Mining on your own
This is the area that requires the most research and more importantly, the most expertise.
We were very curious, so we sat down with an expert, who is a miner himself, and found out about it all, the opportunities, the potential in mining, the pitfalls, the technical aspect, the financial aspect, everything.
What we found out about mining on your own is arranged in a list below. We made the list as short as possible, but we didn’t want to leave out any information that would be vital for you if you were thinking about mining on your own:
- Let’s start with the profitability aspect and let’s look at an average calculation: It takes about 8 to 10 months for your mining machine to produce its own value in profits for you. So, after around 9 months you break even, that is, by then you will have made as much as you spent on this project. And you can still calculate with the second-hand value of your mining machine if you decide to stop mining. The second-hand sales price of your machine will, let’s say, cover everything else that you invested, in addition to money: your time (we are talking about hundreds of hours) and your energy.
- To get started as a miner, you have to be (or become but I don’t think you want to wait years) an IT expert both in software and hardware. And not any kind of IT expert.
- If you are an IT expert it does not mean you can figure out what parts you will need for your mining super computer. This guy who we interviewed is a black-belt IT guy but mining was so new for him that he spent a whole month just watching youtube videos trying to figure out what information is valuable and what is bullshit. He couldn’t rush through the process because he had to know what he was doing if he didn’t want to throw thousands of dollars out the window. So, once you are there where he got, you make a list and start the purchasing process. It takes at least 3, 4 weeks if you know what you are looking for. It’s important to note here that nowadays some of the most wanted parts are extremely hard, sometimes impossible, to find. This guy needed 16 mining graphic cards to build 2 machines. He managed to get all 16 cards but from 10 suppliers, some domestic, some Asian.
- OK, let’s say you spent a month or so purchasing all the parts on your shopping list. And in addition to time, you spent at least 3,000 dollars to have a usable machine. Not the best but good. If you get somebody to build a mining machine for you it will be much much more than 3,000 dollars. If you find a machine at a lower price you should start thinking how stupid they think you are. So, coming back, you’ve got all the parts you need. Now you can assemble your machine (because you are a hardware expert). And then you can start installing all the software and fine-tuning the settings (because you are a software expert).
- Basic fact: You can’t do mining at home. These machines are extremely noisy, they produce a lot of heat and they are inflammable. You need a place with industrial air conditioning.
- Mining machines are stored and run in special rooms or halls that are built specifically for mining machines. So you have to find a place and rent your spot.
- Your electricity bill will be about 250 dollars per month per machine. Not what you have got used to in your household.
- To get your mining machine work for you efficiently, you keep it running at a very high capacity 24/7. It inevitably result in failing parts time after time. What does it mean? It means you have to take care of replacement parts. Most of them take 4, 5, even 6 weeks to get, and some of them are not available in your town or even in your country and you have to order them from China. And it means that for those 4, 5 or 6 weeks you are only spending money, on replacement parts, on the rent because your machine is still at the place where you rented a spot for it. So, for long weeks , you end up with a mining machine that does not make you any profit but losses only until you get it working again.
To cut a long story short, and this is the conclusion that the EXPERT (capital letters!) guy we interviewed, drew: If you are aware of all the information above about mining on your own and you also know that there is an alternative called cloud mining, you won’t hesitate, even if you are an EXPERT in mining, to go for the latter one. So, we moved on to find out about the mysterious cloud mining. That’s what our next article is about.