- Bitcoin mining can be a cheaper alternative to buying the asset at a volatile price.
- Miner JP Baric shares all the platforms he uses to determine profit ratios.
- To be profitable, an investor must take into account the price of the machine, electricity consumption and pool costs.
With the price of bitcoin going over $ 30,000, you could easily feel like you missed an opportunity to get in early. And while cryptocurrency continues to grab the headlines on a daily basis, investing in an asset that has fallen 50% within months of hitting an all-time high of around $ 65,000 seems risky.
This is why JP Baric, CEO of MiningStore, prefers to invest in a bitcoin miner rather than buying the asset at a volatile price. His current favorite, the Antminer S19 pro, costs around $ 10,000 and has a lifespan of around three to five years, he says.
Baric has been an avid miner since he was a freshman in high school in 2013. At the time, bitcoin mining was out of reach for him because it required expensive ASIC machines. So he started by mining litecoin using GPUs installed in his parents’ basement.
“I was reading TechCrunch in school and saw that the price of this digital currency was going up in 2013. And I thought it would be a success and it was very cool because it separated the money from the government,” said declared Baric.
At the time, he was running a robotics summer camp where he taught kids how to build Lego robots and how to program them. He told Insider that all money made from his work will be set aside to buy crypto mining hardware.
In 2016, he was able to start mining ethereum after combining his capital with money from family and friends and purchasing 300 graphics cards. This allowed him to gain around 500 ethers per day, he said.
Baric installed the ether extraction platforms in a former clothing factory which he rented in order to gain access to lower electricity costs.
“I drove about an hour and a half from where I went to school in Raleigh to the site of the mining facility in a former spinning mill, where they made clothes,” said Baric.
Today, he oversees three facilities in Iowa, Colorado and Oklahoma with more than 3,000 bitcoin miners used for internal profit and on behalf of clients.
Baric is part of a growing industry. The global cryptocurrency mining hardware (ASIC and GPU hardware) market is expected to grow by $ 2.80 billion at a compound annual rate of more than 7% from 2020 to 2024, according to Technavio, a global company. marketing studies.
Baric said he was able to expand his business into bitcoin mining as finance companies are now lending money to fund the operation. It also allowed him to sell and house minors on behalf of clients.
In an interview with Insider, Baric explained in detail what you need to know about bitcoin mining and how you can run your own platform at home.
Costs versus profitability
The first step in determining profitability is to check the costs of electricity, which is about 80% to 90% of the ongoing cost of operating a bitcoin miner.
“If you’re planning to mine a bitcoin miner in your home, you check your local utility bill or research your local residential rates online, and find out what it is,” Baric said. “Usually it will be per kilowatt hour. I would say $ 0.06 per kilowatt hour is a good rate for your home. “
The Baric mining facility in Iowa, for example, costs $ 0.04 per kilowatt because it is offered at a cheaper industrial rate, he noted.
The second step, he says, is to verify the data points on the machine you are considering. This can be found on the manufacturer’s website. Each miner has a different wattage consumption. For example, the S19 uses 3,250 watts of power, which equates to about three microwaves, he said.
“So you need a dedicated outlet or circuit in your home to run this machine. You can’t have other devices on that circuit or on that power outlet,” Baric said.
He also cautioned consumers against buying hardware on platforms that are not reputable as there are so many scams out there. He says some of the best manufacturers in the industry are Bitmain, MicroBT, and Canaan.
Once a miner is up and running, it will need to be connected to a pool, a process that allows miners to share computing power and share profits to receive consistent payouts. The average fees associated with a pool represent approximately 2% of income.
Baric uses a mining pool called Luxor, but he recommends doing your research and considering all available options before choosing a pool. He suggests joining one with at least 5% of the network hash rate to increase the chances of regular payments. These percentages are available on different swimming pool comparison platforms.
it also refers to websites like CryptoCompare.com or ASIC Miner Value to check the profitability ratios of each machine, including estimated electricity costs.
Based on the CryptoCompare website, which takes into account electricity, hash rate, and pool fees, the Antminer S19 is currently generating 0.3204 bitcoin per year. At $ 0.06 per kWh, electricity costs would average $ 140 per month, which would translate into monthly profits of around $ 689. These rates are based on the recent bitcoin trading price of around $ 32,141.72.
Baric’s company, MiningStore, also allows customers to purchase a miner through them and then host it at their Iowa facility. They deduct $ 0.04 of electricity costs and 20% of the profits for the maintenance of the miner.
- Bitcoin mining can be a cheaper alternative to buying the asset at a volatile price.
- Miner JP Baric shares all the platforms he uses to determine profit ratios.
- To be profitable, an investor must take into account the price of the machine, electricity consumption and pool costs.
With the price of bitcoin going over $ 30,000, you could easily feel like you missed an opportunity to get in early. And while cryptocurrency continues to grab the headlines on a daily basis, investing in an asset that has fallen 50% within months of hitting an all-time high of around $ 65,000 seems risky.
This is why JP Baric, CEO of MiningStore, prefers to invest in a bitcoin miner rather than buying the asset at a volatile price. His current favorite, the Antminer S19 pro, costs around $ 10,000 and has a lifespan of around three to five years, he says.
Baric has been an avid miner since he was a freshman in high school in 2013. At the time, bitcoin mining was out of reach for him because it required expensive ASIC machines. So he started by mining litecoin using GPUs installed in his parents’ basement.
“I was reading TechCrunch in school and saw that the price of this digital currency was going up in 2013. And I thought it would be a success and it was very cool because it separated the money from the government,” said declared Baric.
At the time, he was running a robotics summer camp where he taught kids how to build Lego robots and how to program them. He told Insider that all money made from his work will be set aside to buy crypto mining hardware.
In 2016, he was able to start mining ethereum after combining his capital with money from family and friends and purchasing 300 graphics cards. This allowed him to gain around 500 ethers per day, he said.
Baric installed the ether extraction platforms in a former clothing factory which he rented in order to gain access to lower electricity costs.
“I drove about an hour and a half from where I went to school in Raleigh to the site of the mining facility in a former spinning mill, where they made clothes,” said Baric.
Today, he oversees three facilities in Iowa, Colorado and Oklahoma with more than 3,000 bitcoin miners used for internal profit and on behalf of clients.
Baric is part of a growing industry. The global cryptocurrency mining hardware (ASIC and GPU hardware) market is expected to grow by $ 2.80 billion at a compound annual rate of more than 7% from 2020 to 2024, according to Technavio, a global company. marketing studies.
Baric said he was able to expand his business into bitcoin mining as finance companies are now lending money to fund the operation. It also allowed him to sell and house minors on behalf of clients.
In an interview with Insider, Baric explained in detail what you need to know about bitcoin mining and how you can run your own platform at home.
Costs versus profitability
The first step in determining profitability is to check the costs of electricity, which is about 80% to 90% of the ongoing cost of operating a bitcoin miner.
“If you’re planning to mine a bitcoin miner in your home, you check your local utility bill or research your local residential rates online, and find out what it is,” Baric said. “Usually it will be per kilowatt hour. I would say $ 0.06 per kilowatt hour is a good rate for your home. “
The Baric mining facility in Iowa, for example, costs $ 0.04 per kilowatt because it is offered at a cheaper industrial rate, he noted.
The second step, he says, is to verify the data points on the machine you are considering. This can be found on the manufacturer’s website. Each miner has a different wattage consumption. For example, the S19 uses 3,250 watts of power, which equates to about three microwaves, he said.
“So you need a dedicated outlet or circuit in your home to run this machine. You can’t have other devices on that circuit or on that power outlet,” Baric said.
He also cautioned consumers against buying hardware on platforms that are not reputable as there are so many scams out there. He says some of the best manufacturers in the industry are Bitmain, MicroBT, and Canaan.
Once a miner is up and running, it will need to be connected to a pool, a process that allows miners to share computing power and share profits to receive consistent payouts. The average fees associated with a pool represent approximately 2% of income.
Baric uses a mining pool called Luxor, but he recommends doing your research and considering all available options before choosing a pool. He suggests joining one with at least 5% of the network hash rate to increase the chances of regular payments. These percentages are available on different swimming pool comparison platforms.
it also refers to websites like CryptoCompare.com or ASIC Miner Value to check the profitability ratios of each machine, including estimated electricity costs.
Based on the CryptoCompare website, which takes into account electricity, hash rate, and pool fees, the Antminer S19 is currently generating 0.3204 bitcoin per year. At $ 0.06 per kWh, electricity costs would average $ 140 per month, which would translate into monthly profits of around $ 689. These rates are based on the recent bitcoin trading price of around $ 32,141.72.
Baric’s company, MiningStore, also allows customers to purchase a miner through them and then host it at their Iowa facility. They deduct $ 0.04 of electricity costs and 20% of the profits for the maintenance of the miner.