Three Men Mine $200,000 In Bitcoin Every Month

[unpure]

Yep its a legit gamble, but someone has to do the job, without miners, theres no Bitcoin, if Bitcoin wins, big miners will get the biggest reward.

On the contrary, big miners can not cover recoup their investment if they pay market rate for those ASIC miners.

[Rock53]

$8 million a month in Washington state - that was a year ago.  What do you think that they are making now?  Probably a lot less and maybe getting ready to shut their doors.  Everyday more hashing power comes onboard and difficulty increases - my electric bill has finally overtaken the bitcoins that I generate.  I'm running 10 Antminer S-1's and I thought about getting the upgrade kit to get each one up to 453 GH, but that will only buy me a few months until the electric bill once again surpasses my generated bitcoins.  I think that I'll shut everything down and hope that my 15 bitcoins might be worth something someday like $100k each?  I can always dream!

[Gleb Goodston]

Yep its a legit gamble, but someone has to do the job, without miners, theres no Bitcoin, if Bitcoin wins, big miners will get the biggest reward.

True without miners and more people mining Bitcoin would become worthless as it would not be able to confirm etc so people need to respect people who do mine and gamble some of them do it not to profit but to help Bitcoin. they are bitcoin heroes.

[Hasher99]

Thats like 67,000$ per month for 1 person. Within 1.5 years they will be millionaires, or they are already ones.! Holy shit. Nice work they are doing and supporting the btc.

[BADecker]

Yep its a legit gamble, but someone has to do the job, without miners, theres no Bitcoin, if Bitcoin wins, big miners will get the biggest reward.

On the contrary, big miners can not cover recoup their investment if they pay market rate for those ASIC miners.

They will get it back when Bitcoin goes to $10,000... if they stay strong, and hodl a few of the bitcoins they mine.

[crazyearner]

http://www.businessinsider.com/warehouse-men-200000-bitcoin-monthly-2014-8

From the article: "They have 'a couple of bitcoin' each for their efforts (Smith says they’re “heroes that keep our precious bitcoin network safe”). They spend most of their time checking, wiring, installing and rearranging – or playing video games."

And every 2 weeks it goes down by 20 to 30% or maybe advantage of 10 to 15% drop in earnings and soon their equipment will be worthless due to power consumption. Only way they can continue their adventure is by adding 30% more speed and equipment every 2 weeks to be ahead of the game.

[itsAj]

If you have enough wealth that you can set up a system like this that almost breaks even, you stand to win in the long run.

It might take a couple of decades, yet, for the fiat currency banking system to crash itself. But things are in a position right now that the system could crash any time. All it might take is a few more countries getting off the USDollar as the world currency, like Russia and China are doing.

When this happens, the value of bitcoins just might soar in nations that still use the USD as their basic form of money. So, while Bitcoin mining might not be worth it today, it almost certainly will be worth it sometime in the near future... and maybe worth it in a very big way.

I don't see how something that does not even break even could potentially create wealth in the long run. As it stands now, it is a much better idea to invest your money in buying additional BTC instead of buying mining equipment. With the difficulty rising ~20% every two weeks and the price of bitcoin not rising this quickly you will always be better off by simply buying bitcoin on an exchange or via a trade.

The way these guys will make money for the future lies in the number of bitcoins they store up for the future. They don't sell all the bitcoins they mine. They hold some of them for the future. Not the little guys, of course. But the  big boss who has put this system together.

Who knows the future? If the fiats all collapse, it just might bring down telecommunications worldwide. This might destroy Bitcoin at the same time - too many forks of the blockchain. However, if only a few fiats collapse, or if the Dollar loses its position as the major currency of the world, there just might be a big transfer of wealth into Bitcoin in the areas of collapse.

It's a gamble. But people gamble in the markets all the time.

If they though the price of bitcoin was going to rise in the future then they would be better off using the money they spend on the miners and use that money to buy bitcoin on an exchange. It is very difficult today to ROI in terms of bitcoin because of how fast difficulty is rising.

[BADecker]

If you have enough wealth that you can set up a system like this that almost breaks even, you stand to win in the long run.

It might take a couple of decades, yet, for the fiat currency banking system to crash itself. But things are in a position right now that the system could crash any time. All it might take is a few more countries getting off the USDollar as the world currency, like Russia and China are doing.

When this happens, the value of bitcoins just might soar in nations that still use the USD as their basic form of money. So, while Bitcoin mining might not be worth it today, it almost certainly will be worth it sometime in the near future... and maybe worth it in a very big way.

I don't see how something that does not even break even could potentially create wealth in the long run. As it stands now, it is a much better idea to invest your money in buying additional BTC instead of buying mining equipment. With the difficulty rising ~20% every two weeks and the price of bitcoin not rising this quickly you will always be better off by simply buying bitcoin on an exchange or via a trade.

The way these guys will make money for the future lies in the number of bitcoins they store up for the future. They don't sell all the bitcoins they mine. They hold some of them for the future. Not the little guys, of course. But the  big boss who has put this system together.

Who knows the future? If the fiats all collapse, it just might bring down telecommunications worldwide. This might destroy Bitcoin at the same time - too many forks of the blockchain. However, if only a few fiats collapse, or if the Dollar loses its position as the major currency of the world, there just might be a big transfer of wealth into Bitcoin in the areas of collapse.

It's a gamble. But people gamble in the markets all the time.

If they though the price of bitcoin was going to rise in the future then they would be better off using the money they spend on the miners and use that money to buy bitcoin on an exchange. It is very difficult today to ROI in terms of bitcoin because of how fast difficulty is rising.

Good point. Here's the start of an answer, the start of what might be practical solar:

http://www.popsci.com/article/science/can-mineral-power-planet?dom=PSC&loc=recent&lnk=3&con=can-this-mineral-power-the-planet

[itsAj]

If you have enough wealth that you can set up a system like this that almost breaks even, you stand to win in the long run.

It might take a couple of decades, yet, for the fiat currency banking system to crash itself. But things are in a position right now that the system could crash any time. All it might take is a few more countries getting off the USDollar as the world currency, like Russia and China are doing.

When this happens, the value of bitcoins just might soar in nations that still use the USD as their basic form of money. So, while Bitcoin mining might not be worth it today, it almost certainly will be worth it sometime in the near future... and maybe worth it in a very big way.

I don't see how something that does not even break even could potentially create wealth in the long run. As it stands now, it is a much better idea to invest your money in buying additional BTC instead of buying mining equipment. With the difficulty rising ~20% every two weeks and the price of bitcoin not rising this quickly you will always be better off by simply buying bitcoin on an exchange or via a trade.

The way these guys will make money for the future lies in the number of bitcoins they store up for the future. They don't sell all the bitcoins they mine. They hold some of them for the future. Not the little guys, of course. But the  big boss who has put this system together.

Who knows the future? If the fiats all collapse, it just might bring down telecommunications worldwide. This might destroy Bitcoin at the same time - too many forks of the blockchain. However, if only a few fiats collapse, or if the Dollar loses its position as the major currency of the world, there just might be a big transfer of wealth into Bitcoin in the areas of collapse.

It's a gamble. But people gamble in the markets all the time.

If they though the price of bitcoin was going to rise in the future then they would be better off using the money they spend on the miners and use that money to buy bitcoin on an exchange. It is very difficult today to ROI in terms of bitcoin because of how fast difficulty is rising.

Good point. Here's the start of an answer, the start of what might be practical solar:

http://www.popsci.com/article/science/can-mineral-power-planet?dom=PSC&loc=recent&lnk=3&con=can-this-mineral-power-the-planet

I don't think solar power is the answer to paying for miner's electricity. You will need to pay the initial costs upfront to buy/setup the solar panels. You also have the issue that many states require that utilities buy excess solar energy from consumers at market rates, so miners could sell their electricity back to the grid instead of using it to power their miners, essentially causing the miners to have the same electric cost as if they were buying from the electric company in the first place.

[wasserman99]

Yep its a legit gamble, but someone has to do the job, without miners, theres no Bitcoin, if Bitcoin wins, big miners will get the biggest reward.

On the contrary, big miners can not cover recoup their investment if they pay market rate for those ASIC miners.

They will get it back when Bitcoin goes to $10,000... if they stay strong, and hodl a few of the bitcoins they mine.

This is not true. If a miner earns block rewards and the value of the block rewards later increases because the value of bitcoin increased then the miner would have been better off simply buying bitcoin from an exchange and/or on LBC.

[Timetwister]

http://www.businessinsider.com/warehouse-men-200000-bitcoin-monthly-2014-8

From the article: "They have 'a couple of bitcoin' each for their efforts (Smith says they’re “heroes that keep our precious bitcoin network safe”). They spend most of their time checking, wiring, installing and rearranging – or playing video games."

Ok, nice, but how much do they spend? In the article it just talks about $60000 in electricity.

[sakira]

it's my dream, how I get to be like that
may someday be a success like that

[KaChingCoinDev]

Wow.... I wonder if they are looking for a 4th guy to help out.

[QuestionAuthority]

Why did the Bitcoin miner cross the road?

To steal his neighbors electricity.



What does mining hardware have in common with a turd?

When it first comes out you feel good but the longer you have it around the more it starts to stink.



Why were the police called on the neighborhood Bitcoin miner?

The pot farm down the street complained he was using all the neighborhood electricity.

[minerpumpkin]

It's incredible, really. Those farms are just crazy. But it is not only them that keep Bitcoin safe, it is effectively the number of those mining operations around the globe and done by different people. You could power the whole network with 10 ASICMiner USB Block Erupters. It's just a question of distributing the consensus widely enough!

[Winner]

Their electricity bill must be through the roof.

[dankkk]

http://www.businessinsider.com/warehouse-men-200000-bitcoin-monthly-2014-8

From the article: "They have 'a couple of bitcoin' each for their efforts (Smith says they’re “heroes that keep our precious bitcoin network safe”). They spend most of their time checking, wiring, installing and rearranging – or playing video games."

Ok, nice, but how much do they spend? In the article it just talks about $60000 in electricity.

If they spend that much then they will likely end up having to turn off the miners within a few months. That comes out to 30% of the mining revenue (to be paid for electricity) and with 20% difficulty increases the cost of electricity will exceed the bitcoin mined in 7 difficulty increases.

[Timetwister]

http://www.businessinsider.com/warehouse-men-200000-bitcoin-monthly-2014-8

From the article: "They have 'a couple of bitcoin' each for their efforts (Smith says they’re “heroes that keep our precious bitcoin network safe”). They spend most of their time checking, wiring, installing and rearranging – or playing video games."

Ok, nice, but how much do they spend? In the article it just talks about $60000 in electricity.

If they spend that much then they will likely end up having to turn off the miners within a few months. That comes out to 30% of the mining revenue (to be paid for electricity) and with 20% difficulty increases the cost of electricity will exceed the bitcoin mined in 7 difficulty increases.

And that's just one of the costs. Then you have to take into account the investment in hardware, the rent they pay, the opportunity costs of not working in another place, taxes, etc.

[richardramirez9]

THey will be very very very rich in a decade, people has no perspective.

[78lower01]

Maybe there are many more farms around the world, and maybe bigger than this one but they are secretly hiding from the media...