Late to the party here, but wondering if others have also created an LLC and are writing off their electricity and ASIC costs as business expenses? That makes the ROI calculation a lot more attractive.
For example, go with a buy/host S19j for $10k plus $185/month electric… and put the proceeds of your mining in a 3% interest earning account on an exchange. I’m assuming BTC goes up 20% a year over 3 years for these calculations…
Write off your hosting bill every tax year and your ASIC costs the first year (this isn’t tax advice, your mileage may vary, etc.).
Lots of assumptions here, but it’s much better than just buying and hodling coin over the same period.
I’m looking at upgrading from S17 to S19 & L3+ to latest L version the L7 perhaps
I’m just not seeing a reasonable roi. From $8500 to well over $10,000. Given the short life span I don’t see a point in time where the pure profit for either of these cover the purchase prices.
The only bright spot in this is my S17 pro and 2x L3++ are running mostly off solar and the adjusted power cost is hovering around .06 cents per kwh. I could add more L3+ 's but the power cost jumps to unprofitable due to not enough solar panels online. oh well
are you planning to depreciate your miner cost every year or are you taking it off all at once? Reason I ask is because I was told that if you depreciate your expenses, the bank will still honor your earnings you make per year should you plan to get a business loan in the future.
If you are calculating based on today’s price, you are right on with your assumption. If you believe BTC will outperform the stock market like it has been for the past 10+ years and appreciate in value, then the statement you’re making now doesn’t hold its merit. Mining is like a double edged sword. You will make more when the market rise and make less when the market goes down. Since you have very good electric rate, I see no reason as to why you would complain about the ROI.
good question - IRS allows you to deduct computer hardware all at once, and your hosting expenses the year you have them. I have never had issues with banks using this as it’s GAAP. And, I’m trying to leave banks like all of us
@avidintent That would almost invariably lead to a tax loss carryforward - unless you’re in the rather fortunate and extremely rare position of breaking even in <1 year after all expenses. I’d rather depreciate than give the US Treasury what essentially is an interest free loan.
To me I will be spending the money either way I just buy the miner and stack the coins and make memes and be happy about it the price speculation is frustrating for a lad often and the miner is a great way around that speculation
Nope, you are wrong. Buying crypto outright yields more profit when the market is down. This is how much L3 makes per day with 10 cents electric. The machine is already 5 years old. It’s mind blowing to see people still buying this miner thinking that they’ll make a profit with difficulty rising everyday.
Nope your wrong. Backup 5 years and buy that machine. Then buy the same amount in ltc. I bet you all my crypto you would have a lot more mined ltc than bought ltc.
Why would you buy the machine 5 years ago? Do you know how much the machine was 5 years ago? L3s were selling for $3000-$4000? Do you know how much litecoin was? It was barely over $10? Of course you’d be better off buying the coin 5 years ago. Crypto mining is only good if you are trying to create passive income. Right now, L3s don’t generate anything. Do you want to send me all your cryptos now?
I hear ya. Had to do the same thing with my two L3+ and Avalon 1066 machines. The 1066 ASIC was barley profitable and carried a $9.81 per day electric bill. So, with BTC in the tank right now, it was just not worth the few pennies profit it produced. I now rely on four Compass hosted S19J machines and one 3090 Dell home computer for mining revenue. Just hanging on until BTC recovers.
My personal plan is buying ASICs right now. Machines are going for a discount right now, and I don’t really care. My cost to acquire BTC via mining is around 15k USD, and I’ll turn off the machines if BTC drops below, but once the market recovers, so will price of ASICs and and I turn around and sell my rigs for profit, as well as having the BTC that was mined during this period.
I approach this the same way as stock market addicts, you don’t lose if you dont sell.
