'Manic miner' aims to mine 10 percent of all bitcoins

[ohiofarmer]

ArsTechnica just posted a story about Dave Carlson who says he's 'slightly below' his target of 7-10 percent of the world's mining power! He's running more than 1.4 million BitFury mining chips out of Washington state. The company has less than 10 people and Carlson owns about 5,000 bitcoins. He didn't even get his first rigs up and running until July 2013. Quite an accomplishment!

The full story's here: http://arstechnica.com/information-technology/2014/03/meet-the-manic-miner-who-wants-to-mint-10-of-all-new-bitcoins/

[Bonio]

wonder how the drop in price will hit his bottom line?

[orangered]

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.

[Bonio]

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.

[ohiofarmer]

Why a few months Dave Carlson just will have the world nearly 10% coins？

He's aiming to mine 10% of new coins...

[ohiofarmer]

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."

[Lauda]

This is really important..not.

[tntdgcr]

I love it , a goal of mine too , haven't broken past 1% yet at any given time Keep up the good work neighbor.

[franky1]

ArsTechnica just posted a story about Dave Carlson who says he's 'slightly below' his target of 7-10 percent of the world's mining power! He's running more than 1.4 million BitFury mining chips out of Washington state. The company has less than 10 people and Carlson owns about 5,000 bitcoins. He didn't even get his first rigs up and running until July 2013. Quite an accomplishment!

The full story's here: http://arstechnica.com/information-technology/2014/03/meet-the-manic-miner-who-wants-to-mint-10-of-all-new-bitcoins/

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

[Lauda]

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.

[ohiofarmer]

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...

[bubbagumpshrimp]

So he gets 360 bitcoins a day that don't seem right?

[Lauda]

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.

[franky1]

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

[coinyear]

I thought it was 10% of the total BTC, originally is 10% of new coins.

[mycoin25]

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

[Chris_Sabian]

ArsTechnica just posted a story about Dave Carlson who says he's 'slightly below' his target of 7-10 percent of the world's mining power! He's running more than 1.4 million BitFury mining chips out of Washington state. The company has less than 10 people and Carlson owns about 5,000 bitcoins. He didn't even get his first rigs up and running until July 2013. Quite an accomplishment!

The full story's here: http://arstechnica.com/information-technology/2014/03/meet-the-manic-miner-who-wants-to-mint-10-of-all-new-bitcoins/

And in about month and a half, he will be making 1/2 of what he is today due to the difficulty change.

[Meuh6879]

So he gets 360 bitcoins a day that don't seem right?

  and then, difficulty rise ... 

[vnvizow]

Well if I had the money I would probably do the same thing

[cococoin]

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.