Bitcoin Mining farm with USD 50000

[bitcoinexplorer]

Hello geeks,

i am planning to establish a small Bitcoin Mining farm with investment USD 50000 which i guess can get me 350 to 400 Ths setup capacity

I need your friendly advice on below points:-

1. Which country have below facilities for miner

a) Low or almost no duty & taxes on import of miners
b) Economical electricity cost)
c) preferably cold weather
d) of if hot weather country, i don't mind if electricity fees are cheap enough to cool down miners or collocate in a data center.

2. Which country have no or minimum taxes on profits gained from mining business.

Thank you.

[devollito]

I was live in egypt and electricity there verycheap in my opinion if compare to my country ( indonesia ). You can try to build miner along with solar panel and it will gives you great return in long term.

[bitcoinexplorer]

I was live in egypt and electricity there verycheap in my opinion if compare to my country ( indonesia ). You can try to build miner along with solar panel and it will gives you great return in long term.

Thanks for your opinion, i was looking for a country where there are no hurdles, i doubt Egypt would do anything unexpected anytime ruining my investment.

For example from business safety Netherlands is a good choice but electricity is expensive over there.

Any country which falls in the above mentioned criteria?

How about Iceland, i heard genesis mining have a mining farm over there. Any idea how much electricity costs there?

[TheJuice]

One thing to consider if you have 50k to invest, is the other option of buying some bitcoin straight up as a hedge of quickly increasing difficulty / prices. You may already own bitcoin so this may not be a factor, however, if you don't have a large stash, my recommendation is using 50% bitcoin and 50% mining.

In terms of your questions, you can also try to re-use the heat generation. You can have these heat homes, the residents then can pay you a small fee for heating their home. Setup is a bit more tricky, but if you own the building this will also reduce costs.

[bitcoinexplorer]

One thing to consider if you have 50k to invest, is the other option of buying some bitcoin straight up as a hedge of quickly increasing difficulty / prices. You may already own bitcoin so this may not be a factor, however, if you don't have a large stash, my recommendation is using 50% bitcoin and 50% mining.

In terms of your questions, you can also try to re-use the heat generation. You can have these heat homes, the residents then can pay you a small fee for heating their home. Setup is a bit more tricky, but if you own the building this will also reduce costs.

Thanks for brilliant idea, can you suggest me which country?

[bitcoinexplorer]

You should find an industrial place / factory. Which allows to decrease costs of electricity consumption.

Ok, in which country

[Telemiligram]

you can check ESTONIA or India

[HedgeCoinGroup]

Just a word of caution, there is going to be a shortage in equipment soon. You may want to rethink this as you will be paying a lot more than you expect for hardware.

[bitcoinexplorer]

thanks @ Telemiligram , i will check

@ HedgeCoinGroup
why do you say so?
right  now there are none in stock and i heard new batches are coming in January

[Phycodurus]

Hey,

I'm doing research atm to set up a farm with a similar budget:

a) Low or almost no duty & taxes on import of miners.

Import duties depend on 4 factors:
(1) country of origin,
(2) country of destination,
(3) nature of goods (generally defined by the HS code)
(4) value of the goods.

You may want to look at a way to avoid import duties, VAT and other taxes, not from the point of view of where you are importing the goods to, but from where are you importing them from. For instance, shipping the goods to a third country before importing them to their final destination can help save you a lot of cash.

This is one example, there are other ways to optimize freight costs, import duties and other taxes.

b) Economical electricity cost.
c) preferably cold weather
d) of if hot weather country, i don't mind if electricity fees are cheap enough to cool down miners or collocate in a data center.

For all these, Andorra is a good and very safe place with a VAT of 4.5%, cold weather and affordable electricity. We can exchange information by pm if you wish, I'm currently looking into this and other possibilities within Europe.

Cheers

[Entropy-uc]

buy 50k of coins and stop wasting your time.

you will spend 80% of your funds locating this 'ideal' location and setting up a facility.  Then you need to mine 5x the coin costs from your miners after expenses to match what you would get from just buying coins now.

Most mining equipment will not earn 1.5x the sale price in coins over their life cycle now.

[Phycodurus]

Hey there Entropy-uc,

Can you back your statements with data?

For a setting of 50 DragonMint 16Ts ($1,710/pc including power source) = $85,500, today's profit is 3.1 monthly BTC according to Antpool: https://www.antpool.com/support.htm?m=calculator

ROI is around 1.5 months after purchase, even considering electricity costs.

Besides, the hardware itself doubles its value nowadays when in stock, so the return on investment is 200% already since the moment you receive the miners.

What's your opinion on these numbers? Do you see any flaw in my reasoning?

The only problem I see is that the difficulty increases every day, and from yesterday to today, according to this very same calculator, profits fell by 15%. I opened a thread about this today.

[bitcoinexplorer]

@Phycodurus thanks, just sent you PM

  @Entropy-uc  buying coins at $20 k rate is very  risky

[Entropy-uc]

@Phycodurus thanks, just sent you PM

  @Entropy-uc  buying coins at $20 k rate is very  risky

Perhaps you should consider that mining has all of the risk of buying coins, plus the unique risks of mining on top.  If the coin price goes down your mining margin can go negative and you will never recover your investment, plus you will lose your labor and operating costs.  That happens while a coin investor still has most of their original investment available to them.  Even worse, difficulty growth can mean that even increasing price doesn't help you.  Bitcoin could triple while your money is waiting for equipment to be shipped to you.  You may make a $ profit, but it will be pennies compared to the gain a simple investor makes.

If you haven't comprehended this already you definitely need to rethink your investment strategy.  Or at least learn more before burning your money.

[Phycodurus]

@Phycodurus thanks, just sent you PM

Hey there,

Send me your email address or Skype and I'll contact you, because I've already spent the 2 pms I could do today.

Cheers

[Entropy-uc]

Hey there Entropy-uc,

Can you back your statements with data?

For a setting of 50 DragonMint 16Ts ($1,710/pc including power source) = $85,500, today's profit is 3.1 monthly BTC according to Antpool: https://www.antpool.com/support.htm?m=calculator

ROI is around 1.5 months after purchase, even considering electricity costs.

Besides, the hardware itself doubles its value nowadays when in stock, so the return on investment is 200% already since the moment you receive the miners.

What's your opinion on these numbers? Do you see any flaw in my reasoning?

The only problem I see is that the difficulty increases every day, and from yesterday to today, according to this very same calculator, profits fell by 15%. I opened a thread about this today.

Flaws:
1. The equipment doesn't exist, no one has ever seen evidence that it is real, and there is a very large possibility you will get nothing for your money.  What is the ROI for that?
2. If you do get it, it will be many months from now.  Difficulty will definitely be vastly higher so your earnings will be a fraction of what you estimate.
3. Price can go down in the face of rising difficulty, it has happened many times before.  Look at long term difficulty charts.  Difficulty ALWAYS go up.  Price can and does go down for years at a time.

[beskid]

I think that Ukraine meets all your requirements for installing a farming farm in its territory. You can apply for information in any mining community.

[alh]

Why does the crypto currency become so popular in all countries? when it can be banned?

Here's a acronym that sums it up (I think): FOMO

Fear Of Missing Out

[bitcoinexplorer]

I think that Ukraine meets all your requirements for installing a farming farm in its territory. You can apply for information in any mining community.

Great, can you refer me any website for that?

[Flying Hellfish]

Hey there Entropy-uc,

Can you back your statements with data?

For a setting of 50 DragonMint 16Ts ($1,710/pc including power source) = $85,500, today's profit is 3.1 monthly BTC according to Antpool: https://www.antpool.com/support.htm?m=calculator

ROI is around 1.5 months after purchase, even considering electricity costs.

Besides, the hardware itself doubles its value nowadays when in stock, so the return on investment is 200% already since the moment you receive the miners.

What's your opinion on these numbers? Do you see any flaw in my reasoning?

The only problem I see is that the difficulty increases every day, and from yesterday to today, according to this very same calculator, profits fell by 15%. I opened a thread about this today.

Flaws:
1. The equipment doesn't exist, no one has ever seen evidence that it is real, and there is a very large possibility you will get nothing for your money.  What is the ROI for that?
2. If you do get it, it will be many months from now.  Difficulty will definitely be vastly higher so your earnings will be a fraction of what you estimate.
3. Price can go down in the face of rising difficulty, it has happened many times before.  Look at long term difficulty charts.  Difficulty ALWAYS go up.  Price can and does go down for years at a time.

Back to the days when pre-orders are the fucking norm.  I'll never understand how so many people are happy to give interest free loans to their competition for magic money machines.  Whats even funnier as you point out is that in so many cases buying and holding is a vastly better investment especially when you actually think about the risk/reward ratio!

Mining is a bet AGAINST difficulty increase...  Based on current coin price and supply of equipment that is not
a bet many folks will win.

Welcome back all investomers you are the wet dream of your competition!