This news just came out of Compass Mining, so perhaps hold off or use a different host if you choose to move forward with mining: compassmining.io/education/compass-mining-announces-ceo-resignation-and-naming-of-interim-leadership/

Fixed cost of (energy or lease or whatever) $186 per month over 36 months = $6,696 Total bitcoin mined over 36 months = .219 ($6,696 / .219) = $30,575 This would signal the long term fixed break even price needs to be a little over 30K. If the price remains below for too long, miners would be turned off and the competition would shrink. This would increase an expected mining rate until break even is reached. For instance ($6,696 / .438) = $15,287 Another possibility is the long term fixed cost to mine is reduced. Maybe going from $189 per month to $126 per month in the example below. ( $4,540 / .219) = $20,730

@ValueForInvestors

2 жыл бұрын

Thanks, that’s a great formula to keep in mind. I’m not sure if Compass Mining offers decreased rates in this example - I think the idea is you’re locked into the hosting rate for the 3 year period. That’d be a great offer to look for elsewhere though!

But aren't we missing the point of mining here, while yes.. may take some time to ROI but ultimately your miner keeps producing a potentially rising asset overtime vs dca'ing you have to keep putting in your capital.. am I missing something here??

@ValueForInvestors

Жыл бұрын

The miner keeps producing at a cost - unless you get free electricity, you have to factor in that you're paying to keep things running forever. Conversely a lump sum costs you nothing to sit on for years and years. The numbers also suggest you need to keep investing into more mining rigs to stay competitive on the network.

Hmm question, what happens after the 36 months? You payed 5900 for a machine, do you get said machine back, or do they buy it back? You could then theoretically get a BTC dump equal to the $ value of the machine that might move the numbers a touch! The price of those machines tends to move upwards with the price of BTC, so in theory you invested in the tech as well, which could multiply investment with a bull market. If however they keep the miner, I would say 100% a bad deal!

@ValueForInvestors

2 жыл бұрын

Oh that is a great point! You can either re-sign/extend the hosting after 3 years, or sell the miner (it's 100% yours). Compass Mining also has a built in marketplace on their website so it's super easy to list for resale. Then the question is if the machine is still viable/competitive in 3 years and how much you could resell it for 🤔

@AdobeMastersOfficial

2 жыл бұрын

@@ValueForInvestors Ah kk cool. Yah that could definitely move the numbers than if you could successfully sell the crypto! Could also maybe have some advantage to starting with a used machine on their platform, maybe they will have a better showing or a less risky jump into the mining space. All really interesting points to take when considering what to do!