Bitmain Bitcoin mining equipment is expensive

[TimtheYoutuber]

Watch this quick 1-minute video on Bitmain's mining: https://youtu.be/OYCz2S6Nn14

I think for most people they see bitcoin mining as "free money". However, its almost always nonprofitable unless you have the perfect operation with older equipment that is expensed, and have cheap electricity/labor.

You're better off just investing in Bitcoin and then selling if it goes up for a profit, instead of mining bitcoin and getting liquidated when the price doesn't skyrocket.

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[TimtheYoutuber]

This is more of a scene that would be in a full episode of a cryptocurrency cartoon. But what do you guys think about it? Do you think Bitmain or mining equipment in general costs too much?

[MakeMoneyBtc]

This is more of a scene that would be in a full episode of a cryptocurrency cartoon. But what do you guys think about it? Do you think Bitmain or mining equipment in general costs too much?

Honestly I don't know much about bitcoin or cryptocurrencies mining in general but I guess Bitmain equipment cost so much because they are a top company in mining equipment which produces high quality products. Just like Samsung or IPhone phones are a lot more expensive than Chinese phones even though their performances are the same, I think the same thing applies here.

[bitcoin31]

Im not a miner and it is logic once you see that miner is expensive maybe you will not buy it but maybe the quality of the that mining equipment is better to other mining you can buy it if you want. Try to search again what mining equipment who are Cheaper value and the quality is still good. But once you have plan for mining you will need to have Big capital for that.

Mining is really expensive way to earn or to get bitcoin or the altcoins but there's a lot of people who become millionaire because of that and maybe someday you will be that too if you what you do, because mining is not easy you need time and enough knowledge to do that.

[BurgerCash]

Well, there's supply and there's demand. There's currently places on earth with extremely low electricity costs, and it makes sense that they'll be the only ones where Bitcoin mining is BARELY profitable. For most of us, purchasing equipment from Bitmain makes no sense.

[MakeMoneyBtc]

Im not a miner and it is logic once you see that miner is expensive maybe you will not buy it but maybe the quality of the that mining equipment is better to other mining you can buy it if you want. Try to search again what mining equipment who are Cheaper value and the quality is still good. But once you have plan for mining you will need to have Big capital for that.

Mining is really expensive way to earn or to get bitcoin or the altcoins but there's a lot of people who become millionaire because of that and maybe someday you will be that too if you what you do, because mining is not easy you need time and enough knowledge to do that.

The most important thing in mining is probably capital because right now mining has become a lot harder than 3-4 years ago. You would have to invest as much as you would invest in a medium business in order to be able to get some constant profits so this is obviously not for everyone. People who want to open a mining business are looking for quality and they are probably ready to pay for it and that's why big mining companies have taken advantage of that and increased their prices for equipment.

[alina345]

Bitmain owns a monopoly, however dedicated ASIC hardware is not easy to make, nor is it cheap. Also the miners become slow and out of date every few years, so they need to make a profit.

Only if you have the space, and infrastructure would owning a Bitcoin farm would be a worthwhile investment.

[Artemis3]

Bitmain owns a monopoly, however dedicated ASIC hardware is not easy to make, nor is it cheap. Also the miners become slow and out of date every few years, so they need to make a profit.

Only if you have the space, and infrastructure would owning a Bitcoin farm would be a worthwhile investment.

Its not a complete monopoly, they do have (weak) competition but its there: MicroBT, Canaan, Innosilicon, etc.

Late model miners are expensive, indeed 1500 USD for a late 40T+ model, but you can get an old S9 13Tish model for about 145USD. This is the same Asic miner than in Dec 2017 (yeah, when bitcoin peaked its price to nearly 20k) used to cost 3000 USD.

Still the most important factor is the electricity price. Even is someone gifts you the miner, running it can be too expensive, so you have to think of ways of lowering the electricity first and think about hashrate second. For example, a down-clocked S9 producing just 10T is more efficient than the same miner running at 16T, the watts per terahash factor is critical to lower your power bill costs. An S9 started consuming 100W per T produced, but its now possible to make it consume just 80W per T. Of course a late model miner is already consuming under 60W per T, but those are more expensive.

A farm is a complete separate beast, and i think the lower the profitability the smaller they will become, especially when it becomes unprofitable to mine in any country (including mine).

[pooya87]

it is simply lack of competition that causes all this. last year despite the drops we saw a lot of interest from different companies in multiple countries like Japan show a lot of interest in getting into producing bitcoin mining equipment. then out of nowhere a social drama started about bitcoin's energy waste and switch to POS which might have even scared some of them off. and that is what we get as a result of it...

what we need is serious encouragement of others to get in ASIC production and that will improve everything from price and quality to decentralization which is more important than anything else.

[kamBlanV]

good video.  yea. mining equipment is very expensive. and we see that today BTC is very rare, every hash and block will have to be solved with very expensive equipment. but today mining with a CPU, GPU and FPGA is not recommended, because it will only make electricity costs expensive. I prefer to mine using ASIC or Avalon.

[hotimbineh]

mining now is very expensive even though we know harvesting bitcoin is very difficult not like it used to for those who still use old components, the results will be eroded by very expensive electricity costs but you are right to say ...... @kingcolex

Everything in crypto is to scale, regardless if I was chopped up 1/100 it wouldn't matter. The big players would still have warehouses full of equipment and you would get the same reward for the same hashrate.

[Kakmakr]

When you basically have a monopoly and a huge demand for your product, you can charge any price you want and people will pay for it. Bitmain will struggle even more in the future, because the Bitcoin mining scene has become very challenging with high electricity cost <input cost> and also the high difficulty <total hash rate> and the low Bitcoin price.

The Average Joe can simply not compete with huge mining farms that negotiated for fixed <lower> electricity prices and also bulk buying power with lower prices for hardware. <Demand from the average small miners are declining>   

[Ibrash600]

good video.  yea. mining equipment is very expensive. and we see that today BTC is very rare, every hash and block will have to be solved with very expensive equipment. but today mining with a CPU, GPU and FPGA is not recommended, because it will only make electricity costs expensive. I prefer to mine using ASIC or Avalon.

The surge in mining costs is a result of rising hash rates, which is a measure of a miners performance. A higher hash rate increases the chance a computer has of solving the mathematical puzzle required to earn cryptocurrency, but in doing so, the amount of energy required also goes up.

[Beerwizzard]

That was way more overpriced somewhere at the beginning of 2018. Also beside the price there was many issues with shipment when the seller couldn't (or didn't want to) ship ASICS to their customers for many months and gave no response to them. And by the way custommers sometimes payed 2-5$k and got such issue.
Also sometimes Bitmain shipped already used miners that are full of dust inside.
So the company is pretty doubtfull.

[clonely]

Mining equipment should definitely be cheaper and / or higher quality devices should be made available for individual use.

[TimtheYoutuber]

Mining equipment should definitely be cheaper and / or higher quality devices should be made available for individual use.

I agree as it stops regular people from getting into mining.

[pooya87]

Mining equipment should definitely be cheaper and / or higher quality devices should be made available for individual use.

I agree as it stops regular people from getting into mining.

well nothing is stopping others from starting a new manufacturing company to produce ASICs and compete with Bitmain. i assure you that if you were in their place and were running unopposed you would sell your product just as expensively. as i said above, it is all about lack of competition.

[libert19]

Watch this quick 1-minute video on Bitmain's mining: https://youtu.be/OYCz2S6Nn14

What do you guys think about Bitmain?

Bitmain was facing multiple lawsuits, that's why they hiked up the miner's price to pay off the debt.

https://go.daneel.io/news?s=bitmain-mined-crypto-for-its-own-benefits-on-devices-owned-by-the-customers

[TimtheYoutuber]

Watch this quick 1-minute video on Bitmain's mining: https://youtu.be/OYCz2S6Nn14

What do you guys think about Bitmain?

Bitmain was facing multiple lawsuits, that's why they hiked up the miner's price to pay off the debt.

https://go.daneel.io/news?s=bitmain-mined-crypto-for-its-own-benefits-on-devices-owned-by-the-customers

They mismanaged that company so incredibly bad.

[BitBustah]

The majority of people will make much more money if they just use their money to buy bitcoin instead of buying bitmain hardware.  By the time you receive your hardware projected profits will already have dropped off a cliff.  Its just not worth it to get into mining unless you have a source of free or nearly free electricity.