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Author Topic: Cheap electricity available, need advice  (Read 276 times)
Miner159
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August 26, 2018, 04:03:33 PM
 #1

Hello dear mining community,

I have been researching crypto mining last few months and, considering rough competition, electricity price is factor number 1 to succeed in the long term. As I want to start mining on a big scale I have currently moved and am living in middle Asia and have electricity available at around $0.029. When I started my research, the ROI on S9 was around 4 months with that electricity price, while currently it sits at around 7 months (not taking into consideration constant hashrate increase). As I don't have much experience yet, I would greatly appreciate your advice.

1. Bitcoin mining - would you go ahead and purchase S9j, or wait for a new miner from Bitmain. What is the likelyhood of them announcing them in the next 2 month?

2. Equihash - Bitmain will ship their sold Z9's in 2-3 weeks. Would you wait to see how it will affect hashrate or would you take the risk now (I have availability to buy Innosicilon @~$3600, delivery in 10 days)?

3. Would smaller companies that are mining for $0.1+/kwh consider moving their miners to mid Asia, thus cutting their expenses in half? (my rough plan is to charge them $0.05/kwh)

I will be attending Bitmain's conference on the 23rd of September in Georgia. If anyone will be there, it would be great to meet up.

Thank you for your advice.
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ccgllc
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August 26, 2018, 06:11:50 PM
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When to buy belongs in the speculation thread, nobody knows and bitmain isn't telling.  Best you can do is guesstimate when it will be the most profitable for them to do so.

Cheap power is great - that is about 1/3rd of my cost.  Questions to ask your power company:  How much can you get at that rate.  Large farms use a LOT of power.

Consider the cost of putting up your building, and the wiring cost, which is not trivial.

Are their any zoning concerns due to the noise this building will generate?  Security concerns?

Unlikely anyone would pay you $0.05/kwh to host their machines.  That is $54/month/S9 which is not insignificant.  It is equal to paying $0.079/kwh which is NOT considered cheap power.

I mine bitcoin for a living, and I mine at Kano.is!
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Miner159
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August 26, 2018, 06:56:49 PM
 #3

I meant charging $0.05 total, profit would be $0.021. That's 15K a month profit for 1MW facility.

The place is not an issue, a big supply of electricity not an issue as well.

Thank you for your advice though.
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August 27, 2018, 01:35:59 AM
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First off you need to see how long it will take to get this facility fully operational and ready for Miner install. This will play a big part of the buy now or buy later phase of your project. You will also want to make sure that you own the building and that there are no local laws that will put your investment at risk.

Next assuming you've completed the first part. Depending on who decides to continue Mining in the future apart from Bitmain, someone will fill your facility with Miners. I just wouldn't count on finding 1 entity to fill the whole facility or to stay forever.  You may want to consider an introductory rate slightly lower if they sign on for a longer term. You could also partition of a part of the facility for small miners who decide to host and stay in the game, though I feel this number is decreasing at the moment.

You mentioned your own hardware, I would advise go with Canaan and their Avalon series. The 841 is the best all around Miner ATM, and they have already relesed specs on their A9 which looks to be a great product, if it is delivered according to spec. Outside of this they have a 2 year warranty on their miners and have shown they will follow through on customer support.

In regards to other coins, you can check out the altcoin section, or just do some comparisons on whattomine and other profit calculating sites. Yes any new hardware will increase the hashrate, and drive down earnings. Unless the market for that coin increases in price to keep up with growth.

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August 27, 2018, 02:26:54 AM
 #5

I'm sorry but you live in a very unstable political area....that probably ends with....STAN
Nobody is going to invest or trust in such an area.
Let me qualify that...nobody except those that have enough money and power to ensure the safe and long term successful exploitation of that cheap electricity....Bitmain is not even close to being that kind of big and powerful. Only BANKS and GIANT TRANSNATIONAL corporations are.
Cheap electricity is of course critical but ....connectivity is also.
Physical security and support infrastructure are also vital.

The cheap electricity you enjoy is temporary and totally at the whim and discretion of GIANT TRANS-NATIONAL corporations who hold enormous political power.
The leadership of your country are slaves to them. As are ours.

Should you attempt to build a large facility you would only attract the attention of the most undesirable and unscrupulous.

Do you really think the large farms did not already consider you area?
There is NO PLACE ON THIS EARTH that they have not already exploited, except those that are too risky to ensure success.

You would be far better off to stay SMALL and quiet. and private..under the radar and serve/help only yourself.
The cheap electricity is only blood in the water that attracts big bad hungry remorseless sharks

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philipma1957
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August 27, 2018, 09:31:36 PM
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You would be far better off to stay SMALL and quiet. and private..under the radar and serve/help only yourself.
The cheap electricity is only blood in the water that attracts big bad hungry remorseless sharks

if you do 10 s-9's  at 3 cent power  you clear 20 dollars a day

10 s9's with psu's are about 475 each if you have a coupon

so 4750 / 20 = 237 days to break even.

not much to lose only 4750 plus setup cost for 10 miners.

so

100 miners   means

47500  / 200  = 237 days to break even   but you now have enough gear to be robbed

700 miners means  1 mega watt

1400 a day   and same 237 days to break even.    But you are truly worth robbing and a nice target to shoot at.

If you feel lucky go for it.

I mine alt coins with https://simplemining.net...
I see BTC as the super highway and alt coins as taxis and trucks needed to move transactions.
bitmover
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August 28, 2018, 04:07:06 PM
 #7

I'm sorry but you live in a very unstable political area....that probably ends with....STAN

[...]

You would be far better off to stay SMALL and quiet. and private..under the radar and serve/help only yourself.
The cheap electricity is only blood in the water that attracts big bad hungry remorseless sharks

I strongly agree with this.

I have a friend in Venezuela in a similar situation.

He said that local authorities scan for high energy consumers.
Some corrupted authorities ask for money, because they know who I mining.

The best is to stay low and small in such unstable political areas.


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BitMaxz
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August 28, 2018, 11:01:37 PM
 #8

I strongly agree with this.

I have a friend in Venezuela in a similar situation.

He said that local authorities scan for high energy consumers.
Some corrupted authorities ask for money, because they know who I mining.

The best is to stay low and small in such unstable political areas.

No, they are not asking for money I think the reason why they need to inspection some places in Venezuela because of illegal crytomining. If you heard the news months ago there is a big crisis in Venezuela and blaming illegal Cryptomining for power shortages.
Check this news Venezuela: Zulia Governor Blames Illegal Crypto Mining

So, I think mining small and private would be fine.

bitmover
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August 29, 2018, 12:58:07 AM
 #9

No, they are not asking for money I think the reason why they need to inspection some places in Venezuela because of illegal crytomining. If you heard the news months ago there is a big crisis in Venezuela and blaming illegal Cryptomining for power shortages.
Check this news Venezuela: Zulia Governor Blames Illegal Crypto Mining

So, I think mining small and private would be fine.

This makes no sense. What is the difference between a legal and an illegal cryptocurrency mining?

Unless you are stealing energy, this makes no sense to call illegal.

You cannot mine alts? Lol


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