Memoirs of A Bitcoin Miner
Green mining is the dumbest idea ever, Giga Watt mining is not a scam, it just sucks. Genesis Mining has the best marketing team in the world, because they can convince you to over pay by 300%. Why you should mine bitcoin instead of buy it.
Let me start with a story about green mining. A slightly funny one. I got a call from a blockchain company that was sitting on a lot of cash, they wanted to allocate some money to bitcoin mining. The introduction was made by someone I know, and I also knew of the ICO, so I knew we were talking about a serious potential investment. Now, in case you don’t know, I founded elevategroup.io, we’re a bitcoin mining farm located in Irkutsk, Siberia. We’re an old fashion farm, nothing fancy about us, but we have a really good cost basis, so good I don’t think anyone can really compete with us. Ok, I’ll stop the self promotion. Now, we’re not “green”. Nope, we’re old fashion fossil fuel sucking old school dirt cheap energy users. Forgive me, just had to get that out.
So getting on with the story, I got on a call with Mr. Big Investor.
“Hello, how are you, here’s a little about us… told him the details, answered some questions and asked a few of my own. I won’t go over the details because they’re not that important for this story, but here’s what happened…so about half way through everything he said something like this: “we also want to be green”. That’s when I stopped and almost laughed. Here’s a guy considering a couple million or more dollar investment in mining, a business who’s profitability hinges on how low you can keep your costs, and he wants to get green about it. No problem. So I continue to think in my head, this guy is about to spend his investor’s money on mining, his investors might be environmentally conscious people, but I gotta think they are also investors and want to maximize their returns. In the meantime, the person who is managing their money is about to make a profitable one almost not profitable. Yeah, that’s correct. Because to get green energy you have a serious capital expenditure cost. In fact, it’s about $500,000 per megawatt, possibly more. Now I don’t want to take any punches, but I do, so I will. My suggestion to this investor was the following: Why don’t you invest in a mining operation that will make you the most profits, provide you with the right transparency and security, and then take a portion of those profits and donate them to Greenpeace?
No, I didn’t actually say that, but I wanted to. I can tell you with almost 100% certainty his project will not take flight, he will do more research, and realize that the risk he’s taking by trying to go green is not worth the potential down fall of not being able to deliver returns. So it’s not that I am some dirty industrialist, not at all. I just think that each business has to provide value to investors, that is the number #1 responsibility. And yes, mining takes energy, but we all know that taking energy is a lot better than oil in the oceans, plastic mountains somewhere where we don’t see them, and color dies that pollute the air and water. In fact, I heard the most environmentally unfriendly industry in the world was the fashion business, because of all the toxic dies that are used in creating color and fabrics. So the bottom line is this, green mining is not a good idea if you’re looking to make profits from mining. Unless you have some crazy good set up and you can make it work with existing infrastructure, you’re going to spent too much money to get a good return back. There are some ‘green’ mining ico’s out there and it’s all a bunch of hot air.
Getting on with it. Giga-Watt, heard of them? Yeah, they had a super famous and super successful ico a while back. Millions were raised and they were out there creating these mining pods and all this fancy shmansy mining contraptions. Well, about a week ago they made announcements that all their prices were going up- because their original pricing structure was not about profitability AND delivering value, it was about attracting as much money as possible. Now, these guys aren’t scammers, they do actually mine for you, but the economics have all changes, their prices have gone up and what’s more, some people have now waiting 10 months to get their s9 mining rigs going- and yep, they’re still waiting. Here’s their website if you want to look into them: https://giga-watt.com/
Onto another mining giant, Genesis Mining (https://www.genesis-mining.com/). I covered cloud mining about a month ago, if you haven’t read that article, the jist of it is that cloud mining seems to be a total waste of money. I mean look, you want to pay $278 a terahash when you can pay $75? No, so you probably don’t want to cloud mine. But I want to give the marketing team at Genesis Mining a shout out, you guys are good, damn good. How are you getting people to give you their money and what’s more, this whole new discount you’re giving to people who’s cloud mining contracts got cancelled, how are you convincing them to pay you? Unbelievable. If you don’t know what’s going on with Genesis, here’s a youtuber who covered them and what the problem is:
If you want to overpay for bitcoin mining, you know where to go.
If you want learn more about how simple it can be to mine bitcoin the right way, join our community, elevategroup.io or come into our telegram at https://t.me/joinchat/G_33-0m8bs5BGOxkqsHbDQ.
If you want to see what a mine that is not green looks like, here’s my visit to our farm in Siberia:
If you’re watching bitcoin prices, get ready because the bull is coming, and it’s going to kick some ass. Mining in bear markets can be very profitable, and very scary. Last comment here, I get asked all the time, is it better to mine bitcoin or buy bitcoin. Here’s the deal, if you are an expert trader, or you have crazy lucky timing, you can look to buy at just the right time and maybe your returns will be better. But if you’re a passive investor looking to earn a solid return on your money, I’d go with mining. Here’s an example of what I mean, below is the chart of bitcoin for 2018.
Now, if you bought in November at $6,500 and sold a few months later and then bought back and then sold and then, well you get the point- if you are trading bitcoin for a living or know how to trade like a professional trader, with all that requires, then maybe you should continue trading- if you’re consistently profitable.
Most of us are not that guy, or gal. So, if you just went with that “I will just buy and hold bitcoin for the long run” in the beginning of 2018, you are at about break-even on your holdings. If you decided to mine bitcoin at the start of the year, I believe the ROI for 2018 stands above 100% right now, so you would have owed some bitcoin and made over 100% on your investment in one year. What’s more, you still have a mining rig that is producing profits in btc for you every month for another 1-2 years as miners last anywhere from 2-3 years. So you have my answer, I used to be a professional trader, I love trading. But I don’t think I can trade btc profitably on a regular basis.
Nothing in this article should be construed as investment advice, I am not an investment advisor, please do your own due diligence.
Thank you for hearing me babble 🙂 Hope you got some real value out of it.
Founder of Elevate Group
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