What do you need to know to mine Bitcoin? Is garage mining profitable? Join host Kathleen Jobin and guest, Bitcoin miner Matt as they discuss everything from what you can expect in terms of power usage to if using an ‘on/off’ model can be profitable.
- Matt was using 30 or 40 kilowatts in his garage to mine bitcoin (500 KW/half-MW could be consumption of anywhere between 100-200 homes), now he’s moved into an industrial unit he uses up to half a megawatt of power.
- There’s unused capacity from the grid which are built keeping in mind peaks and valleys, but they’re built handle peaks so most of the time the grid has excess capacity. Bitcoin mining is a 24/7 operation so you’re ideally using non-stop flat load of consumption. And most utilities want load to offset their fixed costs at least.
- Matt got into Bitcoin through mining. The first Bitcoin he had was the Bitcoin he mined. He started out with homegrown GPU miners using graphics card in making a custom computer, not Bitcoin (because there were already ASICs) but Ethereum, but he was mining on a platform which paid in Bitcoin. So you mined Ethereum etc but got paid in Bitcoin.
- Matt’s recommendation is that if you’re into your tech then you should dip your toe and try out mining. Learning mining works best if you’re actually doing it. You can find older generation machines at good prices and can make a little money out of them.
- If you look at any website that shows profitability of miners, that shows profitability right now today if you have the miners with you but it doesn’t compare with long term factors like mining difficulty or the price of Bitcoin. The profitability changes dynamically everyday every second. And generally, that profitability gets lesser over time because the difficulty gets harder.
- Home miner’s are not going to get competitive rates. But when profitability is high, like really now, it doesn’t matter much, you will still make some.
- When things get really bad in bear markets, you see dips in hash rate as the least profitable miners drop out. In the early day, when Matt was mining from home, he was finding it barely profitable, and was earning about enough to pay the power bill.
- If you think long term, you can scoop up a bunch of machines for cheap during a bear market. Mining is very opportunistic, very flexible, it’s a type of business that uses electricity in a way that is very unique.
- Matt firmly believes Proof of Stake and other alternatives cannot work with the same vision (of Proof of Work to achieve global free permissionless digital money). Mining is designed in such a way that it creates a backbone that secures immutability of the blockchain and its transactions and scarcity. Just like gold is hard to mine as it takes real world resources to create is what makes it scarce.
- Matt’s mantra is to mine and hold and sell only for the sake of paying power bills and so on.
‘Believing mining is a get rich quick scheme is a mistake’
‘If you’re looking at all I care about is making money in the simplest way, then just buy Bitcoin’
‘Bitcoin is a free sovereign monetary asset that is free of governments’
‘Bitcoin mining is not a lottery, it’s a type of math problem that you can only solve by making guesses’
‘Cryptography is its own rabbit hole’
‘You do not get something for nothing’
‘The only thing that a miner should buy with bitcoin is more mining machines’
‘If anything Bitcoin is, it is also freedom of expression’
Ville de Baie-Comeau Call for proposal: https://t.co/Q4KdqXmhUa?amp=1
Bitcointalk.org – “the original message board for bitcoin started by Satoshi, specifically the mining topic areas and people should feel free to post questions. But the rest of it is great too with many of the original bitcoin folks still active and fascinating to look up old Satoshi messages” says Matt
Telegram – Miners Peak group https://www.tg-me.com/ca/Miners-Peak/com.MinerSpeak
Blockoperations.com – “Rolf, who’s site it is has been a big inspiration to me in taking the leap to growing my mining operation beyond the garage scale. He has been in the initial industrial scale for a while. He has some great videos and blogs on his website and while he isn’t super active with content it is great stuff.” thinks Matt
Bitcoin Mining Council : https://bitcoinminingcouncil.com/
ABOUT THE HOST
Kathleen Jobin holds an MBA from the University of Sherbrooke. Mother of 4, Kathleen is a hybrid between a businesswoman, a geek and an idealist. After several positions of interest in different firms and industries, such as a developer, scrum master and project manager, Kathleen made a drastic shift in her career in 2019. Diving head first down the bitcoin rabbit hole. She got bitten by the Bitcoin bug. She now teaches Bitcoin and volunteers to set up events that help with the understanding and adoption of Bitcoin. Her mission is to help awaken the masses to the power of Bitcoin.
My twitter handle: @Kathleen_jobin
My email: hello@NeverTooLateToBitcoin.com
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For your first Bitcoin buy, look for a simple exchange. In Canada, I suggest Shakepay. Use my affiliate link to receive $10 with which to buy Bitcoin. Also, by using this link, you will be able to shake your phone every day and earn free sats!
“Money is a technology and Bitcoin is the evolution of this technology.”
As the host of the show, Never Too Late To Bitcoin, Kathleen aims to act as your guiding light down the Bitcoin rabbit hole. Through interviews and chats with knowledgeable guests in every industry impacted by Bitcoin as well as leading thinkers on environmental and societal impacts, she will challenge your preconceived notions of money and Bitcoin.
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