I’ve been mining bitcoin for 30 months. Here are some VERY interesting facts:

Tl; Dr — Just skip to the last paragraph.

I have met with numerous large mining operations in the last two years (in the US, a few countries in Europe and China). I have seen a lot of different ways to set up mining centers.

The miners who pay the least in electricity pay about $ 0.03 per kwh. These are miners based in Washington State and some small operations in the European Alps. Both of these operations use hydro power.

Chinese miners pays about $ 0.04 per kwh. Some pay a little less and some pay a little more.

Some miners are inefficient at cooling and some are very efficient. Using HVAC is the most expensive. The small operations in the Alps are using the natural cool air to cool their miners. This seems to be the most cost-effective. The next most cost-effective is liquid submersion cooling.

Natural air-cooled mining centers are the cheapest to build. They basically just need fans to pull in the cool outside air and exhaust fans to exhaust it. These systems add about 5% in energy consumption for each miner.

HVAC is pretty costly to purchase and adds about 25% in energy consumption to each miner.

Liquid submersion cooling is very expensive to build but it is the most efficient. You can disconnect the cooling fans when the miner is submerged in liquid. This saves about 8% on energy usage per miner. So, liquid submersion cooling actually SAVES energy costs BUT it is crazy expensive to build.

S9 miner = 0.00082 btc per day = $ 6 per day Cost of electricity for each S9 miner = $ 1.25 per day Cost of electricity for each air cooling for each S9 = $ 0.07 per day Cost of electricity for HVAC per S9 = $ 0.25 per day Cost of electricity for liquid cooling per S9 = $ 0 per day

So, the miners who pay $ 0.03 – $ 0.04 per kwh AND spent the millions on liquid submersion cooling are the miners who can remain running the longest when the price drops substantially.

People feel that Bitmain has a distinct advantage in mining because they build the miners AND they run them as well. I have determined that this is NOT an issue at all for large miners who purchased their systems prior to February, 2018. If you purchased your miners before the recent drop really kicked in (around February) then you could have sold them after purchasing for a profit of $ 1,000 (then you would, obviously, immediately re-purchase). This will put your cost of each miner in line with Bitmain. Thus…you are on even ground with them as a competitor.

Most large miners bought their equipment and built their mining infrastructure when the price was rising. This means that most large miners are in VERY good positions because their infrastructure is likely paid off.

So, the best miners are currently making about $ 5 per day in profits for each miner. And the best of the best are making about $ 6 per day.

Bitmain has had the same miner for a long time. There has been no risk in owning this "old tech" for much longer than you'd own a server in a data center without any upgrades.

So, what does it all mean? Well, if the largest miners have already paid for their miners and infrastructure (which they have), then these largest miners can still be profitable at a bitcoin price of $ 2,000 now, which is their cost to mine 1 btc.

The price is pulling towards $ 7300 right now. Some mid-sized miners will start to shut down, temporarily, at about $ 7000 because they did not follow my plan of selling their miners after 3 months of use (then re-purchasing)….and they pay $ 0.11 per kwh for electricity. Oh…and they did not invest in the best infrastructure. So $ 7k-ish is their break-even.

I pay $ 0.00 per kwh for electricity because I built an off-grid, solar operation in the middle of the desert. And my exisiting miners have an average cost of $ 0 since I bought the miners over a year ago and I sold them after about 3 months of use (then I bought new ones from Bitmain). I'm NEVER gonna stop mining, regardless of price. But I only have about 1,000 miners. I think there are about 2 million miners currently working. I am not even noise on the network.

Bottom line: The majority of miners on the network are run by large miners. Mid-sized miners are going to start turning off around $ 6800-7000. I'm curious to see what happens if it drops to this level for a while. SUPER curious. I want to see what happens when it is JUST the few big guys.

**Edited to explain the difference between BIG guys and medium guys. $ 2k is the ACTUAL BREAK-EVEN price for the biggest players. A Bitcoin price of $ 0 is BREAK-EVEN for me but I don't move the needle….however I will keep mining til my equipment dies. For sure.

submitted by /u/dan_from_san_diego
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Bitcoin – The Currency of the Internet

Don’t invest if you don’t trust in Bitcoin. Price is unimportant in the long run. The real value of it through adoption and real-world usage is sky-rocketing since months.

Just thought I'd share what I see as the most important lesson I've learned since I started to get Bitcoin.

Its current price is not its value.

Price is only temporary and will always adjust to value in the end.

You can get a grasp of Bitcoins real value everytime you see news about which new country or organisation is adopting bitcoin. Everytime you see some random sign that says "accepting Bitcoin now". Hell, you can get debit cards by now that you just use like the normal ones and in the background every payment is paid from your wallet instead of your bank account.

But most importantly I learned to bother less about how much fiat my coins are worth because getting Bitcoin should be about having Bitcoin to use in the future because for me there is now doubt about it replacing our current money system.

It already is.

So better be honest to yourself. Do you really trust in Bitcoin and are willing to ignore the price going down because you see its true value?
Or are you just after something to make money with. There's absolutely nothing wrong with that but the problem is if you don't put value>price than you're in for a lot of sleepless nights.

Have a good day everybody. And keep sharing all those pictures about random local stores accepting BTC now 🙂

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Bitcoin – The Currency of the Internet

It’s taken me 8 months, but I finally own 1 Bitcoin!

My foray into Bitcoin began back in August of 2017. By September, I had a little over .43 Bitcoin but I sold it at a slight loss because of the China ban FUD. I used that money for projects on the house instead of buying back in. (I thought 4.7k was the top and that Bitcoin would just get cheaper)

My next purchase was at the end of October when I FOMOed back in. I continued to DCA and buy Bitcoin periodically each month all the way up and down.

Like most folks, I was up significantly in Dec/ early Jan and then I watched as my unrealized profits melted away. I told myself I had learned my lesson and that I wasn't going to panic sell again…

But it turns out I'm an undisciplined dumbass lol. I soon realized that losing "profits" feels a hell of a lot different than when you start "losing" your hard earned money.

On Feb 5th, I was at home when I saw the price in free fall. I sold @ $ 6,600, thinking I would be able to buy more at a lower price. I was right, but I underestimated the time it would take to recover. I took a nap and I didn't put in any buy orders. By the time I woke up, BTC was over 7k. I finally FOMOed back in 2 days later and lost .1 BTC in the process.

But! Today I'm happy to announce that despite my failed attempts at 'timing the market', I finally own 1 whole Bitcoin. I'm in the 21 Million club!

I believe Bitcoin:

  • Is a good storage of value not controlled by banks or Government
  • Has the potential to become revolutionary to how we view and exchange money
  • Is a good hedge bet against the current monetary system

Onward and Upward!

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Bitcoin – The Currency of the Internet

Angellist: Number of New Crypto Job Listings Doubled in the Last Three Months (news.bitcoin.com)

Angellist, a popular website that allows startups to raise money from angel investors, has revealed data about new crypto job listings on its platform. The company details the hiring needs of companies in the crypto space and what jobs are in demand.
Also read: Russian Regulators Draft Law to Restrict Crypto Mining,

Bitcoin

WARNING: HitBTC stole 5Btc deposit, even after I provided everything they asked for 2+ months!

This is a WARNING to anyone who uses HitBTC.

I sent a 5 Btc deposit over 2 months ago which they froze and asked me for a scan of my Passport + a photo of me holding a piece of paper which I sent them.

After a week of not hearing back, I messaged them again and they asked me the origin of the funds which I explained.

More time passed with no news, and I messaged them again and they asked me for my social media information which I gave them.

Last week they completely suspended my account and closed my support tickets, and they have not been replying to me at all anymore.

I have given them everything they have asked from me and they have still not released my funds after 2+ months!

If anyone from HitBTC is reading this, my requests tickets are #221775, #267139 and #274005.

PLEASE UNFREEZE MY COINS AND STOP SCAMMING PEOPLE!

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Bitcoin – The Currency of the Internet

Bitcoin is 'worthless' and will perform worse than stocks in the coming months, analyst says

Bitcoin is likely to fare worse than other assets in the coming months because it has no fundamental worth, Capital Economics said. While bitcoin's fall appeared to correlate with the fall in equities, there were different factors driving the movement of both assets. Bitcoin rose to a record high above …
Google Alert – bitcoin