Back in the game !

Well folks, it’s been quite a while since I last posted.  I sold most of my miners and exited the mining business.  Then I started seeing the advancements that had been made in ASIC mining equipment, and decided I would give it another go.  I bought 2 Bitmain S-9’s.  I have been mining with them for about 4-5 months now.  These are great miners.  I was using S-4’s before which mine about 2Gh and use about 1400 watts of power each.  The S-9’s mine at almost 13Gh and use about 1300 watts of power.  It’s a real no-brainer justifying moving to the S-9’s.  I had 4 S-4’s before and now I have only 2 S-9’s, and I have more than tripled my mining hash, and cut my electricity costs about 60%.  Like I said… a real no-brainer.

Money wise, mining with the S-9’s is profitable, but given the size of the reward now (12.5 Bitcoin), the number of Bitcoin I receive is small, so my total volume of Bitcoin is growing ever so slowly.  However, given the price of Bitcoin as I write this is $4577.72, it doesn’t take much Bitcoin to make a profit.  I figure it costs about $6.00 a day to feed the miners, and just one payout a day gives me about $23.00 a payout.  The pool I’m using usually hits about 2 blocks a day, so that about a $40.00 profit a day.

I was mining in a pool where my 26+ Mh put me in about 10th position on the payout ladder, which provided an excellent payout, but the drawback is they didn’t hit many blocks.  At times it took more than a month to hit a block.

So, the 64-thousand dollar question is… should you mine in a pool where you are one of the big fishes, but hit less blocks, or, join a pool where you are about 200th on the payout ladder, but get 2 payouts or more a day.  I don’t have the answer to that question.  What I do know though is the power company wants their money quite regularly, so I opted to go for the more frequent payouts rather than wait for the big payout less often.

Another topic that no one talks about… the well publicized top limit of Bitcoins minted (currently set at 21-million).   As you may know, scarcity adds to the price of anything, and Bitcoin is no different.  Now, most will not even entertain the idea that someday that limit will be increased.  However… anything can happen.  If enough folks (perhaps miners) think it would be a good idea to increase that amount… then it will get increased.  If you are one of the ones to say “it will never happen”, then you are most vulnerable to any negative ramifications of such.   I have no idea if the 21 million cap would get increased… but most people will be thinking that if 21 million is good… then 30 million would be better.  I’m also unsure that down the road when this discussion happens (and you know it will), will it even matter if the cap is raised a small percentage.  If it’s raised a lot, then it might matter, but raising it a little may not hurt anything.  Who knows… certainly not me.

Leave a comment below for the world to see about your thoughts on the possibility that someday the cap will be raised, or, anything else you feel would be beneficial to folks that may be reading this blog.