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Bitcoin Mining

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Edge

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I know this was big a few years ago, but is anyone currently mining bitcoin?

I own some gas wells so I have next to free gas to feed a generator to set up mining operations. Now that CME is offering Futures and Options products on bitcoin it seems you can create markets and hedge risk just like any other commodity, mining, or farming business. Curious to hear if anyone has tried to put the two together.
 

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alexkuzmov

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I know this was big a few years ago, but is anyone currently mining bitcoin?

I own some gas wells so I have next to free gas to feed a generator to set up mining operations. Now that CME is offering Futures and Options products on bitcoin it seems you can create markets and hedge risk just like any other commodity, mining, or farming business. Curious to hear if anyone has tried to put the two together.
Better to sell the shovels here.
Its better to own the mining computers and rent them out to whoever wants to mine, instead of actually mining yourself.
You litterally have to spend the same amount of time and effort for both.
The difference is that if you rent out your miners, you get paid no matter what bitcoins` price is.
 

GPM

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The difference is that if you rent out your miners, you get paid no matter what bitcoins` price is.
That is the complete opposite of the point of view that most miners hold. For most that would be like selling/joining with Standard Oil and then selling your shares for cash as soon as you got them rather than holding them.

You either want the money now, or you think this is where the future lies. I am pretty sure most are interested in the future value rather than the present value.

My 2 cents
 

biophase

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Better to sell the shovels here.
Its better to own the mining computers and rent them out to whoever wants to mine, instead of actually mining yourself.
You litterally have to spend the same amount of time and effort for both.
The difference is that if you rent out your miners, you get paid no matter what bitcoins` price is.
yeah I don't get this either. You set up everything and then giveawaythe product?

will miners pay more than what bitcoin is worth?

the whole idea is that you mine something that can go up and down in wild swings. You might make no money this year and become a millionaire next year.

Would you rent out your mining facility for $10,000 a month if it could mine one bitcoin a month and bitcoin was at $10,000 a coin?
 

loop101

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I never got in to it because I didn't understand the math, and the people I personally know who did, had super-bad experiences with it. Their problems were dealing with the shady people in the that industry, everyone from the exchange operators to the hardware vendors.
 

alexkuzmov

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yeah I don't get this either. You set up everything and then giveawaythe product?

will miners pay more than what bitcoin is worth?

the whole idea is that you mine something that can go up and down in wild swings. You might make no money this year and become a millionaire next year.

Would you rent out your mining facility for $10,000 a month if it could mine one bitcoin a month and bitcoin was at $10,000 a coin?
If you build a system for renting miners, you get this:

1. Full control over the miners, you can shut them down at any point, sell them for parts and recover part of your investment, if you so choose.
2. Hard to setup system, not much in the way of competition, especially outside of Asia.
3. High need for cryptocurrency minning right now, lots of people want to do it, and do it easily(they fork over their cash to you, they mine with ease, simple)
4. Once setup, the system requires little to no maintenence. Your time will be free.
5. The system can be easily scaled, adding more hardware, therefore having more TF/s to rent out.

Lets talk benefits:

1. You dont worry about price fluctuations. You get yours each month and thats that.
2. You get paid directly, no exchange, no hassle.
3. You get paid in cash, ready for spending.
4. A new regulation says this and that about BTC? You dont care, you were already paid.

Do you get the picture now?
People want to mine, so give them shovels.
 
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CryptoMobster

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I know this was big a few years ago, but is anyone currently mining bitcoin?

I own some gas wells so I have next to free gas to feed a generator to set up mining operations. Now that CME is offering Futures and Options products on bitcoin it seems you can create markets and hedge risk just like any other commodity, mining, or farming business. Curious to hear if anyone has tried to put the two together.
Somewhat pointless to mine Bitcoin but with the right knowledge you could mine an altcoin with a lower difficulty meaning less power and costs to accumulate coins for profits in the future. Providing they have good fundamentals.
 
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Edge

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Thanks for weighing in here Bio-

the whole idea is that you mine something that can go up and down in wild swings. You might make no money this year and become a millionaire next year.
Actually my primary interest isn't in making money on either the facility or the future expected price. It is a way to use a physical position (mining) to hedge a paper position (bitcoin option spreads) that would be the core position. Essentially, my free gas to mine would act as a hedge to making money off the volatility priced in the options.

If I actually get to the point where i'm purchasing and turning up miners, it means that my paper position is under water and I owe the market some bitcoin.

Anyway, I appreciate everyone's feedback on this, but I have put it on the back burner for now. The market is telling me I need to do a similar strategy of using paper position to hedge physical position with corn option spreads (paper) and purchasing distressed farm land (physical).

I'd be happy to start a follow along thread on my execution if there is interest.
 

Roli

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I know this was big a few years ago, but is anyone currently mining bitcoin?

I own some gas wells so I have next to free gas to feed a generator to set up mining operations. Now that CME is offering Futures and Options products on bitcoin it seems you can create markets and hedge risk just like any other commodity, mining, or farming business. Curious to hear if anyone has tried to put the two together.
Bitcoin mining as a solo miner, is no longer profitable. You can join mining pools if you want, or you can try mining other coins.

I'd check out that @GlobalWealth thread, as it details pretty well all what you need to know.
 

valuecreator

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Halving coming in less than two months. Great time to own and mining will get a boost from the ramp-up in price.
 

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UnrealCreative

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@Edge my first question would be, what would be worth more? Mining the gas or mining crypto using the gas well? The gas will eventually run out, will it not?
 
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Edge

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@Edge my first question would be, what would be worth more? Mining the gas or mining crypto using the gas well? The gas will eventually run out, will it not?
Sure, the gas will eventually run out. At current prices in $/mmbtu terms, the gas is more valuable as feedstock to a generator used to mine bitcoin vs. selling to a pipeline wholesale.
 

Mbc

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yeah I don't get this either. You set up everything and then giveawaythe product?

will miners pay more than what bitcoin is worth?

the whole idea is that you mine something that can go up and down in wild swings. You might make no money this year and become a millionaire next year.

Would you rent out your mining facility for $10,000 a month if it could mine one bitcoin a month and bitcoin was at $10,000 a coin?
Seems just like how currency exchanges work. They make a bit off every transaction, whether or not xyz currency appreciates or not. They are market neutral.

I don't know if one is better than the other. One will perform "steady" in every market, one will only perform well in a bullish market, and could be catastrophic in a severe bearish market.

They are providing liquidity to the market, they make a % off every transaction for doing that. Seems decent.
 

Leo Hendrix

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I know this was big a few years ago, but is anyone currently mining bitcoin?

I own some gas wells so I have next to free gas to feed a generator to set up mining operations. Now that CME is offering Futures and Options products on bitcoin it seems you can create markets and hedge risk just like any other commodity, mining, or farming business. Curious to hear if anyone has tried to put the two together.
I think you can/need to verify my statement - but from my memory, the major beneficiaries of Bitcoin Mining are the Bitcoin Mining ASIC Manufacturers - Bitmain etc...

But if you can get your hands on the right hardware before the manufacturers create even better hardware and... since you have free electricity - it could be worth it.

I think you would be wise to talk to major mining companies to get a handle on genuine vendors and procurement processes to make your venture worthwhile.

Risky - but if you have free electricity, and Bitcoin moons, well at least you can cover the cost of the Miners etc.

You might be better off going with altcoins. I think you might need to do a little more research, hedge and make a decision.
 

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