Three Men Mine $200,000 In Bitcoin Every Month

[BADecker]

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."

[Spearmint]

fuck me! now thats how its done 

[ShameOnYou]

That's the dream   Puts my GPU rigs to shame. 

[BADecker]

fuck me! now thats how its done 

Not only that, but, from the article: "There’s many more – and more sophisticated – giant operations around the world, including this one in Washington, USA, which generates about $US8 million a month."

[BADecker]

That's the dream   Puts my GPU rigs to shame. 

You still have a chance. From the article: "Currently, you can buy a rig that returns a single bitcoin every nine days for around $2500."

[ShameOnYou]

yeah, but I'm not so into the ASIC game. I feel like the only people who can truly profit are the ones who have endless amounts of money to continuously dump into the newest and most efficient ASIC miners. I'll be sticking with my GPUs mining alts for the time being. The downside is having to do the research to find the right coins to mine.

[CripLib]

WOW, this is amazing! The huge electricity bill, the terrible noise and this:


Now I can understand why mining is not for everyone.

[BADecker]

yeah, but I'm not so into the ASIC game. I feel like the only people who can truly profit are the ones who have endless amounts of money to continuously dump into the newest and most efficient ASIC miners. I'll be sticking with my GPUs mining alts for the time being. The downside is having to do the research to find the right coins to mine.

I agree. I passed it by as well

[BADecker]

WOW, this is amazing! The huge electricity bill, the terrible noise and this:


Now I can understand why mining is not for everyone.

Some of the scrap in that pile is way ahead of the best computer I ever had!

[Koko]

I'm not sure if that thin black stripe will help protect their identities.

[franky1]

fuck me! now thats how its done  

EDIT: original maths was based on $40k electric. now edited to use coindesks quoted $60k electric

$200k in BTC is only 400btc
which equates to 13btc a day
which equates to 0.55btc an hour
which equates to 0.09259259 a block

which is 0.4% of network hash or 640 terrahash units or 2500 avalon3 units

just a shame the equipment is obsolete quite quickly and having to endlessly keep buying more
the 0.59btc per avalon unit x2500 units=1500coin cost.

so lets work out if they will break even:
with hashrate at 100peta in june, then last month averaging 125peta this month 150peta
=roughly 25% increase per month(ill use this as bases of simple math calculations per month).

so this months 400 coin will be made, 300 next month. 225 in october.
168btc in november
126btc december (cut off point as 126btc is where the 120btc of electric ("in excess of $60k" at $500per btc=120btc+ in electric))
=about 1219 coin by christmas
minus off the 120btc electric costs per month (600coin electric cost from now till christmas)
=619btc by coin hoard by christmas if selling coin for electric. or 1219 if hoarding all coin.

either way the avalon3 miners are not profitable, which they will realise by the time it gets to christmas

[BADecker]

fuck me! now thats how its done 

$200k in BTC is only 400btc
which equates to 13btc a day
which equates to 0.55btc an hour
which equates to 0.09259259 a block

which is 0.4% of network hash or 640 terrahash units or 2500 avalon3 units

Good math. Seems to me that they said something like 2500 units running at all times, didn't they?

[iCredit]

Good example of "Work Hard, Work Smart"

[truthstalker]

fuck me! now thats how its done  

$200k in BTC is only 400btc
which equates to 13btc a day
which equates to 0.55btc an hour
which equates to 0.09259259 a block

which is 0.4% of network hash or 640 terrahash units or 2500 avalon3 units

just a shame the equipment is obsolete quite quickly and having to endlessly keep buying more
the 0.59btc per avalon unit x2500 units=1500coin cost.

so lets work out if they will break even:
with hashrate at 100peta in june, then last month averaging 125peta this month 150peta
=roughly 25% increase per month(ill use this as bases of simple math calculations per month).

so this months 400 coin will be made, 300 next month. 225 in october.
168btc in november
126btc december
95btc in january
72btc in february (cut off point as 72btc is less then 80btc of electric ($40k at $500/btc=80btc electric))
=about 1393 coin by february
minus off the 80btc electric costs per month (560coin electric cost from now till february)
=833btc by coin hoard by february if selling coin for electric. or 1393 if hoarding all coin.

either way the avalon3 miners are not profitable, which they will realise by the time it gets to february

Wow you worked that out quick, well done mate!

[Beliathon]

"They have 'a couple of bitcoin' each for their efforts

so basically these guys are wage slaves and there's one capitalist who owns everything, DOES NO ACTUAL WORK, and gets 99.5% of the profit?

Sounds about right.

That's the dream   Puts my GPU rigs to shame.  

You still have a chance. From the article: "Currently, you can buy a rig that returns a single bitcoin every nine days for around $2500."

-At present mining difficulty (which will increase, cutting into your profits!)
-DOES NOT ACCOUNT FOR COST OF ELECTRICITY TO RUN IT

[Bigbear8]

They mine $200k of bitcoins every month but what is the pure profit from this? Electricity costs and they invested in rigs a lot too?

[jjc326]

I think to really profit you have to be one of the first to get any sort of new technology that comes out.  As you saw with BFL they screwed their customers and their customers didn't make squat even though they thought they would because they were getting an ASIC.  Now in a sense unfortunately it's become like an IPO, you have to know someone to get new tech and make good BTC.

[Satan666]

I'm not sure if that thin black stripe will help protect their identities.

It didn't.  They've already been identified and blacklisted.

[Satan666]

so basically these guys are wage slaves and there's one capitalist who owns everything, DOES NO ACTUAL WORK, and gets 99.5% of the profit?

What profit?

[Koko]

I'm not sure if that thin black stripe will help protect their identities.

It didn't.  They've already been identified and blacklisted.

If they wanted to conceal their identity, they could have at least blurred their faces or better yet, not include that picture at all. Weird.