In another post I was asked to explain better how to make money from your RIG. First of all, I would like to say to you:
If in Brazil we can do it, you can do it to. No matter where you are.
So let's get some details. Firstly, if you want to build a RIG right now, forget the new AMD RX GPU. Most of them are out of stock and the ones that remain, prices have been raised by more than 3x due to demand. For ex: RX470, which before was sold for 190 dollars, today its price exceeds 600 dollars. See this link: RX 470 4GB. The same goes for all the other GPU, but the new ones increased in a higher percentage.
So I would advise you to choose older GPU like the R7 370 4g. The current price is around 185USD. This GPU with all default settings, consumes 110 Watts. If you buy 5 of this cards, it will cost to you 925 usd and will consume 550 Watts. To complete your RIG you will need a Power Supplie where those 550w plus motherboard and processor consumption does not exceed 80% of the total source. This 850w Power Supplie probably serve you. If you wish, you can buy a slightly more powerful one. You will need to a processor, a Motherboard (with 5 pcie slots), SSD (the cheapest), 5 Risers, and 4GB of Memory. For Motherboar I would suggest "ASRock H81 PRO BTC".
Summarizing prices
- 5x R7 370 4GB 925.00 USD
- Power Supplie 200.00 USD
- Motherboard 273.00 USD
- SSD 60.00 USD
- 5x Risers 70.00 USD
- Memory 4GB 55.00 USD
- CPU Processor 55.00 USD
TOTAL COST 1,638.00 USD
As you will access your RIG over your home network, you will not need a monitor, keyboard, or mouse. I would like to make it clear that these were the first prices I found and certainly you can find better and cheaper parts. I am only using as an example. So your RIG will cost around USD1.638 at current prices. I leave a new warning that this same RIG last year would come out much cheaper. As demand increased greatly, all parts doubled in value.
First let's calculate how much energy it will cost per month. Your complete system will probably pull the wall 700 watts. To do the calculation you need to multiply by the daily hours of use (24) and the days of the month (30)
- 700X24X30= 504,000 watts. (504 KW for month)
Here in Brazil the energy costs around 0.15 usd per KW (on EUA the price is much cheaper). 504kw X 0.15 usd = 75.60 usd per month. Now let's go to your winnings. I will do the calculations based on Zcash mining. Your RIG will be able to mine at a rate of 875 H/S. In the current DIFF you will mine 1.05 ZEC per month (330.33 usd). So, you're going to be making every month 330.33 USD and paying 75.60 to energy. Your monthly income will be 254.73 USD.
Remembering that you spent 1,638.00 USD to set up your RIG and have a monthly Profit of 254.73. Your ROI will be approximately 7 months. I do not know any investment that you get the return in less than 1 year. You should still consider that there are several MOD BIOS's that make your GPU consumes less and produces more. The RIG price can be much cheaper If you do a lot of research on the parts. All of these issues increase your return on investment. There are also regions where the cost of energy is much cheaper.
The downside is that for calculation purposes, we need to do everything with the current difficulty and know that it increases exponentially every month. Each month you will mine a little less. And the lifetime of an RIG is not longer than 3 years.
You need to consider all these aspects and also consider your mining strategy. That I explained in this text here
How you can earn money with your farming rig in 3 steps
I hope you liked, thanks and share :)
I'm living the dream running a small farm and have been thinking about writing something on this for a few weeks now. The one major word of caution I want to point out to all prospective miners is the effect of network growth and difficulty on your earnings along with the ROI. Additionally, you have to account for secondary costs such as the impact that multiple machines might have on your air conditioning bill. (Hint: The AC is going to run full blast, all day, trying to catch up.)
As an example, say I built a 4 card Nvidia system that generated 100HM/s and cost me $2000 to build. Based on a recent average of real returns from my small farm, I earned 0.052579683 ETH in one day from that one machine. Because of pool growth, network growth, and difficulty, I earned slightly less the next day and slightly less the day after that. So, I started looking around and forecasted the rate of network growth against my earnings.
Currently, the network is growing at a ratio of about 1.01 per day. That means if there's a terabyte of hashing power today, in 30 days, there will be about 1.4 terabytes of hashing power. This drives down your daily return because your share of the pie is a little smaller every day.
The bottom line on this is that a 100MH machine put in service today will generate about 3.84 eth, ~$1500 USD in value at today's prices, before going to negative profitability due to electricity costs in late Dec. Thats if the price or ETH levels out and stays the same. If the price goes down, that machine will start costing you to run much sooner.
I'm not saying this to discourage anyone from mining. I mined bitcoin back in 2013 and felt the effects of network growth due to the rise of ASICs and the increasing popularity of bitcoin at that time. Just be realistic in your expectations in that you're not going to see profitability from that mining rig unless you mine and hold for a while or the price of ETH continues to skyrocket.
If you're in it to build something, learn about crypto currencies, and participate in the network while earning a few coins, dive in. Maybe you'll catch the bug and grow into a farm like I did!
What a cool post. You're absolutely right. In issue of DIFF it increases every day. You raised an interesting point. Today I do not mine Etherum anymore. A long time I jumped out of ETH. There are several other currencies that have a higher monthly profit. If you want more accurate information, you can access the: https://whattomine.com/
If you consult you will see that it has coins yielding 3x more than the etherum. The big question is that ETH is now the mainstream for all beginners. No matter when the price goes up, the DIFF goes up as well. I was mining ETH when it cost less than 1 usd. I always like to make it clear that although it sounds easy. Keeping an RIG is very complex. And you are subject to various contingencies. Knowing how to change strategy is essential.
Lauro, Thanks for reminding me about whattomine.com. The site I've been using recently for profit ratios is https://www.coinwarz.com.
I love their calculator
That was me! Nice one mate thanks, I was just going to bed so I'll take a proper look at this tomorrow.
One more thing, I'm a trader. But I like computers so much that I have some RIGs. This post was very simple to clarify that despite the challenges, an RIG can be profitable. Even in Brazil, I get an ROI of less than 6 months using the right strategy. With a certain level of knowledge, you can make a lot more money by investing directly in buying and selling coins. But for those who do not have this idea, a rig can be a good investment.
I told you it would do well @lauro :D
Thanks for this very informative post. I am following you for more.
I am still new here and I am having an information overload :0
Please be so kind as to read my post about bitcoin and give me your input?
https://steemit.com/bitcoin/@rbfromsa/to-bitcoin-or-not-to-bitcoin
Any advice would be most welcome...and perhaps an upvote :)
Thank you very much :)
yes, I liked what I read. And I'm already following you.
good job! On the hash rate it's almost like 3X1060 3GB.
Yes. The only problem is that they are close to everyone's list and have already started to finish their inventory in all stores. I use some on one of my Rigs
Great post @lauro! Loving it all. Nice to have steemians like you on steemit. Just so know... deep down, I believe you will do great things. This is only the beginning, I believe in you!
We can be best buddies. Good news, I shared your post and followed you, follow me back to share the excitement!
Have fun!
I didnt know about rig before
It's a very cool thing :)
Great post. Though the increase in difficulty is a huge problem and also the price fluctuates a lot.
Also, do you sell or hold what you mine and why Zcash?
I just used Zcash as an example. Today I mine several different currencies. My strategy i explained in the text of the end of the link:
How you can earn money with your farming rig in 3 steps
Interesting stuff. Maybe will try it one day.
great guide thx for posting.
I've been mining for years, even to this day I'm still using my old gpus and a couple of 5-chip gridseeds to mine very low-end scrypt altcoins and then trade up on various exchanges for fun!