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EXECUTION Crypto mining project

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tigerbalm

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I was struggling to decide whether I should post this in side hustles or execution...or neither because some may view it as gambling. And I'm not sure they'd be wrong.

Anyways at the end of January, I started mining bitcoin. Kind of. I'm actually just selling my hash power on the Nice Hash marketplace and getting paid in bitcoin. Technically not mining.

I bought the hardware to maximize hash power. So I essentially bought the cheapest parts I could find (besides the GPUs) plus 4 x Geforce RTX 3080 GPUs.

I had never built something like this or even a PC before so it was all pretty new to me. Never really looked into mining seriously because people said that the power costs surpassed the reward from mining.

I financed the equipment for 0%, so the monthly payments are about between $400 and $500 total. This includes all components. The revenue generated per month is about $1050, but that is from three cards, the fourth STILL hasn't arrived from China (one month later), but when it does, this will increase to $1400, assuming profitability stays consistent (a MASSIVE assumption, but it's only gone up since I started). So about $900 per month in profit. Actually, about $850 because power costs work out to be about $50 a month. And not actually to be considered profit really since I bought the cards on credit, but you get the idea.

$1400 is current profitability, but I'm planning to hold the BTC, and expect it to hit $100k this year, so everything that is already earned will increase, could be closer to $2k. Could be closer to 0 too if bitcoin tanks, (hence my gambling comment at the start) but as a bull, I'm not expecting that this year, and am thinking that I'll ROI in about 4-5 months, given that the total cost of equipment was around $6k.

One thing to note: I got in at a great time, right before bitcoin took off. I still paid ungodly amounts for the GPUs ($1000, 3x $1350) that typically cost $800 (demand is insane right now). As such doing something similar would be a bit more expensive right now, the GPUs seem to be going for around $2k and prices keep climbing as bitcoin climbs higher. Meaning if you got in, it would be longer to ROI and you'd have more risk.

Just to be clear: I don't really consider this a business, it is basically gambling that bitcoin will continue to increase in value or stay consistent for 5 months , but it is kind of a fun side hustle and hobby. It's the best thing I've been able to come up with for totally passive income (it's basically hands off once you get it set up and stable). But after ROI, hopefully 5 months from now, everything is profit, and if bitcoin tanks, the hardware can still be sold since it's valuable and in demand for gaming PCs.

For those who don't approve of my recklessness, I'm working on an 'actual' business outside of this

Just figured I'd share.
 

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Spino

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Thank you for sharing.
I have been in the crypto sphere for a few years and I think you are on the right track to make some extra money in this bull cycle, which I think will last another 3-4 months.

I am surprised you only pay 50$ for electricity with that type of equipment, it must be very cheap in your area.

Also, I doubt the hash power is used to mine BTC as it is highly ASIC optimized, so, well done in getting paid BTC for that kind of service.

Perhaps keep this thread updated every now and then with what is going on.
 

tigerbalm

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Thank you for sharing.
I have been in the crypto sphere for a few years and I think you are on the right track to make some extra money in this bull cycle, which I think will last another 3-4 months.

I am surprised you only pay 50$ for electricity with that type of equipment, it must be very cheap in your area.

Also, I doubt the hash power is used to mine BTC as it is highly ASIC optimized, so, well done in getting paid BTC for that kind of service.

Perhaps keep this thread updated every now and then with what is going on.

Yep, you're spot on in saying that the hash power is not used used to mine Bitcoin, it's just simply not that profitable. Eth seems to be the most profitable to mine currently, so there is some concern for miners about whether it will be profitable once Eth 2.0 comes out as it is going in the direction of phasing out mining. Some predict the death of mining, while others think that an alt coin will take the place of Eth as a profitable coin to mine.

(Just to be clear when I say miners, I'm referring to people actually mining and those selling their hash power as I am.)

I'm currently working under the assumption that the bull market will continue into late 2021 / early 2022. But I'm pretty much going off the pattern of past Bitcoin halvings. Also assuming that the crash won't be as dire as it was in 2017 due to more institutional money coming in. Expecting a pump up to 100k and a crash to a new low of ~$40k at some point in the next year. But anyone who says that they can accurately predict these things is lying.
 

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