I Turned My Rigs Off...

[dagarair]

it's pretty funny how a lot of you all cry even when making 5-8% profit.  Let me let you in on a little secret, IT'S STILL PROFIT.  Those of you that are not making profit, I get your grief.  Anything in the green is STILL PROFIT, be it 5 cents or 100$.

ETH @ 230 hash and 1050 watts (8 x 470 rigs) @
power at 10 cents is 11% profit
power at 9 cents is 23% profit
power at 8 cents is 39% profit
power at 7 cents is 59% profit

[1714606390]

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[1714606390]

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[xxcsu]

Any tax tips @dagarair for those who have not yet had to declare or will do soon due to changes to the system?

Look i'm not a tax dude and they very state to state but I have a bad ass CPA.  That being said easy stuff is you can instant depreciate your rig/asic this year, expense electric bill etc.  REPORT your income and if its a loss and you sold it then it's a negative cap gains hit that go right in your taxes as a loss.  Stuff like that.

Just like dagarair said. Your best option is a Certified Public Accountant (CPA). But ... Not all CPA familiar with how to handle mining related incomes, coins, exchanged coins to cash, coins what you still have in your wallet So what you really need is a bad ass CPA

[xxcsu]

it's pretty funny how a lot of you all cry even when making 5-8% profit.  Let me let you in on a little secret, IT'S STILL PROFIT.  Those of you that are not making profit, I get your grief.  Anything in the green is STILL PROFIT, be it 5 cents or 100$.

ETH @ 230 hash and 1050 watts (8 x 470 rigs) @
10 cents is 11% profit
9 cents is 23% profit
8 cents is 39% profit
7 cents is 59% profit

Exactly
But the  main problem is, for lot of ppl, the main reason they got into mining is " get rich fast, make 100's of dollars with nothing "
and most of them jumped into mining when a single rx480/580 GPU was between 600-800$ or more
All this folks coming back now and crying :-)
There is my topic, with a example, what i created 6 months ago about ETH mining profitable, just updated today, because i saw this post

[Indamuck]

A lot of the big farms are willing to mine at near zero profit just to make everyone else shut down.   Then once difficulty drops they rake in the real profits.  This is a common tactic in business, it isn't always about making maximum profit but killing off your competition first.

[lunobird]

At this time, i have no desire to expand my farm

Dont really want to be on the IRS radar for being into crypto

Atleast not yet

ill be mining for almost 2 years now with .10 - 0.12 kwh

never turned off any of my rigs

i have been paying electricity out of pocket just so i can speculate and turn all my mining profits into a certain coin which i think has a future and very undervalued

ill worry about the tax man when crypto becomes more mainstream

Are you not taking advantage of the equipment deductions on your taxes?. If you want to expand into a farm treat it like a business and do your accounting correct. Otherwise you will always be a small timer

Your missing out on some awesome tax harvesting for the 2018 tax season.  Most miners reported losses on mining due to the rapid drop in value and your able to use those losses to offset any income gains they made.  Plus miners are able to deduct your equipment and electricity expenses and allow you to buy more equipment and expand.

Plus you have piece of mind that you are compliant with your mining taxes.  Most people worry about the tax man when they get an irs audit in the mail.  I wouldn't wait for that to happen b/c then it would be too late.

[nerdralph]

it's pretty funny how a lot of you all cry even when making 5-8% profit.  Let me let you in on a little secret, IT'S STILL PROFIT.  Those of you that are not making profit, I get your grief.  Anything in the green is STILL PROFIT, be it 5 cents or 100$.

ETH @ 230 hash and 1050 watts (8 x 470 rigs) @
power at 10 cents is 11% profit
power at 9 cents is 23% profit
power at 8 cents is 39% profit
power at 7 cents is 59% profit

And the vast majority of Americans and Europeans are paying US>10c/kWh.  Even up here in the Great White North, you'll only find rates substantially below that in Manitoba and Quebec (and maybe still in some parts of Labrador).  In the big American cities, electricity is over US 20c/kWh.

And when I checked your numbers, it looks like you're only factoring the electricity costs, and nothing for depreciation.

I suspect you're in somewhere like Washington state, which has some of the lowest electricity costs in North America.  So if you're in Grant County, sure mining ETH is clearly profitable, but for the other 99.9% of the population, it ain't so easy to make money mining.

http://www.hydroquebec.com/data/documents-donnees/pdf/comparison-electricity-prices.pdf

[CjMapope]

it's pretty funny how a lot of you all cry even when making 5-8% profit.  Let me let you in on a little secret, IT'S STILL PROFIT.  Those of you that are not making profit, I get your grief.  Anything in the green is STILL PROFIT, be it 5 cents or 100$.

ETH @ 230 hash and 1050 watts (8 x 470 rigs) @
power at 10 cents is 11% profit
power at 9 cents is 23% profit
power at 8 cents is 39% profit
power at 7 cents is 59% profit

And the vast majority of Americans and Europeans are paying US>10c/kWh.  Even up here in the Great White North, you'll only find rates substantially below that in Manitoba and Quebec (and maybe still in some parts of Labrador).  In the big American cities, electricity is over US 20c/kWh.

And when I checked your numbers, it looks like you're only factoring the electricity costs, and nothing for depreciation.

I suspect you're in somewhere like Washington state, which has some of the lowest electricity costs in North America.  So if you're in Grant County, sure mining ETH is clearly profitable, but for the other 99.9% of the population, it ain't so easy to make money mining.

http://www.hydroquebec.com/data/documents-donnees/pdf/comparison-electricity-prices.pdf

ya im up in Canada too, and had to refactor my whole farm the last few months
im in Sask, cheapest power i can get is like 0.15 CDN :/
i mined out of pocket on about 15% of my bill for a few months, just for the sake of collecting some coins
only works out if one can hodl for the pumps tho (i.e rvn)

tbh most people should send their stuff to hosting, theres alot of GPU hosters now a days that are trustworthy

[CryptoKush]

I think that now you need to continue mining. If you can accumulate a lot of cryptocurrency now, then in the future you can make a profit. I think that in the future it can bring a good profit.

[Alucard2425]

I think mining today is not a good idea and if your in a country that has a expensive electricity its better to forget about mining

[mak013]

And when I checked your numbers, it looks like you're only factoring the electricity costs, and nothing for depreciation.

It`s the right way calculation. All my equipment costs had been calculated until revenues exceeded costs. Now there is now depreciation, it was calculated before.
Even if GPU-ASIC - break down - it doesn`t make a problem. it worked hard and paid off itself.

[adaseb]

My rigs are slightly profitable also at the moment but they are still powered off. Basically making a nickel a day per GPU is just not worth the headache of keeping an eye on these rigs and having to do proper maintainance from time to time.

The main reason however is that I don't want the headache of running my GPUs and having a fan fail and then having to go thru the RMA process or buying some second hand replacement fans and having the GPU lose value.

I only have a few GPUs , if I had hundreds then I would obviously keep them running but at the moment just leaving them powered off.

[swogerino]

I have my rigs turned on all the time but I also turned on the rigs I manage for some friends at my worm with their request.

With this price of bitcoin they are making about 250 dollars profit monthly with 6 rigs that each of them has.

I say now is the time to turn on the rigs.

[nerdralph]

And when I checked your numbers, it looks like you're only factoring the electricity costs, and nothing for depreciation.

It`s the right way calculation. All my equipment costs had been calculated until revenues exceeded costs. Now there is now depreciation, it was calculated before.
Even if GPU-ASIC - break down - it doesn`t make a problem. it worked hard and paid off itself.

It would only be the right way if the cards were worth nothing.   However I suspect they are worth something, and the more you use them and the longer you wait, they are worth less and less.

[mak013]

And when I checked your numbers, it looks like you're only factoring the electricity costs, and nothing for depreciation.

It`s the right way calculation. All my equipment costs had been calculated until revenues exceeded costs. Now there is now depreciation, it was calculated before.
Even if GPU-ASIC - break down - it doesn`t make a problem. it worked hard and paid off itself.

It would only be the right way if the cards were worth nothing.   However I suspect they are worth something, and the more you use them and the longer you wait, they are worth less and less.

If you are planning to sell GPUs sometime - it may be so. But your equipment had a fixed price. At one moment, you get profit exceeding all your spending. In this moment, equipment costs nothing for you. Depreciation may be useful just for taxes. In this way you may count it. But also depreciation with such type of equipment is about 3-5 years as usial and really small percent in the calculation.

[meanwords]

Go outside and enjoy the summer lol. I think most miners are going to turn their rigs off because of the heat and it's not that profitable nowadays. How about try mining using GPU and maybe you'll have some luck in there. Enjoy your cigar and cry a little more.

[Alpha0One1]

Given the bearish market, it will be very hard for small scale miners to compete and break even, even with a low cost electricity.
Better leave the mining for now to industrial miners, small scale miners may be able to join again once the market shifts to bull territory.

[sereze]

I see second hand adds about gpu's, sellers state that they truned their rigs down. I don't understand why because I have a rig with 4 1070ti and 1 1070's getting me 1 USD a day. I don't turn it down because 1 USD a day is better than 0 USD a day. My guess about the people turned their rigs down;

* They have really crappy psu's, their rig is in an office so their electricity costs are high
* They are rich and they don't care about 0.50 -1 USD a day

I do understand if people want to sell their gear, it's very reasonable. But I don't understand turning the existing rig down.

[Rtalk]

I also stopped the extraction of coins because in my case it almost brings no income and now I think to sell my graphics cards while they can still work.

[raghovsing34]

After market crash mining become something that makes losses instead of gains for btc, eth and etc. So i can understand your decision.

Maybe you are right that now mining is not much profitable because of bearish market. But some experts miner said still it’s profitable.

[rdewilde]

Nowadays mining have proven not be profitable anymore owing to the unfavorable market. You pay more for energy while the payout tends to be little. Maybe there will be a turnaround but for now, not profitable.