hedgeless_horseman's E-Z Internet Guide to Crypto Mining for Fun, Freedom, and Fungibility

Knowledge is power...Remember that knowledge is a ruler and wealth is its subject.

-Imam Ali, Nahj Al-Balagha, Saying 146

I have already written about how to be your own bank, in my article hedgeless_horseman's E-Z Internet Guide To Safely Buying and Then Conveniently Losing Bitcoin in a Tragic Boating Accident.

Now, let us discuss how to be your own mint, with hedgeless_horseman's E-Z Internet Guide to Crypto Mining for Fun, Freedom, and Fungibility.

I have built and operate several crypto mining rigs, both CPU and GPU rigs, and have yet to cause any fires!  Your luck may vary, so keep a fire extinguisher handy, and have good fire insurance.  As many of you know, I am not an engineer, electrician, or expert in such things.  So, if I can do this, anyone can do it.  But why would anyone want to?

First of all, it is fun!  If you enjoy working on your bicycle, auto, or tractor, building a rifle or personal computer from parts, or doing projects that cause your friends and family to think you have gone full-metal bat-shit crazy (sailboat, airplane, race car), then you will likely enjoy building a crypto currency mining rig.

Second, if you have read The Creature from Jekyll Island - A Second Look at the Federal Reserve, Fifth Edition, and thus truly grok The Mandrake Mechanism, and how The Fed creates money out of nothing, then you should really enjoy disintermediating the Central Banks and creating crypto currency.

Third, you can actually make a bit of money mining cryptos.  In fact, the rig I am going to show you how to build and operate currently costs about $3244 and makes about $2780 per year mining Ether, for an ROI of 1.17 years, or an 86% annual return.  These numbers assume zero electricity expense, because I operate my rigs at offices where electricity is included in the rent which I already pay.  At 0.12 per KWh, revenue drops to $1834 per year.  Here is a mining calculator where you can play with the numbers: 


There are about as many ways to mine crypto as there are crypto currencies.  Why start by mining Ether on a GPU rig?  Because it is easy.  Also, because crypto is fungible, it is simple to trade Ether for any other crypto, like Bitcoin or Litecoin, which are not so easy to mine, because they require much more specialized equipment.  It is also very easy to switch this GPU rig to mine Monero or ZCash, once you get it up and running.

The big expense in this type of rig is in the graphics cards, also known as a Graphics Processing Unit, or GPU.  These are a very popular upgrade item for video game computers, and this demand assures that they are widely available and relatively affordable.  You can operate a rig with a single GPU, and the design I describe handles up to six.  The cards are available in a range of processing power that is in proportion to their cost.  It is better to have the same make and model of cards on your first rig.  I have selected a mid-level speed/cost GPU that can usually be found in sufficient quantity for $399 as factory refurbished.  On average, six of these cards produce the processing power, known as hash rate, to generate the numbers I have mentioned, when over-clocked, as I will describe. However, the hash rate of an individual card will vary based on the brand of memory the manufacturer used for that particular run.  It can be difficult to determine which memory each card has in it before you buy it.  Whether you get a faster or slower hashing card is known as, "The Silicon Lottery."  Don't worry about it on your first rig.

This is my component-build list:

6 - MSI GTX 1060 6GB NVIDIA graphics cards 
(Aero, Armor, OC, and Gaming are all the same GPU with different fans and aesthetics.  The single fan models work fine for mining in an open case). 
6 - gpuShack 1x-16x USB Riser
1 - gpuShack ethOS Software pre-loaded on 16gb SSD
1 - Crypto Monster 6 GPU (or 7) Ethereum, aluminum, open-air mining case 
5 - AeroCool Shark 140mm case cooler cans
1 - BIOSTAR TB250-BTC LGA 1151 Intel B250 SATA 6Gb/s USB 3.0 ATX motherboard
1 - Patriot Viper Elite 4GB DDR4 2400MHz DRAM DIMM (288-pin) memory
1 - Intel Celeron G3930 Kaby Lake Dual-Core 2.9 GHz LGA 1151 51W BX80677G3930 Desktop Processor
2 - PC Power & Cooling ZX 850 Watt Gold fully-modular ATX PC power supply     
1 - Add2PSU Dual-Power 24PIN-molex multiple-PSU power-supply relay 
1 - Warmstor PC LED ATX power supply and reset HDD switch cable  
1 - 1.75 Liter Maker's Mark Kentucky Straight Bourbon
1 - USB keyboard and mouse
1 - PC monitor w/ DVI connectivity
1 - Anti-static wrist strap with grounding wire
1 - Cat 6 ethernet cable connected to the internet

Get the risers and ethOS/SSD from gpushack.  Get the Crypto Monster case on Ebay.

Everything else can be found on EBay, Newegg, and your local liquor store.  Please avoid Amazon whenever possible, as to not fund Bezos' personal propaganda blog, The Washington Post.

Once everything arrives, start by assembling your totally badass case that has come all the way from Patrick in Czech Republic.  Drink one finger of Maker's Mark, preferably straight and from a vintage Waterford crystal tumbler.

Install in the case your five cooling fans using the tiny black dildos.  They should be oriented to blow air into the case.  

Install in the case the two power supplies, with fans pointing out opposite sides.  Using two of the daisy chain cables that came with the power supplies, connect the fans to the left power supply, keeping all power cables "downstairs" in the case to promote airflow around the GPUs.   

You need to now start using the anti-static bracelet clipped to the case, which is grounded by one of the power supply cords (turned off), which is plugged into an electrical socket.   Using the hand without the bracelet drink one finger of Maker's.

Following the directions in the Biostar motherboard User Manual, install the Celeron processor in the motherboard, then the heat sink and fan that came with it.  Plug the fan into the motherboard.

Install the Patriot Viper DRAM in the the #1 slot on the motherboard.  Make certain it clicks and locks in place.

Using the Front Panel Header key found on page 15 in the manual that came with the TB250-BTC motherboard, install the Warmstor power switch and LED cable onto the tiny-motherfucking pins at the back-right corner of the motherboard. 

Install the brass nuts with small screws that came with the case on to the floor of the case, then install the mother board on to these brass nuts.  Connect the big-black ATX cable between the mother board and the left Power Supply Unit (PSU).  Connect the left PSU to the CPU power on the motherboard.

Screw the SSD into the left-front corner of the floor of the motherboard.  Connect it to the left power supply with a black daisy chain cable.  Next use a SATA data cable to also connect SSD to the #1 SATA toward the rear of the motherboard.  

Get two of the white connectors having red, black, and yellow wires from two of the riser packages that came from gpushack (you will not use them to power the risers).  However, do insert these into the two aux power connections on the mother board located at either side of the six PEX1 connectors (shown in photo below), then connect them both to the left PSU via black daisy chain cable. Connect the third connection on this same daisy chain cable to the Add2PSU relay.  Connect the other big-black ATX cable between the Add2PSU relay and the right PSU.  You now have your two PSUs connected via the ADD2PSU, the motherboard powered and wired, the cooling fans powered, and the SSD powered and connected to the motherboard, so drink a finger of Maker's!

Always holding the circuit boards by the edges, attach all of the GPUs to one of the risers and lock them together by sliding that little bullshit plastic clip over the foot of the card until it clicks.  Screw each of these assemblies into place on the top bar of the case, with the riser sitting on the middle bar of the case.  

Only connect one (1) of the GPUs to the left PSU; also connect its riser to the PSU with a black daisy chain cable (shown in photo below, only two risers per cable); and connect its riser to the motherboard with the USB cable and the small circuit board that came with the riser.  Make sure to plug this first GPU into the long-yellow PEX16_1 slot on the motherboard.  After you get the rig up and hashing, then you can connect the additional GPUs, one at a time, only after each additional GPU is hashing.

Connect the monitor to the DVi output on the first GPU, and NOT to the DVi output on the motherboard.  Connect the keyboard and mouse to the motherboard using the blue USB connections, and NOT to the white USB connections.

Connect the ethernet port on the motherboard to the internet.

Plug in both PSUs to an electrical outlet and turn on the power switch located on the back of each one.  

Say a prayer to your God, and press the small power button on the end of the cable you connected to the motherboard.

If you are righteous in your ways, and a bit lucky, then the fans will start whirring, and the green LED will light and the red LED will eventually flash on and off.  Be patient!  Drink two fingers of Maker's Mark.  The system will go through a series of restarts as it finds each piece of new hardware.  On the monitor it should eventually show on the ethOS interface one GPU found, then the temperature for the GPU, and finally a hash rate for the GPU.  When this happens, you are actually mining Ether...to the account of the smart dudes that wrote the eTHOS software.  You will fix that in a few minutes, right after you make some changes to the BIOS of the motherboard, learn some basic LINUX commands, and edit the ethOS local config file to use your Ether wallet.  

If this all worked, drink a finger of Maker's.

If this doesn't happen, then check the following:

Do you have a loose connection?
Did you seat the DRAM all the way?
Did you connect the riser to the wrong slot in the motherboard?
Did you put the ATX cable in backwards? (I have actually done this). 
Did you fail to pray?
There is really no support available for your rig, other than the Maker's Mark, so figure it out.  These links are most helpful:  



Although I have never used it, ethOS and general mining support is allegedly provided in real time via the ethOS IRC support channel (not via email). To join this channel, read the ethOS Support Policy.


Next, you need to edit some settings in the BIOS for the motherboard.  To do so, you need to hit the "Delete" key right when the Biostar screen shows on the monitor, almost immediately after start up.  Since your rig is hopefully running, now, you need to either shut it down, or restart it.  The ethOS screen showing on the monitor should have a command prompt in a black box on the right side under the gpushack logo.  To reboot the rig, simply type a small letter "r" and hit enter.  Holy crap!  You now know LINUX!!!! To shutdown the rig, instead of reboot, type, "sudo shutdown now -P" and hit enter.  Make sure to update your resume tonight to include the terms, "LINUX programmer, blockchain, crypto, and expert."

Once in the motherboard's BIOS settings, find and make the following four changes:

  1. Internal Graphics - Disable
  2. VT-D - Disable
  3. PCIe ExpressConf - Gen2
  4. Restore AC Power Loss - Last State

Save and exit.

The miner should start mining on one GPU, showing a GPU temp and eventually a hash rate.  If it does, then type "sudo shutdown now -p" and hit enter.  With the power off, connect the power to the second GPU to the left PSU and also its riser and connect the riser to the second slot in the motherboard.  Hit the power button.

The miner should start mining on two (2) GPUs, showing a GPU temp and eventually a hash rate for each one.  If it does, then add the third using the right PSU and repeat the above step until you have all of your GPUs mining.  The motherboard and two GPUs are powered by the left PSU, the other four GPUS are powered by the right PSU.  Drink a finger of Maker's Mark!  This is fun, isn't it?

You will be amazed by how quiet and cool these rigs run.

Now, it's time to change the password from the factory default of, "live" for user, "ethos". At the command prompt type "passwd" and hit enter.  Change password from live to whatever you want.  Ctrl-O. Enter. Ctrl-X.  Make sure to update your resume tonight to include the term, "LINUX security expert." 

Now, it's time to disable the remote-config, so only your local edits will stick.  At the prompt type "nano remote.conf" and hit enter key. Follow the directions on the screen to comment-out remote config by adding the # symbol in front of the line (and turning it white).  Ctrl-O. Enter. Ctrl-X.

Next, enter "nano local.conf" and hit enter, to edit the local config file, change the rig to mine to your Ether wallet, and overclock the GPUs to get the hash rate up.  All the white lines with a # in front of them are commented out, and do not run unless you remove the # symbol.  Take several minutes to read through all of this, and sip a finger of Maker's while doing so.

Where it says "proxywallet" in blue, replace the purple default wallet address with your own Ether wallet address.  If you do not have a hardware wallet, like the TREZOR I recommended in my earlier ZH article, then get one.  To save your edit, hold down the CTRL key and type the letter "o" then hit the enter key to confirm.  Ctrl X exits the config file.  After you reboot, r, you will start mining to your own ether wallet.  You can monitor your rig by entering your wallet address here:


Lastly, you may want to increase your hash rate by overclocking the GPUs.  To do this, again enter "nano local.conf" and hit enter, to edit the local config file.  WARNING!!! Overclocking can increase the hash rate, but may also decrease the stability of your rig, causing it to crash, and/or decrease the life of your GPUs by overheating them.  In general, you probably want to make these two changes:

globalfan 100
maxgputemp 75

Now, play with the following three settings, starting with these values:

globalcore 1470
globalmem 4250
globalpowertune 90

Many Bothans died to bring us this information.  Not to mention the bottles of Maker's Mark.  Thanks to W0 for everything, literally.  

If you benefited from this article, please feel free to donate to the Second ZeroHedge Symposium and Live Fight Club in Marfa, Texas, June 1-3, 2018.  We would love to see there!

Peace, prosperity, love, and liberty,





adr Wed, 03/07/2018 - 14:00 Permalink

Your ROI is negative since the GTX 1060 will be outdated and worthless in six months. Unless you have a friend in China who gets GPUs off the back of a truck, or you buy a custom built PC from a manufacturer and throw away all the PC parts just to keep the GPUs, you aren't getting the better GPUs anywhere near retail. When you are going up against 1080s, your 1060 is just about worthless. 6 1080ti cards cost almost $7000 by themselves if you can get them.

High end GPUs used to sit on shelves, now they are nowhere to be found since every single one of them is bought for Crypto mining. An asinine development in the PC world.

You might be able to gain fractions of cryptos with an outdated GPU, but your take will be less than the cost of the electricity used to mine them.

Glad you get "free" electricity at your office, but once the landlord figures out you are costing him an arm and a leg in power consumption he'll either raise your rent or not renew your lease. If I found out someone was taking advantage of my generosity of including electricity with the rent by mining crypto, they'd be gone the next day.

hedgeless_horseman adr Wed, 03/07/2018 - 14:22 Permalink


Your ROI is negative since the GTX 1060 will be outdated and worthless in six months.

Your prediction may come true, but this is not my actual experience with the cards I have specified, which have been available for more than a year.

If I found out someone was taking advantage of my generosity of including electricity with the rent by mining crypto, they'd be gone the next day.

How so?  Do you have terms in your lease that prevent people from operating computers?



Who is paying whom? 

You sound angry? 

Or is it resentful?

In reply to by adr

Sabibaby hedgeless_horseman Wed, 03/07/2018 - 15:46 Permalink

This is worth a watch -> https://www.youtube.com/watch?v=QPaee47TCZc regarding the 1060 but honestly if I had them I would still use them. I'm not sure I would purchase them new to mine with though instead up grade to a 1070 for ZEC or a if XMR use a RX480/580. I switch between ZEC and XMR on my 1080ti on my gaming machine but it just depends how close I am to getting a payout. Obviously the 1080 is better for ZEC though.

In reply to by hedgeless_horseman

Hope Copy hedgeless_horseman Wed, 03/07/2018 - 22:29 Permalink

Certain card run in a rig and many don't.. Vegas don't rig, not do 1080's or the 1070s.  I have a HD7970 rig that does 550h/s per card, but the MB, CPU and 'stuff' cost more than a workstation box that I can put e cards into and the workstation CPU also mines decently, but does use more power than the GPU per hashing.  XMR is only using 2.2G of memory per GPU or mining unit (CPU), but thee is an additional 8-12 Gb of memory that is needed for the compare and a fast HD (like SSD) is needed for the paging for the virtual memory for every GPU or CPU that is mining.  It is when switching to ETH that the 1060 won't live up to the need.  Anyway The Etherium gang said last January that they where going POS soon..  Verge and the ETH bboys have been actively buying up XMR and have published this.

In reply to by hedgeless_horseman

Volkodav adr Wed, 03/07/2018 - 15:23 Permalink

      GTX 1060 6GB OC version ETH is found more

      efficient than any 1080ti.  1080ti make 3x min more other coin.

      Hash close to RX470-580, less power consume

      and NVidia far better mines most other coins

      Is even 3 GB obsolete for ETH yet? 

      Older Radeon 2GB probable are



In reply to by adr

pods Volkodav Wed, 03/07/2018 - 15:47 Permalink

Funny those "outdated" 1060's form the backbone of my current rigs. 3gb too. Of course I don't mine Eth. Running Equihash right now.

The memory on a 1080 makes for a shitty Ethash (ether) hashing card. It's weird.  I think the 1080 Ti is better.  

I think 3 gb cards are just about done for Eth. I have heard stuff about turning back a windows update to allow them to load the DAG file. Linux might be different. Pretty close though.

The DAG for ETH is like ~2.6 gb I think. 2 gig cards are done. 3 gig are close, 4 gb should hold until Casper is implemented and it goes PoS. 

My 1060's are actually about as efficient as my 1070's, which are MORE efficient than 1080s. So those lowly 1060s pull about 3 sols/w, which is what my 1070 will do. The 1070 Ti is the most efficient, running about 3.5 sols/w on Equihash.


In reply to by Volkodav

smallblockchevy350 Volkodav Wed, 03/07/2018 - 19:48 Permalink

My older gaming PC has 2 EVGA GTX760 Superclocked cards in SLI. I can still run new PC games on them. But I can't mine jack shit with them. I was mining monero last night just to fuck around, with my 800 h/s mining monero with CPU+GPUS I make about $1.15 every 24 hours if monero is at $350.   I couldn't mine ETH last summer, either, 3GB cards were the minimum back then. I missed the earlier days when I could have mined eth with my 2gb cards.

I was going to upgrade my graphics cards, but it's cheaper and easier to just buy crypto and try to make trades for profits instead of mining with this PC or building a new one as a mining rig. I haven't been interested in PC games anymore for at least 2 years, so there's no reason to upgrade this PC. It's still fast as fuck compared to anything commercially available. CPU is Liquid cooled AMD FX-6300 6-core overclocked to 4.7GHz with 16GB of ddr3. It was the shit when I built it like 6 years ago, now it's showing it's age but it's still plenty more than I need.

In reply to by Volkodav

Yellow_Snow adr Wed, 03/07/2018 - 17:08 Permalink

Thanks Hedgeless Horseman for putting your time doing this...  Nice rig...


I'm running 20 GPU's RX-580's for 595 MHz...  and down-volted to save energy.  the price you pay for electricity has a lot to do with your profitability...


Still have been profitable even in sell off...

In reply to by adr

smallblockchevy350 Yellow_Snow Wed, 03/07/2018 - 19:54 Permalink

Bypass your electric meter. Pull the meter out, put 2 pieces of 12 gauge wire inside the clips, connecting where the meter prongs are inserted on each side from top to bottom. Don't get electrocuted. Put the meter back in the meter socket over the 2 wires. Now most of the power you consume will go past the meter, but some will still go through the meter. Don't blame me for whatever happens to your dumb ass if you fuck up.

In reply to by Yellow_Snow

Scrot Wed, 03/07/2018 - 14:07 Permalink

Awww and even with all the trouble today.... GOLD IS DOWN AGAIN! Question is, when will you dump your horde? When it hits $1000?  $800  $500?

jmack Wed, 03/07/2018 - 14:17 Permalink

You will know crypto has made it mainstream when they are integrated into items that can use their waste heat.  a crypto mining water heater.   A crypto mining pre heater for welding aluminum or powder coating metals, etc.   How about a crypto mining process steam generator?

Ilmarinen Wed, 03/07/2018 - 14:39 Permalink

I will revisit this article tonight when I have more time but upon skimming I noticed the recommendation of nVidia 1060's.

I strongly urge readers to consider using Radeon RX 580 8GB's instead.  The ones manufactured by Sapphire seem to be the best.

Rigs that I lost in a tragic boating accident have 6x (RX 580 8GB)'s, and on average these cost about $4300 CAD each to build (tax in), draw 850-900W, hash 191Mh/s, and yield 0.46 ether/month (at recent prices, that's very roughly $6600/yr revenue - $950/yr power (CAD)).

Thank you Hedgeless once again for bringing cool projects/good advice to fellow ZHers, and I look forward to reading your article properly tonight.

pods Ilmarinen Wed, 03/07/2018 - 15:50 Permalink

The Rx 580's seem to be the king of hashing for Ethash. 1070's are about the same hashwise, but way more expensive.

Of course, I just saw Rx 580's for like $439.  Almost a clean double of the old $239 MSRP from a year or so ago. 

Fucking nightmare anymore finding cards.  And prices have shot up even for the retailers. You used to just get raped if you bought third-party seller. Now they all get you.


In reply to by Ilmarinen

pods Volkodav Wed, 03/07/2018 - 16:22 Permalink

The Rx 580 will outperform any 1060 for Ethash. Not even close in raw power.  A 1060 with Samsung memory will top out ~25 H/s with maximum overclock tuning, whereas an RX580 will run 29-30 all day long with minimal overclocking. 

But you are quite correct in that an Nvidia card will outperform the AMD for other algos. That is why I run mine on Equihash. Much faster, but that might just be the miner too.

But the Rx580 is about perfect for Ethash algo.  The 1070/1070 Ti is a bit faster, but MUCH more expensive.


In reply to by Volkodav

Volkodav pods Wed, 03/07/2018 - 16:59 Permalink

    We get a little more 25+ these 1060 6GB OC @ very max 95 watt,

    stock out of box on ETH...yes Samsung mem and heavy

    but top MB, Titanium PSU, other more than most rigs run

    These better than evga, all other top tier 1060s we experimented

    RX580 is much more power consume? 

In reply to by pods

HRClinton Volkodav Wed, 03/07/2018 - 21:55 Permalink

I'm quite happy with my EVGA 1070SC. Paid $620.

I use the fancy GUI to tweak Temp, Voltage and OC. Get ~31 MH, with peaks and valleys. Peaks can be 60-100, but valleys can drop anywhere from 0 to 24. 

The unit is very quiet, with fans at 30% and temp at 60C.

Not all mining pools are the same. A few are good, most are so-so or downright crap. The advertized low fee is for suckers, if they skim, or have poor stats updates.

Am frustrated though, that I can't get it to mine ETN or XMR. Just for fun.


In reply to by Volkodav

Automatic Choke Wed, 03/07/2018 - 14:54 Permalink

It **is** a nice article, though I prefer Mortlach single malt over Maker's.

So far, I've been a crypto skeptic, and haven't dipped my toe in either long or short.  

However, I installed about 5 kW worth of solar panels on the house several years ago when Nevada was 100% bankable net metering.   After Buffet bought NV Energy, they reneged and the banked payback was something like 60%.   Went to court, and they have now un-reneged and grandfathered in those of us who installed early......but I'm sure they will backpedal.    I'm watching and saving article such as this.   If the banked payback rate drops back again, and cryptos are still surviving, I will likely rig up a system to use all my excess generation rather than loan it to the grid at a ruinous rate.   It will take a minor amount of hacking to tweak the hashing load to match the delta between generation and use, but shouldn't be too hard.  

Thanks, William!


GeoffreyT Wed, 03/07/2018 - 15:13 Permalink

It is highly unlikely that a 6x1060 rig will pay its way given current levels of difficulty.

The 1060s with 9Gbps GDDR5 were able to eke out non-zero profitability when they were first released (Q1 2017), but now even a 1080Ti (with 11Gbps GDDR5) is a marginal card - at least for BTC. Nowadays, if you're mining BTC with anything other than ASIC-based rigs, you're going backwards in real time as your rig's getting slaughtered by the increase in difficulty.

To put it in context: BTC difficulty has tripled since Nov 2017, and is up 8-fold since Mar 2017.

A rig of the type described  might be profitable for other cryptos where the required hashrate per coin is lower - but the coins themselves are of commensurately lower value; a basic no-arbitrage condition will equalise dollar-value yields across cryptos (eventually).

BTC/day yields are readily-calculable quantities - there are folks who do that sort of thing.

At Mar-2017 difficulty levels, a 1080Ti (with 12GB of 11Gbps GDDR5) had a BTC yield of 0.0008-0.001BTC/day (see this link); July 2017 testing of an overclocked 1060 (with 6GB of 9Gbps GDDR5) was a paltry 19MH/sec.

That's nineteen mega-hashes per second - when the BTC hashrate is currently 25 EXA-hashes/sec (in March 2017 it was only 3 exahashes/sec).

For those playing at home: an exa-thing is 1 quintillion things; a mega-thing is 1 million things.

Let's say that 19 and 25 are equal, to get rid of messy decimal places.

To generate 1 BTC with one 1060 at current hash rates would require uninterrupted running for "quintillion/million" seconds.

That's only one Tera-second, which sounds small if you ignore the 'Tera' bit. Sadly it works out to 1,000,000,000,000 seconds.

There are 31 megaseconds in a year, so one Terasecond is 31,688 years. Give or take a weekend.

Divide that by 6, and that's how long a bank of 6 1060s would take to generate one full BTC assuming no changes in difficulty.


It would be far better for people to dedicate all their resources to consecutive bottles of Maker's Mark.


Disclosure: I don't mine, because I can do the sort of sums outlined above.

That said: at all stages in BTC's life, mining has looked like a mug's game... the numbers have never added up contemporaneously (i.e., on a 'going concern' basis). Massive price appreciation has meant that early-adopters' mining activity was unprofitable at the time but became profitable (and highly so) ex post facto.

In much the same way: buying a house in Sydney or Melbourne has always looked fuckwitted on paper, given the relationship between incomes and house prices. However 2 decades of artificially-loose monetary policy and lax lending standards sees a lot of people sitting on putative capital gains on housing (assuming that the house price series is "like-for-like"... which it isn't; that people have no transaction costs... which they do; and that people pay no interest while they wait... which they do).

As an aside, I am not totally allergic to the idea that BTC-equivalents (the total book value of all 'reputation-adequate' cryptos, divided by their total issue, expressed in BTC) will eventually be priced in the $millions - because there are tens of trillions of dollars of stocks, and tens of billions of dollars of annual flows, that want to avoid tax jurisdictions. But for the next year at least, crypto prices will be all over the shop as tax authorities try to work out how to ensure that their livestock don't escape the tax net.


hedgeless_horseman GeoffreyT Wed, 03/07/2018 - 15:26 Permalink


Disclosure: I don't mine, because I can do the sort of sums outlined above.

I do mine, because the real value for me is in learning a new way to disintermediate the banks.  Also, my kids think it is cool and my wife thinks smart is sexy, so I gotta keep her fooled.

This is an ether rig, not Bitcoin, as is mentioned in the article.

My rigs are currently banging out a bit more than 120 mh/s and almost four Ether per year.  

In reply to by GeoffreyT

mkkby hedgeless_horseman Wed, 03/07/2018 - 16:55 Permalink

So now the truth comes out.  Headless horseshit is doing this for politics.  Saying it's profitable is simply a lie.  Fuck you, horse shitter.

If you want to waste thousands of dollars go ahead.  Just don't fall for the lies of scammers.  You will be competing with well funded hedge funds who have large computer arrays in places where electricity is nearly free and cooling comes from outside air, no a/c needed (i.e. iceland).

In reply to by hedgeless_horseman

HRH of Aquitaine 2.0 pawn Wed, 03/07/2018 - 21:34 Permalink

Damn I was a pro dressage groom and you just talked smexy talk to me! I love tack. All kinds. Haven't ridden bareback in a long time but there was a time when I did.

Nothing like the smell of a horse barn. If I could bottle that I would douse myself in it every day. Best smell in the world is leather, horses, horseshit, and hay. Smexy!

In reply to by pawn

HRClinton hedgeless_horseman Wed, 03/07/2018 - 22:26 Permalink

Indeed. The money won't pay serious bills, but is there for long-term wealth accumulation.

The wiser motive with HH's DIY route, is to acquire a new skill: Building a computer or mining rig. Useful if you're looking for a job at a place to fix computers.

It is true however, that mining difficulty keeps increasing for all CCs. If you monitor and record your monthly mining rates (CC/mo), you'll see it declining. I've noticed that my ETH mining efficiency is dropping each month. 

Given all this, I figured out that GPUs stop being profitable about the time it's paid off. Which makes me think that a lot of CC mining is being fueled by SW current or ex developers from AMD or NVIDIA.

If I were a EE with an ASIC design background, I'd have a side business to build ASIC miners.

In reply to by hedgeless_horseman