How bad can it get?

[MetaMii]

Down the road into a bear market what can a new miner except from a 500MH mining farm? How incredibly bad can this get? 5$? 8$? Asking those who are here before in 2018 so I can know what's awaiting me.

[Bitcoin_Arena]

Things were different back then, and things are going to be different today or tomorrow. We don't know how the net work hashrate will be, We don't know how far the coin prices will drop

You just have to be ready for anything and hope for the best. One good practice is not to sell coins you have mined during a bear market, instead wait for the bull market and rip big.

[Metroid]

Down the road into a bear market what can a new miner except from a 500MH mining farm? How incredibly bad can this get? 5$? 8$? Asking those who are here before in 2018 so I can know what's awaiting me.

This below is the best advice you can get, other than that, patient is key here, although this is still pre bear market, expect the worse when the time comes, for now btc below 20k is very possible 60% chance.

One good practice is not to sell coins you have mined during a bear market, instead wait for the bull market and rip big.

[batsonxl]

Down the road into a bear market what can a new miner except from a 500MH mining farm? How incredibly bad can this get? 5$? 8$? Asking those who are here before in 2018 so I can know what's awaiting me.

No one will tell you how bad it can go and most important how long? It is better not look how bad it is  just keep walking doing other jobs for couple of months.

[MetaMii]

Down the road into a bear market what can a new miner except from a 500MH mining farm? How incredibly bad can this get? 5$? 8$? Asking those who are here before in 2018 so I can know what's awaiting me.

No one will tell you how bad it can go and most important how long? It is better not look how bad it is   just keep walking doing other jobs for couple of months.

So what's the best coin to keep mining in such bad market? I have almost free electricity and I don't want to turn off my mining rigs, what can I do at this point? I mean what's a better proof of work coin I can mine and hold for long term till bull market begins again.

[adaseb]

From what I remember with the 2015 and 2018 mining bear markets is that the profits were horrible if you were selling daily instead of holding the coins.

I think back in 2015 with ASICs with like 5kw of power you made like 0.05BTC a day. Sounds a lot however price was like $200 back then. So with 5000 watts, you net about $10 a day.

With 2018 and Ethereum mining I remember making exactly $0.00 per day with my 470 GPUs with like 8-10 cent power. There was also a period where earnings where negative.

[Coinfarm ventures]

With 2018 and Ethereum mining I remember making exactly $0.00 per day with my 470 GPUs with like 8-10 cent power

If you had RX 470 cards you were stuck with ETH, but GeForce cards could mine coins that were much more profitable like GRIN or RVN. In early 2019 I remember getting $0.70/day of GRIN revenue, paying $0.25 for power, and pocketing $0.45 of profit on each of my GTX 1060 6GB video cards. That rig made a killing eventually.

This is why I prefer NGreedia over AMD: they are still better at alternative coins than Radeon. They have better gaming brand value. I will buy Radeon cards if I can get them at a good discount, but I stick to the RTX 3060/3060 Ti series in particular.

Let's assume one mined during the 2019-2020 bear market with a GTX 1060 6G rig which they bought for $170 per card ($130 each for the actual GPUs). At 9¢ power, the ROI would've been 20-40% per year. When the bull market returned, not only did their rig double in value, but the rig made a 300%+ ROI in 2021. The total ROI from 2019-2021 was 500% or so. So buying video cards cheaply seems to be very important.

[MidNite36]

With 2018 and Ethereum mining I remember making exactly $0.00 per day with my 470 GPUs with like 8-10 cent power

If you had RX 470 cards you were stuck with ETH, but GeForce cards could mine coins that were much more profitable like GRIN or RVN. In early 2019 I remember getting $0.70/day of GRIN revenue, paying $0.25 for power, and pocketing $0.45 of profit on each of my GTX 1060 6GB video cards. That rig made a killing eventually.

This is why I prefer NGreedia over AMD: they are still better at alternative coins than Radeon. They have better gaming brand value. I will buy Radeon cards if I can get them at a good discount, but I stick to the RTX 3060/3060 Ti series in particular.

Let's assume one mined during the 2019-2020 bear market with a GTX 1060 6G rig which they bought for $170 per card ($130 each for the actual GPUs). At 9¢ power, the ROI would've been 20-40% per year. When the bull market returned, not only did their rig double in value, but the rig made a 300%+ ROI in 2021. The total ROI from 2019-2021 was 500% or so. So buying video cards cheaply seems to be very important.

Why are you calling Nvidia NGreedia? If what you are referring to is Nvidia been greedy then why is the company still your favourite? Lol 😆, I like the idea of buying graphic cards at the cheapest rate but it's all for the long term haul, you have that spirit in you that's why you are able to see things this way, those who rushed to build rigs cares about the present returns.

[VRExpress]

Very bad maybe, everything will feel dead and all hopes will look lost....

[philipma1957]

Down the road into a bear market what can a new miner except from a 500MH mining farm? How incredibly bad can this get? 5$? 8$? Asking those who are here before in 2018 so I can know what's awaiting me.

½ penny a mh which comes to $2.50 a day pre power.

If you are burning 1200 watts that is about 30 kwatts a day.

You will need 8 cent power to make a 10 cent daily profit.


I have done some gpu mining of some kind from 2012 to now.

I do not recall that 7 cent power was needed to make money.

[Takyeon]

This is why many people always wait for a good time like BTC halving around the corner before buying graphic cards, when a real bear market strikes all dollars will turn to the penny, if you can take your eye off the dollar value you will be fine, a miner can easily give up when dollar worth isn't good looking anymore.

[badbart]

It can get very bad but who cares, do not put yourself at financial risk with mining.  You can walk away and no big deal.  

I've been in it since 2016 and have 150 gpus and never put myself at any kind risk of a large loss to my networth.  After my initial investment in 2016 all my expansion was paid for with mining profits.

[Coinfarm ventures]

Why are you calling Nvidia NGreedia? If what you are referring to is Nvidia been greedy then why is the company still your favourite? Lol 😆, I like the idea of buying graphic cards at the cheapest rate but it's all for the long term haul, you have that spirit in you that's why you are able to see things this way, those who rushed to build rigs cares about the present returns.

I say NGreedia and GreedForce just for fun. I am more greedy than them, so I will buy whatever brand I think is best for the market.

I was one of those short term get-rich-quick miners and thanks to FOMO, I rushed to rent a warehouse, get investors and build rigs in early 2018. I paid $370 for each RX 570 4GB card even though I ordered 20 at a time. The business went bankrupt, so my investors and I got badly burned. From then on, I learned my lesson. GPU mining is a marathon, not a sprint.

[adaseb]

The biggest issue I heard about people who ended up losing money with mining is usually because they borrowed money to buy the gear.

Either by credit card or someone lent them the money. They also overpaid for their gear. Then when bear market came they were pretty much losing money with the interest rate they had to pay on the loan.

So like any business there is always some degree of risk.

[swogerino]

The biggest issue I heard about people who ended up losing money with mining is usually because they borrowed money to buy the gear.

Either by credit card or someone lent them the money. They also overpaid for their gear. Then when bear market came they were pretty much losing money with the interest rate they had to pay on the loan.

So like any business there is always some degree of risk.

The only group I would exclude from here,are the guys who did the above things,yeah credit card or loan and bought the gear in January-February 2021,most likely the gear already paid off until December so now it is up to them what to do,I am at such group although I bought the gear with my own money,mining money I made by mining at a loss in 2018-2019 and the gear has already paid off for me in December so from January we are still in small profit for a 330 Mhsh rig and we continue to mine,we make like 270 USD a month minus 70 USD electricity so we are still in 200 USD profit now.

I agree the ones who overbought in April/May 2021 that was the biggest mistake they could make as the future since that time has been only in the descending except October which was an all time high in which they could have sold some crypto to cover some expenses.

In the end it is all as the book "The Psychology of Money" says risk and fortune,some are taken by the risk,the ones who lose on their investment and some by the fortune,the ones who win from their investment.However the book doesn't state that old saying,fortune favors the bold.

[JangoUnchained]

The biggest issue I heard about people who ended up losing money with mining is usually because they borrowed money to buy the gear.

Either by credit card or someone lent them the money. They also overpaid for their gear. Then when bear market came they were pretty much losing money with the interest rate they had to pay on the loan.

So like any business there is always some degree of risk.

Borrowing money to build a mining farm will bring faster result to your door step and that's disappointment and anger, there is no way bear market won't caught up with you unless you already bought your graphic cards when bull market is just about to begin, like some said on here that they got their GPUs in December 2020.

[Coinfarm ventures]

The biggest issue I heard about people who ended up losing money with mining is usually because they borrowed money to buy the gear.

Either by credit card or someone lent them the money. They also overpaid for their gear. Then when bear market came they were pretty much losing money with the interest rate they had to pay on the loan.

So like any business there is always some degree of risk.

This is exactly what happened to me in 2018, except thankfully I got 90% of the cash as an investment, not a loan. If it were a loan, I would be screwed. There is no way I could have repaid $50k. Thanks to FOMO, I overpaid for the equipment, overpaid for warehouse rent and overpaid for electricity. At least I only had to bear a fraction of the total losses.

[nsummy]

IMO a bear market is the best time to mine if you own the equipment outright and can afford to pay your electricity bill without selling for fiat.  This is especially true if you paid retail or lower for your gear.  Oddly enough it seems like values have appreciated compared to pricing pre-chinese tariff.

[adaseb]

Usually it goes like this.

You first hear about mining. Decide to try it out. So you buy 1 GPU, and mine for a week or month. Then when you finally actually cash out your profits you are like. Wow it’s real cash. So you buy 2 more GPUs.

Now you got 3 GPUs and same thing happens. You discover all this free money. So then you decide to buy 5 GPUs, then you buy 10 GPUs, then you need to buy fans, additional electrical equipment like extension cables, add more power to your place. And before you know it you got 100 GPUs.

However the difference is that your first GPU is usually much cheaper than your last. Due to the mining gaining traction, they get sold out and you start to over pay for stuff.

And then if you started in the wrong quarter you can start to lose money fast. We have all been there. However most of us got lucky. I remember I ROId my gear in like 3 months, however most late miners obviously had ROI in the 1-2 year mark.

[Crypt0Gore]

IMO a bear market is the best time to mine if you own the equipment outright and can afford to pay your electricity bill without selling for fiat.  This is especially true if you paid retail or lower for your gear.  Oddly enough it seems like values have appreciated compared to pricing pre-chinese tariff.

You are right but the reason why a bear market is a good time to start mining is low mining difficulty, if no miners are leaving the network it will make no sense, look at the situation right now, we are in bear market but not as dip as that of 2018 where people are switching of their rigs, mining difficulty is still very high still.