What is the cost of running a mine?

Apr 19, 2018 | Cryptomining

cost of cryptomining

cost of cyrptomining

To make any reliable money or to make a mine profitable, you have a few elements in place.   Processors run hot and they use a lot of electricity.  They need space to operate in and that area must be cooled to keep them working well.  The first thing you need to build a cryptocurrency mine is space.   You will need to keep that space cool and it will need to have the ability to channel in a good amount of electricity.  The software is free and building the racks aren’t your biggest cost, its always power.

How do you find a space?

Its hard to know if a space can do everything you will need it to do.  If you already have a property you’re going to need to find an Electrical Engineer or contractor to look and see if it has sufficient power. Not every space is going to work.  If it doesn’t have the right power requirements, you’ll have install or supplement it.

Power rate and power consumption are the next hurdles to cross.  Bitcoin mining or cryptocurrency mining in the Sacramento area is defined by SMUD’s current power rate.  California’s power rate is high compared to other states (average of $ 0.15 ) , but our alternative energy initiatives, tax credits, and local rebates can more than compensate.  Depending on the location of the mine, solar supplementation, or wind power, will dramatically change the prospecting costs.

What is a Mining Pool?                  What kind of software do I need?

Deeper Dive

Local power rate is the center of the build.  Knowing the general rate will allow your contractor to choose the most efficient mining rig and supplemental power sources.   You can see what the local Sacramento electrical rate is at https://www.smud.org/en/Rate-Information/Business-Rates

Local incentives will vary with your energy provider but you can check online to see if there are rebate or programs:

SMUD Programs

Database that has Tax incentive and Tax Credits