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Bonio
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March 28, 2014, 05:48:39 PM |
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wonder how the drop in price will hit his bottom line?
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orangered
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Activity: 60
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March 28, 2014, 05:50:39 PM
Last edit: April 08, 2014, 10:19:32 AM by orangered |
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Clearly a good investment as it's already throwing off free cash flow. But his fixed expenses are high and will only increase as difficulty rises (assuming he wants to mine the same proportionate amount). He'll need Bitcoin to keep increasing in price in order to continue to stay mining, otherwise they'll be a lot of rigs for sale.
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Bonio
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March 28, 2014, 05:56:27 PM |
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Cost of the operation. electric, loan repayments (unless its all paid for) rent etc. 4 months ago BTC was worth 2x what it is now, its a big chunk to lose.
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ohiofarmer (OP)
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March 28, 2014, 05:56:51 PM |
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Why a few months Dave Carlson just will have the world nearly 10% coins？
He's aiming to mine 10% of new coins... |
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ohiofarmer (OP)
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March 28, 2014, 05:58:18 PM |
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Cost of the operation. electric, loan repayments (unless its all paid for) rent etc. 4 months ago BTC was worth 2x what it is now, its a big chunk to lose.
I think it's all paid for... Here's a quote from page 2: "I figure I spent about $1 million building the existing facility and racking and deployment of the mining hardware, and then we probably spent in the range of $2 million to $3 million on the hardware itself," he said. Rent is another $8,000 a month, power $40,000 a month. "I think we spent probably $3 to $5 million dollars total on the operation. It's paid itself off [in bitcoins] many times over already." |
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Lauda
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Terminated.
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March 28, 2014, 06:00:38 PM |
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This is really important..not.
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"The Times 03/Jan/2009 Chancellor on brink of second bailout for banks" 😼 Bitcoin Core ( onion) |
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tntdgcr
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Bitcoin Mining Hosting
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March 28, 2014, 06:04:22 PM |
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I love it , a goal of mine too , haven't broken past 1% yet at any given time  Keep up the good work neighbor. |
OregonMines is expanding. Are you expanding with us?
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franky1
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March 28, 2014, 06:05:38 PM |
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old news.. a couple weeks ago we already worked out that the $8m income versus (at the time) the $650 btc price worked out as 11%-12% of coins. something a little over 2.7btc per block out of 25btc. wonder how the drop in price will hit his bottom line?
if he did not add any more miners in the last 2 weeks to keep up with difficulty changes, he would now be making less percent of block rewards. and with prices nearing the $500 area his value of that reward is now also 23% less. if he managed to stick with 11% mining reward. then just the price drop wold make that $8m value per month would now be around $6m a month. the time between the interview and today the difficulty went from 4 billion to 5 billion. (25%) so if he has not bought more miners.. then his monthly value due to less then 11% of block rewards now being just above 8% (2btc per block) would mean his new income $4.32m based on todays price |
I DO NOT TRADE OR ACT AS ESCROW ON THIS FORUM EVER.
Please do your own research & respect what is written here as both opinion & information gleaned from experience. many people replying with insults but no on-topic content substance, automatically are 'facepalmed' and yawned at
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Lauda
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Terminated.
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March 28, 2014, 06:06:22 PM |
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It's not that important, but it might be interesting to those interested in mining.
There are always people in the world who overdo everything. |
"The Times 03/Jan/2009 Chancellor on brink of second bailout for banks" 😼 Bitcoin Core ( onion) |
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ohiofarmer (OP)
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March 28, 2014, 06:09:34 PM |
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It's not that important, but it might be interesting to those interested in mining.
There are always people in the world who overdo everything. I personally look at it like he's taking advantage of a unique point and time in history. If I could do the same, I'd definitely be doing it... |
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bubbagumpshrimp
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March 28, 2014, 06:19:58 PM |
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So he gets 360 bitcoins a day that don't seem right?
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Lauda
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Activity: 2674
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Terminated.
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March 28, 2014, 06:21:45 PM |
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There are always people in the world who overdo everything.
I personally look at it like he's taking advantage of a unique point and time in history. If I could do the same, I'd definitely be doing it... Not really. |
"The Times 03/Jan/2009 Chancellor on brink of second bailout for banks" 😼 Bitcoin Core ( onion) |
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franky1
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March 28, 2014, 06:38:37 PM |
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So he gets 360 bitcoins a day that don't seem right?
2.5btc a block=10%... which does add up to 360 a day 2 weeks ago he was on above 2.7btc a block, but now, probably less (nearing the 2btc a block area) if you meant the fact that he is making 2.5btc vs thousands of people making dust amounts. well, just like the lottery "you have to be in it, to win it" if you cant afford 10% of the worlds mining equipment then you wont get a 10% reward |
I DO NOT TRADE OR ACT AS ESCROW ON THIS FORUM EVER.
Please do your own research & respect what is written here as both opinion & information gleaned from experience. many people replying with insults but no on-topic content substance, automatically are 'facepalmed' and yawned at
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coinyear
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March 28, 2014, 07:30:47 PM |
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I thought it was 10% of the total BTC, originally is 10% of new coins.
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mycoin25
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March 29, 2014, 03:05:24 AM |
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Why a few months Dave Carlson just will have the world nearly 10% coins？
You're wrong he's aiming to mine 10% of coins |
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Chris_Sabian
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March 29, 2014, 03:10:04 AM |
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And in about month and a half, he will be making 1/2 of what he is today due to the difficulty change. |
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Meuh6879
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March 29, 2014, 04:07:20 PM |
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So he gets 360 bitcoins a day that don't seem right?
 and then, difficulty rise ...  |
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vnvizow
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March 29, 2014, 04:18:33 PM |
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Well if I had the money I would probably do the same thing
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cococoin
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March 29, 2014, 05:56:19 PM
Last edit: April 09, 2014, 08:07:09 AM by cococoin |
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Clearly a good investment as it's already throwing off free cash flow. But his fixed expenses are high and will only increase as difficulty rises (assuming he wants to mine the same proportionate amount). He'll need Bitcoin to keep increasing in price in order to continue to stay mining, otherwise they'll be a lot of rigs for sale.
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