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

[CurbsideProphet]

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."

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.

[principalg1]

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

Not necessarily, not what people have the vision and courage to do such a thing.

[Bit_Happy]

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."

If he motivates 20 people to do the same thing, then will any of those make money?

[googlemaster1]

The problem is these operations put a lot of downward pressure on the price because they NEED to sell to keep themselves afloat.  Hobbyists who spend a couple thousand bucks of free floating capital for fun don't need to recoup anything.  Therefore, they never HAVE to sell for less than what they think a bitcoin is worth.  It'll be interesting to see if there is a lull in incentivation for big farm miners because of this.  This price drop could be short term, but trends like these need some real big news to break free.  I am ok with micro-transactions at this price, but I'd feel a little cheated if I were selling large amounts of bitcoin at this price.  Who knows what they do, though, maybe they saw this coming and sold at the top and are hoping to ride out long term for a while.

[Brangdon]

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

Why not? The maths seems right. Morally, he risked $5m of his money, so deserves some reward.

[Monkeyseemonkeydo]

As just were said: what is it now? it's a big chunk to lose.

[jonald_fyookball]

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

Why not? The maths seems right. Morally, he risked $5m of his money, so deserves some reward.

Alt coins will die soon (many of them)

[GenTarkin]

He will be hurtin once btc hits 2$ again.... soon enough.

[Bit_Happy]

He will be hurtin once btc hits 2$ again.... soon enough.

Bring it on.
How soon....?

[BitOnyx]

I guess everyone would love to make such wager.

[Jigme]

that man is insane.  he could also soon be a billionaire

[Noruka]

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

you probably dont have a seven digit loan of liquidity either

[dreamspark]

Impressive, go big or go home is clearly his way of thinking. I dont think he will be able to keep up with his goal of having 10% of all mined coins but either way he's going to be even richer than he already is.

[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.

you probably dont have a seven digit loan of liquidity either

no , lol , I don't need loans to have that kind of skin in the game. join us

[farlack]

He will be hurtin once btc hits 2$ again.... soon enough.

He already said it paid for itself many times over again, so he made his initial 5 million back plus many times more for profit.

[kokojie]

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.

6 months ago Bitcoin was worth 1/5th what it is worth now, it's a big chunk to gain.

Then he would have done better by straight buying BTC.

[Bit_Happy]

Impressive, go big or go home is clearly his way of thinking. I dont think he will be able to keep up with his goal of having 10% of all mined coins but either way he's going to be even richer than he already is.

go big or go home
I love that attitude.
Getting the start up money (for anything) can be a big issue for some people.

[vipgelsi]

This guy is my hero.