So what about mining?

Greetings!

I live in a big old house in Scandinavia, which according to my wife, could do well with a couple of more electrical heat sources to keep the house at just the “right” temperature in the winter.

Say I have an empty room in the basement, and perhaps a month’s salary to spend. Why not a mining rig? Is this feasible? Or is mining out for the small guy?

So I realize that I would probably not do this if I weren’t interested in crypto and blockchain, since there are other very efficient and modern heat/warmth-solutions out there. Point taken! But to be honest, the bi-product of heat is more of an excuse.

I really like the idea of investing in equipment- a rig- to generate a small passive income/ crypto-holding in the basement ,while I sleep upstairs, and while it makes my home warmer in the winter as well.

Are these just Corona-lockdown-hallucinations since mining only is profitable for big business’ with huge halls of computers? Or would a rig in an empty room, in the basement, be profitable?

Does anyone have any experiences to share?Perspectives? Advice? What kind of equipment is needed? What does it cost, and what can I expect in return?

The last two weeks have been a blast after I joined the academy. I truly enjoy the lectures by @Ivan, @filip, as well as the excellent service from my student counselor @ivga80. So glad I found this academy, and so glad I joined!

Exciting times!!

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Thank you for your nice words.

YES, you should invest in a mining rig. I have a “ghetto” rig I made myself 2 years ago.

I couldn’t afford an ASIC miner, so I started experimenting with a lot of different software and the Gpu’s I could get my hands on.

I started out with a gtx1050ti on April 1th 2018. Then I bought some used and new GPU’s here and there when I could afford it.
Now I have a total of 5 GPUs running 24/7 and I use the awesome miner software and a mining pool.

This are the cards I use at the moment, don’t laugh…
GTX1050
GTX1050ti
GTX1060
GTX1070ti
GTX1080 Founders edition

It works this way.

  • Initially, I benchmarked my gpu’s while running multiple algorithms, the benchmarking calculate the costs and income for each algo.

  • When I start the miner, it figures out what is most profitable to mine at this moment with my GPU specifications, electricity costs and it starts to mine that algo.

  • I have set it to check every 15 min and it changes algorithm if it is more profitable.

  • The mining pool I’m with has an auto exchange function so whatever I mine will be exchanged to btc immediately.

I get a decent amount of satoshi’s every day, and I love the fact that I just got 1 satoshi, now, and now, and now, and now, etc, etc. It’s all about stacking those sats

I have a video of my “ghetto miner” running, but I’m not sure if I want to post it here. I made the frame out of some crappy IKEA steel shelves and I had some plexiglass i didn’t use in the shed. Some fans and some “popnagler” at it’s been running for over 2 years with 2 days downtime because of cleaning and maintenance.

It’s my little fortune machine and her name is faith. Yes, she is a girl.:smiling_face_with_three_hearts:
She is a real homemade ghetto miner.

I know my boy, @thecil probably is eager to share something about his rig. That’s some really cool stuff. I can’t afford equipment like his. :roll_eyes:

Ivo

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@ivga80 lets se, how do i start.

I start my crypto journey back in 2016, i manage to buy an used Antminer S4, 2 TH/s with a 1400Watts antminer power supply included. I live in a 120 square meter apartment, 3 rooms, one of that room i used for the Antminer.

That ASIC machine did produce a lot of heat and noise, and trust me, it was A LOT of noise, the heat also was all over the room (like 45c to 60c depending on the year station), by that time btc was at a very low price if i remember well (like 400$ or 600$), i was doing around 0.05 BTC monthly.

Now, i have the advantage that my country have almost free electricity (i pay like 2$ to 3$ per month), so i start experimenting on different altcoins that can be mined with that S4 (only SHA256 algorithm).

I start getting some satothis and went to “trading” on poloniex first, then others exchanges, ending up in YoBit (kinda like a russian pirate bay full of shitcoins and pump and dumps at any time, i advice to stay away from that horrible place :laughing:).

After win/lose a lot of money on trading i realize the risk that Trading is if you do not know what you are doing, following pump&dump groups on facebook and telegram…that does not end well my friend :crazy_face:.

I just stop trading, i was mining DGB by that time since it was the most profitable coin for that time, i hold and became a hodler, while i was learning more about blockchain, mining algorithms, some few trading technical analisis, then 2017 bull market came up, i remember i sold 80% of my stack of DGB at 2400 sats, all other little coins that i had (PPC, ZYD, DEM, BTC).

With that money i did a lot of things to fix my life, i bough my 1st GPU mining rig right when GPU prices was on the top (i paid 700$ for a 1070 and 420$ for a 1060 3gb).

Why a GPU rig than a ASIC? Easy, less heat and noise, also the ability to mine other kind of algorithms was a plus that i see on them. By 2018 i was experimenting by mining different algorithms, ending with some coins that end up being scam, so i realize that it should be better to have an strategy and stick to it.

Now what can i advice you:

  1. Design a portfolio and stick to your strategy, keep it tiny, 5 to 6 coins (BTC and ETH is a must!).
  2. If you have a basement (has you said), maybe an ASIC it will be more profitable than GPU rig, but keep in mind that ASICs that are not for SHA256 (BTC algorithm) is a high risk (some cryptocurrencies end up to switch the algorithm to get free of ASIC and FPGA centralization).
  3. ASICs produce a lot of noise and heat, so try to design an airflow to get rid of heat and there are some custom boxes for ASICs to reduce the noise.
  4. GPU rigs are less powerful in hashrate than ASICs, but they are less noisy and heat producers, also remember you can switch to more algorithms, they are flexible in that way.
  5. Measure and be aware of your Kilowatt/hour cost on your country, it will help you to have an idea of how profitable mining will be for you.
  6. You are not going to get rich with 2 or more GPU rigs or ASICs, its an investment at long term and a almost forever learning curve since you must be focused on news about the coins you mine.
  7. Design a maintenance plan for your rigs, keep them clean and healthy, learn about how much electricity power they consume in order to know which is the best power supply solution so you dont end up burning cables or the machine itself.

Dont know what else for now :stuck_out_tongue_closed_eyes:.

Actually my GPU config is this:

  • 4x1070 (different models, if you can build all gpus for the same model will save you a lot of overclock issues).
  • 2 psu (power supply unit) 750W each, both are GOLD+ certified.
  • 2 gpu risers per sata cable, 2 gpus on each psu, each on one PCIE power cable (connecting more than 2 gpus per PCIE cable could end up very bad, also for the risers).
  • Overclock is tricky, this should try to keep the most efficient hashrate with low temperatures and less use on the gpu fans (i like to keep mine below 65-70c with 45-65% of fans speed with 45% less power consumption).
  • Im using SimpleMining OS (SMOS) has operating system on an 16gb usb drive, it cost 2$ per month, can be payed in cryptos directly from the website dashboard, i have try their customer support and their really good at it.
  • I put my rig to “sleep” 2 hours per day at afternoon since the enviroment heat is a little bit high, and this kind of devices are not designed to stay up and running for long periods of time. (SMOS have a decent option to manage this).

By the moment i have not reach the ROI (return of investment) for it, but im 1000% sure that its a long term rally, time and patience will give me the profits that im aiming for.

Any other doubt you have, we probably can help you sir!

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Hi man. I’m an asic miner myself ( mainly because I’m quite a Neanderthal when it comes to creating and programming my own gpu rigs ).

From my experience I can say that mining is a very long term strategy. Do not in any case consider it a get rich type of a deal. It’s very labour intensive and stressful at times. I run a very small farm distributed across 3 locations. 2 of witch have solar.

I know a guy who has a huge GPU mining operation and he’s even renting out his space to other people and manages their rigs. So the advise that follows is from him, aswel as from me:

  1. Make sure you have additional income so you don’t have to sell crypto in order to pay for power ( for at least 2 years ). This is because the BEST time to mine, is during the bear market when everyone declares crypto “dead” for the thousand’s time. Hamster miners turn off their rigs, while the pro’s fire them up and feed the power usage out of their OWN pocket. You mine more when less people are mining!

  2. NEVER EVER be tempted to sell your crypto in the first 1 to 2 years. Remember you’ll need to upgrade your hardware often and you’ll need to invest in greatest and latest tech in order to keep a solid cashflow coming in. So don’t be tempted to blow your crypto profits on stupid shit that you THINK you need. Being frugal and meticulous is what counts!

  3. Prepare to sit on your crypto gains for 4 to 5 years before cashing out SOME of it. That will teach your discipline and dedication.

  4. Dig up some info on how to make some extra passive income while you mine. For example: I mine Equihash algorythm and when I mined some Komodo ( KMD ) that creates a passive staking reward for simply being there in my wallet. These small things are really nice. :slight_smile:

To sum it up man, you’ll be building a stable where every few month you will be putting one to two cows in and milking them from time to time. Take care of those cows and they will treat you very well. Do not be tempted to sell these cows for slaughter, but keep them for a looooooong time! This is mining. Good luck man! HAPPY MINING!

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Wow! Thanks @ivga80,@thecil, @Ulrich ! That was casting your pearls to a swine.

I don’t know what to say…If @Ulrich is a neanderthal, I must be a pure breed monkey (or pig)…

Mining seems equally way more intimidating, as well as exciting, than I first thought. Ha ha. This was not the «plug and play», or «plug and mine», affair as I first imagined it to be (but that my be a good thing). For the record, I am a social science guy, but a complete newbie in the blockchain/crypto/tech space.

From reading your posts, I realize I asked the question a little too early. ASICS,GPU´s and different algorithms…Well…I will get there in time!! But setting up a mining rig in my basement next week, is perhaps not the best place to start due to the prerequisites.

But you set me on the right path, and made me realize that I still have much learning to do on my own before I buy the equipment. I saw a new Mining for Dummies book out there. This will be my next step. Then I get back to you guys later. A little more knowledgable and competent…

Thanks again!!

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