Starting mining operation

[CarrollFilms]

Hello everyone.

Just recently I've come across funding and some very intrigued investors to help us (co-worker and I) with a mining operation start up.

We will be ordering 200 S9 miners when the next batch becomes available, hopefully around January.  In the mean time my curiosity has been sparked with the mining calculator profitability.

I've mined in the past with old S3 and S5 equipment, but calculating the hashrate on coinwarz or any other mining calculator site for that matter, how accurate is it to realized profit and losses at the end of the day? I see some of them saying we'd be making some very decent returns daily. I've factored in a difficulty increase of roughly 4% every 2 weeks and would still be making generous returns. I'm just curious as to whether or not we would actually come close to those profit margins according to a mining calculator?

We'd like to eventually start solo mining, but with 2.7Ph/s starting out we don't feel like it is a whole lot of mining power to efficiently mine solo and turn a profit at the end of the week.

If we were to mine with a pool (Slush preferred) would we be making close to the same amount of returns as the mining calculator predicts? I understand how the hashpower to pool ratio works and all, but is there a mining pool calculator that would help with the clarity of finding a more accurate return?

If anyone would like to play devils advocate as well it is more than welcome. We are very passionate about Bitcoin and have been working towards starting an operation for months now. With it finally starting to take shape we'd appreciate any feedback or help with getting started up

Thank you

[fanatic26]

Most of the calculators are fairly accurate but it will vary depending on the pool payout scheme.

I like this calculator because it does let you put in the PPS payout ratio to get more exact.

https://btc.com/tools/mini-mining-calculator

Also, you have to remember that 20 minutes after you look at a calculator the data is no longer valid. Profitability shifts all over the place all the time and attempting to forecast profits is a fools errand. At best you can make some very generic guesses. BTC might be 14.8k right now but tomorrow it could be 16.5k or 11.5k rendering all of those calculations completely pointless.

[Sandal_Hat]

I think it may not be so good because avalon and ebit are also throwing out miners next year, not just bitmain?
They have improved models.

Just my 2 cents. I could be wrong and I hope to be wrong....

[rifleman74]

You don't make a dime solo mining until you find a block.   

[tetradrachm]

I think it may not be so good because avalon and ebit are also throwing out miners next year, not just bitmain?
They have improved models.

Just my 2 cents. I could be wrong and I hope to be wrong....

This might help clarify what people think will happen with more miners coming online.

https://bitcointalk.org/index.php?topic=2647191.0

[alh]

I invested in a pool mining and the return was not very encouraging, as my VPS conected to the same pool return manyfold of profit...
To my mind a pool may not meet your expectation...
May be with your past experience in mining you can more capital to go solo but big time solo ...

If by "VPS" you meant some kind of generic X86 system you were renting, then your problem had absolutely nothing to with the pool. In case it isn't obvious to you, mining with a CPU is no longer profitable in any scenario. It hasn't been since 2012 .

I would encourage you to look at the stick post of this sub forum as well as it's parent.

If I had dozens of S9's I would do pool mining, and would split up my miners rate across different pools.

[FlyingDutchman420]

We will be ordering 200 S9 miners

Damn bro, that's awesome! You're going to have a very large operation. To be a devil's advocate, I must ask why are you putting all your eggs in one basket? Why not mine other coins or do some GPU mining? Diversify your portfolio!?! You are putting all your risk into one coin and that may not be a good idea. There's no telling which altcoin might be the Breakaway coin for next year and as you may know etherium and litecoin have increased much more than Bitcoin this year.

[Entropy-uc]

Your difficulty increase estimates are very low.  10%+ every difficulty adjustment has been more typical recently.

Also you need to factor the horrible reliability of S9 hardware.  Expect to lose 5% of your hashrate each month.

[CarrollFilms]

We will be ordering 200 S9 miners

Damn bro, that's awesome! You're going to have a very large operation. To be a devil's advocate, I must ask why are you putting all your eggs in one basket? Why not mine other coins or do some GPU mining? Diversify your portfolio!?! You are putting all your risk into one coin and that may not be a good idea. There's no telling which altcoin might be the Breakaway coin for next year and as you may know etherium and litecoin have increased much more than Bitcoin this year.

We do plan on buying 100 1080 GPU's for mining to diversify our operation with other alt coins

Your difficulty increase estimates are very low.  10%+ every difficulty adjustment has been more typical recently.

Also you need to factor the horrible reliability of S9 hardware.  Expect to lose 5% of your hashrate each month.

We plan on purchasing roughly 10 new ASIC miners every month to counteract that issue

[Philopolymath]

ordering 200 S9 miners

I very much doubt it ...
If you do you... will very much regret it by July..

[ConnerM]

Just recently I've come across funding and some very intrigued investors to help us (co-worker and I) with a mining operation start up.
We will be ordering 200 S9 miners when the next batch becomes available, hopefully around January.  In the mean time my curiosity has been sparked with the mining calculator profitability.

We went through this all last year, We run about 90 S9's, 20 741's, and about 70 1080ti and some other GPU's here at our farm.

IMO, you waited too long. Your going to need 1200amps to run what you are talking about. I;'m not sure if you already have a facility or plan to do a build out, but if you plan to do a build out in the US it's going to take a few months given design, PoCo, permits, inspections, and facilities. Power and heat management are going to be huge issues, trust me, and your facilities are going to cost you almost as much as the miners. You are buying miners in a form factor that are end of life. You are buying miners at a premium based on the current price of coin. GPU's too. You are ramping up coming right into the summer months and you are in for all sorts of problem you don't expect. You're going to be better off buying coin and then waiting to deploy your mining operation off the front end of the next gen of mining equipment, probably this fall coming into cooler weather. I admire your zeal, but please take a long hard look at what you are thinking about because getting it going is going to consume your life for the next 6-8 months. You likely hood of coming out ahead at this stage of the game is dubious. A farm of that size has to be cared for 24/7/365. Good luck to you, you're gonna need it.

[btc-haze]

ordering 200 S9 miners

I very much doubt it ...
If you do you... will very much regret it by July..

In the last order, they were limiting 10 per customer

[A.Delaney]

Just recently I've come across funding and some very intrigued investors to help us (co-worker and I) with a mining operation start up.
We will be ordering 200 S9 miners when the next batch becomes available, hopefully around January.  In the mean time my curiosity has been sparked with the mining calculator profitability.

We went through this all last year, We run about 90 S9's, 20 741's, and about 70 1080ti and some other GPU's here at our farm.

IMO, you waited too long. Your going to need 1200amps to run what you are talking about. I;'m not sure if you already have a facility or plan to do a build out, but if you plan to do a build out in the US it's going to take a few months given design, PoCo, permits, inspections, and facilities. Power and heat management are going to be huge issues, trust me, and your facilities are going to cost you almost as much as the miners. You are buying miners in a form factor that are end of life. You are buying miners at a premium based on the current price of coin. GPU's too. You are ramping up coming right into the summer months and you are in for all sorts of problem you don't expect. You're going to be better off buying coin and then waiting to deploy your mining operation off the front end of the next gen of mining equipment, probably this fall coming into cooler weather. I admire your zeal, but please take a long hard look at what you are thinking about because getting it going is going to consume your life for the next 6-8 months. You likely hood of coming out ahead at this stage of the game is dubious. A farm of that size has to be cared for 24/7/365. Good luck to you, you're gonna need it.

Man that's a nice setup you have. Your power bill must be huge! lol

[A.Delaney]

ordering 200 S9 miners

I very much doubt it ...
If you do you... will very much regret it by July..

In the last order, they were limiting 10 per customer

Isn't a bulk order from Bitmain a 200 Qty min?