Thoughts on building a mining farm in Mongolia

Got any ideas or tips?

Which suggestion are you looking for in particular? Do you think that by making a two-word message here we're going to produce you a business plan and all that without having any information? If you really want help or advice, you're going to have to communicate details about your project : What infrastructure do you have? What electrical capacity do you have? What's your energy price? What taxes are applied to mining in Mongolia? Is it easy to import equipment to your country (I imagine it is)? Do you own enough money to start this kind of project ? These are all questions you should normally ask yourself before starting on such a project, but don't think we can give you any advice or insight if you initially don't share any information about your idea.

From what I've seen on the media, Mongolia is bitcoin friendly and there's availability of cheap electricity, especially in the town called Ordos, and many miners are already taking advantage of this. But how large is your pocket in getting the necessary infrastructures and covering the installations. Just as iwantmyhomepaidwithbtc2 said, your two worded post is not enough, you really need to be specific in what areas you need guide or assistance, so that the forum members can be of help to you. Merely looking at your post many persons will not take you seriously. So you might want to update your post and give more information.

I apologize for asking imperfect questions. Here is more information: 1. It is located near Ulaanbaatar, the capital of Mongolia. 2. Electricity rate $0.02/kwh (floating) 3. Stable coal supply electricity and the government recognizes bitcoin mining as a legal industry. I have some questions about this information: 1. very obvious advantages, why there are not many farms there? 2. Is the Mongolian government trustworthy?

Sounds like a great plan, cheap and stable energy is the best foundation to get started. However, let me just take into account the halving coming in less than a year for your profitability calculations. I don't know, it's hard to answer these questions. As far as I know, there are already mining operations in Mongolia, but it's hard to get precise stats or numbers. Your proximity to China should give you an advantage when it comes to importing equipment. Perhaps miners don't brag and are discreet? Perhaps only few people there have the means to invest in such an operation? As for your question about the government, I think only fellow Mongolians could answer it objectively. Can I ask you what you're worrying of if it's legal? Customs when importing equipment or taxes? are you afraid of potential corruption ?

If the government there recognizes Bitcoin mining as a legal one, it can be said that it is a good sign that you can build Bitcoin mining in that country where you are located because your kwh is also cheap there, it is only 0.02$ that is cheap as a place to will perform mining in reality. Now how many mining rigs do you intend to mine there dude? I'm just asking.

My plan is to buy some used miners (similar to M31S M21) from China at a low price, around 1000 units.

Ordos is in China. Inner Mongolia is a province of China and not of Mongolia the country! Cheap energy doesn't mean that's the real cost, the 2cents/kwh is the subsidized government price, and you might not get your licenses to benefit from that accepted or prolonged. The grid is split in 3 parts and it's not that reliable, one part is just tiny and one is heavenly dependent on Russian imports. Cheap energy also doesn't mean abundant energy, in the best case scenario the entire energy produced in the country would feed around 200k miners, that's less than 7% of the total hashrate right now, now think how much they have to spare.

Maybe most people just have limited awareness and knowledge about the potential benefits of mining in Mongolia. I've also read some conflicts between miners and pastoralists over the use and control of land and water resources.

is actually a good plant but the  Electricity rate is floating and like you have said next year is halving so the OP should need an efficient miner so he can back the Break-even point in less than a year. Oh also don't forget about reliable internet connection if like you have said "government recognizes bitcoin mining as a legal industry." why you have to worry about if legal just fill the gov. paper and start doing your business. Im rarely know there is farm in Mongolia but i do hear farm in kazakhstan

Your country and its weather is already perfect for bitcoin mining. Bitcoin mining already has the backing of the government which is like a go ahead for others join in. Asking why there are not many farms despite the advantages of it could be that bitcoin mining equipment cannot readily be sourced in the Mongolian market and maybe the cost of importation and entry for foreigners is very high so they just avoid it. Maybe there is high tax rate for bitcoin miners. There are just too many reasons. And asking if the government is trustworthy is a very valid question but I would need to know in worth sense do you mean if they are trustworthy? Taxes? Regulations?

With such tariffs, it would be a new heaven for miners, but something is not right here. On the left is Kazakhstan, on the right and below is China. Both countries banned mining or made it unprofitable. I have not heard that miners from Kazakhstan or China have fled to Mongolia, although it does not take long to transport equipment across the border.

Yes ... hop over the border and join us in Siberia

That's an attractive electricity rate for crypto mining, you've asked the right question OP, many newbies are too concerned about how much they will make with an Asic miner, they don't know that electricity bill has a big role to play in their ROI, it's a good plan and you are free to proceed unless the country isn't supporting crypto at all, like ban or there is a law to stay away from anything crypto related, if not you are free to go. I don't think we have Mongolian citizen on this forum that can answer this question perfectly, and I thought that's where you reside? But it seems you are not, which isn't looking good, something like mining should be build where you stay, don't leave for another country because of mining when you don't understand the law of that country yet, could put you in trouble, do your own research about the country first before making any decision.

This is feasible and you can try your best to do it. You will thank me and ask me if you need help or expertise.

Not sure why the above poster brought this topic back to life, however, I can't help but answer the question You don't need to be a Mongolian to know a few basic facts. 1- Mongolia doesn't have any considerable surplus of energy 2- Blackouts in Mongolia are not rate since A- The consumption vs. generation is pretty close B- The overall infrastructure isn't great. However, regardless, another major concern for large miners is the stability of the country's laws, People who do their own research know what happened to the large Chinese miners who fled China to Kazakhstan and other countries like Iran, it turned out those governments weren't anti-bitcoin mining until there were some large mining operations there -- then shit hits the fan. It's either those miners suck the life out of the grid and cause the whole grid to face issues, people start complaining of low voltage, power outages and the government would be forced to either ask them to shut down, or impose some extra mining fee/tax that would make the miners run away, so now anyone with serious money at stake won't risk going into a country that doesn't have clear cut laws for large miners. Mongolia is more likely to end up as Kazakhstan as far as miners are concerned, Russia might have better potential than all of these countries, but still, it will take years for foreign miners to trust Russia, so when it's 5 cents in the U.S / Canada vs 4 cents in another country, large miners (including the Chinese and the Russians) will probably be more comfortable operation in the U.S at 5 cents, trust is hard to gain, thinking that just because a normal person who runs a TV and fridge pays 2 cents per kWh then that country is a perfect for BTC mining is just wishful thinking, some people don't understand how much power BTC mining needs when done on a large scale.

I would hate to more 100 ph setup and have to end it in under 1 year. If I knew I could do 2 years it would be more attractive.

The problem is, you don't even know if you are going to get that one year, You are going to need to take a huge risk by building the mining farm, shipping the mining gears, and probably doing the visa/travel paperwork for a few dozen employees, all while being totally uncertain about the outcome, you don't know if your cheap power rate will be there in 6 months, you don't even know if the whole business becomes illegal the moment you get your first pay out. Since the risk is too huge, the rewards need to offset it, if it's 1 cent per kWh that I am going to save by operating in a risky environment, then no way I'd take the risk, if the cheapest "safe" place is 7 cents, and some place like Mongolia is 2 cents, then ya that could be a risk worth taking, but, power for large miners in Mongolia isn't going to be 2 cents, plus, finding 5 cents deals in the U.S is pretty much doable, so we are getting close to that 1 cent different, where things are -- not worth it.

There are locations in Russia where electricity will cost 2 cents per kilowatt, but as always, you must be confident in your partner. The partner will take a third of the profits from you, but you will not pay taxes. Some may find such cooperation beneficial, but if your partner lets you down, your mining equipment will be taken away. And perhaps your partner will be the beneficiary. And at 5 cents per kilowatt, locations without such risks, but not a fact.

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