Here are some image clips from a video article about an actual bitcoin mining operation.
Mine Details
- The mine is in Wenatchee, Washington has 1,800 servers running every day with very little downtime.
- The mine is run by Malachi Salcido, president and CEO of The Salcido Connection.
- The mine produces five-to-seven bitcoins every day. Salcido wants to expand his operation to get up to 50 bitcoin per day.
The story Crypto Mining Stresses Electrical Grid in One Washington State County certainly rings true.
Buy Your Own Mine
Kodak is branding a $3,400 bitcoin-mining machine that you would have to be ape-shit nuts to buy.
- The Kodak-branded mining rig called the KashMiner, which was showcased at this year’s CES. It’s created and run by a company called Spotlite, and has licensed the Kodak name.
- Users pay $3,400 to rent the mining machine for two years and give Kodak half of any bitcoins mined.
- Kodak claims the KashMiner will produce about $375 worth of new bitcoins every month, which would lead to estimated revenues roughly $9,000 over those two years.
If these devices actually were profitable to anyone but Kodak, the company would start its own mine rather than selling them. If you are dumb enough to buy one of these devices, you will be competing against the Salcido Connection and every company like it.
Kodak
Kodak spiked from $3 to $13 over the past few days on this nonsense coupled with its KodakCoin announcement.
I expect to see shares of Kodak back under $3 in due time. And unless it comes up with a real product, which I highly doubt, it will go bankrupt again.
Meanwhile, I have no idea how high Kodak will go, but if the top is in already, I would not be surprised.
Beanie Babies vs Bitcoin
Bitcoins are nothing but the new Beanie Baby in my estimation.
For further discussion, please see What is Bitcoin Other than a $15,000 Beanie Baby?
Also consider Kodak Soars 77% on News it Will Launch “KodakCoin” Cryptocurrency.
Mike “Mish” Shedlock
@Blacklisted I agree with Mish on this. The Blockchain has value but that doesn’t mean Bitcoin does. The Blockchain technology can be used by anyone for free.
SweetKenny, my passion is searching for unbiased information that has no agenda. Malinvestment (and prudent investment) occurs in low and high interest rate environments. Mortgage rates increased from the low in 2003, around 5.5%, to the high around 6.5% when the RE bubble popped. Student borrowers typically don’t consider the rate. The issue with both RE and student loans is the lack of prudent lending, supported by govt and “overlooked” by regulators.
After the financial crisis, banksters pulled in their favors to get a tax-payer funded bailout, and lobbied Clinton to eliminate the ability to expunge student loan debt in bankruptcy. Imprudent lending is NOT funding the investment in cryptos. The money is primarily coming from savings and stock/bond/gold investors, which explains why money managers are losing their minds over Bitcoin.
Like a growth stock, the coins don’t need to pay a dividend right now when they are growing well over 1000% – and that is with only 1.3% of the world population invested. Wait and see how this year goes when participation gets over 13%. Also, how is the money going to “dry up” with so few people invested?
There are crypto businesses that will pay out a dividend. One example is Sand Coin, which used an ICO (Initial Coin Offering) to fund its 15-yr business plan to mine construction sand, which is desperately needed for Russia’s huge highway project around Moscow.
link to m.youtube.com
Other blockchain-based businesses will provide less risky returns from normal operations. For example, Populous enables anyone to finance the receivables of small bussinesses, instead of only banks that charge rediculouse high fees for this Factoring service.
https://populous.co
The biggest mystery is how can people that know so little about cryptos so confidently predict their demise. These people are often the same ones that have been predicting stocks peaked for the last five years. The first rule of being a good investor is knowing when you are wrong, by being UNBIASED and checking your beliefs at the door.
@Blacklisted you let your passion for Bitcoin cloud common sense. Malinvestment is common in low interest situations just look at housing and student debt. The collapse is coming as cryptocurrencies pay no dividends and once the money dries up the increase in prices ends and the selling starts – once the mass selling starts it’ll collapse very quickly.
I think putting the Washington power grid to work growing recreational marijuana would be far more profitable. All of the hassles of working outside the normal economy but incredible margins and similar cost structure.
link to northwestregisteredagent.com
The geothermal energy and cold weather in Iceland is attracting miners – link to businessinsider.com. Would govt’s and companies be making the investments in energy and mining if it was a fad?
You always confess you don’t know what’s going to happen in markets, but somehow you know that crypto’s are in a bubble. How do you know?
You were wrong about Trump because you didn’t understand the anti-establishment movement. So, where does your confidence come from in understanding the anti-establishment currency?
If you are considering investing in a mine, be aware that your return will not be linear. With each passing day the rate of return slows as the math gets ever more complex for each coin. I’ve heard that over 80% of the bitcoins that can ever be mined have already been mined.
ambrose, they will be worthless in 10 years, just like other computers from today. That doesn’t matter, however. Based on the numbers above, each server is producing 1.2 bitcoins a year, while using $430 of electricity. Thus, each server will be paid for by the end of the year.
Note an error in the math I did above. I didn’t account for air conditioning. Using that much electricity in a confined space will generate significant heat. Thus, the total electric load (in summer) will be much higher than 7500 amps.
think what one of these machines will be worth in ten or twenty years?
@CreosoteChris We already have electronic “programmable” money – this chaos reflects too much of it going into cryptocurrencies. Not teaching about money, debt and real wealth created this – nobody knows where this out of control train is heading.
There are much worse ways than Bitcoin to squander societal capital, war for instance. Still, there are much better ways to deploy an idle high performance server than heating an air conditioned room, Bioinformatics research, for instance.
Proving it daily.
Dumbest generation ever.
FarmVille 2 Ain’t No Game, It’s the Ultimate Perpetual-Motion Money Machine.
“…nothing but the new Beanie Baby…”. Wrong – they are *programmable money”. Just think for a moment what impact programmable phones have had. Cryptocurrencies are programmable money. They will have a similar impact. maybe bigger.
Well, he doens’t stand 6ft 6 and weigh 245.
What insanity – “mining” digital addresses by solving math equations. So many suckers.
That is Even cooler..
Seven cooler,,, you buy electricity, power up a bunch of servers and sell something (what I don’t know) and end up with a profit…
Cool,,, so what are all of those servers doing other than converting electricity to heat,,
for some reason, i’m reminded of Aronofsky’s Pi
If he’s making, say, $80,000/day selling bitcoins, that’s a nice profit, but he also has a hefty capital investment. Doing some other math, if 21,600 kwh produce 5-7 bitcoins, then mining a bitcoin uses about 4000 kwh per coin.
From this article, there are 1800 servers running 24/7, and producing 5-7 bitcoins a day. If each server draws 500 watts, that means the “mine” draws 900 kilowatts. That means it draws 7500 Amps at 120 volts. It also means it uses 21,600 kwh per day, which at $.10/kwh would be $2,160.