Inside a Chinese Bitcoin Mine
thecoinsman.com
Inside a Chinese Bitcoin Mine
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Re: Inside a Chinese Bitcoin Mine
#2Is there any estimate of how much income this particular mine can produce, compared the the capital outlay and the ongoing costs?
Re: Inside a Chinese Bitcoin Mine
#3I wonder about the effects of such establishments on the Bitcoin ecosystem as a whole. In theory, they're supposed to strengthen the network by providing more hashing power. But what worries me is the onset of mega-pools composed of such factories that will gain >51% of the network's computational power effectively gaining a monopoly on Bitcoin.
Re: Inside a Chinese Bitcoin Mine
#4Is there any estimate of how much income this particular mine can produce, compared the the capital outlay and the ongoing costs?
Using this calculator https://alloscomp.com/bitcoin/calculator and using 575,000 Gh/s (is that right?) the calculator gets about $260k per month. With $60K for electricity and let's say $10k for misc. overhead I would guess they are clearing close to $190k per month.
Re: Inside a Chinese Bitcoin Mine
#5Re: Inside a Chinese Bitcoin Mine
#6Is there any estimate of how much income this particular mine can produce, compared the the capital outlay and the ongoing costs?
This operation currently mines about $262k per month:
230e9 (each machine does 230 Ghash/s) * 2500 (# of machines) * 3600 (second/hour) * 730 (hour/month) / (2^32 (average number of hashes to solve a block at diff=1) * 19.8e9 (current Bitcoin difficulty)) * 25 (BTC/block) * 590 (USD/BTC) = $262000/month
The article says their electricity bill is $60k per month. Subtract the 3 employees salaries, say $5k per month (this is China). So you are looking at a pure profit of $197k per month. Of course these profits are declining quickly over time; look how fast the difficulty has been rising: http://bitcoin.sipa.be/speed.png (logarithmic scale!)
And this mine only represents 0.3% of the total network speed (about 170,000,000 Ghash/s).
Edit: bellerocky: most exchange fees are Edit: FigBug: roughly yes, but because the network is growing, there are more than 3600 coins mined per day (blocks are solved a bit more often than every 10min).
Re: Inside a Chinese Bitcoin Mine
#7Is there any estimate of how much income this particular mine can produce, compared the the capital outlay and the ongoing costs?
This operation currently mines about $262k per month: 230e9 (each machine does 230 Ghash/s) * 2500 (# of machines) * 3600 (second/hour) * 730 (hour/month) / (2^32 (average number of hashes to solve a block at diff=1) * 19.8e9 (current Bitcoin difficulty)) * 25 (BTC/block) * 590 (USD/BTC) = $262000/month The article says their electricity bill is $60k per month. Subtract the 3 employees salaries, say $5k per month (th…
> So you are looking at a pure profit of $197k per month.
Not including liquidity issues and fees for turning that stuff into actual money, at least until you can start paying all your bills with bitcoin.
Re: Inside a Chinese Bitcoin Mine
#8I wonder about the effects of such establishments on the Bitcoin ecosystem as a whole. In theory, they're supposed to strengthen the network by providing more hashing power. But what worries me is the onset of mega-pools composed of such factories that will gain >51% of the network's computational power effectively gaining a monopoly on Bitcoin.
That's the one thing that keeps eating at me. Would it not be trivial for a large corporation or government entity to throw enough money around to accomplish this? The only response I hear is that the market will magically prevent this.
Re: Inside a Chinese Bitcoin Mine
#9What is their internet connection, fiber? Surely they must have a special contract or multiple providers.
Re: Inside a Chinese Bitcoin Mine
#10Is there any estimate of how much income this particular mine can produce, compared the the capital outlay and the ongoing costs?
This operation currently mines about $262k per month: 230e9 (each machine does 230 Ghash/s) * 2500 (# of machines) * 3600 (second/hour) * 730 (hour/month) / (2^32 (average number of hashes to solve a block at diff=1) * 19.8e9 (current Bitcoin difficulty)) * 25 (BTC/block) * 590 (USD/BTC) = $262000/month The article says their electricity bill is $60k per month. Subtract the 3 employees salaries, say $5k per month (th…
that doesn't include the cost of hardware but I guess it is negligible... and I thought mining was not profitable at current prices.