The New Way To Mine Bitcoin - COLO
Since I launched my Youtube Channel, I've been in love with the idea of mining. Playing a significant role in the operation of an era of disruption and being rewarded for my effort. To me, its been more than just profit, but taking part in something and learning as much about it as possible. To better understand blockchain technology and how it all works.
Well, this article is simply about profit mining and how best you can go about doing it while making the most profit possible at the time of this writing.
Before I get further, I've always been against a few things being presented on my channel. Porn, Pyramid Schemes and Cloud Mining. This article is not about Cloud Mining.
A while back I was approached by another influencer that told me all about this mining operation in Siberia. I instantly thought, "yeah, yeah. Cool." He then told me he actually flew out to check out the facilities to see how legit it was and sent me some videos of his trip. A giant facility full of ASIC miners running in a 0 degree environment under 24/7 guard and with an engineer on standby round the clock.
I thought, ok, this could be interesting. I then engaged the founder of the operation and began chatting with him. Shortly after we had our first video chat. I learned the history of his business, his partner, the facility which is apparently 3 large buildings with a 10MW pipeline almost to capacity with enough space to host another 7500 ASICS and add another 20MW pipeline if needed. The property was bought and is owned privately by a family that wanted to get into mining, and they did, bigtime, but there was much more room than they needed and Amir worked out a relationship with them to launch a Co-Located Mining Service. They have been building up slowly over time and reached a point where they nearly maxed out their first power pipeline and needed to buy another one, but to do that, they needed the demand so they weren't throwing money away. That is where I came in.
After discussing the operation in detail over multiple video call sessions with Amir, him showing his corporate docs (available on the site) and explaining how it all works, I decided, I wanted to be involved. I've already bought my miner and am waiting for the next batch to be delivered and installed at which point we will be doing a video showing the process in detail, but in the meantime, I wanted to provide a primer on how this works and why I think its very worthwhile. I should also disclose that I my responsibility is to help spread the word on this business from which I earn 25% of the maintence fee for miners I bring on board. (100% of these earnings I aim to put back into my mining efforts through means of adding to the number of ASICS I have). Now, that being said, lets get on with explaining how this all works.
#1. What is Co-Location Mining?
Co-Location Mining is when you purchase physical miners and store them in a facility to be managed by someone else. Many major companies utilize co-location for the corporate servers. There are MANY major Co-Lo providers such as Rackspace and others. It's often cheaper to do it this way due to lower operation expenses.
#2. How does it all work?
In summary, a miner (also referred to as an investor ultimately) will go to https://CrowMining.com and on the top right, click Register.
Once you've registered, you will be able to purchase your ASIC Miners. (Start Mining). You will find two different ASIC Miners available, the S17 (Shown as 53TH/s though you could opt to run them in Turbo mode for higher Hash Rate though the miner may not last as long), and the T17.
The S17's are the newest miners from Bitmain and completely sold out on their site. However, CrowMining has a relationship with a supplier that enables us to get them in batches approx every 4-6 weeks, though the price fluctuates based on Bitcoin's value and demand for the miners). You can purchase 1, 3 or 5 Miners at a time.
You simply click Continue To Purchase and will be taking through the order process. You will have to pay for your order in Bitcoin (which you may need to acquire first from Coinbase.com or in July you can use CrowsNestEx.com).
To complete the order, you will send the amount of Bitcoin to the address you are given and it will automatically recognize that a transaction has begun. Once the transaction has been confirmed several times, the order will be complete and you will be in the queue to receive miners in the next batch.
(You should also have added your BTC payout address to your profile so that your future mining yield can be distributed promptly).
Once your miners are shipped to the facility, each of your miners are assigned a lot number and your user ID which connects those units to you. They are then setup in the facility and they begin mining.
From here, your mining yield is sent to your wallet, minus a 20% Management Fee. You will also be provided with your own Dashboard so you can see your miners in operation and monitor their progress. Now, you may initially be thinking, "Woah, 20%!" but let's get to the math so you can see why this isn't much.
At the time of this writing, the cost of ordering a single S17 BTC Miner is $2,999. (This price may go up or down depending on the price of BTC). BTC is currently at $7,779 (down from $8,400 yesterday but up from $6,000 a month ago).
The image below shows 1 Miner and its profitability at the current price of Bitcoin with the 20% management fee.
Now the image below will show the profitability of 1 S17 BTC Miner using your power (2520W per Miner) instead of the management fee (Using the national average of 12 Cents per KW)
That is $124 more per month in profit using CrowMining Co-Location service.
Break Even Time: 8 Months (If BTC doesn't rise above $7,781 over that 8 month period...)
Now, let's break things down a bit further. 1 S17 can mine approx .7258 BTC in a year which at the current price of BTC would equate to $5706. If Bitcoin goes from $7,781 to $15,562 - your BTC is now worth double, and so on. If Bitcoin reaches $50,000 in the next Bull Run, you made $36,532 for the price of a $2,999 ASIC miner.
People run as many miners as possible for a couple of reasons. Once being, they want to accumulate as much BTC as possible obviously, but because as BTC's price rises, so does the difficulty. The more miners mining at the same time, the less each miner gets as block rewards. So, the name of the game is to be first, accumulate as much as possible when the price is down, hold until it goes up and potentially sell at the high for major profits.
Now, I'm quite excited about CrowMining and my relationship with Amir and his company, however, while in speaking with him, I feel he is very genuine, honest, nice, knows his industry and is simply eager to build a solid business, there are risks. Siberia is FAR, international, not much recourse if something were to go wrong etc, and I can't be held responsible if something were to happen. I doubt anything will, of course, but, Putin could decide he wants everyones miners and just take them for all I know. I feel confident in Amir, his team and relationships which is why I'm working with them on this and I did in fact purchase my own miner with plans to get more. For me, the profit potential and overall fun of it outweighs the potential risks but my tolerance for risk could be quite higher than yours so, as with any crypto venture, never invest more than you can afford to lose and be careful.
I will be putting out a video on my channel in the coming weeks to show everyone a lot more but in the meantime, I hope this answers some questions for you and shows you why I love mining so much!
Be well folks, and Crow Your Coins.