I Turned My Rigs Off...

[pinoycash]

Now mining on graphics cards to me does not bring virtually anything.I'm talking about home mining which consists of several graphics cards.Competition from ASIC-devices is growing stronger,so I will just keep an eye on the situation on the market and if it starts to improve-I think mining will again begin to generate income.

It`s the same as to say working at home does not give me profit. Competition with the plants is growing stronger. Etc.
Mining is a work! If you want to get money for doing nothing - panhandle is your choice.

Mining isn't really considered getting money for doing nothing. You need to invest in the hardware and maintain it, doing nothing would not involve any investment what-so-ever time and money wise.

The issue with mining is however that with the crypto boom in 2017, many people discovered mining and the competition became fierce. Many gamers actually started to mine since they already owned the rigs.

So like with most businesses that are too profitable, competition hits them fast and the profits start to dwindle, its like this in most industries. My advice is to just sit and wait and ProgPOW might be launched and we might hit new ATH with a few alt coins and the days of $1/day/gpu might be back again.

Too much HYPE in mining last 2017 and even those people that don't have clue what cryptocurrency is, Started mining and the only thing matters to them was $$$.

Most of these newbie first time miners are nicehash users and when nicehash was hack all those newbies was saving their hard earned mining profits in nicehash thinking it was secure enough to store their BTC.

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[CryptoLing]

It's okay to turned your rigs off, for now. Hodl the coin that you have mined and buckle up for the next bull run. Maybe in next bull run you can turned your rigs on again and make profit like before, but in the mean time just take a set back first.

[TheHas]

Noooo!! Keep the dream alive keep mining! Do it as a hobby to support the network and stay involved!

I'm pretty much at breakeven point, but am still mining a few different projects to accumulate.

[lunobird]

good solution. I've been shutting down my equipment for a long time. There is almost no income, and I do not need to heat the house because it's so good for me and so is central heating. I decided to just trade for myself.
now I think a few people are already dropping popular coins because they are already very difficult to dig and buy new equipment I think it is not profitable

Happy to hear it. The more people shut down their rigs, the less difficulty would be, the more profit i`d get.

If someone compares profit with some business in real life? If you are getting even 3 year ROI - it`s nice profit. Bank give you about 5-10% in a year. Stop cry, sell  your equipment and go to bank.

That's a very bad comparison.  If you break even in 3 years Roi yes that's somewhat okay for a business AND you never have to buy equipment for the next 10-15 years.  HOWEVER mining your required to buy new equipment every 3 years just to break even in 3 years. .  All that time and energy and your making very little profit in this current era and phase of mining.


Yes the smart ones will sell of their gears and buy coins or move on with their life.  The hardcore miners are the stubborn ones will be racing to the bottom chasing scraps with the rest of the bottom feeding miners.  Sorry bud there is no free lunch. The mining market has changed and its way over saturated.

[adaseb]

good solution. I've been shutting down my equipment for a long time. There is almost no income, and I do not need to heat the house because it's so good for me and so is central heating. I decided to just trade for myself.
now I think a few people are already dropping popular coins because they are already very difficult to dig and buy new equipment I think it is not profitable

Happy to hear it. The more people shut down their rigs, the less difficulty would be, the more profit i`d get.

If someone compares profit with some business in real life? If you are getting even 3 year ROI - it`s nice profit. Bank give you about 5-10% in a year. Stop cry, sell  your equipment and go to bank.

That's a very bad comparison.  If you break even in 3 years Roi yes that's somewhat okay for a business AND you never have to buy equipment for the next 10-15 years.  HOWEVER mining your required to buy new equipment every 3 years just to break even in 3 years. .  All that time and energy and your making very little profit in this current era and phase of mining.


Yes the smart ones will sell of their gears and buy coins or move on with their life.  The hardcore miners are the stubborn ones will be racing to the bottom chasing scraps with the rest of the bottom feeding miners.  Sorry bud there is no free lunch. The mining market has changed and its way over saturated.

You need to upgrade equipment every few years or so however your old equipment you can sell and use some of that money to buy new equipment.

Computer hardware suprisingly holds their value very well. Even an 8 year old Intel processor still can fetch a pretty penny on eBay and same with the old AMD Radeon 7970/280X GPUs, you can still get close to $50 for those and they are about 7 years old or so.

Most people who bought GPUs probably didn't expect the ROI to be 3 years, they probably bought when it was 90 days ROI and then the markets crashed and they might of overpaid for some of their GPUs like people paying over $1100 for the GTX 1080Ti last year.

[mak013]

good solution. I've been shutting down my equipment for a long time. There is almost no income, and I do not need to heat the house because it's so good for me and so is central heating. I decided to just trade for myself.
now I think a few people are already dropping popular coins because they are already very difficult to dig and buy new equipment I think it is not profitable

Happy to hear it. The more people shut down their rigs, the less difficulty would be, the more profit i`d get.

If someone compares profit with some business in real life? If you are getting even 3 year ROI - it`s nice profit. Bank give you about 5-10% in a year. Stop cry, sell  your equipment and go to bank.

That's a very bad comparison.  If you break even in 3 years Roi yes that's somewhat okay for a business AND you never have to buy equipment for the next 10-15 years.  HOWEVER mining your required to buy new equipment every 3 years just to break even in 3 years. .  All that time and energy and your making very little profit in this current era and phase of mining.


Yes the smart ones will sell of their gears and buy coins or move on with their life.  The hardcore miners are the stubborn ones will be racing to the bottom chasing scraps with the rest of the bottom feeding miners.  Sorry bud there is no free lunch. The mining market has changed and its way over saturated.

Sorry bud, but looks like you have seen only old-school plants if they dont buy equipment for 10-15 years. In my company, for example, we change about 70% of all equipment and repaired about 40% of all our buildings at last 5 years.

I dont know what you decided about "free lunch" and what problems with food do you have but mining gives me about 50-70% of my total income even nowadays. It`s not so much as in 2017-18 but enough not to cry as thread starter.

[lunobird]

good solution. I've been shutting down my equipment for a long time. There is almost no income, and I do not need to heat the house because it's so good for me and so is central heating. I decided to just trade for myself.
now I think a few people are already dropping popular coins because they are already very difficult to dig and buy new equipment I think it is not profitable

Happy to hear it. The more people shut down their rigs, the less difficulty would be, the more profit i`d get.

If someone compares profit with some business in real life? If you are getting even 3 year ROI - it`s nice profit. Bank give you about 5-10% in a year. Stop cry, sell  your equipment and go to bank.

That's a very bad comparison.  If you break even in 3 years Roi yes that's somewhat okay for a business AND you never have to buy equipment for the next 10-15 years.  HOWEVER mining your required to buy new equipment every 3 years just to break even in 3 years. .  All that time and energy and your making very little profit in this current era and phase of mining.


Yes the smart ones will sell of their gears and buy coins or move on with their life.  The hardcore miners are the stubborn ones will be racing to the bottom chasing scraps with the rest of the bottom feeding miners.  Sorry bud there is no free lunch. The mining market has changed and its way over saturated.

You need to upgrade equipment every few years or so however your old equipment you can sell and use some of that money to buy new equipment.

Computer hardware suprisingly holds their value very well. Even an 8 year old Intel processor still can fetch a pretty penny on eBay and same with the old AMD Radeon 7970/280X GPUs, you can still get close to $50 for those and they are about 7 years old or so.

Most people who bought GPUs probably didn't expect the ROI to be 3 years, they probably bought when it was 90 days ROI and then the markets crashed and they might of overpaid for some of their GPUs like people paying over $1100 for the GTX 1080Ti last year.

Sure you might be able to catch some resale value of a 3 year video card but guess what. You pay taxes on that income you got from selling that video card and doing all that leg work. I personally would rather run them down to the ground.

From a small business line of work mining is not that great. Pretty pathetic actually. I've made lots more with less invested as a teenager fabricating car parts.

I guess mining is for those comfortable with small returns and a lot of them have too much hopeium for better days instead of facing things objectively like you would if you ran a business

[dragonmike]

Sure you might be able to catch some resale value of a 3 year video card but guess what. You pay taxes on that income you got from selling that video card and doing all that leg work. I personally would rather run them down to the ground.

Now that makes no sense.
Assuming you bought the video cards for a company account, you would certainly not pay income tax from selling these cards several years later at a lower value.
Video cards in that role are assets that depreciate. Selling them does not generate income, nor profit.
The income is the value of the coins they mine for you.
The profit is what's left when you deduct costs.

[GreenStox]

Sure you might be able to catch some resale value of a 3 year video card but guess what. You pay taxes on that income you got from selling that video card and doing all that leg work. I personally would rather run them down to the ground.

Now that makes no sense.
Assuming you bought the video cards for a company account, you would certainly not pay income tax from selling these cards several years later at a lower value.
Video cards in that role are assets that depreciate. Selling them does not generate income, nor profit.
The income is the value of the coins they mine for you.
The profit is what's left when you deduct costs.

indeed, now the profits you get from mining using a graphics card like that cannot generate very much profit anymore because of the influence of falling coin prices on the exchange, so there are now many who have not activated the rig as long as the price falls.

[pinoycash]

good solution. I've been shutting down my equipment for a long time. There is almost no income, and I do not need to heat the house because it's so good for me and so is central heating. I decided to just trade for myself.
now I think a few people are already dropping popular coins because they are already very difficult to dig and buy new equipment I think it is not profitable

Happy to hear it. The more people shut down their rigs, the less difficulty would be, the more profit i`d get.

If someone compares profit with some business in real life? If you are getting even 3 year ROI - it`s nice profit. Bank give you about 5-10% in a year. Stop cry, sell  your equipment and go to bank.

What bank gives 5-10% year? As far as i know most banks only offers 0.25 upto 1% per year interest on our regular deposit account. Maybe your talking about time deposit account., And you cannot compare banking investment and mining, they are 2 different thing from 2 different industry.

In reality Mining is really more profitable than leaving your money sleeping in the bank,.

[lunobird]

Sure you might be able to catch some resale value of a 3 year video card but guess what. You pay taxes on that income you got from selling that video card and doing all that leg work. I personally would rather run them down to the ground.

Now that makes no sense.
Assuming you bought the video cards for a company account, you would certainly not pay income tax from selling these cards several years later at a lower value.
Video cards in that role are assets that depreciate. Selling them does not generate income, nor profit.
The income is the value of the coins they mine for you.
The profit is what's left when you deduct costs.

It may not make any sense to you b/c you don't know your tax laws that well.  But anyone that runs a small business, small line of work, self employed  would know this.

It actually makes total sense.
When you took the equipment deduction on your taxes for buying video card what stops someone from selling it the following year and pocketing that money and gaming the system. The IRS recaptures some of that free equipment deduction you got on your taxes.

"Tax rules let the IRS recapture some of the depreciation deductions you have taken since you owned the asset. The recapture rules differ for real estate and equipment."

"If you sell depreciable equipment at a gain, you must recapture either the depreciation and expensing deductions claimed on the asset, or the total gain, whichever is less. This recapture amount is then taxed as ordinary income, not as Section 1231 gain. "

Resource Link below for proof.
https://turbotax.intuit.com/tax-tips/small-business-taxes/managing-assets/L18WqppFX

[mak013]

good solution. I've been shutting down my equipment for a long time. There is almost no income, and I do not need to heat the house because it's so good for me and so is central heating. I decided to just trade for myself.
now I think a few people are already dropping popular coins because they are already very difficult to dig and buy new equipment I think it is not profitable

Happy to hear it. The more people shut down their rigs, the less difficulty would be, the more profit i`d get.

If someone compares profit with some business in real life? If you are getting even 3 year ROI - it`s nice profit. Bank give you about 5-10% in a year. Stop cry, sell  your equipment and go to bank.

What bank gives 5-10% year? As far as i know most banks only offers 0.25 upto 1% per year interest on our regular deposit account. Maybe your talking about time deposit account., And you cannot compare banking investment and mining, they are 2 different thing from 2 different industry.

In reality Mining is really more profitable than leaving your money sleeping in the bank,.

In my country nowadays 1 year deposit gives about 6-8%, depends on different banks and conditions. With investments you can get some more, i cant say really how much, but i dont think it will be more then 10%

[shaheer001]

You do good as in Summer specially in hot areas it is very difficult to mine as miner (Rigs)need extra cooling/ventilation and if you arrange cooling system then is will cost too much. Living in cold areas are lucky as they never need self cooling system all is done naturally.

[Cellerex]

You do good as in Summer specially in hot areas it is very difficult to mine as miner (Rigs)need extra cooling/ventilation and if you arrange cooling system then is will cost too much. Living in cold areas are lucky as they never need self cooling system all is done naturally.

It is clear that the summer makes its own adjustments to the cryptocurrency mining process. Mining costs are increasing due to the increase in cooling costs. Plus, equipment wear increases. Many nuances.

[dragonmike]

Sure you might be able to catch some resale value of a 3 year video card but guess what. You pay taxes on that income you got from selling that video card and doing all that leg work. I personally would rather run them down to the ground.

Now that makes no sense.
Assuming you bought the video cards for a company account, you would certainly not pay income tax from selling these cards several years later at a lower value.
Video cards in that role are assets that depreciate. Selling them does not generate income, nor profit.
The income is the value of the coins they mine for you.
The profit is what's left when you deduct costs.

It may not make any sense to you b/c you don't know your tax laws that well.  But anyone that runs a small business, small line of work, self employed  would know this.

It actually makes total sense.
When you took the equipment deduction on your taxes for buying video card what stops someone from selling it the following year and pocketing that money and gaming the system. The IRS recaptures some of that free equipment deduction you got on your taxes.

"Tax rules let the IRS recapture some of the depreciation deductions you have taken since you owned the asset. The recapture rules differ for real estate and equipment."

"If you sell depreciable equipment at a gain, you must recapture either the depreciation and expensing deductions claimed on the asset, or the total gain, whichever is less. This recapture amount is then taxed as ordinary income, not as Section 1231 gain. "

Resource Link below for proof.
https://turbotax.intuit.com/tax-tips/small-business-taxes/managing-assets/L18WqppFX

Note that it says (from your quote) "If you sell depreciable equipment at a gain". No gain, no tax. Simples. Even if you do not pay tax/vat on the purchase of the cards, I doubt you'll be able to sell the GPUs with a higher value three years later (from your original post).

So no, what you wrote still made no sense.

[ikicha]

Yes, ZEC price dumped and downtren market. You got nothing if you still mining with your asic.
My set-up rig for 10xRX570 only got about $3 per day with $2.5 electricity fees. Bad day in mining history

[starkovblue]

Yes, ZEC price dumped and downtren market. You got nothing if you still mining with your asic.
My set-up rig for 10xRX570 only got about $3 per day with $2.5 electricity fees. Bad day in mining history

The usual thing in the mining market. Only the strongest and most persistent will be able to hold their positions.
Why do you have such expensive electricity?

[dagarair]

Better question is, why are you still crying with a profit?  Try and get 50 cents in a bank a day intrest on 2.50.

[r32godzilla]

You do good as in Summer specially in hot areas it is very difficult to mine as miner (Rigs)need extra cooling/ventilation and if you arrange cooling system then is will cost too much. Living in cold areas are lucky as they never need self cooling system all is done naturally.

It is clear that the summer makes its own adjustments to the cryptocurrency mining process. Mining costs are increasing due to the increase in cooling costs. Plus, equipment wear increases. Many nuances.

Tell this to someone who is not educated in cryptocurrency or in computer technolgoy, he will laugh.
But yes, it is real, thats why some mining companies are planning to migrate to Alps for example. 

[lunobird]

Sure you might be able to catch some resale value of a 3 year video card but guess what. You pay taxes on that income you got from selling that video card and doing all that leg work. I personally would rather run them down to the ground.

Now that makes no sense.
Assuming you bought the video cards for a company account, you would certainly not pay income tax from selling these cards several years later at a lower value.
Video cards in that role are assets that depreciate. Selling them does not generate income, nor profit.
The income is the value of the coins they mine for you.
The profit is what's left when you deduct costs.

It may not make any sense to you b/c you don't know your tax laws that well.  But anyone that runs a small business, small line of work, self employed  would know this.

It actually makes total sense.
When you took the equipment deduction on your taxes for buying video card what stops someone from selling it the following year and pocketing that money and gaming the system. The IRS recaptures some of that free equipment deduction you got on your taxes.

"Tax rules let the IRS recapture some of the depreciation deductions you have taken since you owned the asset. The recapture rules differ for real estate and equipment."

"If you sell depreciable equipment at a gain, you must recapture either the depreciation and expensing deductions claimed on the asset, or the total gain, whichever is less. This recapture amount is then taxed as ordinary income, not as Section 1231 gain. "

Resource Link below for proof.
https://turbotax.intuit.com/tax-tips/small-business-taxes/managing-assets/L18WqppFX

Note that it says (from your quote) "If you sell depreciable equipment at a gain". No gain, no tax. Simples. Even if you do not pay tax/vat on the purchase of the cards, I doubt you'll be able to sell the GPUs with a higher value three years later (from your original post).

So no, what you wrote still made no sense.

FALSE!! That only applies if you never took a equipment deduction. Like you bought a painting on eBay for $100 and sold for $100. No tax.

If you took the equipment deduction on turbo tax and sold it the following year it will be recaptured as income. This is a big red audit flag bc anyone can game the system and keep doing this and IRS won't let you get away with all that tax benefits.

"Recapture involves taking the prior depreciation deductions back into income, and it occurs at the sale of a property. You're right in saying that, back then, you had to recapture the excess of the accelerated depreciation over straight-line as ordinary income"

You need to get a CPA so you don't get yourself in trouble. I see a lot of bitcointalkers are clueless on taxes and spread false information. Or a lot of them are just tax cheats that will risk getting audited. IRS is not someone you want to mess with. One bad incident can ruin your life