Three Men Mine $200,000 In Bitcoin Every Month

[Kickstart4]

Kudos to the guys. They are helping to maintain bitcoin value so much

I wish I had miners like that!

[johncarpe64]

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.

Rent in data centers is usually a small expense when compared to electricity, there is no reason for this to be a major expense. The hardware is a "capital expense" and is generally measured differentially then current expenses (such as the expenses required to keep the machines running). 

[QuestionAuthority]

That first image looks like BFL's back room where they test the miners (for a year) before shipment. lol

[Hashbender]

That is freakingly amazing....
If i could just mine 1k in bitcoin a month, i'd probably already have set a foundation around my place. I've seen good investments go 2x 3x even 9x already....

[validium]

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

More like 5 or less years from now

[pajrinn]

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

haha everyone dreaming this 
yes I have the same expectations like you 

[Jybrael]

Well for now they are getting all the benefit but think about it as stronger and stronger ASIC's come out and the difficulty increases..they will begin to lose a lot of the money that they are making unless they upgrade.

[Madness]

no electricity bell ? 

[cyberpinoy]

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


Now I can understand why mining is not for everyone.

Ahhh now I understand why i dont overclock my machines HAHAHA

[leannemckim46]

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


Now I can understand why mining is not for everyone.

Ahhh now I understand why i dont overclock my machines HAHAHA

Overclocking a miner can easily be reversed if it is decided that the efficiency is not an appropriate level for the miner. Granted it may damage the machine somewhat but miners have such short profitable lives that this will likely not matter.

[Jybrael]

I have done a little bit of research on using Farms but I don't know whether or not they are worth investing in to get bitcoins or not..because as the difficulty increases so does the profit margin decrease, right? Can someone explain this to me a bit..

[noviapriani]

How much you wanna bet those were the BFL orders that people have been waiting for all this time lol.  Imagine that?  Those 3 guys are lucky though, wish I had that many miners

[Ruthful]

They're making a lot less than $200,000 per month now.

[Unbelive]

They're making a lot less than $200,000 per month now.

If any profit at all. I guess, they just need to stock some profit in good days for rainy days.

[noviapriani]

They could be making 100,000 or they could have bought have made more farms and sold the old miners to keep the profits going.

[Q7]

I believe another contributing factor that determines profitability is that spare parts in china are still relatively cheap.

[Undefeatable]

I was wondering if they pay electricity more then $200000 now..

[Ruthful]

I was wondering if they pay electricity more then $200000 now..

Their electric bill was around  $60K/month.

[QuestionAuthority]

I was wondering if they pay electricity more then $200000 now..

Their electric bill was around  $60K/month.

Nah, they're stealing electric from their neighbor. The neighbor just thinks his wife is leaving the lights on when she goes out for the day. lol

[Jybrael]

But what if the neighbor is an old lady?