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1000 sats \ 10 replies \ @BTCMiner 13 Dec 2022 \ on: Best Mining Setup bitcoin
Are you doing this for entertainment and/or as (an expensive) hobby? Or maybe you are just trying to obtain KYC-free sats (even if it comes at a significant premium over spot price)? Or instead are you considering mining as a profitable endeavor?
Knowing the answer to the above will help in getting responses that might be more helpful.
Many people think mining will earn a profit. But bitcoin mining is a very competitive field, and your ability to compete pretty much correlates to the amount you pay for electricity. You are competing against the miners in Paraguay paying $0.03 per kWh for their power that comes from hydroelectric generation. An (obsolete) S9 rig might not even break even on $0.03 per kWh. Mining on an S9 at $0.14 per kWh (the current "residential average" paid in the U.S.) means you are paying well over $100K USD per bitcoin, unless you are making use of the exhaust heat (e.g., home heating) where the cost for the heat would have expended anyway, thus lowering that marginal spend for running the rig.
Thank you for asking this. I'm not worried about KYC for obtaining sats, but would most certainly like to turn a profit. I really don't know much about mining at all to be honest. Looking to learn as much as I can so this is very helpful, thank you. If I'm understanding you correctly, it sounds like mining for profit will be a prohibitively expensive endeavor unless I can find a way to get the average energy cost down significantly, or offset that cost by using the exhaust heat in a way that reduces another cost. Sounds like cheap energy is the name of the game?
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Sounds like cheap energy is the name of the game?
Yes. Cost of electricity for residential use in the U.S. can vary from $0.08 per kWh in areas where there is excess hydroelectric power, for instance, to $0.30+ per kWh in areas like California and Hawaii. And it isn't your "average" cost per kWh, it is your "marginal" cost per kWh that matters. For instance, in many regions, billing for electricity is "tiered", ... so essentially the more electricity you consume the higher you pay per kWh. For example, with So-Cal Edison:
Tiered Rate Plan
https://www.sce.com/residential/rates/Standard-Residential-Rate-Plan
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Oh wow, this is extremely helpful. Thank you. It sounds like I shouldn't even be worried about what kind of rig I'd be using until I figure out the energy cost. It sounds like either finding a really efficient way of offsetting the cost, or setting up a rig out of state, may be my only options here. Haha you may have just saved me a lot of money. Thank you!
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i recommend a futurebit apollo as a great way to learn and have a full node all in one miner.
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Surely you jest.
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ha! no seriously. it doesn't require electrical work. can run a full node, is basically silent and gives a lot of opportunity to learn
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Just looked it up, thank you. This looks very user friendly. I would think that it would still be subject to the same energy cost restrictions that @BTCminer was talking about, wouldn't it? Once I get the energy cost situation figured out, this looks like a great place to start. @BTCminer, do you disagree?