franky1
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August 15, 2014, 08:47:28 PM Last edit: August 17, 2014, 02:45:17 AM by franky1 |
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the perfect idealistic view these days is a person that wants to invest: $1m and buy bitcoin over the next 6 months. this is because he doesnt want to buy it in one go causing a massive price rise before he even spend $1mill in a single day meaning it costs him quadruple the price atleast on day 2. and also most exchanges/banks would flag him and freeze accounts by throwing that amount at an exchange in one go. thus these investors are talked into mining it instead but... thats where their maths fails (using maths of last post) if he bought bitcoin at $500 each slowly over 6 months(11btc a day) = 2000btc(if bitcoin stayed at $500 for 6 months)
but...
by buying 2500 rigs ($737,000 cost) and paying $60k* in electric for 5 months. the best he will get is 1219* coin via mining for 5 months
so at chrismas this investor is going to hope that bitcoin is not $500, as that means the 1219btc* is only $610k. so he hopes that bitcoin is $820+ to break even.
*EDIT: original maths was based on $40k electric. now edited to use coindesks quoted $60k electric
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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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heybigboy1
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August 15, 2014, 08:52:23 PM |
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Now that living the life on my book, but what I imagine is terribly bad is the sound and electric bill. Not sure if they would even profit.
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Oldminer
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August 15, 2014, 08:57:50 PM |
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Just as well they covered the eyes of those guys otherwise they could be recognised! ![Grin](https://bitcointalk.org/Smileys/default/grin.gif)
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wordman267645
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August 15, 2014, 08:59:58 PM |
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they should have tried to remain anonymous. ![Cool](https://bitcointalk.org/Smileys/default/cool.gif)
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CoinHoarder
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In Cryptocoins I Trust
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August 15, 2014, 09:00:45 PM |
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Firstly, this points out two of the biggest negatives of PoW. #1 - The centralization of PoW mining will become more and more centralized over time, because big operations such as this will make the little guys unprofitable and therefore push them out of the market. #2 - The huge amount of electricity that is wasted needlessly with PoW. Secondly, it's nice to see where our "June 2013" Avalon deliveries went and the reason for the 2 month delay.. these guys have some balls allowing a news story about this. ![Wink](https://bitcointalk.org/Smileys/default/wink.gif) Thirdly, again these guys have big balls... if I was operating such a large mining farm I would tell no one. Otherwise, I wouldn't be able to sleep at night thinking someone may break in at any moment or hold me hostage to get the location of the equipment. All they did was black out their eyes...
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Robert Paulson
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August 15, 2014, 09:10:43 PM |
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"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. they are not wage slaves, they can quit if they want to, the fact that they work at this job means its the best opportunity they have, without it they would be worse off. the capitalist does no work, but he takes all the risk, the workers get paid no matter what, the capitalist could take heavy losses and lose everything.
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BADecker (OP)
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August 15, 2014, 09:21:30 PM |
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WOW, this is amazing! The huge electricity bill, the terrible noise and this: ![](https://ip.bitcointalk.org/?u=http%3A%2F%2Fstatic3.businessinsider.com%2Fimage%2F53ece8186da8111c6ac340e9-840-519%2Fbitcoin-3-1.jpg&t=665&c=HES0JImsu9o-yQ) Now I can understand why mining is not for everyone. After looking at the calc in franky1's post at https://bitcointalk.org/index.php?topic=740717.msg8370294#msg8370294, I'd say these guys could make their big $BUCKS refurbishing these outdated computers, and selling them through Tiger Direct or something. ![Smiley](https://bitcointalk.org/Smileys/default/smiley.gif)
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BADecker (OP)
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August 15, 2014, 09:26:39 PM |
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Firstly, this points out two of the biggest negatives of PoW. #1 - The centralization of PoW mining will become more and more centralized over time, because big operations such as this will make the little guys unprofitable and therefore push them out of the market. #2 - The huge amount of electricity that is wasted needlessly with PoW. Secondly, it's nice to see where our "June 2013" Avalon deliveries went and the reason for the 2 month delay.. these guys have some balls allowing a news story about this. ![Wink](https://bitcointalk.org/Smileys/default/wink.gif) Thirdly, again these guys have big balls... if I was operating such a large mining farm I would tell no one. Otherwise, I wouldn't be able to sleep at night thinking someone may break in at any moment or hold me hostage to get the location of the equipment. All they did was black out their eyes... But this is small compared with the one in Washington D.C. mentioned in the article. And there's a video of it too. https://www.youtube.com/watch?v=5CjldZLXiAU![Smiley](https://bitcointalk.org/Smileys/default/smiley.gif)
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keithers
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August 15, 2014, 09:38:34 PM |
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That looks like a super impressive operation. 60k per month electric bill...that is like a hotel..
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CoinHoarder
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August 15, 2014, 10:06:49 PM |
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#1 - The centralization of PoW mining will become more and more centralized over time, because big operations such as this will make the little guys unprofitable and therefore push them out of the market. #2 - The huge amount of electricity that is wasted needlessly with PoW.
You've managed to fail twice in a row. Good job! At least I'm not a fanboi that only cares about his special interests and can admit Bitcoin has flaws. ![Tongue](https://bitcointalk.org/Smileys/default/tongue.gif)
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Jybrael
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August 15, 2014, 10:08:58 PM |
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Wow that is awesome..playing games while making tons of money....dream job
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dadaas
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August 15, 2014, 10:41:48 PM |
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Wow that is awesome..playing games while making tons of money....dream job
I would love it to be this way for myself. But I am quite sure there is lot of work with maintaining their farm. But still I am also sure they are enjoying every minute of it.
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leopard2
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August 15, 2014, 10:52:31 PM |
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Firstly, this points out two of the biggest negatives of PoW.
#1 - The centralization of PoW mining will become more and more centralized over time, because big operations such as this will make the little guys unprofitable and therefore push them out of the market. #2 - The huge amount of electricity that is wasted needlessly with PoW.
Exactly. This type of thing is the major threat to Bitcoin and I would not be surprised if long term, another coin takes over (NXT; ETH?). Centralization is dangerous and the waste of energy makes BTC vulnerable because it can be used to attack BTC ("too much CO2")
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Truth is the new hatespeech.
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gogxmagog
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August 15, 2014, 10:52:49 PM |
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damn. I wanted to download that soundcloud of the mining drone. goes nicely with my Atrax Morgue and Brighter Death Now mp3s.
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dadaas
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August 15, 2014, 10:56:39 PM |
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Firstly, this points out two of the biggest negatives of PoW.
#1 - The centralization of PoW mining will become more and more centralized over time, because big operations such as this will make the little guys unprofitable and therefore push them out of the market. #2 - The huge amount of electricity that is wasted needlessly with PoW.
Exactly. This type of thing is the major threat to Bitcoin and I would not be surprised if long term, another coin takes over (NXT; ETH?). Centralization is dangerous and the waste of energy makes BTC vulnerable because it can be used to attack BTC ("too much CO2") I am surprised that people think that any coin can overtake Bitcoin. Everyone should be aware that it is practicaly impossible. Most of those altcoins are just pump and dump thing an if Bitcoin ever fails only coin that could take its place is Litecoin. But that is just not gonna happen!
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Gleb Gamow
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August 16, 2014, 01:29:49 AM |
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fuck me! now thats how its done ![Cheesy](https://bitcointalk.org/Smileys/default/cheesy.gif) 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." ![Smiley](https://bitcointalk.org/Smileys/default/smiley.gif) KnC has three mega data centers with 7,000+ miners each on the same property own by Europe Facebook at the Node Pole.
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freedomno1
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August 16, 2014, 01:38:27 AM |
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Hot damn wish I could do that as well have a few miners around and play games all day That would be awesome stuff.
“It becomes louder and louder the closer you get to the building, and as you step through the doors it becomes a deafening and steady roar,” he says, then offers this soundbite:
A truly soothing sound ^_^
Then comes the wind from giant cooling fans, and despite their efforts, heat. Smith says the inside of the farm still manages to hold “steady at 40° Celsius (105° f) the entire time”.
(^_^ a true greenhouse) In the sense of this versus printing fiat still the profitability ROI may take a while with the difficulty always increasing neat though. Currently, you can buy a rig that returns a single bitcoin every nine days for around $2500.
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Believing in Bitcoins and it's ability to change the world
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Brewins
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August 16, 2014, 02:00:40 AM |
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Firstly, this points out two of the biggest negatives of PoW. #1 - The centralization of PoW mining will become more and more centralized over time, because big operations such as this will make the little guys unprofitable and therefore push them out of the market. #2 - The huge amount of electricity that is wasted needlessly with PoW. Secondly, it's nice to see where our "June 2013" Avalon deliveries went and the reason for the 2 month delay.. these guys have some balls allowing a news story about this. ![Wink](https://bitcointalk.org/Smileys/default/wink.gif) Thirdly, again these guys have big balls... if I was operating such a large mining farm I would tell no one. Otherwise, I wouldn't be able to sleep at night thinking someone may break in at any moment or hold me hostage to get the location of the equipment. All they did was black out their eyes... #3 - The huge ammount of silicium and metals wasted with the hardware: ![](https://ip.bitcointalk.org/?u=http%3A%2F%2Fstatic3.businessinsider.com%2Fimage%2F53ece8186da8111c6ac340e9-840-519%2Fbitcoin-3-1.jpg&t=665&c=HES0JImsu9o-yQ) That is, waste of limited resources that might be scarce in the future. Also the mining operations will be centralized also among countries, since only first world countries can afford such race. Usually 3th world countries don't have access to up to date hardware stuff, and mining stuff is not an exception
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SunBin
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August 16, 2014, 02:13:48 AM |
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fuck me! now thats how its done ![Cheesy](https://bitcointalk.org/Smileys/default/cheesy.gif) $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 Good analysis. None of the ASIC bitcoin miners are profitable. Should btc price keep dropping, they will not only lose out on ROI but also taking hit on price dropped also.
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fran2k
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August 16, 2014, 03:27:55 AM |
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WOW, this is amazing! The huge electricity bill, the terrible noise and this: ![](https://ip.bitcointalk.org/?u=http%3A%2F%2Fstatic3.businessinsider.com%2Fimage%2F53ece8186da8111c6ac340e9-840-519%2Fbitcoin-3-1.jpg&t=665&c=HES0JImsu9o-yQ) Now I can understand why mining is not for everyone. PSUs burn like bitches in a desert hotty summer.
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