Very curious but overwhelmed...should I get into all the crypto currency fun?

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Ch33rios

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Nov 29, 2016
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So with all the talk about crypto currency and hearing my colleagues and even vendors I work with talk about their "profit" after getting into mining, I can't deny that it all sounds extremely enticing.

However, the more I look into it the more confused and overwhelmed I get. Also looking at calculators and such makes it seem like all the work isn't THAT much of a return. Perhaps all the profit is in the meteoric rise in value over time for some coins?

But really my question is this: what tips/considerations do any more experienced people have for folks looking to get into mining?

What if I have access to powerful CPU based rigs...are those even remotely helpful?

What currency is good to get into?

What about mining pools?

I almost pulled the trigger on one called Ripple the other day based on my friends discussion about it and I was feeling impulsive but at the last moment before I handed over all my personal info to some exchange, I stepped away from the keyboard

So I appreciate any insight from y'all. Thanks in advance!!
 

Marsh

Moderator
May 12, 2013
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Take your time to learn about crypto, do not follow the hype.

I promise you there will always another boom and bust cycle.
Learn about it now and have fun , wait for the next boom cycle.

Do not over commit yourself, risk more money than you could afford.
Treat it as fun and gambling money.
It is just a hobby that happen to make money to pay for the toys.

Start small with hardware that you already have, do not overpaid during the boom cycle.
Buy your hardware cheap during the bust cycle.
 

Patrick

Administrator
Staff member
Dec 21, 2010
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I am writing an editorial for the STH main site on this from the perspective of a six-figure year mining operation and having operated it for over a year. Everyone I meet with these days wants to talk crypto, and I only let about half the folks I speak with on the topic know that I have a decent sized operation.

Here are some of the bullets from the outline:
  • If you have to buy hardware, look for 3 mo payback at current rates and expect it to take 9 months for payback
  • You essentially need cheap power for this to work. After you have hardware, all you think about is power
  • We are in a major bubble. It will burst. Bitcoin is down ~20% in the last few days
  • If you do not have cheap power and cooling along with hardware that is idle, you are most likely better off just buying currency directly than mining. If I had put $10k in Monero when it was $8-12 and we started mining about a year ago on STH, that would be worth $380K+, much more than I have in crypto assets at the moment. Mining is a slow way to take advantage of price appreciation.
  • Somewhere along the way, if you do not scale your mining operation, mining becomes less exciting. If you have $50,000 in crypto and have $10/ day in mining, then it is hard to see compared to daily exchange fluctuations.
  • You will always wish you had something else, and that will change day by day.
Here is the good side:
  • You can use mining to learn about crypto currencies. That is a good thing. It is now an application that everyone knows exists, even if they do not know what it is.
  • If you have cheap power and hardware, go for it. If you have good CPUs we have a substantial pool for one of the best coins to mine with them: STH Aeon Mining Pool Beta Access (shameless plug)
  • It is a great way to learn about technology and get involved in the STH community
More coming in a cohesive piece next week.
 
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exahash

New Member
Sep 22, 2017
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I started mining over 6 years ago. I couldn't agree more with Patrick's points, though I'm going to put a different spin on it...

Only get into mining if you are either:
a) planning to keep it small and just for fun (i.e. mine on your existing desktop or servers, but not buy a bunch of extra hardware)
or
b) planning to scale up and have some kind of edge like excess (or dirt cheap) power, or a big sunk cost like extra hardware laying around

If you scale up your operation you will quickly find out it is a job unto itself. Stuff breaks, seasons change and heat becomes an issue, software changes and needs updating, among other things.

Had I put every dollar I spent on mining hardware into BTC at the time and hodl'd I'd be a multi-billionaire as of last month, so there's a lot to be said for just buying BTC (or XMR - which is why I'm here)

Don't get too hung up on which currency to mine - mine whatever gives you the most profit (you can trade into any other crypto very easily)

And don't just start buying parts, building systems, and mining without a plan. It can become an addiction. :)
 

Klee

Well-Known Member
Jun 2, 2016
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If you are more concerned about profit study and just buy them.

If your looking to have a new hobby that will teach you about a newer up and coming tech then start mining even if its on a regular pc thats not too old you will learn a ton.

To me its a hobby that pays for itself and thats a rare thing.
 

Ch33rios

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Nov 29, 2016
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Thanks for the feedback everyone! I'm definitely interested in it from a hobby/technology standpoint but its also truthfully interesting from a monetary standpoint as well ;)

I do have some hardware coming to EoL that I'll have access to but its all CPU power, no real GPU hardware at the moment besides a 1050 ti which would be sitting idle most of the time in my ESXi server except when doing some emulation so perhaps that can be my 'toe in the water'. Power, as many have pointed out, is an unfortunate down side for me. I live in one of the higher if not one of the highest per-kwh cost places charging just over $0.30/kWh during peak usage and if you're considered a 'high consumer'. I'd say on average for me right now I probably sit in the high teens to low 20 cents/kWh.

A 1050 ti wouldn't really wrack up the bill at the end of the day so since I dont really have any hardware to buy and I've got some free cycles to try things out..why not it sounds like?

@Patrick I'm looking forward to your article for sure. Also, maybe I'll circle back when my hardware becomes available for that pool ;) Although I dont fully understand how pools work...perhaps that is part of your article?
 

keybored

Active Member
May 28, 2016
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... and hearing my colleagues and even vendors I work with talk about their "profit" after getting into mining...
That's likely a warning sign...
But if you still want to get your feet wet keep in mind that tax reporting requirements are more onerous if you're mining compared to just investing in crypto.
 
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Joel

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Jan 30, 2015
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That's likely a warning sign...
But if you still want to get your feet wet keep in mind that tax reporting requirements are more onerous if you're mining compared to just investing in crypto.
I agree. Been thinking about this a lot, especially with the price increases of Vegas. I have 2 64s that I bought for $550 on Thanksgiving day and a third on the way at $730. The next ones I buy will be for less than MSRP ($499) after the mania is gone. I've been considering selling the ones I have even, as they're going for ~$900 on Ebay.