Earlier I wrote an article I wrote an article on how to mine bitcoin for under $99, which included step by step directions on going from 0 to mining. I’ve included a link at the bottom in case this story has convinced you that bit coin mining is your rocketship to the one percent. Let’s start by answering the only question which really matters when we pursue ultra speculative bets like bitcoin mining:
Am I making any MONEY?
Let’s start by logging into my mining pool so I can understand can my machine’s contribution to the overall mining pool, as well as my reward. Remember, a mining pool takes the resources from my computer and combines it with the resources of the other computers in that pool. The pool members will share, in the pool’s profits based on their machine’s contribution and will pay the pool operator (slushpool) a small fee of 2%. In this experiment I let this mining rig run from Christmas day 1200am to 200pm. Maybe santa will give me a special present?
Taking block ID 38141 as an example, the pool’s aggregate hash rate was 3.901 E/hs which mined a block value worth 12.59788697 bitcoin. My contribution was a hash rate of 7.17G/hs for which I was paid 0.00000002 bitcoin.
Let’s do some math (1 BTC = $3769.99USD as of December 2018):
The pool’s total block value over the 12 to 16 hour window was approximately $716.251USD, my baby $99 mining rig’s payout? $0.0004 cents. That’s less than one one-hundredth of one penny. Also take into consideration that each mining pool as minimum payout thresholds. For slushpool i’ve set it at 0.01 bitcoin:
With the machine’s hash rate of 7G/hs combined w/ the current mining complexity, i will hit the minimum payout of .01 BTC in 12 years.
What about electricity?
Remember that this machine, no matter how cheap, costs you money to operate, this is electricity. Gekkoscience’s technical documentation indicates this device will use approximately 7.5watts of power to operate per hour. If we look at the the United States’ Electricity profile we can see that the average cost of 1 kilowatt in the state of California is 15.23 cents. We can use that to calculate annual operating costs for our mining rig:
When we put the operating costs and anticipated profitability together, we see that our payback period is never, and at the current price of bitcoin (1 BTC = $3769.99USD) we’ll operate in the red for all eternity.
Darn, looks like my yacht will have to wait. If the thought of waiting on the sideline for the next bitcoin rush makes you lose sleep, check out our step by step instructions on how to set up your own bitcoin mining machine for under $99. Just tell the ferrarri dealership the check’s in the mail!