Silk Road forums
Discussion => Off topic => Topic started by: UKMJ on May 22, 2012, 09:51 am
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Just been reading about this rig that will produce around $10k a month mining bitcoins:
http://bitfury.org/bitfury110.html
Any miners want to chime in on the usefulness of such a rig?
As an aside what do people think of this idea:
If I wanted to cash out a load of bitcoins, say you were retiring as an SR seller and wanted to convert a large sum of bitcoins to liquid cash in your local currency, could you claim to have mined the coins overtime and then decided to cash out your mined coins.
This is more of a reason to explain where you obtained the bitcoins and resulting local currency. Could you suggest to your tax people that the gains be considered capital gains as opposed to income, pay the tax and end up with clean cash?
How can they prove the origin of the coins otherwise? I am suggesting this is used as a reason after disposing of all your coins, thus making the tracking of any individual coins that much more difficult.
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Where does it say anything about 10k a month?
Power consumption (total): 10 kW = 7 kW rack + 3 kW cooling (about $1,000 a month)
Air consumption: 1.2 cubic meters per second / 4320 cubic meters per hour (exhaust and squirrel cages about $600)
Estimated price: US $90'000 depending on project customization
If it were to come in at 10k a month could be a very healthy investment. Although I'd say it's more like $1500 a month considering what bitcoins usually make. http://bitcoinx.com/profit/
Dank
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Comments on hackernews explains what that sort of processing power buys you in terms of mining:
http://news.ycombinator.com/item?id=4007018
mrb 56 minutes ago | link | parent | flag
Roughly this farm makes $10k per month.
110e9 (hash/sec) * 3600 (sec/hour) * 730 (hour/month) / (2^32 * 1733208 (current difficulty factor)) * 50 (coins/block) * 5.1 (current exchange rate: usd/coin) = $9903 per month
Minus about $730/month in electricity for the 10kW it consumes, assuming an average worldwide rate of $0.10/kWh.
That's where the $10k comes from. Roughly 1 year to recoup your investment.
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I would be really hesitant to claim I mined a bunch of coins unless I really had a serious mining rig. It's not easy, and takes a huge amount of electricity, etc. The story would fall apart quickly if anyone looked into it. The more honest you can be, the better.
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When it comes to laundering money honesty has never been the best policy. Plus if you claimed to have mined them in 2009/10 then a huge rig like the one mentioned above would hardly be necessary at that time. The difficulty had increased and will continue to but back then it was significantly easier to mine.
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Comments on hackernews explains what that sort of processing power buys you in terms of mining:
http://news.ycombinator.com/item?id=4007018
mrb 56 minutes ago | link | parent | flag
Roughly this farm makes $10k per month.
110e9 (hash/sec) * 3600 (sec/hour) * 730 (hour/month) / (2^32 * 1733208 (current difficulty factor)) * 50 (coins/block) * 5.1 (current exchange rate: usd/coin) = $9903 per month
Minus about $730/month in electricity for the 10kW it consumes, assuming an average worldwide rate of $0.10/kWh.
That's where the $10k comes from. Roughly 1 year to recoup your investment.
10KW OMFG and the price for a power is nowhere near 10 cent, especially if you need it constant. Maybe a powerplant worker could install it on his work.
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even if you claimed that you would have to prove you have or had that kind of equipment. Having a mining rig like that would stick out like a sore thumb and too easy to prove evidence of making it also easy to prove that you don't or never did have one. For one, the electric department.
You may be able to piece it together anonymously over time but if you want a good system then you'd have to buy quality parts. GUI cards would cost a lot as well as quality processors and motherboards