RE: Making Money With a Farming RIG - Complete Guide

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.