Hi Miners/Future Miners
I wanted to give a run down on my experience of mining (Hard drive and GPU) and why I do not think it is something worth ANYONE getting into (while the returns
remains so small). Im doing this in an attempted to have someone convince me otherwise or to stop anyone else wasting there time.
So the first thing everyone needs to know is that the “profit calculators” do not give accurate information. First the burstcoin calculator doesnt factor in
electricity, you will see below why this is a problem. While GPU “profict calculators” only calculate the cost of the GPU electricity usage.
Secondly the point of cryptocurrency is to be decentralized which means theorectically they do not want big mining farms and actually want alot more smaller miners.
This can be fun to be apart of but for the smaller miner with just 1-2 GPU’s this just isnt viable.
Thirdly the maths:-
To keep this simple I’ll be doing this in GBP as im from the uk.
So according to the “profit calculator” you get approximittly 1 burst per day per 1tb plot, which is accurate from my experience.
On current prices thats approximately 2p (actually dropped to 1.3p over the past week) per day per 1tb plot.
When my pc idles it is draws approximately 50-60w per hour.
At my electricity prices that is approximately 13p per day.
When mining with 1tb my pc is drawing between 50-90w per hour.
I’ll average this at 65w per hour due to the downtime between blocks.
At my electricity rates this is approximately 17p per day.
So from the above results clearly mining with 1tb plots is not profitable, you would be losing 15p per day.
But how big of a plot would you need to be profitable?
Lets assume you used a 5tb HDD that draw an extra 25w.
At my electricity rates this is approximately 19p per day.
But again with 5tb your getting 5 burstcoin which is still a 9p loss per day.
Maybe two 5tb HDD that draw 25w each.
At my electricity rates this is approximately 25p per day.
Again this is a 5p loss.
Lets go big with ten 5tb HDD (50tb) that draw 25w each.
At my electricity rates this is approximately 80p per day.
Ok finally this is a profit of 20p per day.
So we finally have a profit. But “normal” people do not have ten 5tb HDD just laying around the house. So how much would this cost to set up?
Average price from eBay, gumtree or amazon is around £22 per 1tb (if you buy higher capacity drives).
So if we buy ten 5tb HDD that would cost us £1100.
At profit margings of just 20p per day, this would take 5500 days to pay back or 785 weeks or 15 YEARS!!!
Clearly this shows that the burstcoin decentralized aim is not a viable plan unless they find millions of people willing to lose money for nothing.
Ok so burst ming isnt profitable but what about GPU Mining?
So i started my experiment by purchasing an AMD RX 480 for £215 and wanted to see how long it would take to earn back my investment.
So we already know that my pc costs 13p per day when idle.
When mining my electricity usage goes up to approximately 200w, this is approximately 52p per day.
Now whattomine.com suggests that I can make around $1.00 - $1.10 per day (without factoring power costs).
first lets convert this into GBP. So now we are looking at 74-82p per day (without factoring power costs).
From my experience this was an accurate average for the day.
So if we take our energy costs from our daily earnings we have an average of 26p per day.
So how long until we pay off our graphics card?
This will take 827 days or 118 weeks or 2.2 YEARS!!!
Even after waiting this 2.2 years we are still only earning £7.80 per month.
So clearly mining as a small miner this isnt worth the time and effort when you concider that your graphics card is going to be running continuously for 2.2 years. There is also the risk that the card could die from over use in this time.
Now i cant comment on larger rigs as i havent done this calculation, however I would suggest that the pay back time for six GTX 1080ti’s would be so long that it wouldnt be worth investing in it.
I enjoyed my time mining, watching all the numbers going up and down the screen gave me a sense of productivity. However under all that, waiting in the darkness was the TRUTH. I was spending more on electricity and parts than I was earning and my efforts only gave me a bit of fun for a little while.
Yes I know I havent got the most energy efficient “Rig” however the increase from a more energy effient rig would only effect the 13p per day idle cost.
I would suggest that if you want to invest in bitcoin/altcoin then just put your money straight into it and buy it rather than buy the equipment. However if everyone begins to see everything I’ve seen then there will be less miners and cryptocurrencies will become alot less decentralizes which pretty much makes crytocurrencies pointless.
I actually enjoyed mining so I would like someone to prove me wrong on this.