I really want to set up a mining rig in the new year, but am pretty new to the space and super new to mining. Does anyone have recommendations on how to get started in a cost-effective and easy (relatively speaking) to understand way? Your expertise is greatly appreciated. Would be interested in routing as well.
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1000 sats \ 10 replies \ @BTCMiner 13 Dec 2022
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.
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25 sats \ 9 replies \ @RedNinja39 OP 14 Dec 2022
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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0 sats \ 8 replies \ @BTCMiner 14 Dec 2022
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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25 sats \ 0 replies \ @RedNinja39 OP 14 Dec 2022
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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20 sats \ 6 replies \ @2big2fail 14 Dec 2022
i recommend a futurebit apollo as a great way to learn and have a full node all in one miner.
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0 sats \ 5 replies \ @BTCMiner 14 Dec 2022
Surely you jest.
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30 sats \ 4 replies \ @2big2fail 14 Dec 2022
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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0 sats \ 3 replies \ @Hermit 14 Dec 2022
All these really good responses on how competitive the industry is, and it was not even mentioned the halving event that will occur in only 480 days.
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0 sats \ 2 replies \ @RedNinja39 OP 14 Dec 2022
Please forgive my ignorance, but what is this halving event that will occur in a little over a year?
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0 sats \ 1 reply \ @Hermit 15 Dec 2022
Every four years the amount of Bitcoin issued every 10 minutes gets cut in half. The reward for the miners suddenly will be half over night, but the amount of energy used remains the same. Less supply, same demand, price goes up, compensates the cut to the miners.
With all due respect. Before thinking in mining, I recommend to put at least 20 hours of study.
Start with the Bitcoin Standard.
Watch at least 6 hours of Micheal Saylor videos, specifically those about Bitcoin as digital energy.
On the website of Arman the Parman you will find very didactic content.
Try to understand every sentence of the rap video of Tip_NZ in Twitter, Down the Rabbit Hole.
Ask questions here, everyone is really helpful
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0 sats \ 0 replies \ @RedNinja39 OP 15 Dec 2022
Thank you! I Definitely will!
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0 sats \ 0 replies \ @Taranis 13 Dec 2022
start with a used s9 from kaboomracks https://t.me/kaboomracks
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