CRYPTOPEDIA

Everything About Cryptocurrency Mines: A Real Experience

There are a lot of ways how to get cryptocurrencies, namely Bitcoin. The most obvious way is to buy Bitcoin. However, cryptocurrency mining is also popular among people, who are ready to invest money in a proper software and hardware.

The process of Bitcoin mining essentially means adding new transactions to Blockchain, BTC public ledger. The major features of Bitcoin are openness and transparency, so everyone can access it. All transaction, added to Blockchain, are confirmed.

You can obtain BTC through:

1)   Buying Bitcoin on a cryptocurrency exchange, Bitcoin ATMs, Bitcoin gift cards, P2P, etc. (you can read more about it in our new article);

2) Accepting BTC for services, products, goods, clothes, etc. Some innovative services also pay salaries in Bitcoin or other cryptocurrency.

3) Bitcoin mines, which is carried out by bitcoin mining software.

Interview with the Ukrainian miner, who invested $50.000 into this business.

“Mining is a pot of gold”. That’s exactly what the souvenirs’ sellers in the underground, students, average clerks and the vast majority of people with the Internet access think.  No one takes into the consideration the disadvantages of this process, huge risks and that mining is the additional and responsible job. We interviewed a person, who decided to build his business on mining cryptocurrencies half a year ago, and within a couple of months has already invested over $50.000. 

We named our interlocutor Eugene, as he prefered to keep his personal info a secret. He is an entrepreneur in his mid-30s and has been doing mining for over 6 months. Not so long ago he launched his Telegram channel “MeMiner”, where he shares his experience.

– For a several years after that,  I just watched how cryptocurrencies develop and didn’t hurry to invest,  i was rather asking the price. I clutched my head when the price sharply flew up, and then I breathed a sigh of relief when it fell back. At the same time I was not highly interested in mining as I still didn’t understand its economic feasibility personally for myself.

In 2014 I had a choice: to invest money in cryptocurrencies or into offline business. I have chosen the second option, but it “hasn’t shot” — I have lost the most part of the capital. Later after all I have managed to get out of this situation thanks to the sport related project, which was earning on the commissions from the players attracted from the bookmakers’ websites. So I have earned money for new business which turned out to be mining. In the middle of 2017 I have made up my mind, that I will try to construct my business in this industry.

Now my primary activity is concentrated on cryptocurrencies’ mining. This is the business, in which I have invested all my resources — money, time, strengths.

– So you have been a miner for half a year now. What cryptocurrencies are you mining and what equipment do you use?

At first I was thinking about the ASIC-miners, but I was concerned about their purchase directly from the vendor and the subsequent delivery to Ukraine. There was an option to buy in Ukraine as well, but in that case I would have significantly overpaid. And as I wanted to start as soon as possible, I stopped on farms which are gathered from video cards.

My initial investment was $10.000. For this sum I bought GTX 1080 Ti of two vendors: MSI and Gigabyte (the supplier didn’t have 10 identical cards at once). As these cards are better for mining on the Equihash algorithm, I began to produce ZCash currency on them.

I have chosen 1080 Ti because at that time they were one of the most powerful and expensive in the market, and I stake on a long-term prospect. Unfortunately, nobody can give you a guarantee that in a couple of years mining will be as profitable as it is now, especially on this equipment. Therefore, if something happens, I will be able to sell these video cards for a good price in the future — all of them still will be rather productive and won’t strongly lose in price. Especially considering the fact that these are computer parts, and they are so much easier to sell than even the Asic Miners, for example.

– And where are these farms located? Do you keep them at home or rent a specific apartment? They consume quite a lot of electricity  — what are your monthly payments? 

Mining at home is a huge risk. All equipment is placed in the special apartment. There you can rent a room. I am not a single farm owner there. There are about 10 other owners there besides me. There’s everything you need for miner’s work inside the building: the strengthened electrical wiring, the stable Internet, systems for supply of the fresh filtered air and branch hot, a huge number of fans, protection with video surveillance. For one farm + electricity and maintenance I pay about $100 a month.

Special companies, which appeared not so long ago in Ukraine, take care of renting buildings for such purposes. Earlier you could hear only about foreign companies, providing such services. But today there’s already a solution for Ukrainians. However, it doesn’t prevent from using foreign services — that’s how I work with ASIC miners, whom I haven’t even seen. For one ASIC miner I pay $85 a month, at the same time I am insured from force majeure and I will be able to order delivery of miners to my place at any time. But  not exactly my devices can arrive. Similar devices with a closer location to me are easier and cheaper to deliver (capacities are placed worldwide).

Mining at home is not only a big risk, but also a disappointment. First of all, for a big and powerful farm to work, good wiring is a must. For example, two farms with about ten video cards NVIDIA GeForce 1080 Ti consume about 2300-2500 kWh per month or about 3 kW per an hour. Add here household appliances and receive constant “the beaten-out traffic jams” and the increased fire danger — wiring is simply not forethought for such loadings. No one is insured from voltage jumps, and at home it occurs rather often and is one of the main reasons of the equipments being damaged. Moreover, a farm must be a room in which you don’t plan to live — noise and temperature even from a small farm create intolerable conditions. Another problem is dust. All in all, I extremely don’t recommend to be engaged into this at home unless you mine the Ukrainian “Karbovanets” from your PC and to pay for the Internet  from the money you get from mining ????

– Tell about your investments and income. How much have you spent for the equipment? How much have already received? How much do you plan to get?

If the situation is in my favour, I plan to reach self-sufficiency in a year: considering further investments, reinvestments and other expenses. Two-three months can’t be a question. I treat this as business, therefore “to earn and run” is not my option.

Initial investments were $10 000 – I bought two farms with video cards to mine ZCash. On average they bring up to $2000 a month, considering rate’s jumps and complexities. Sometimes there was less, sometimes there was more — everything depends on a variety of factors and it is impossible to foresee the profit. Of course, there are special services which count an approximate profit, but you shouldn’t plan only on the basis of their indicators. Currently the income is constantly fluctuating — the course and complexity grow, and it happens unevenly. My total income since the beginning of September is about 10 ZEC.

There were some additional investments — about $40 000. A part of this sum was a reinvestment. On this money I bought:

  • 6 ASIC miners L3+ (for production of Litecoin),
  • 6 ASIC miners D3 (for production of Dash),
  • 3 ASIC miners S9 (for production of Bitcoin and Bitcoin Cash).

6 ASIC L3+ have been working only a month and have already brought slightly more than 20 LTC. But from the moment of start till today the complexity of production has grown up almost in three times, as well as the currency price. Therefore, it’s too early to analyze the profitability. On average the profitability of six devices has to vary in the range of $4000-5000 a month.

6  ASIC D3 has not brought anything so far — I wait till their  inclusion in network of companies, where I rent places for the equipment. My relationship with them is another story: at the time of the preorder the planned profitability made about $200 a day, and today — about $8. The matter is that miners caught on high profitability and have bought ASIC’s, and when they began to get coins, the complexity has grown by 10 times literally in a month.

The rest of ASIC’s have to be shipped only in February. I expect that the general profitability will make about $10 000 a month when D3 join in the process.

For all the time of mining I have brought about $1000 to my personal account, other means have gone for the purchase of the additional equipment and expenses connected with the production of cryptocurrencies.

– What do you think about the situation with cryptocurrencies in Ukraine? Recently there was a search in the Kaplan’s apartment,  Security Service of Ukraine has allegedly transferred 305 ETH which belonged to him.

I heard about it, a situation is very strange. Searches were earlier as well, in particular, at  the offices of the IT companies. I think that in most cases, the purpose of such actions from law enforcement agencies is to intimidate. But why it occurs, I won’t undertake to tell.

The governmental attitude to this subject is in general strange. I can’t take and buy cryptocurrency for a large sum just like tha. I will have to answer a bunch of questions at once. At the same time I can cash it without problems  — it’s not important for a bank, how much money you have transferred to your account. In any case, I have never had problems with withdrawing money. For this reason also, I have decided to be engaged into mining, but not just to buy cryptocurrency and to wait for growth of the price — I can’t take and spend quickly at one stroke the same $10 000 on a non-cash payment.

– And finally: several pieces of advice to those who are interested in a subject of cryptocurrencies and mining in particular.

  • Avoid cash. If you want to buy cryptocurrency, be prepared and analyze information on the exchanges, register, undergo verification and recharge from the cash card. I extremely don’t recommend to do it for cash “from hands” — fraud only gains steam.
  • Know how to keep cryptocurrency. Buy a good hardware purse, Ledger, for example. Order it on the official site and never contact dealers — you will only overpay a lot or you will come across speculations.
  • Take off your pink glasses and size up the situation. Mining is a risky business, especially mining houses. You can earn good money on it only when it becomes your full-time job.

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blockchain, ICO, bitcoin, ethereum, mining

CRYPTOPEDIA


Everything About Cryptocurrency Mines: A Real Experience

Published by blockchain, ICO, bitcoin, ethereum, mining