Why are profits so low?

[nostrings]

So depressing, I used to make around $300 a day but now I'm down to like $70 a day.  Probably won't even be able to live off this anymore and I have bills to pay.

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[d57heinz]

Do yourself a favor and get out whilst you still have the shirt on your back.  Don’t do what I did and think the little guy will be able to compete. I’m almost certain there is far more lucrative ventures now than this.  Reality of it is your going to have to dig deep regroup and start something new.  I moved into cell phone/tablet repair. And my busn partner is pushing hard on getting a screen printing/embroidery busn off the ground. Well we both are when I’m not busy fixing phones.  Trust me if you have a setup that bets that amount of change then you have the wherewithal to move into something that will benefit you and society.  This turned into a playground for the rich. I just as soon shit on my trezor. Parden my language.

Br

[nostrings]

I'm guessing these Chinese miners have free electricity from the government and they have upgraded gear that isn't even on the market yet.  Like even with these low prices difficulty hasn't really even gone down, this is insane.

[philipma1957]

I'm guessing these Chinese miners have free electricity from the government and they have upgraded gear that isn't even on the market yet.  Like even with these low prices difficulty hasn't really even gone down, this is insane.

punch in 2 cent power  and most  coins look very good.
punch in 3 cent power and  most coins look good.
punch in 4 cent power and some coins still work.

So if  you have these  power costs  you buy used gear  from those that have busted out  and for now  mining works for you.


The reality is a lot of people don't have 2-4 cent power  and they are dumping  their gear.

So a guy with  big farm and low power just smiles.

I can only hang in and still mine at this due to having solar power deals  in my state of NJ (a very good solar power state)

I have access to "free" power  basically  I put up gear and split the coins.

so  if I put up 10 s9's  I get the hash from 5 s9's and the solar guy gets the hash from the other 5.

5 s9s = 70th  and earn 321 a month  so in 7 months I get 2200  which is roi for them.

My issue is the solar I have access to is about 55kwatts  or about 560th  I am capped at this for now.

 so I get 280th a month or 1240
the solar guy gets 280th a month.   btc diff is flatlined for now.  as I predicated  in this thread

https://bitcointalk.org/index.php?topic=5043713.0

on oct 4th 2018

https://bitcoinwisdom.com/bitcoin/difficulty

Oct 04 2018   7,454,968,648,263   4.23%   53,364,744,228 GH/s

Feb 10 2019   6,061,518,831,027   4.25%   43,390,041,906 GH/s

[nostrings]

Guess i'm fortunate to have cheap electricity here in Washington since many miners aren't even making a profit anymore.

[GarySeven]

I am currently pulling $5-$6 a day each on my A9 Zmasters which pays for my electricity and are still profitable as I am heating my shop with them. When warmer weather hits I will have to unplug them. 

[Metroid]

Most of them are losing money mining, they do that to support the price of the coin in the market, for example, imagine if eth difficult was 10 times less than now, you would think that you would earn 10 times more right? but that is the problem cause easy access means easy sell, eth around $122 now, 10 times easier to mine it would probably make eth to crash to drop to $30, see my point. So coin difficult is there for many reasons.

As most are losing money to mine, only idiots would sell any eth they are mining.

[arielbit]

so it is 2 ways for miners.

1.) instead of scaling up, consider looking ways to cheapen your electrity like philipma1957

2.) diversify outside crypto, business, rentals etc.

of course you should strike gold first before doing 1 and 2..unless you already have capital ready.

[tippytoes]

Do yourself a favor and get out whilst you still have the shirt on your back.  Don’t do what I did and think the little guy will be able to compete. I’m almost certain there is far more lucrative ventures now than this.  Reality of it is your going to have to dig deep regroup and start something new.  I moved into cell phone/tablet repair. And my busn partner is pushing hard on getting a screen printing/embroidery busn off the ground. Well we both are when I’m not busy fixing phones.  Trust me if you have a setup that bets that amount of change then you have the wherewithal to move into something that will benefit you and society.  This turned into a playground for the rich. I just as soon shit on my trezor. Parden my language.

Br

Energy consumption doesn't help anything at all when you are into mining especially if you are in the area where energy is pretty expensive. Maybe, if you have invested your solar panel at the start of mining, you can still get something out of it.

[Butterscotch Cartman]

Mining is simply too easy, anyone can do it.  Since the barrier to entry is so low it became over saturated and made the profit margins razor thin. 

[Metroid]

with the eth fork and as issuance going from 3 to 2 eth, minimum we can expect eth to rise is 50% from what is right now. 125 + 60 = 200 usd to be eth value soon, it might go much higher than this, if it consolidates around $300 after the fork then the fork will be a success.

[swogerino]

It is because Bitcoin price is not what it used to be, this also impacts all other altcoins and the profits are low compared what they used to be in last 6 months of the year 2017.

I do not mine to pay bills, I mine with the hope that one day bitcoin price will skyrocket and I will be happy that I continued to mine it even when many people have quit.

[SpceGhst]

While the drop in BTC has affected the price of all Alt coins, I believe the underlying cause of low profits is simply there’s no compelling reason to own them besides pure speculation.  And when there’s more sellers than buyers, you get lower prices.

Coin Devs have been busy forking and changing algos to stay ahead of ASIC’s and FPGA’s instead of fulfilling the promises made in their white papers and roadmaps.  The terms “decentralized” and “anonymous” are a myth.  Sure, you can send coins anonymously around the world, but try converting them to fiat without giving personal information.

With most miners losing money these days, we should be asking how much longer mining can survive.  At some point, people will just stop.  And don’t tell me the small guy is done and only big corporations will be left.  Big companies are in business to make money just like an individual, and if the profits aren’t there, they won’t be mining either.

My advice... If you truly believe in the future of a specific coin, just go buy it and save the costs of electricity and associated headaches of mining.

[philipma1957]

While the drop in BTC has affected the price of all Alt coins, I believe the underlying cause of low profits is simply there’s no compelling reason to own them besides pure speculation.  And when there’s more sellers than buyers, you get lower prices.

Coin Devs have been busy forking and changing algos to stay ahead of ASIC’s and FPGA’s instead of fulfilling the promises made in their white papers and roadmaps.  The terms “decentralized” and “anonymous” are a myth.  Sure, you can send coins anonymously around the world, but try converting them to fiat without giving personal information.

With most miners losing money these days, we should be asking how much longer mining can survive.  At some point, people will just stop.  And don’t tell me the small guy is done and only big corporations will be left.  Big companies are in business to make money just like an individual, and if the profits aren’t there, they won’t be mining either.

My advice... If you truly believe in the future of a specific coin, just go buy it and save the costs of electricity and associated headaches of mining.

I have a good reason  to mine.

I can use mining to develop solar power installs.
So even if mining fails in 5 or 10 years you still have the 25-40 year assets of renewable power.

See my solar build out link


this is the second buildout
https://bitcointalk.org/index.php?topic=5099194.0

this is the first build out
https://bitcointalk.org/index.php?topic=1369207.0

So mining has a viable real world use  it helps to develop renewable power.

forum member buysolar has created the method I merely helped to develop it.

[stomachgrowls]

Do yourself a favor and get out whilst you still have the shirt on your back.  Don’t do what I did and think the little guy will be able to compete. I’m almost certain there is far more lucrative ventures now than this.  Reality of it is your going to have to dig deep regroup and start something new.  I moved into cell phone/tablet repair. And my busn partner is pushing hard on getting a screen printing/embroidery busn off the ground. Well we both are when I’m not busy fixing phones.  Trust me if you have a setup that bets that amount of change then you have the wherewithal to move into something that will benefit you and society.  This turned into a playground for the rich. I just as soon shit on my trezor. Parden my language.

Br

Energy consumption doesn't help anything at all when you are into mining especially if you are in the area where energy is pretty expensive. Maybe, if you have invested your solar panel at the start of mining, you can still get something out of it.

Solar panel wont really make such difference.Have you consider on how much do a panel set-up cost? If you do like to wait up for how many years for ROI then proceed.If not
then better not to go with this option.

If mining isnt already profitable then why proceed? We do already know the current situation of crypto market and so as on its mining difficulty minus the electricity cost consumption will really give a scratch on your head.
If you dont have any options then pack up and ready your resume and find a job. 

[bbvedf]

I am currently pulling $5-$6 a day each on my A9 Zmasters which pays for my electricity and are still profitable as I am heating my shop with them. When warmer weather hits I will have to unplug them. 

I am of the same opinion. Maintaining a warm room with 4 GPU is already a benefit

[Metroid]

Solar panel wont really make such difference.Have you consider on how much do a panel set-up cost? If you do like to wait up for how many years for ROI then proceed.If not
then better not to go with this option.

Solar power roi is a myth, there will always be maintenance to be done and extra things to buy and wont be cheap. Ask them how much they pay for each kwh right now with their amazing solar power based on how much they paid for it to begin with, oh yeah they will say is to be paid in 25 to 40 years, some of them wont be alive hehe and the ones alive will regret that they could have used the money to buy crypto and have got from 1 to 200 times their solar power initial investment.

Solar power is only good in countries like australia where kwh per hour is very damn expensive.

[brooklynite1]

So depressing, I used to make around $300 a day but now I'm down to like $70 a day.  Probably won't even be able to live off this anymore and I have bills to pay.

Everyone talks about electricity cost. Here in Southern California it costs amywhere from 16c in winter at night to 35c in daytime in summer. I hacve no idea how people are paying 10 cents.

But my point is even in SoCal with high electricyt cost, the equipment depreciation is much higher than the electricity:


Example:

I am mining a coin that is 5 Satoshi per coin. I get 11,000 coins per day (used to be only 2500) basically making about $2 for a 6 x 1070 rig that I bought for $4000 last year so:

Coin value is 5 Satoshi
Electricity cost is 5 Satoshi per coin mined.
Equipment depreciation cost is 12 Satoshi per coin mined.

My GPUs lose value faster than the electricity they use.

[brooklynite1]

Solar panel wont really make such difference.Have you consider on how much do a panel set-up cost? If you do like to wait up for how many years for ROI then proceed.If not
then better not to go with this option.

Solar power roi is a myth, there will always be maintenance to be done and extra things to buy and wont be cheap. Ask them how much they pay for each kwh right now with their amazing solar power based on how much they paid for it to begin with, oh yeah they will say is to be paid in 25 to 40 years, some of them wont be alive hehe and the ones alive will regret that they could have used the money to buy crypto and have got from 1 to 200 times their solar power initial investment.

Solar power is only good in countries like australia where kwh per hour is very damn expensive.

Solar power is not free, its only free if:

1. You have no use for it
2. You cant sell it back to the grid

If you can sell your solar for 12c/KWh back to the grid, OR you can use the solar to reduce your 12c/KWh electricity bill then  your solar power is worth 12c/KWh.

Plus solar panels have a ten or twenty year life cycle where their value goes to zero plus installation and removal cost.

Solar power is never free.

[Metroid]

my rigs cost me about $12 per day in electricity

im mining about $18+ per day worth of crypto, which i will not mention

to me, i am still profitable which is why i still mine

i do not sell my crypto to pay for electricity, i do that out of my own pocket

i invest all my mining earnings into a coin that i believe will be worth something greater in the future (gambling)

you are not winning, your gpus are getting old and useless, at least you are being smart for not selling your coins but would have been lot easier just to buy the coins from your pocket and wait it to multiply. you trolls just dont get it.