Mine is still legal: the experience of mining lightcoins in 2019
Last month, alizar announced plans for the State Duma to ban mining, in particular, voiced the position of the head of the financial market committee Anatoly Aksakov. The episodic but unexpected and strong drop in bitcoin poured oil into the fire a few days before the announced information. While the state decides how to deal with miners, they strive to speed up and reduce the cost of the production of crypto assets as much as possible.
The proximity of the prohibition of many encourages the choice of the most effective approaches for the "extraction" of crypto. Despite the tendentious pessimism, many are still convinced that mining is alive, lived and will live (cross out) can still be profitable with relatively small investments. Under the cut, a few words about the features of the “production” of crypto assets in 2019 and a ready-made case for btc mining when investing less than one million rubles.
Mining is a business with a significant share of risk and unpredictability. The high volatility of cryptocurrencies can almost instantly leave a miner without pants, or vice versa, will quickly double or even triple investments. There is always a bit of market “magic”, for example, when you plan to withdraw a mined crypt to fiat assets, and some kind of light-coin adds 30% to the value over the weekend.
Today, there is debate about how easy it is to mine in comparison with 2016 - 2017. Despite the considerable skepticism that cryptoheip naturally replaced, I can confidently say that this is not so. In 2016, there was a problem with the availability of equipment, officially acquiring ASICs was relatively difficult, and there were no specialized data centers with mining equipment.
The most common mining method in 2016 was to build a rig from video cards and install a farm in a garage or on a balcony, ideally also with a solar battery, in order to minimize production costs. Now everything has changed until prohibitive measures have been taken, mining equipment is imported officially, it has a notification from the FSB and is sold with full VAT.
Unfortunately or fortunately, the days of wild garage-balcony mining and reckless crypto-enthusiasm have sunk into oblivion. To start mining today, you need smart calculation, careful business planning, adequate risk management, strong nerves and a clear certainty with the budget. The investment strategy for medium and small investments in equipment is calculated for three years.
There are various options for mining strategies and investing. For example, with a one-time purchase of equipment or with a multiple expansion of the park over three years. The latter approach is considered more balanced.
In any case, before starting the production of crypto assets, you should study the equipment market on your own or with the help of third-party experts. Based on what you learned, buy ASICs and put them on a hosting. Obviously, it is more profitable to buy the most advanced equipment, provided that its PoW algorithms are already tested, for example, like SHA-256 for bitcoin and SCRYPT for litecoin. Otherwise, the probability of being left without pants increases in proportion to the level of unknown algorithms and the ASN miner’s no-name.
It is possible to reduce costs by purchasing used equipment, the same L3 + can be found in good condition in China. It is important to understand that cost often changes and it is really cheap to find a relatively powerful ASIC miner only after thorough monitoring of prices in the market. There is also the possibility of buying equipment at home, which will already be on the shelf in the hosting. Mining hotels already exist in Russia where you can start mining right after payment. It is logical that in such cases, the starting costs will be slightly higher, but there are no risks to buy low-quality used equipment.
Data provided by Sergey Arestov, co-founder of BitCluster - a network of mining data centers. A crypto-businessman described the experience of one of the company's customers who purchased equipment earlier this year. On the example of a case, we can conclude about the approximate payback periods of equipment (while maintaining the current dynamics of the course).
It should be specially noted that the given case makes sense to consider when the cost of electricity for mining does not exceed 4 rubles for-rubles for 1 kWh. A case with a relatively small amount of investments was deliberately chosen, since with large investments even a slow rate growth can bring tangible profits. In this case, we are not talking about investments of less than a million rubles, which is chosen in order to show the return on comparatively small investments.
ASIC miners were acquired in China on February 17, 2019. The devices were on the way to Moscow for three weeks. After receiving them, they were immediately sent to Bratsk, to the site to the operator. So, on March 22, with their help, the process of mining lightcoin began.
115 L3 + were purchased, the cost of which with a power supply is 7460 rubles. In total, the price of the devices amounted to 857900 rubles, taking into account delivery from China, as well as transportation to Bratsk. On the site in Bratsk, asiks placed at the “Free Hosting” tariff, which involves payment by offsetting from the coins mined. The tariff provides for daily coverage based on the cost of electricity - 3.53 rubles per kWh.
The table below shows the payments from L3 + devices, taking into account payment for hosting services by offsetting.
At the moment we have data for 80 days. By the last month, this case managed to produce 84.57 LTC or 11127 dollars (at the current rate of LTC) or 712128 rubles. Those. for more than two months the client paid back 83% (data as of June 12) from investments of 857,900 rubles. While maintaining such conditions and dynamics, by the end of June, the miner will be able to recoup his investments and continue to earn another 2 - 3 years until the complexity of the blocks makes the equipment obsolete.
L3 + will remain relevant as a device for mining for at least 2 years. It is difficult to predict how profitable the use of the ASIC miner will be, but judging by the described case, there are great chances to recoup the investment many times.
Contrary to stereotypes, mining still does not require astronomical investments and the tasks of earning income from coin mining can be solved by relatively small budgets. Of course, the risks of losses associated with volatility, equipment defects and prohibitions by regulators remain, which rarely stops crypto enthusiasts in the pursuit of a long coin. I would be grateful for your assessment of the presented case, as well as for cases known to you with successful and unsuccessful investments in mining.
Photo used:
gtbrain.ru/product/bitmain-antminer-l3-504-mh-s
forum.bits.media/index.php?/topic/43696-%D0%BC%D0%BE%D1%81%D0% BA% D0% B2% D0% B0% D0% BF% D0% BE% D0% BA% D1% 83% D0% BF% D0% BA% D0% B0-l3
The proximity of the prohibition of many encourages the choice of the most effective approaches for the "extraction" of crypto. Despite the tendentious pessimism, many are still convinced that mining is alive, lived and will live (cross out) can still be profitable with relatively small investments. Under the cut, a few words about the features of the “production” of crypto assets in 2019 and a ready-made case for btc mining when investing less than one million rubles.
About the realities of modern mining
Mining is a business with a significant share of risk and unpredictability. The high volatility of cryptocurrencies can almost instantly leave a miner without pants, or vice versa, will quickly double or even triple investments. There is always a bit of market “magic”, for example, when you plan to withdraw a mined crypt to fiat assets, and some kind of light-coin adds 30% to the value over the weekend.
Today, there is debate about how easy it is to mine in comparison with 2016 - 2017. Despite the considerable skepticism that cryptoheip naturally replaced, I can confidently say that this is not so. In 2016, there was a problem with the availability of equipment, officially acquiring ASICs was relatively difficult, and there were no specialized data centers with mining equipment.
The most common mining method in 2016 was to build a rig from video cards and install a farm in a garage or on a balcony, ideally also with a solar battery, in order to minimize production costs. Now everything has changed until prohibitive measures have been taken, mining equipment is imported officially, it has a notification from the FSB and is sold with full VAT.
Unfortunately or fortunately, the days of wild garage-balcony mining and reckless crypto-enthusiasm have sunk into oblivion. To start mining today, you need smart calculation, careful business planning, adequate risk management, strong nerves and a clear certainty with the budget. The investment strategy for medium and small investments in equipment is calculated for three years.
There are various options for mining strategies and investing. For example, with a one-time purchase of equipment or with a multiple expansion of the park over three years. The latter approach is considered more balanced.
In any case, before starting the production of crypto assets, you should study the equipment market on your own or with the help of third-party experts. Based on what you learned, buy ASICs and put them on a hosting. Obviously, it is more profitable to buy the most advanced equipment, provided that its PoW algorithms are already tested, for example, like SHA-256 for bitcoin and SCRYPT for litecoin. Otherwise, the probability of being left without pants increases in proportion to the level of unknown algorithms and the ASN miner’s no-name.
It is possible to reduce costs by purchasing used equipment, the same L3 + can be found in good condition in China. It is important to understand that cost often changes and it is really cheap to find a relatively powerful ASIC miner only after thorough monitoring of prices in the market. There is also the possibility of buying equipment at home, which will already be on the shelf in the hosting. Mining hotels already exist in Russia where you can start mining right after payment. It is logical that in such cases, the starting costs will be slightly higher, but there are no risks to buy low-quality used equipment.
Case study on efficient mining of lightcoins
Data provided by Sergey Arestov, co-founder of BitCluster - a network of mining data centers. A crypto-businessman described the experience of one of the company's customers who purchased equipment earlier this year. On the example of a case, we can conclude about the approximate payback periods of equipment (while maintaining the current dynamics of the course).
It should be specially noted that the given case makes sense to consider when the cost of electricity for mining does not exceed 4 rubles for-rubles for 1 kWh. A case with a relatively small amount of investments was deliberately chosen, since with large investments even a slow rate growth can bring tangible profits. In this case, we are not talking about investments of less than a million rubles, which is chosen in order to show the return on comparatively small investments.
ASIC miners were acquired in China on February 17, 2019. The devices were on the way to Moscow for three weeks. After receiving them, they were immediately sent to Bratsk, to the site to the operator. So, on March 22, with their help, the process of mining lightcoin began.
115 L3 + were purchased, the cost of which with a power supply is 7460 rubles. In total, the price of the devices amounted to 857900 rubles, taking into account delivery from China, as well as transportation to Bratsk. On the site in Bratsk, asiks placed at the “Free Hosting” tariff, which involves payment by offsetting from the coins mined. The tariff provides for daily coverage based on the cost of electricity - 3.53 rubles per kWh.
The table below shows the payments from L3 + devices, taking into account payment for hosting services by offsetting.
date Payments in LTC minus the cost of maintenance LTC Course Payments in USD 03/20/2019 1,15128 59.79 68.83 03/22/2019 1.84131 59.14 108.89 03/23/2019 0.92733 59.81 55.47 03/24/2019 0.97052 60.41 58.63 03/25/2019 0.93490 59.71 55.82 03/26/2019 0.83012 59.38 49.29 03/27/2019 0,80855 58.86 47.59 03/29/2019 1,63311 60.65 99.05 03/30/2019 0.71423 60.47 43.19 03/31/2019 0.70067 60.66 42.50 04/01/2019 0.67866 60.48 41.05 04/02/2019 0.68615 60.36 41.42 04/03/2019 1.27303 59,99 76.37 04/04/2019 1.55193 74.05 114.92 04/05/2019 1,17323 88.12 103.39 04/06/2019 1,16312 86.24 100.31 04/07/2019 1,33343 87.22 116.30 04/08/2019 1,13007 91.90 103.85 04/09/2019 1,00823 89.69 90,43 04/10/2019 1,07422 87.61 94.11 04/11/2019 0.94613 87.30 82.60 04/12/2019 0.84244 85.50 72.03 04/13/2019 0.94724 79.57 75.37 04/14/2019 0.89325 78.46 70.08 04/15/2019 0,99715 77.22 77.00 04/16/2019 0,84963 79.61 67.64 04/17/2019 0.85507 79.46 67.94 04/18/2019 0.87398 78.87 68.93 04/19/2019 0.92728 79.65 73.86 04/20/2019 0.94456 81.73 77,20 04/21/2019 0.84167 81.43 68.54 04/22/2019 0.75070 79,20 59.45 04/23/2019 0.81394 76.22 62.04 04/24/2019 0.68433 75.64 51.76 04/25/2019 0.68895 74.51 51.33 04/26/2019 0.81551 73.30 59.78 04/28/2019 1,71810 74.16 127.41 04/29/2019 0.73416 73.00 53.59 04/30/2019 0.70556 71.91 50.74 05/01/2019 0.89482 69.66 62.33 05/02/2019 0.83658 69.35 58.01 05/03/2019 0.69852 72.25 50.47 05/04/2019 0.97368 72.19 70.29 05/05/2019 0.74986 71,99 53,99 05/06/2019 0.69675 72.98 50.85 05/07/2019 0.81992 75.96 62.28 05/08/2019 0.76821 74.38 57.14 05/10/2019 1,47717 73.87 109.13 05/11/2019 0.83702 73.98 61.92 05/12/2019 1,12428 72.32 81.31 05/13/2019 1,03112 70,43 72.62 05/14/2019 1,04185 71.00 73.97 05/15/2019 1.05381 89.38 94.19 05/16/2019 1,31701 90.15 118.73 05/17/2019 1,13951 85.56 97.50 05/18/2019 1.00000 87.37 87.37 05/19/2019 1.01924 95.26 97.10 05/20/2019 1.01957 94.50 96.35 05/21/2019 0.99564 93.67 93.27 05/22/2019 1,03455 91.67 94.84 05/24/2019 2,00325 89.78 179.85 05/25/2019 1,34767 89.77 120,99 05/26/2019 1.34603 91.02 122.52 05/27/2019 1,46526 90.67 132.86 05/28/2019 1.45410 93.19 135.51 05/29/2019 1.31309 103.67 136.12
At the moment we have data for 80 days. By the last month, this case managed to produce 84.57 LTC or 11127 dollars (at the current rate of LTC) or 712128 rubles. Those. for more than two months the client paid back 83% (data as of June 12) from investments of 857,900 rubles. While maintaining such conditions and dynamics, by the end of June, the miner will be able to recoup his investments and continue to earn another 2 - 3 years until the complexity of the blocks makes the equipment obsolete.
L3 + will remain relevant as a device for mining for at least 2 years. It is difficult to predict how profitable the use of the ASIC miner will be, but judging by the described case, there are great chances to recoup the investment many times.
In conclusion
Contrary to stereotypes, mining still does not require astronomical investments and the tasks of earning income from coin mining can be solved by relatively small budgets. Of course, the risks of losses associated with volatility, equipment defects and prohibitions by regulators remain, which rarely stops crypto enthusiasts in the pursuit of a long coin. I would be grateful for your assessment of the presented case, as well as for cases known to you with successful and unsuccessful investments in mining.
Photo used:
gtbrain.ru/product/bitmain-antminer-l3-504-mh-s
forum.bits.media/index.php?/topic/43696-%D0%BC%D0%BE%D1%81%D0% BA% D0% B2% D0% B0% D0% BF% D0% BE% D0% BA% D1% 83% D0% BF% D0% BA% D0% B0-l3