ONE thing for newbies to know before getting into MINING:

[Radientgurkin]

This is only some advice to potential newbies getting into MINING

If you're a newbie getting into mining read this:

There are so many guys giving good advice but I seldom see anybody write this:
You may be reading about fantastic opportunities to earn money by mining, but remember that if you order some miners which are delivered in the future - the hashrate difficulty may have doubled/tripled or even more before you even receive the hardware.

This happened to several buddies of mine last year. Equipment promises several 100 USD per day, when it arrived 4 months later the difficulty had skyrocketed and they got less than 20 USD per day. The price of the hardware itself also shrunk because people don't want the obsolete equipment.

They would have been much better off if they instead had just bought the underlying asset (Bitcoin, dash, Litecoin or whatever) and see the prices rise.

I'm sure there are plenty of success stories, but in order to to a proper RISK analysis this must be considered.

If you still decide to go for it, good luck and have fun doing it

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[Mike011]

This sounds like a bitmain/asic business adventure gone wrong?

[rdluffy]

This is the Basic
People in my country ask every day:
How much money a GTX 1060 make per month? 

I lost my patience to answer questions like this

[edwardceng]

but remember that if you order some miners which are delivered in the future - the hashrate difficulty may have doubled/tripled or even more before you even receive the hardware.

This is isn't a public secret, almost everyone knows that profitability always in a short time, but repeated always. That's why you can't find some advice like that. Or may this is referring to ASIC Miner, I have no idea. 

If you still decide to go for it, good luck and have fun doing it

Thank you, I'm doing it, and I am fun. 

This sounds like a bitmain/asic business adventure gone wrong?

Maybe, It can be!

[Mamasita22]

Diff is not the kind of thing you need to look at when building mining rig. In case of ASICs, most of them already in work, so you can see x11 or sha256 asics feel good. ROI and risks can be calculated, but in fact everything doesn't happen as expected. So you must understand that there may not be a profit

[leowonderful]

If it sounds too good to be true, it is. Your friend's $100-dollar-a-day mining device applies to this, and I also see way too many people just putting numbers into calculators and jumping in to buy a miner without researching brands (Innosilicon, for example, has had various issues in the past and even recently with their A5), or not realizing the miner they're buying into hashes a new algo, and difficulty's going to very rapidly rise on the coins that the miner is capable of hashing on.

Power and voltage is something else people need to know. I see people plugging miners into 110/120V circuits and scratching their heads why their miner doesn't run very often. If you plan on mining, 200+V is necessary for higher powered devices to even run, and running your devices at a higher voltage also grants you slightly higher efficiency. It might cost you a bit of money to get one installed initially, but it's absolutely worth it; if you don't feel like getting one installed, chances are you already have one in the form of a dryer or stove outlet.

[nsummy]

This is only some advice to potential newbies getting into MINING

If you're a newbie getting into mining read this:

There are so many guys giving good advice but I seldom see anybody write this:
You may be reading about fantastic opportunities to earn money by mining, but remember that if you order some miners which are delivered in the future - the hashrate difficulty may have doubled/tripled or even more before you even receive the hardware.

Really?  All I have read in the past few months is complaints about low profits, complaints about companies making mining equipment, skyrocking GPU prices, and doom and gloom.  LOL I haven't seen anyone write about "fantastic opportunities" in months!

[aberon8]

If this is not beneficial, then why do so many people farm?

[Metroid]

If this is not beneficial, then why do so many people farm?

to keep the network working, no miners --> no life on proof of work. If there are no btc miners then btc network is dead and so the coin. You should read how blockchain networks work. So to answer before you get into googling and reading it. Miners if no benefit then to protect the network, to keep the network working, to keep the network till the development gets advanced, miners protect the coin on proof of work. Bitcoin there was a time when it was not profitable and people kept mining and the reason they kept mining is to keep the network protected and working, some miners to protect their bitcoins from being killed, it was not for profit because there was no profit, they were losing money mining bitcoin but they had to do it to protect their bitcoins/network and so on.

[lunobird]

Also don't forget to do the proper accounting work on your earnings daily and equipment deduction for taxes. This takes time and consideration. It's not a set and forget and lambo.

[Suslived]

Also don't forget to do the proper accounting work on your earnings daily and equipment deduction for taxes. This takes time and consideration. It's not a set and forget and lambo.

Did you actually pay tax from mining profits yourself?

Do miners really pay? With big traders esp. those registered on coinbase i can understand. But for every regular miner Joe why the hell would you need to report taxes when mining is so speculative? You could be paying tax now for a mined bitcoin worth $8000 then suddenly bitcoin goes to shit and you paid a boatload of tax for nothing at all. Pay tax when you cash out not while you mine. Sheesh.

[crocozino]

yes, that is correct info.
and if a miner understands this and he is building his farm and counts ROI on this "bad" numbers and still finds he can make it.. well, then I guess he can really make it.  Hopefully.. and with some coins pumps, he can ROI even faster..

[lunobird]

Also don't forget to do the proper accounting work on your earnings daily and equipment deduction for taxes. This takes time and consideration. It's not a set and forget and lambo.

Did you actually pay tax from mining profits yourself?

Do miners really pay? With big traders esp. those registered on coinbase i can understand. But for every regular miner Joe why the hell would you need to report taxes when mining is so speculative? You could be paying tax now for a mined bitcoin worth $8000 then suddenly bitcoin goes to shit and you paid a boatload of tax for nothing at all. Pay tax when you cash out not while you mine. Sheesh.

Yes I did pay my mining taxes in the United states

Yes a lot of people did mine at the all time high and owe taxes on it regardless if they cash out of not. You can sell it now and report as a loss for 2018 tax year but You still owe money on whatever You mined in 2017

You pay taxes even on penny stocks that are speculative. Crypto is no exception.

Yes the irs mining rules is over reaching ,but it is what it is. Best to play by the rules and have clean accounting.

 But my point is that if you want to get into mining do consider your tax obligations and be ready to do some accounting work and treat it like a self employed business

[DevelopmentBank]

Also don't forget to do the proper accounting work on your earnings daily and equipment deduction for taxes. This takes time and consideration. It's not a set and forget and lambo.

Did you actually pay tax from mining profits yourself?

Do miners really pay? With big traders esp. those registered on coinbase i can understand. But for every regular miner Joe why the hell would you need to report taxes when mining is so speculative? You could be paying tax now for a mined bitcoin worth $8000 then suddenly bitcoin goes to shit and you paid a boatload of tax for nothing at all. Pay tax when you cash out not while you mine. Sheesh.

Yes I did pay my mining taxes in the United states

Yes a lot of people did mine at the all time high and owe taxes on it regardless if they cash out of not. You can sell it now and report as a loss for 2018 tax year but You still owe money on whatever You mined in 2017

You pay taxes even on penny stocks that are speculative. Crypto is no exception.I

Yes the irs mining rules suck but it is what it is. Best to play by the rules and have clean accounting.I

 But my point is that if you want to get into mining do consider your tax obligations as this is a heaviest burden

I'm all for following the law and all that but at some point you can't be a sheep and follow everything blindly.

Do you really think the IRS can find out whether or not you were crypto mining? A simple use of an overseas/decentralized exchange can easily hide your mining income. Why go through all the trouble of declaring mining profits and losses when you know it is so volatile.

You're like all those characters in books/movies that follow the law to the letter and ends up dying or doing something silly because they can't get their head out of their ass. No offense.

[lunobird]

Also don't forget to do the proper accounting work on your earnings daily and equipment deduction for taxes. This takes time and consideration. It's not a set and forget and lambo.

Did you actually pay tax from mining profits yourself?

Do miners really pay? With big traders esp. those registered on coinbase i can understand. But for every regular miner Joe why the hell would you need to report taxes when mining is so speculative? You could be paying tax now for a mined bitcoin worth $8000 then suddenly bitcoin goes to shit and you paid a boatload of tax for nothing at all. Pay tax when you cash out not while you mine. Sheesh.

Yes I did pay my mining taxes in the United states

Yes a lot of people did mine at the all time high and owe taxes on it regardless if they cash out of not. You can sell it now and report as a loss for 2018 tax year but You still owe money on whatever You mined in 2017

You pay taxes even on penny stocks that are speculative. Crypto is no exception.I

Yes the irs mining rules suck but it is what it is. Best to play by the rules and have clean accounting.I

 But my point is that if you want to get into mining do consider your tax obligations as this is a heaviest burden

I'm all for following the law and all that but at some point you can't be a sheep and follow everything blindly.

Do you really think the IRS can find out whether or not you were crypto mining? A simple use of an overseas/decentralized exchange can easily hide your mining income. Why go through all the trouble of declaring mining profits and losses when you know it is so volatile.

You're like all those characters in books/movies that follow the law to the letter and ends up dying or doing something silly because they can't get their head out of their ass. No offense.

I'm not a goodie too shoe. I'm just a regular Joe that wants to maximise my tax savings. Gpu  equipment deduction is huge so it's worth reporting on that but you also got a report how much it made. Goes both ways.

Overseas exchange also have all your trade records, IRS can pressure exchanges to hand it over like they did with coinbase years later. Or they may be faced to shut down service to USA customer like what happened with bitfinex.

If your a good trader and decide to cash out you magically have more bitcoin than what you bought and your cost basis goes negative. That can mess up your accounting going forward and the IRS may question this.