Hello, I have no idea in which category to post this, however,
I’d like to talk with you about a project I had in mind on the cryptomining field.
I recently had an offer, and I’ll most likely able to build a 20kWh solar implant, thanks to the government finance for covid19. So, I had in my mind the idea of building it up a mining farm.
I only have about $4000 to invest from my pocket, that’s all I can risk at the moment, so I wanted to start small, and by time to time upgrade to a bigger one.
My plans is to achieve the point of having a full activity of cryptomining, obviously, on a profitable way.
Now, do you think that is possible having only $4k to invest?
Should I go directly big and take a bank loan? (I find it way too much risky)
That being said, on my country (Italy) we have a medium kWh cost of 0.17€ (average $0.20), so anything out of my solar implant, it’s gonna generate a loss (I suppose?).
In the remote case, I might be able to get a favorable energy rate of 0.06€ (average $0.08), do you think it worth more giving up the idea of solar implant expanding and just going by public network?
I think during the daylight a 20kWh implant is mostly able to generate average of 13-14kWh taking into consideration cloudy days and an average of 6kWh during the night, thanks to the batteries.
So the question is, what do you suggest me to do?
What would you do in my situation if you had to start like that?
Starting in 2020 is very rough, as almost all GPU’s aren’t profitable anymore and ASICs cost $3k each
Why not use that money to buy a crypto you can stake and use your pile of purchased crypto to do your mining? I would at least give this idea some thought.
I have the worst luck on trading, I find it way too risky.
All the times I tried to trade, I always lost moneys, no matter what, that’s why I prefer to stay away from trading crypto.
Unless you mean something different than cyptotrading
I am talking about something different. I am talking about running a node or staking cryptocurrency. NRG is a popular choice for some on this forum it seems. Tezos is also a good choice in my opinion. There are exchanges like Cypto.com and Kucoin that will pay you just to store your crypto with them. You could even do this with something like USD coin or USD tether. I believe Kucoin is paying you 12% a month just to put your fiat into a stable coin that doesn’t change in value but it pays you for holding it.
you should check out proof of stake cryptocurrencies proof of work are coins generated through mining and proof of stake coins are generated almost like dividends from holding stock. If you hold Crypto “X” you are paid number of “X” depending on how much “X” you own. Will your solar be enough to provide you with all of your electricity needs? Will this also be saving you money on your normal electric bills if so than maybe it is worth going the solar route.
Yeah, I’d be doing solar anyway as I need it for my house eitherway, currently I’m paying 650$ each 2 months with regular electricity contract, so when the chance came this year, and basically I pay zero for all the solar implant, I thought about taking the chance.
But the PoS crypto is interesting, honestly, I wasn’t even aware those were a thing
Given that, what shall I do in your opinion?
Must be said, a 20kWh implant, means about 9-12kWh goes to trash because I’m not gonna use that much for the house. I’d be using max 3kWh out of it, and the government is gonna pay me nothing for all the excess due to the contract requirement (to pay zero for the implant).
Do you think taking a bank loan for about $15-16k and go GPU route could be a thing with a ROI of 11 months? Too risky?
Tomorrow or day after, I’ll go talk with a neighbour who already has a solar implant at their house, since it’s basically a walk away from my house, I’ll see if I can get an estimated kWh amount I’ll be having 24/7/365.
Depending on the cost, I think I’ll be able to put on a 30 kWh implant as well (basically I can “spend” up to $60k given to me by the government for the solar)
I personally have taken a bit of debt to build my miner but it was money I did already have I just chose to pay it in installments with no interest. I would not be comfortable recommending you take out a loan especially since you seem a bit new to the space. I would strongly suggest doing the solar which will get you the free electric which is a win then I would take my time getting into the mining and staking aspects and just start out very small so you can just get involved and this will open many doors for you to consider so many different options. I would say to slow down and hold onto your money or invest into something very safe while you get a bit more knowledge about all of the different options out there.
There are some very safe methods of trading if you have enough capital you can generate a steady income using things like covered calls and puts. I do not have any personal experience myself but I do think this is also coming into the crypto space as well. You would have to seek some further education on these methods though. There is plenty of free info out there though.
Assuming you get 14kWh to use for mining, your solar limits the size of the rig to 5 or 6 GPUs so your $4K budget is plenty if you want it to be 100% solar. You still make a little money at $0.20/kWh electricity, it just extends the ROI out quite far. Both of the setups below are probably closer to 15 kWh per day. This all assumes ethereum prices/difficulty etc. stays the same which may not be a good assumption. If you do upgrade, you are looking at a 2 or more year ROI since you have an extremely high power cost. A lot can happen in 2 years. I would definitely build 1 rig if you are interested in mining but your location doesn’t really allow for profitable expansion without a boatload of risk.
Free Power:
6x5700 Rig - $2500 - 357 day ROI
6x580 Rig - $1300 - 313 day ROI
$0.20/kWh Power:
6x5700 Rig - $2500 - 681 day ROI
6x580 Rig - $1300 - 1,023 day ROI
I am confused, as 1 GPU uses an average of 120w, thats way more than just 6GPUs, i’d say atleast 20+, assuming a rig of 6 GPU, that’s 650w average, i’d be in with 10 rigs (60GPUs) and still have about 6-7kWh left, no?
As of investment so I get that ASIC is not a good one?
also there i’m confused, for example the H1 miner is advertised to bring a $65-70 day profit, thats ROI in 2.5 months paying for electricity and 1 month with solar
other things on your rig use power besides your GPU check these images out
they show that my GPU’s use about 800 watts from both of my rigs but at the wall I am using 1250 watts so there is an extra 225 watts give or take extra watts being used per rig not including the GPU
That makes sense with moba, ssd and other elements taking power.
Btw, I had a research on PoS coins, but I think that’s way more risky than actual mining, while on mining on the bad ending you can still sell the equipment and go even or with a small profit, on PoS in bad ending you lose a lot of moneys (crypto price fall, slashing, failures etc), am wrong?
that is why I also recommended USD coin and USD tether those are most likely always going to be the same value the earnings come from interest loaning it out by locking up on sites like crypto.com and kucoin
I see.
I think I’ll just attempt to start some mining farm.
For this purpose, what you suggest? ASIC or GPU?
If GPU, RX5700 is still the best for this? (quality/price) if so, do you know any reseller who maybe can do some discount for bulk order?
It depends how your solar equipment is rated but I am assuming 20kWh is the maximum daily energy output of the system. If that isn’t true, you can run more GPUs. A rig that uses 833W of power uses 20kWh per day of energy. I am running 20 GPUs and they consume about 50 kWh per day. The one ASIC I own uses 70kWh per day on its own.
If the actual output of the solar system is a continuous 20kW, that is another story. 20kW is a lot of power, 20kWh is, however, not a lot of energy.
I just found some offer for RX5700XT GPU’s, x9 for 2430€ (270€ each), do you think that’s a good price? In USD would be $2759 ($306 each).
Searching around they all sell for 340€+ here ($380+) no idea if that is the regular price
RX 5800 coming out this year if you wait for those to drop it should make the 5700’s cheaper I wouldn’t by any hardware right now as the new stuff drops this year prices will get shaken up also
You are using the term kWh so that still makes me wonder how big the solar system is. A kWh is a unit of energy which would be the size of the battery, not the instantaneous power production. A 20 kW solar system is pretty huge and would need a lot of batteries to produce 20 kW continuously. Are the panels going on your house? How many solar panels? That info or what the solar system costs would probably give me a better idea of what you are actually getting. It is pretty common to have 3-5 kW of solar panels and a 20 kWh battery for a residential system. If yours is truly an enormous solar system, you should be fine.
$306 is a good price for XTs. Used 5700s go for $290-310 on ebay here. Used XTs usually go for $340 or so.
