With bitcoin reaching all time highs and gaining a lot of attention, more and more people are turning to cryptocurrency mining wether it be a single machine hobby or something more large scale. However, as many people are starting to realize, it quickly becomes a costly adventure.
Lets just run through the basic costs, first you have to buy a mining rig. The most efficient and leading cryptocurrency miner is the Bitmain s9 Antminer so we will use that as an example. They will set you back around $1500US with the power supply and can be found on the Bitmain website of more commonly on Amazon and eBay. Generally if you shop around on Amazon you can find a cheaper price.
Then you have the mining pool fees. You are looking at around 1-3% depending on what pool you join. You can do your own calculations here Bitcoin Mining Profitability Calculator.
I’ve entered some values for the Antminer s9 14TH with todays prices at 1% mining pool fee.
Ok so without including things such as the cost of cooling your newly minted Bitcoin Miner, we are sitting at around $893.43US Profit at todays prices. It’s going to be a lot more if Bitcoin is back over $20k.
Now we ideally want to recoup our investment relatively quickly so we can make some residual gravy without having to get in the kitchen.
The stock standard Bitmain s9 ant miner will take around 2 years to pay off if your power is 24c which is around average for Australia. I have put the cost of electricity in my example as .18c US which is .24c AUD.
In most cases people wont see the profits they were hoping for unless you live in a place that has cheap electricity. Its rather lucrative when Bitcoin price is high but as we have all seen its a volatile market and we need to make money even on the downturn.
In short, the monthly power bill is going to eat into your crypto mining baby really quick. Over $2000 on power alone for one mining a year.
But what if we could find a way to eliminate our monthly electricity expense. Well maybe there is a way so lets talk about Bitcoin Mining with Solar.
Now this might not be what you want to hear right away but obviously Solar power requires a little more upfront. But if you are a risk taker and looking long term, once we have paid off the solar panels with our mining operation, we are operating on free power. Then all we have to do is sit back and watch our Bitcoin Miners do the work.
Let’s talk about a real world example of a solar powered Bitcoin Miner who is making mining profitable.
Now if you want to read up about the operation I’m going to talk about you can read more here but let me lay down the basics.
The Solar mining operation has been running for just over a year now and has 25 computer rigs each. Taking into the price of solar panels and installation, each miner cost around $8000 to set up. Bitcoin Mining with Solar
I know what you’re thinking and I am the same but not everyone is a commercial bitcoin miner so just remember we can do this on a small time backyard scale.
The total outlay of $8000 includes solar panels, power controls, batteries, and the Antminer S9 ASIC processor.
Mining Bitcoin on Solar Power in Australia
I found a 1500W Solar System with Inverter and Battery Bank for night time for $6450 on eBay. The Antminer s9 Miner will use around 1300Watts an hour so in order to charge the batteries and power your Antminer s9 during the day you might require a 3000W Solar System.
Off Grid Solar Kit – 1500W Solar PV – Battery Bank and 4kW Inverter/Charger AU $6,450.00 – eBay Link Here
So how profitable is mining Bitcoin with solar in Australia I hear you ask?
Well as mentioned above it would take around 2 years to pay off your Antminer s9 at todays prices ($8500US).
If we were mining Bitcoin on Solar power we are looking at these rough costs;
- Bitmain Antminer s9 – $2000
- 1500W Off Grid Solar Kit – $6450
- Additional 1500W Solar Panels – $1500
So as we can see above that with our new off-grid bitcoin mining solar operation, we can expect to make $2932US a year ($3821AUD).
$10000 / $3821 = 2.61 years if price remains current.
So we have done some basic outlay calculations and determined that mining Bitcoin on Solar is feasible but there are a number of things to consider first. By starting a solar mining operation you have to be prepared to invest significantly more money up front to pay for solar panels, batteries etc. At current prices you are also looking at over 2 years to get back your original investment.
However, it really depends on where you see Bitcoin in 2 or 3 years from now. If you believe that Bitcoin will be worth significantly more in the future then perhaps this is a very good investment. If Bitcoin doubles in the next year you can potentially get back your original investment very fast. Many financial analysts and hedge fund managers have prediction Bitcoin going as high as 20K, 30K and even over 100K.
If you believe that is the future for Bitcoin then perhaps solar is the answer for your mining venture because once you have made your money back, you have a completely sufficient solar mining rig making money at no cost.
Just keep in mind that the rate at which you recoup your initial investment could be very fast if bitcoin prices skyrocket but also very slow if prices drop.