine.

Get the agreement in writing and both sign it.

Just do it. Right or wrong, good or bad, profitable or not,  will not be known until 6 to 12 months have passed.

Then come back and let us know how it worked out. Maybe give us some updates along the way.

Good Luck!     

[antantti]

Haha , well said.

Not saying all ICO's are bad but 80% of them are only smoke and mirrors. How many prediction market projects there are with marketcap more than $100,000,000? No need to answer....

Now they and everyone else are dumping and mining profits are down another 20% in only four hours.

That friend with 50k actually saved a shitton of cash if he/she did nothing with it during weekend. If he/ she shorted eth with it... well... six digits...

Wait, wait, wait. Right now there are no cheap coins or gpu's. It is cashtime.

edit: OT but some of you might have been monitoring this 1 eth= 1 zec thing? If it holds that means there is no equihash safe haven...

[Metroid]

edit: OT but some of you might have been monitoring this 1 eth= 1 zec thing? If it holds that means there is no equihash safe haven...

Somebody here said, "see zec, even eth crashes, zec will be good to mine", and my reply was simple, if it was not for eth or btc, zec would still be 0.04 btc. These people that think just one coin crashes are dumb. If bitcoin crashes, all crashes, if eth crashes all might crash, if zec crashes some might crash, it depends how important that coin is for the market as a whole. Cryptocoins are all linked noobs, call it a chain reaction from the most important coin to the least important coin.

[antantti]

Would also explain that invisible hand that was holding zec up against all odds. And would also make zec just another world computer dapp.

More thinfoil, my hat is never good enough ))

[btcgolong]

A friend wants to get into mining...he knows I use to mine Bitcoin...he has 40-50k to invest into mining rigs.


I told him about the risks...we are meeting later today to talk more about this.


He already has a warehouse...and 50k is not that much to him, but as a business person you never want to lose ANY money.


I think he can make the money back, but it may take 6-12 months; and as you miners know, NOTHING is guaranteed.



What do you think, bad time? Isn't it always a bad time?


Also, what should I charge, I will be doing everything including maintaining the rigs...I was thinking 15-20%.

I am in a scenario very much like yours and am very curious as to where your head is at with it all.

For me, I've been mining as a hobby for a year and a half or so but have been into crypto since I discovered silk road lol.. But I was constantly trying to get my family to shift their holdings into something that offered a more secure store of value with an extremely high upside with prices rising over the years.

Now they've all shown up on my front door wanting to throw money at me lol

Trying to decide how best to go about this mitigating risk as much as possible as even though I have been fortunately successful trading, we all know it might as well be gambling some days. Your input would be greatly appreciated

I'll keep you updated...a lot of the negativity is because difficulty has skyrocketed, but I believe ETH/BTC will all be at record highs by the end of the year.

In our case it's not the 50k that we worry about, it's the "opportunity cost" aspect.

[Marvell1]

40 -50 k is chump chnage right now due to the high cost of GPUs , you cant even build a real farm for that.  I spent probbaly 60k last year on my farm 250 or so GPUs , including mother boards risers etc  :  now 60k buys what

100 gpus ? and thats not counting all the boards PSU whatever so really only 75 GPU at current prices.

[btcgolong]

40 -50 k is chump chnage right now due to the high cost of GPUs , you cant even build a real farm for that.  I spent probbaly 60k last year on my farm 250 or so GPUs , including mother boards risers etc  :  now 60k buys what

100 gpus ? and thats not counting all the boards PSU whatever so really only 75 GPU at current prices.

Thanks for the reply, it's good to know what other's have done/are doing.


Was shooting for 100 GPUs no matter the cost...overall it's not a lot of money to this investor...just testing waters.


It's really becoming about the opportunity cost for me and the investor...



I have a question, how did you accumulate your 250 gpus?