Prohashing Mining Pool Forums

Hello Back CS.
This page gives a pretty accurate cross section of the META Sorry CURRENT State of Scrypt ASIC mining:
https://www.crypto-coinz.net/crypto-calculator-asic/
It lines up with my personal calculations depending on which pool one is logged into.
IN my case 2 correctly configured L3+ machines running 24-7 on 240 VAC are good for a little less than $4.50 USD on the best performing pool I have tried since January.
This is not quite breaking even for the cost of the electricity.
If you have free electricity or a nice 20 KW Solar array, one could in theory " keep running."
I'd like to hear from the experts on where this thing might go with respect to the future. The guys who are really good at the calculation side of this thing.....
It begs a lot of questions about the way certain eneities and factions have done things, the seeming lack of foresight, and where exactly its all headed.
A few short months ago the average price for an L3+ was $2850.00 USD. They are now going for about $600.00 less PSU.
Just this one simple fact is enough to stir some serious passions with respect to the parties involved on both sides of the fence, and it does not bode well for long term relationships unless something changes radically in the near future.
All insights are welcome.

Star

CS, I work as a Journeyman Level Electrician and Solar does not render watts the way people think it does.
They are not 100% efficient, especially with all the Chemtrails factored in. There are a lot of other things that contribute to net efficiency losses from this type of power system. There are websights that explain the calcs.
To fully offset the load without a battery bank you need a 15 KW array minimum for daytime use only if you want to have any " headroom " whatsoever in this locality. This is taking other current loads into account in my case, so say continuous load of up to 2500W, 24-7.
This is just the reality of Solar Power.
Your comments are appreciated.

Thanks

Star

For Solar Loads you must think in terms of KWH.
I'll give you a number....2525 KWH for a months metered usage and that cost $330.54 from Rocky Mountain Power.
Say your crypto mining load is $240.54 out of that figure, so it would normally cost about $90.00/month to run your house without all the crypto nonsensei. What you want is to be able to run the whole house during daylight hours because you do not have that generation capability at night.
You want a system sized where it will give you the max bang for the buck when the sun is out.
Solar only runs when the Sun is out so aside from being very time and location dependent there are other factors that will limit what the total KWH offset will be under " real world " conditions. Even a small 5KW system would be grossly undersized for this scenario.
Your inverter has to be matched for your array fairly close or it will not be able to start, so its not like you can set a large inverter on a small panel array that you plan to enlarge in the future. If you want it to work out you have to think longer range and think about what loads you may want to add, not just what you are wanting to run right now.

starcat wrote:Hello Back CS.
This page gives a pretty accurate cross section of the META Sorry CURRENT State of Scrypt ASIC mining:
https://www.crypto-coinz.net/crypto-calculator-asic/
It lines up with my personal calculations depending on which pool one is logged into.
IN my case 2 correctly configured L3+ machines running 24-7 on 240 VAC are good for a little less than $4.50 USD on the best performing pool I have tried since January.
This is not quite breaking even for the cost of the electricity.
If you have free electricity or a nice 20 KW Solar array, one could in theory " keep running."
I'd like to hear from the experts on where this thing might go with respect to the future. The guys who are really good at the calculation side of this thing.....
It begs a lot of questions about the way certain eneities and factions have done things, the seeming lack of foresight, and where exactly its all headed.
A few short months ago the average price for an L3+ was $2850.00 USD. They are now going for about $600.00 less PSU.
Just this one simple fact is enough to stir some serious passions with respect to the parties involved on both sides of the fence, and it does not bode well for long term relationships unless something changes radically in the near future.
All insights are welcome.
Star

Are you really selling your daily earnings for $ every day?

If you're not then these ROI calculators are totally useless, because you're not trying to make your profits by cashing out daily, you're using your daily earnings to buy coins which you think have potential for future growth and you'll make most of your profits that way. And if you look at the Payout Coins owed chart, so are 99% of all miners on PH irrespective of algo.

It may appear that you're earning less when you look at the $ amount you've earnt, but what really matters is the size of coin payouts you're earning and this is dependent on network hashrate and diff, not the price. e.g,. if you earn .1 LTC when it's $120, you 'earnt' $12, but if you earn .1 LTC when it's 300 you 'earnt' $300. You may feel better about earning $30, but in reality you earnt the same (.1 lTC) on both days and when and what you sell your .2 LTC for is entirely up to you (target $400?). In my opinion now is the best time to be mining (when prices are low) because those ROI calculators deter people buying new miners. Wait until LTC is $300 again and watch how sales take off and your earnings start dropping to .05 LTC per day as network hashrate and diff start accelerating again.

CSZiggy wrote:That's all good that the network difficulty determines the number of coins and not the price of the coins themselves.

But if it takes me 1 month to earn 1 coin, and that 1 coin is only worth $120 and I'm paying $160 for my electricity, then either I can shut off the miners and just buy the coin for $120 and save myself the extra $40, or I can spend what I would have in electric and gotten a bit over the 1 coin I would have with mining.

Regardless of me selling the coin down the road for $400, the fact is Im paying more to get 1 coin now than if I bought the coin rather than mined it.

When you start with 8 coins a month and every month you drop that by roughly 50%, 4, 2, 1, half....in 5 months it went from 8 coins a day to half a coin. At some point you will get to an interception of the two lines of cost of electricity per day, and value of coins you get from mining. When you cross that line its time to turn off and save money from NOT mining. Just know where your two lines are at so you know when to call it quits.

Yeah if difficulty drops 50% and you can make more coins per day then recheck if what you pay in electricity per day equals how many coins you would earn. If anyone wants to pay $300 a month to only make 1 coin, please let me know, I'd be happy to sell you as many coins as you want at a 2-3X markup. Otherwise it only makes sense to turn off once you pay more in electricty than the coins are worth at the time you made them, not when you plan to sell them. Otherwise if you plan to sell them at $400 then $350 is a real bargin and Ill happily sell you many many coins at only $350 each.

this is the really simple answer. however as with real life, things are much more complicated and many factors come into play that affect the ultimate decision.

if your running your mining operation as a business then there are a lot more factors to consider. first and most important is what you mine. next is the write off that you get for your energy expenses. not to mention any expenses that are incurred for the mining space. if you outright buy the coins, then with the new 2018 tax laws you are creating the basis for a taxable event and operating costs are not deductable because you have none (outside of the structure of your business). depending upon how you are structured, purchasing coins and then selling them is either a capital gain/loss or income.

then there is the need for write offs for the business. obviously you do not want to take a loss on any mining but that is not as bad as it sounds and can be beneficial in some respects. again, it depends upon your situation. losses can be very beneficial.

also, in the current environment, at some point, the difficulty will level off. this may be the case now as this latest adjusment has been adjusted below the level of the last 4 adjustments to a level just above the 5th previous adjustment. at some point due to energy costs, people such as yourself will unplug and still others will not be purchasing any more equipment. as such, it has to level off. now if/when the price rises, then all bets are off and the difficulty will begin to rise again as more rigs come online.

personally, myself i want to mine during this period more than i will want to mine when the difficulty and price will rise. though i most certainly want the price to rise, i don't want the difficulty to rise, i am a hodler for the most part. it is a conundrum for sure but as i say, nothing is 'just that simple'.

difficulty just dropped even further. back to lower than the 6th previous adjustment, just above the 7th's level.

i'm guessing there will be those who unplugged of late, plugging back in.

CSZiggy wrote:Not when the price drops 5% and the difficulty didnt improve by at least that amount.
It all comes down to how much they pay for electricity.

Is the (amount of coins earned per day) X (the price of those coins) > electric fees charged.

If you earned 2 coins a month, and at max they were worth $130 each, if you are paying over $260 for electric then it makes no sense to run the miners. Those with the cheapest electricity fees will be able to run and profit the longest.

As Foxx suggested, it's not quite as straightforward as that. If you're running your mine as a business, all of your electricity costs are operational expenses and can be written off against any profitable mining rewards you've made during the tax year in an effort to minimize your tax as much as possible.

So months where you mine $300 worth of coins (at payout time) but electricity cost you $140, you owe tax on the $160 'mining profit'.
The next month you only earn $80 but still paid out $140 for electricity you end up -$60 which becomes a tax credit that you can use to offset the tax on the$160 mining profit you made the month before.

If you buy coins directly, you can't do this. You're right that you may end up with more coins, but from a business perspective, your end of year position may be worse, because you've accrued more tax during the profitable months.

Then later on down the track when you trade those coins or sell for fiat you'll probably have capital gains tax to pay as well.

why bother, no one cares.

what??

you are taxed on net, not gross.

also, it depends on how you structure, you can claim the coins as income and not pay capitol gains. you have to know what your doing though.

Guess it all depends what country and tax codes you are required to follow.
Consult an expert in your local area for better advice and make sure to file and pay as required.

^^^^^^^
Best advice I can give.