My $50,000 Crypto Mining Mistake
Specific mining rig well break down the numbers, the profitability, where i got the parts. Basically, everything you need to know to decide if mining crypto is the opportunity of a lifetime or a terrible financial decision. After todays video im gon na have around fifty thousand dollars worth of mining equipment, total that ive bought and put together and were gon na talk about how all of it might basically become worthless in about eight months, not even exaggerating, Music. Okay. So before we start unboxing things and build up this ridiculous, ethereum mining rig quick breakdown of how my last six months of mining have been and what the major threat to the type of mining were doing here is and why you should definitely be aware of it. Even if youre not into crypto mining, okay, first up, i made a video about six months ago, where i dove into the world of what i thought was bitcoin mining and spent fifteen thousand dollars on putting together a gpu mining rig. I had a variety of different 30 series: nvidia cards in there ill put up a list of the specific ones, but i installed windows on that rig and was using nice hash to mine on it. And all of that is on this rig down here and once i set it up, i loved it. I mean its basically true passive income. You build up. This rig, hit, play and youre making money with really good returns on autopilot.
If you shop around for your parts and be smart about it, you can make your money back on your rig within under a year, so were talking basically 100 annual return. Truly passive. The only thing is its risky, because if the price of the crypto market falls so does your profit levels. But if you believe in it long term that doesnt even matter because the crypto you mine and have sitting in your wallet will continue to rise or fall with the market fluctuation dont care, dont care still dont care, but anyways. I built that first rig. It went great so then i made a follow up video after one month where i talked about how things were going and built another gpu mining rig with all founders edition, 30, 90 gpus, just an absolute beast of a machine. We spent about 18 grand on that one. So now i was 34 000 deep into this. Things were going great, but after about a month of running the first rig, it ended up being not that passive for me and thats, because i was mining on windows using nicehash. So my rig would constantly crash im talking like twice a day and if im, not at the mining facility, layer or dont notice, that its off it could be down for like 10 hours at a time which is terrible, like this rig would be off half the Time, which i mean would therefore decrease profitability by half right, and on top of that i never was truly mining bitcoin on nice hash, i was minding whatever the most profitable coin to mine at the time was, which i believe was and continues to be, ethereum and Then nice hash would just pay me out in bitcoin, which is fine, youre kind of mining, bitcoin indirectly, but youre never actually, mining bitcoin, because i now know you cant with a gpu, since the difficulty is too high, itd basically be impossible, which is something i completely Admit i was not fully aware of getting into mining and thats really important to remember for later in the video, so mining on ice hash is kinda goofy, but eventually months down the line, i did have some time to readjust things.
The second 30 90 gpu rig wasnt that bad, because all the gpus were the same, so ran fairly smoothly, still crashed like once a day, but it was on most of the time. But for the first trick i took an ssd and flashed an operating system called the hiveos onto it and connected that to the rig and hiveos is basically an operating system dedicated to mining. So i connected that new ssd to the rig powered it on and was now mining ethereum on it through hiveos directly, which was so much better. Its more efficient were mining ethereum, directly itll run for like five ten days at a time and when it does crash it automatically just reboots itself. I can also track everything remotely on my phone. I mean this was a game changer its so nice and theres. So much you can do with how this is nice, okay, but now that were up to date on everything lets build up. This new ethereum rig thats, going to be running on ios also will be powered by six 30 90 gpus, which are the biggest baddest consumer. Gpus nvidia has to offer and well see how much itll make yo pierre. You want to come so this build started out, like any other. I was building up. The frame things were going, smooth, im, plugging stuff into the motherboard, the power supply units, the cpu which, after installing a new cpu youre, actually legally obliged to flex the cpu sticker on your phone.
Then you can put on the cooling fan eventually got to the graphics card, part at which point youre legally entitled to a quick coffee break back to it. I plugged in all of the cards, tried turning the machine on first just kidding, not first try it actually didnt work, so i spent hours troubleshooting and at the verge of a complete mental breakdown late at night. I called it quit then, about a week later, i was almost fully recovered mentally from the trauma of not having this incredibly expensive setup turned on, and i had some time on my hands, so i tried some more troubleshooting. It narrowed it down some of the cables being bad, so i replaced those made some progress, but still it wouldnt fully turn on. So at this point i had to call in some certified crypto scientists who helped me figure out the issue and it turned out to be the motherboard. So quick trip to best buy bought some way overkill. Overpriced parts set those up, just no upside down crosses. Please gotcha and it powered on so now all three rigs are in action. I couldnt use all six of the gpus on the new rig, though, because the motherboard only has five slots. I ordered a little extendo clip, but thats gon na take a bit to arrive. So thats, where were currently at so well, get it to how much this full three rig farm cost me how much ill be making with it and how long itll take to break even but its, not all, sunshine and rainbows, and before we do that.
We have to talk about the big threat to gpu mining, so theres, basically, two types of mining asic, which is specialized equipment specifically designed to mine one single type of coin. So you can buy a asic miner and mine bitcoin with it. And then you have gpu mining like were doing here with these graphics cards and with this theres a number of different coins you can mine with them or even use them to build a computer, so theyre a little more versatile theres. Even a number of coins you can mine with gpus but the most profitable one and the one that pretty much everyone across the board. Whos mining on gpus chooses is ethereum and thats great and completely fine, except theres talks from the founder vitalik buterin and the people behind ethereum of turning the crypto from a proof of work model to a proof of stake. Now, two sentence overly simplified explanation. In the current proof of work model, miners try to solve complex equations first minor, to solve a particular equation, gets to be the one to verify a block of transactions which they get rewarded for in crypto the more computing power you have, the more equations youre likely To solve now, in the proof of stake model, the writer of a new block is chosen from a pool of users who have staked a certain amount of coins, so basically theres no equations to solve and theres no mining. If this change happens, people wont be able to mine ethereum, but you might be thinking well, thats, okay, i can just mine a different coin with my gpus right yeah, not so fast.
Where is all this computing power? Thats, not mining ethereum gon na go probably to all these other coins, which is gon na drive the difficulty of mining. These other coins up and given that theyre cheaper coins, it may very quickly become unprofitable to mine or i dont know if the prices of the other coins go up significantly, it could stay profitable to mine them. But point is theres a ton of uncertainty here, especially because, in an interview earlier this year with lex friedman, vitalik said that this change is coming up in early 2022.. Now an ethereum developer more recently this month said that its looking like itll now happen around june of 2022, so about eight months away. Thing is, though, ive personally been hearing rumors about this online since, like early 2018 and theyve been pushing it back for so long. I dont know they might be trolling us, but it seems pretty serious this time around now with my personal situation, if im able to mine for another eight months at the current price of ethereum, i should have a solid portion of the rigs paid off and then, If its absolutely impossible to mine in them, i hope i dont have to, but i could maybe sell some of them at a discount, because people still need gpus for computers and whatnot or maybe even do like a massive giveaway on this channel for all the gpus. But point is currently im not really stressing about the situation, since i should just about break, even if things go south or at least not lose too much its not too bad, i mean it should be okay, im not too worried about it really.
But now that said, im also probably not buying any new gpu rigs. After this one, i may look into asic mining because you can mine bitcoin with that and whatnot, so im, probably gon na start, exploring that whole side of mining, but now lets talk about the current profitability on all three of these mining rigs again, the first one Cost thousand dollars and its currently at 470 mega hash making about 37 dollars per day. Second, rig was 18 000, now pushing around 600 mega hash on hive os, making around 48 dollars per day, and now this third one basically costs the same as the previous one, because its the same type of cards, one of the cards isnt currently connected to it. So ill subtract that from the cost – and i also was able to get two of the gpus for msrp thanks to one of the scientists who came over to help fix the rig, and i still need to return the non working motherboard. So with all these moving variables, its tough to put an exact number on it, but its about sixteen thousand five hundred, maybe even a little less but lets do that to keep it fair. So this new third one is pushing 516 mega hash, which equals to about forty dollars per day and now all three mining rigs. If i just bought them today and let them run were talking just around 50 grand total purchase price making 125 dollars per day.
It would take around 400 days at the current price of ethereum to break even but i already mined 14 grand worth of crypto and have about another thousand coming in from nice hash and hive os, so around 15 grand total, currently mine. So now, if you factor that in its gon na take 280 more days until everything is paid off so about nine more months now, 400 days, in my opinion, isnt that bad. But if you build something exactly like this on your own, you could do it for a lot less. If you have time to shop around and wait for parts to come in, so youll be a lot more profitable or even if youre just getting into it. You could build a rig with less powerful gpus, but again right now it is slightly risky getting into gpu mining, given the whole ethereum situation really curious to hear your guyss thoughts on all this. Please harass that subscribe button, and, let me know if you think vitaly is strolling or theyll, actually switch to a proof of stake model in about eight months, but either way hope you have an amazing rest of your day.