Three Men Mine $200,000 In Bitcoin Every Month

[koshgel]

This massive operation is netting $6500 a week..

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.

I wonder what the 8 million dollar warehouse would look like. Fire hazard or what 

[Magic8Ball]

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.

The only ones who actually profit with big margins are the makers. Build the next generation ASIC, mine with it at lower difficulty, and then sell off the obsolete to suckers.

Mining is more or less useless now, sadly.

[zedicus]

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.

The only ones who actually profit with big margins are the makers. Build the next generation ASIC, mine with it at lower difficulty, and then sell off the obsolete to suckers.

Mining is more or less useless now, sadly.

For most small miners this is more of less true. However if you are able to invest a much larger amount into your mining operation then you may be able to get the manufacturers to ship you your miners much earlier then others as if they wouldn't they would lose out on a very big sale.

[counter]

Good for them for seeing an opportunity to do something big and make some profit.  Thanks for sure takes alot of planning and dedication.  Can't wait to see what their project will be.

Big farms can not compete with small miners, as small miners can afford to mine at a loss just to support the network. At the end of the year or early next year it will be pretty hard to be profitable even for the big farms if the difficulty keeps increasing. But many small miners can just keep running their one unit

This is why I think that mining is still worthwhile but I get mixed messages when hear so many people complaining about the difficulty.  I'd think their would be more miners that would see the benefit of holding on.  I would just look at it as paying for your coins if your not making a profit, especially if the price raises significantly.  That is how I look at it anyway but it may be to bullish for some

[Bizmark13]

Interesting article. So it seems that the people who actually run the rigs don't actually own the operation. That makes me wonder... How was the person behind the whole thing able to buy so many miners in the first place? And pay for so much electricity? Was he a fiat whale or something?

[littlewizard]

Interesting, I think there are still plenty of Bitcoins being mined by the miners this year, resulting in the inflation problem.

[franky1]

I don't know if that is the case. Still if they make 200,000$ a month and pay an electricity bill of about 60,000$ I see a lot of profit there even when you include renting the space. Still would need more info to be sure if there are some hidden costs.

indeed there are hidden costs.
when doing the maths to demonstrate costs on page one i used the current price of mining units (which were actually higher a couple months ago) so the units could have cost $1mill instead of $700k.

and i used the current electrical costs of the miners ($40k) but even i didnt think about the air fans etc costs that those guys had, which added an extra $20k+ to the bill, hence coindesks $60k+ electric quote.

so adding on building rental and the 1-2btc a month for the guys to sit there maintaining it, my numbers in my maths of page one were inaccurate.(i have edited now but still its only a guesstimate)

i have rectified the electric useage which now puts the total bitcoin hoard at 1219, and an electric costing of 600btc (meaning 609btc once you take out the electric and also the 2btc/month for 5 month labour) so with rent, cabling costs aswell you are probably near to only 600btc hoard after costs.

yep even i was too quick with my maths to not include everything.

[franky1]

Interesting, I think there are still plenty of Bitcoins being mined by the miners this year, resulting in the inflation problem.

on average 3600 coins are made a day (25 per block per 10 minutes= (25x144blocks a day) yet there are more than 3600 coins swapping hands per day.

but most people only think about the high school level of economics. so i wont waffle into the deeper levels of trading that go beyond the whole supply and demand structure.. but in short bitcoin is DEFLATIONARY

[BADecker]

Interesting, I think there are still plenty of Bitcoins being mined by the miners this year, resulting in the inflation problem.

on average 3600 coins are made a day (25 per block per 10 minutes= (25x144blocks a day) yet there are more than 3600 coins swapping hands per day.

but most people only think about the high school level of economics. so i wont waffle into the deeper levels of trading that go beyond the whole supply and demand structure.. but in short bitcoin is DEFLATIONARY

I agree. Seems to me that this deflationary condition will make the value of Bitcoin only grow over the long term (with relation to fiat), provided the blockchain encryption is not cracked somehow.

[SunBin]

Pics are amazing.
I'd love to see their electricity bill.

60 000 USD per month (read coindesk source).

Amazing...
I doubt that they made that kind of investment without carefully calculating the profit and the security of their investment.

For things like this, and this kind of moves, i seriously doubt bitcoin is going to fade away anytime soon.
Since small man is forced out from mining, i believe right now buying bitcoins directly off exchanges is the way to go.

They can only estimate and predict the difficulty, they can't know ahead of time what price the coin can be sold at. And the ASIC miners only has a life span of 4-6 months before they become obsolete.

[acs267]

I doubt it'll be that way after difficult spikes up again. At first I thought this article was on Coindesk. Was not expecting Insider. Maybe they got it from Coindesk? Because Coindesk articles are usually like this. And later than they should be...

[gelar24]

very noisy...but for a chinese a good work  

yes actually very noisy at all, let alone 3 I wore mining tools,
but fortunately for me I have a special room so the sound does not come out the room buzzing

[CokeCoin]

Quote: “I was struck with a feeling of awe that THIS is what keeps bitcoin alive. That even if someone wanted to bring down bitcoin, they’d have to outdo these guys and the dozens of other operations like this around the world.
This really drove home that bitcoin can’t be killed by decree. Make it illegal in one country and people like this will keep hashing away in others.” 

[Buo]

I wish I would mine 1/100 of those bitcoins, I wonder how many btc farms are there and we won't never know about them.

[BADecker]

I doubt it'll be that way after difficult spikes up again. At first I thought this article was on Coindesk. Was not expecting Insider. Maybe they got it from Coindesk? Because Coindesk articles are usually like this. And later than they should be...

From Business Insider: "Smith is the editor of cryptocurrency blog The Coinsman (http://www.thecoinsman.com/). He’s based in Beijing and dedicates his site to 'the ones who believe that Bitcoin is a revolutionary technology 40 years in the making that’s going to disrupt finance and government as we know it'."

[ErnieX]

I don't care who mines them as long there are enough funds to buy them up.

[webbrowser]

Wow, dat amount of cabling.



Wouldn't it be easier to set up big fat trunks and distribution boxes?

I bet they don't bother to troubleshoot it, and just lay a new cable if there's a problem.

[onlyu]

I wish I would mine 1/100 of those bitcoins, I wonder how many btc farms are there and we won't never know about them.

What they neglect to mention is it cost them more than 200k each month to mine 200k worth of coin.

Beside, if the price of bitcoin go down, they will have lose more than just the production cost.

[cr1776]

Good example of "Work Hard, Work Smart"

Maybe work hard, but definitely not all that smart with the changes in difficulty etc - as franky calculated.

[BitsBitsBits]

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."

Yes but it's a pretty big risk with the changes in difficulty lately. The day you know asics aren't going to get faster/better but more of them only, that's the day you buy your first rig and enjoy your endless income til 90% of the coins are minted, then it probably won't make much of a difference anymore if you are still mining or not.