Electric Bill Optimization through Bitcoin Mining

Hey folks, appreciate any insights you can share. I’m in the process of building a new house out in the country and it’s gonna take a lot of electrical investment. The power company is hooking me up but they’ve slapped a $350 monthly minimum usage fee for five years. Right now, the rate is about $.119895 per kWh, which means I’ll be paying for 2,735 kWh each month. Even if I don’t use that much, I’m still on the hook for it. For the first eight months, I won’t be using any power, and after that, I’ll only be using about 1,200 kWh per month, leaving me with a surplus of 1,535 kWh each month. To make better use of this, I’m thinking about getting into BTC mining. Total sunk cost for electricity $21k ($350/month for 60 months) Miner cost ? Internet setup ($800 to start 8 months earlier than planned) Dedicated PC $400 By the time the 60 months are up, I’m estimating I could earn around .80 BTC, so as long as the price is over $45k, I should be in the clear. I’d love to hear your thoughts, critique my plan, and let me know if I’m missing anything important. Thanks a ton!

I am not an expert in BTC mining, but I will tell you that if you want to mine seriously, you need to invest a large amount of money in mining devices. I also think that it is difficult to calculate in advance that you will earn 0.8 BTC, because you have to count on many factors - and also take into account possible device failures and interruptions in the supply of electricity. There is a mining board, so I recommend that you look for the move button and move the topic there, or that you lock this topic and open a new one. Mining

Using electricity calculator[1], you'll need ASIC that use around 2100 watt to use about 1.5K kWh per month. But looking at Bitcoin ASIC by most energy efficient[2], most of them have higher watt usage (Antminer and other bulky ASIC) or have poor price/hashrate ratio (Bitaxe). ASIC these days usually have it's own "computer". So you just need to connect the ASIC to network and use browser to open ASIC dashboard and configure it. So i think you could just bring your phone to do that one time. [1] https://www.calculator.net/electricity-calculator.html [2] https://www.asicminervalue.com/efficiency/sha-256

1535 kWh per month is 2.13 kW/kilowatt per hour. This is very little available power for Bitcoin mining. And if you pay extra for excess consumption at a price of 11 cents, you'll be mining at a loss. Perhaps I misunderstood your post; I'd like to see your calculations.

How did you calculate to expect to mine .8 BTC during such a long period of mining (60 months)? You buy some mining gear and with that you basically have a somewhat constant but limited hashrate (unless you add gear). Did you take difficulty adjustments into account? (I didn't do a quick napkin calculation to estimate if you've taken this into account; my gutt feeling tells me, you didn't). Have a closer look how global hashrate evolves over past months and calculate a few scenarios for your 60 months time frame how global hashrate might develop (you can extrapolate the past into the future; block subsidy adjustments could pose some challenges, depending how Bitcoin rate develops). When your own hashrate is constant and global hashrate and difficulty rise, guess what that means! Hint: your mining gear earns you less and less coins because your hashrate proportion sinks...

60 months is smart but if you can calculate that way correctly you shouldn't be mining and just buying it at the low points and selling at highs

I'm assuming you're too old to believe in such fabulous conditions. If that were possible, all these places would already be occupied by local miners. Even in my country, there's cheap electricity or government-subsidized tariffs, but they have consumption limits. Once the limit is exceeded, the price isn't so attractive.

op can use just one Bitmain Antminer S17 Pro with 53TH/S, which pentencia is 2000w, can generate 1.5 to 2 usd per day if btc price stay in 85k

45-60 USD per month barely cover OP's monthly electricity price though. In addition, you need to consider the ASIC price (which is less than $500 for used one from quick google search). I doubt OP would put that much effort.

Op needs to buy a 1 board t21 for 800 dollars. look at mine https://bitcointalk.org/index.php?topic=5568422.0 only 911 watts to do 53th 53x 3.69 cents = 1.95 a day and watts are far less than 2000

First, you need to find a working Bitmain Antminer S17 Pro ASIC with 53TH/S that will run smoothly. To use an analogy, it's like buying a 15-year-old car and turning it into a taxi service. These are very strange ideas for making money; I wouldn't bother with them.

he is so much better off with a 1 board t21 they run cool they are quiet and you can fully control how fast to run it. Most of the parts come from altairtech.io or he could get the 2 board one for 1600 it will do 110x0.0369=4.059 a day he is prepaid for 60 months. He can do the 110 th and then dial it down if it is too much power. the 1 board t21  https://www.youtube.com/watch?v=elFBWMKimmM the 2 board t21 https://www.youtube.com/watch?v=KR9NQyfi2wk&t=1s I do not want to say these do not break often, but due to the lower power density and better temperature controls these do not break as often. As the 3 board going full tilt here is a new screen shot with the gear juiced up just a bit. it is 930 at night in New Jersey by the morning it will be colder and these numbers will get just a bit better

$1,600 is very expensive. In Russia, if there's cheap or free electricity, a miner would rather buy a S19 ASIC for $200 with 90-100 terahash and build a noisebox, or buy one used for $30-50.  I understand that in the US this is a small amount of money, but in many countries around the world $1,600 is an expensive investment for the average miner.

Yeah 1600 or 800 is a chunk of change. But he prepaid over 10,000 for 6 years of power. SO a more durable unit for more money should be okay for him.

Since you are essentially pre-paying for the power, your marginal cost for electricity is $0, which makes you more profitable than 99% of home miners. You don't need a $400 PC for mining. ASICs are standalone units; you just need an Ethernet cable and a browser to set them up. Redirect that $400 toward better hardware.Look for a near-new Antminer S19j Pro or S19k Pro. They are the most reliable workhorses right now. Since your power is low cost, your only real risk is the hardware failing before it pays for itself.

They burn too much power. He needs to burn 2000 watts . The s19 's burn close to 3000

Have you tried calculating its payback? With such a limited power consumption, the idea may not pay off, and if the equipment fails, it could even result in a loss. Alternatively, you could try solo mining, but you need to account for the constant growth of the hashrate.

Well the build will last longer. As the lower temps do far  less strain So 3.70 a day with 100th means 400 days you go to 1480[it is worse since value per th tends to drop. But 700x3.70= 2690 So if value of th drops he will have 1600 instead of 2690. So He pretty much is fully paid in 700 days [barring breakdown] 6 years power is 2100 plus days. So the last 1400 days he should clear 1.50 a day or 2100 bucks I assume the 6 years power is true. That is spent already. I would likely do this if I was in his spot.

I agree with your calculations, but that's a very small profit over several years. Everything is great when the equipment operates flawlessly, but if there are problems, downtime and repairs will increase the payback period. A simpler option is to rent out the location to other miners.

Yeah less risk and less out of pocket