SBD Crowd Funded Mining Rig - Some Basic Math

in steem •  7 years ago 

Hi guys, it's holiday time, there's not much work to do so I have very hard time not doing anything ;)

If you saw my post about crowd funded mining rig operating inside steem ecosystem (cfmroise :D) you probably know where Im going with this post.



All right, so this is an example configuration of the rig:

  • motherboard: Gigabyte X370 Gaming Pro (good power section, lots of pcie lanes)
  • CPU: Ryzen 1700 (16 threads for Monero mining)
  • GPU: GF 1080 (great for VertCoin and ZCash mining)
  • RAM: normal 8 gigs (need to check how RAM speed affects Monero mining)
  • Power Supply: Corsair RM850X 850W (6 x 8 Pins, good for additional GPUs)

This would cost around 1500 USD (150 SBD).
It would generate 7,5 USD (0,75 SBD) daily.
Power Consumption 1,5 USD (0.15 SBD) daily (0.4 kWh * 24 * 0.15 USD)
Maintaining Fee: 1 USD (so I'm willing to convert the SBD to Fiat + pay taxes, build and maintaing the rig for 1 USD daily :)
Profit: 5 USD (0.5 SBD)

This gives us:
Daily return rate: 0.3% (every invested SBD would give 0.003 SBD daily - and 0.03 SBD daily if the SBD returns to USD peg).
Days needed to return the investment: 333 (and much less if SBD returns to USD peg).

But! There are two variables here.
First the mining of crypto profitability will decrease in a long term because of the new hashing power incoming.
Second, more important, the SBD price may eventually drop to 1 USD peg which means 5 SBD daily profit from 150 SBD investment. Neat.

So this is the basic math. I should be able to fund around 30 SBD so we need 120 more from the investors. The cheapest rig would be around 112 SBD (Ryzen 1600 + GF 1060) so this is also an option.

As you can see this wont bring huge profits instantly, but:

  • daily payouts are always good :D
  • you will be able to sell your shares if you find a buyer - it should be possible to automate the process
  • there's still room upgrade the rig with more / new GPUs

What do you guys think? Would you be interested in investing, is it worth the hassle?

PS. Account @cfminer (from crowd funded miner) is already up and is automatically accepting investments :D You can send like 0.01 SBD to try it out.

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Ok... I'm in for 25 SBD

Cool, just saw your transfer :)

So when will it be up and running? And will you be posting regular updates?

Yep he's doing reports on mining which can also help pay part of the maintenance fees.

Wait when will you stop accepting payments. For remember my comment before new shares should not be given for old systems.

When enough SBDs are funded - so a rig with 3x Gf 1080 probably. The fund raising could last a week and when enough SBS are garhered, no new investments would be accepted. What do you think?

  ·  7 years ago (edited)

So investment for round one stop at 120-150 sbd. I like it. Is it safe too invest now?

Yep :) I won't be doing any SBD -> Fiat exchange until there is a really high chance for the funding to succeed. If it fails, of course all SBD will be refunded. So, it's time for pubic announcement?:)

I have a question about the scalability of this project. Are you only going to keep it at 2 GPUs? What happens if you add more to the rig?

he'll do another investment round

won't that devalue the investment?

no he'll use the second investment round to buy more mining rigs and since in theory the rigs double , the money generated doubled the shares won't be devalued.

So theoretically in stock terms the value of the token remains constant with "dividends" paid in SBD?

yes:) although adding another GPU won't double the profit, more like +80% but there's not much sense building another rig for one gpu.

that makes sense. I didn't check your specs yet but with risers how many GPUs could one of your rigs support?

I'm more limited by the power supply but up to 3 GPUs could be used on this rig. I know that there are more advanced setups but I'm not aiming for a pro 16 GPU mining rig that costs more than @ned house :D

now that I think about it would't it make sense to calculate how much hashrate your investment contributes to the system to determine the % pay out?

no he using the money to buy mining stuff. Shares= how much of the profit pool will you get
shares are a better,sustainable,easier to manage system

The basic setup is 1 GPU (the 150 SBD one) but with this motherboard and power supply 2 more can be added - it depends from the funding size. Maybe there could be more crowd fund rising for next GPU ?:)

  ·  7 years ago (edited)

yep that is what i was referring to as a second investment round

I'm interested in this project and as i said in the other post. I can probably help build an ETH based token for this since I am on Christmas break.

We can trade shares on bitshares! With this idea

I would like to keep everything in STEEM ecosystem. With ETH tokens the shares could be bought by someone who has no STEEM account and than it would complicate the payouts.
SMTs might be a good solution :)

i heard april the date of release

I guess there could be a better way to do it.,but I assumed we would manage a wallet an only allow steem users to send eth to that address. I could see how that would get out of hand if I didn't write a bot to manage the requests as well. SMTs look kind of easier to make as well.

It looks like it is a good system. If it will payout in the long run I think it's good because we will see increases in payouts in general so what you make now will be more in the future.

You are doing some good things, although I don't quite understand them all. LOL! I Upvoted 100% and Resteemed as a means of saying thanks for working out the tipu thing with me. You are the best!

Thanks! Check out @cfminer ;)

Oh yeah, your calculations are very reasonably certain, and even there is a calculation for force majeure circumstance in the form of price failure! Thank you @tipu

no need to talk much I'm in already , anything like this kindly let me know, 😁 😁 😁 i love risk and investing

Check @cfminer ;)

good information @tipu. thanks for sharing. i like your post and following.

it will be beneficial for you ... its like passive income..

Can you accept LTC?

The drop in SBD value will mean lost of principal even if payouts are bigger at $5 a day in mining. The choice to make here. hhhmmm...

Hm, you although you still should get return from the investment in the long term.

Yes true, you can probably sell the computer rig for recouping most of the funds. I really like the idea but wanted to invest in specific coins rather than earning a SBD or steem payout. Yet teaming up has its perks. Oh the choices to make...

Hi Tipu what products to you offer im rather new are you like booster ?

Kinda, but with much less vote power :) @tipU can upvote post if you send at least 0.005 SBD with link to the post in memo. Also you can find all info in @tipU posts :)

  ·  7 years ago (edited)
  • What happens if the SBD price rises. Will it then take longer to return the investment?
  • How long will you run it? Until the hardware dies or becomes unprofitable?
  • I always thought it is not possible to mine Steem. How come it is now?
  1. In SBD terms yes, in USD no.
  2. Yes to both :) although rig can always be upgraded
  3. The rig will mine other crypto coins and exchange them to SBD for the payouts

Wait you will be mining VertCoin and ZCash, and Moreno the same time?

Only one coin from VTC/ZCash can be mined at a time on GPU, but Monero can be mined on CPU at the same time :)

Monero can be merged mined thus giving more profits. https://minergate.com/blog/merged-mining-with-monero/

But the best solution would be probably to use NiceHash or some multipool that automatically switches coins and does autopayouts :) gonna need to do some research.

multipool that automatically switches coins and does autopayouts is better

Great SBD for payments....
Thank you. Success is always for you @tipu....