A cautionary tale

Joined
Jun 7, 2021
Messages
22
So this fellow, inspired by the idea of making free money by mining bitcoin, went out and bought 6 3090 cards (and all the ancillary stuff; 1500 watt PSUs, MB, CPU...) and set up a mining rig. And then Bitcoin dropped from $56,000 to $30,000, and he wound up earning $29 a day. Gaah. Check the video:
 
Joined
Jun 7, 2021
Messages
22
Oh, I agree! Didn't mean to suggest that he was dumb to have bought 3090s, although he would have improved his ROI if he'd done some more research before jumping in. (And I will admit to some jealousy; that's a high end rig.) Still, he's gonna make some serious cash with that rig over its service life. And the point he makes is valid; even though it will take him 500 days to earn his investment back, that's still an awfully good return when compared to other, more traditional investments.
 

sgrinavi

[H]F Junkie
Joined
Jan 18, 2009
Messages
8,953
Oh, I agree! Didn't mean to suggest that he was dumb to have bought 3090s, although he would have improved his ROI if he'd done some more research before jumping in. (And I will admit to some jealousy; that's a high end rig.) Still, he's gonna make some serious cash with that rig over its service life. And the point he makes is valid; even though it will take him 500 days to earn his investment back, that's still an awfully good return when compared to other, more traditional investments.

I think it's dumb that he bought 3090's.... 20 minutes worth of googling and a some basic math would have saved him a ton of cash.
 

jmilcher

Supreme [H]ardness
Joined
Feb 3, 2008
Messages
5,132
Oh, I agree! Didn't mean to suggest that he was dumb to have bought 3090s, although he would have improved his ROI if he'd done some more research before jumping in. (And I will admit to some jealousy; that's a high end rig.) Still, he's gonna make some serious cash with that rig over its service life. And the point he makes is valid; even though it will take him 500 days to earn his investment back, that's still an awfully good return when compared to other, more traditional investments.
All this assumes there’s the same profit margin for 500 days. (Or more)
 
Joined
Jun 7, 2021
Messages
22
All this assumes there’s the same profit margin for 500 days. (Or more)
Yeah... the age old question: is it going up, or down? Just read an article on CNN that suggested it was on its way seriously down. My personal expectation is that it will be down in the 12K - 16K range a year from now... but I haven't been right about a security since 1982, when I bought Chrysler at $3.50 a share. So don't listen to me.

I think the best approach is just to keep on mining, and not worry about the value of BTC in USD. Eventually - 3 or 4 years - it will be up over $100,000 USD. Then, all the mining we've done will look wise.
 

michalrz

2[H]4U
Joined
Jun 4, 2012
Messages
3,071
29 dollars a day is quite a bit of money where I am. It's pretty much a salary.
But the cost of getting that equipment in the first place is just unthinkable to me.
 

SamuelL421

Limp Gawd
Joined
Jun 3, 2016
Messages
379
this kid is a youtuber. all your daughters and sons are already subbing to him and its a wash at this point.
This, being able to document a potentially bad (or at least questionable) investment will actually net him more views/subs and better ROI vs making videos about a sensible mining rig.
 

auntjemima

Supreme [H]ardness
Joined
Mar 1, 2014
Messages
8,164
29 dollars a day is quite a bit of money where I am. It's pretty much a salary.
But the cost of getting that equipment in the first place is just unthinkable to me.
$29 an hour is a salary, and just barely. $29 is two hours of minimum wage.
 

LukeTbk

[H]ard|Gawd
Joined
Sep 10, 2020
Messages
1,178
29 is still more than zero.

10000 a year for just letting something sit there and run isn't a bad investment.
That pre-tax too, according to him (he could be wrong) it is open to an around 50% tax rate in is jurisdiction, with is setup accounting-company wise he made for it, it sound like.

If it would actually stay at that rate for the next 500 days, and get to sell it back to a good price it is not bad (say 40% of what he paid, that a 40% return in less than 2 year's), but for the risk-work not that good either.
 

Archaea

[H]F Junkie
Joined
Oct 19, 2004
Messages
11,333
But he makes that in a day. Assuming he runs 24 hours, that's $1.20 an hour. Assuming his rtx 3090 is $3,000. 6 gpus is $18,000+all extras.
He should have bought 3060TI or 3080. 3090 aren't worth double the cost for a 15% improvement in hash rate.
He overspent on probably every component since he spent $35K on his mining equipment and only has six cards.
He has six 3090.
6 x 120MHs = 720MHs.
---------
I have that much hashing power between 9 ampere cards and my total outlay was 1/10 what he spent.
4 - 3080 = 400MHs - $800 each = $3200
2 - 3070 = 120MHs - $600 each = $1200
3 - 3060TI = 180MHs - $400 each = 1200
= 700MHs.

I spent $4600 on cards
$180 on a mining motherboard
$200 on a Server PSU setup and cables and breakout boards.
$150 on a 240v Server PDU setup
$40 on a baker's rack
$100 on mining risers
$25 on a SSD
$80 on RAM
$60 on a CPU

I have about $5300 in my setup, and it is 20MHs slower than his. Mine is already paid off and making profit - a month ago or more. And I just started in Jan of this year with a single 3080 card. The last of my nine cards was added in May. His profits are also low. he says $29 a day. I use nicehash and today am making $45. He must not have his cards clocked correctly (undervolted, and mem overclocked). I don't even care enough to watch his video. I just skimmed it - but he's not an example of a cautionary tale. He's an example of a fool's tale.


So yeah --- he did it terribly wrong, and will likely still make money.......
 
Last edited:
Joined
Jun 7, 2021
Messages
22
He should have bought 3060TI or 3080. 3090 aren't worth double the cost for a 15% improvement in hash rate.
He overspent on probably every component since he spent $35K on his mining equipment and only has six cards. He's doing it COMPLETELY wrong.
He has six 3090.
6 x 120MHs = 720MHs.
---------
I have that much hashing power between 9 ampere cards and my total outlay was less than 1/10 what he spent.
4 - 3080 = 400MHs - $800 each = $3200
2 - 3070 = 120MHs - $600 each = $1200
3 - 3060TI = 180MHs - $400 each = 1200
= 700MHs.

I spent $4600 on cards
$180 on a mining motherboard
$200 on a Server PSU setup and cables and breakout boards.
$150 on a 240v Server PDU setup
$40 on a baker's rack
$100 on mining risers
$25 on a SSD
$80 on RAM
$60 on a CPU

I have about $5300 in my setup, and it is 20MHs slower than his. Mine is already paid off and making profit - a month ago or more. And I just started in Jan of this year with a single 3080 card. The last of my nine cards was added in May. His profits are also low. he says $29 a day. I use nicehash and today am making $45. He must not have his cards clocked correctly (undervolted, and mem overclocked). I don't even care enough to watch his video. I just skimmed it - but he's not an example of a cautionary tale. He's an example of a fool's tale.


So yeah --- he did it terribly wrong, and will likely still make money.......
Yeah - I should mention that the 35K he spent refers to TWO systems, with a total of 12 cards. The later system, with 6 3090's, set him back around 17K. And the $29 earnings was generated by the less capable of the two systems, and was the lowest daily estimate over the period of his testing. So yeah, he made mistakes, but no show stoppers; and he will, as you say, make money.
 

Archaea

[H]F Junkie
Joined
Oct 19, 2004
Messages
11,333
UltraTaco
It's a few days old but El Salvador is making BitCoin their reserve currency, instead of USD.
https://infodisplay.infodesk.com/it...41f0995.html?CU=frb5576&APP=6&templateId=7948

Won't take too many countries making that switch to really swing BTC prices up. (El Salvador is small, but I bet they won't be the only one -- they are a first mover and that's a strong choice by their leadership --- in their global and financial position.) They are eliminating all taxes on it, as now it will be a currency - instead of an asset. It's a small pebble, but could make many many ripples.
 
Top