How profitable is Bitcoin mining? (Part 3) Analysis of Giga Watt using an idealized model.
This is one of the posts of "How profitable is Bitcoin mining?".
- (Part 1) Answered in an idealized model
- (Part 2) Analysis of Genesis Mining using an idealized model
According to Giga Watt's Standard Miner Options:
ASIC S9 13.5 TH/s, price 0.5751 BTC, 1455.3 W (=1323 W * 110%).
It should mine about 0.00409 BTC per day. The total hosting fee is ¢9.75 kW/h.
Given k=4 and a0=0.00409, in a year the mined Bitcoin becomes about 0.806 BTC and the accumulated maintenance fee becomes USD 1242 (~ 0.0975 * 1.4553 * 24 * 365, USD 3.41 per day).
Further, we assume the Bitcoin price is a constant (USD 2700, today's price). In about 310 days, the fee is greater than the value of the mined Bitcoin (~ 0.00409 * k**(-309/365.0) * 2700), and the mining is no longer profitable after then.
The reward until then is about 0.352 BTC (0.742 BTC minus the accumulated maintenance fee USD 1053).
You can save your hosting fee as low as ¢3.30 kW/h, if you have Giga Watt Token (WTT). If you have 1455 WTT, then given k=4 and a0=0.00409, in a year the mined Bitcoin becomes about 0.806 BTC and the accumulated hosting fee becomes about USD 421 (~ 0.033 * 1.4553 * 24 * 365, USD 1.153 per day).
Further, we assume the Bitcoin price is a constant (USD 2700, today's price). In about 595 days, the fee is greater than the value of the mined Bitcoin (~ 0.00409 * k**(-595/365.0) * 2700), and the mining is no longer profitable after then.
The reward until then is about 0.7085 BTC (0.9626 BTC minus the accumulated maintenance fee USD 686).
The net profit is BTC 0.1334 (≒ 360 USD).
According to the ICO website of Giga Watt tokens, you can rent out tokens at the rental fee ranging over 4.2 to 6.45 ¢/kW/h.
Thus, the annual rental income of 1455 WTT would range over USD 535.32 to USD 822.10.
Renting tokens would be better than accomodating your own miners at Giga Watt.
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STOPWhy do you calculate 309 working days instead of 365 days?
Because, in that case, it is not profitable any longer after then and had better stop it.
How could Giga-Watt improve their concept to be profitable for customer and Giga-Watt? Is mining at home profitable?