Is mining profitable in 2020?
Many people have given up on mining as it has been taken over by huge mining farms making fractions of a profit on each miner.
But there are still people out there who believe mining can be more than just a hobby.
In fact, they think it can be a legitimate income opportunity.
Find out what the #1 factor in becoming a profitable miner is today, and why you might be giving up on it too soon.
Let's get it.
Welcome to BitBoy Crypto! The hardest working channel in all of cryptocurrency.
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Alright, guys.
Today, we are gonna jump right into an interview with Seth Estrada from the “mineyourbiz” YouTube channel.
I’ve been checking out his videos lately, and I was pretty impressed with what I saw,
so he asked me if I want to chat about mining on the channel, and I said, “Sure!”
We don't talk about mining a lot,
but there is some benefit to learning more about getting started.
Now, let's check out the interview with Seth from mineyourbiz.
Hey, everybody! We are joined with Seth from mineyourbiz, another YouTube channel.
Today we're gonna be talking about some mining. So really excited--
you get excited about mining, right?
Yeah, Yes, I do. Probably, unnaturally, so it's a little bit unhealthy. But yes.
Yeah, that's right. I hear mining is unhealthy for the environment. So that might line up.
Is that right? Is that correct?
Mmm.
Well, we might have to do sort of a--sort of a MythBusters episode on that
because we also, I mean, you know, we've also got a dependence on all kinds of technologies and stuff
that are unnecessary and redundant, and, you know,
should we be burning gas in our cars, or should we all get Tesla's, or should we just convert all our old cars to electricity?
I--I don't know.
- But mining, I think I can tell most people it’s not that bad. - The industrial revolution--
- Yeah. - The industrial revolution’s what really messed us up, and cows.
- Yeah, yes! Thank you, sir. A cow. Just walk in the back. - Right? Cows.
Their methane, their meth--their gas is really bad for the environment.
But, hey, I like cows.
So, okay, let's--let's move on into mining.
I want to talk about, you know, obviously, if anyone's been in cryptocurrency for any stretch of time,
they've heard of Bitcoin mining, they've heard of cryptocurrency mining.
But a lot of people don't ever really go, you know, get into that.
For people that are kind of sitting on the fence and saying that, you know,
they may want to get into it, they may not,
what would be the best steps for someone to get involved with mining?
That's a brilliant question.
The first couple of steps that somebody has to take when they want to get into mining is first taking inventory of what you have lying around.
Now, in my case, I'm a little bit of a freak because I'm right here in a mining facility, right?
So, in along with my office, but I've got some GPUs sitting around that can be used for mining.
If you're a gamer, you probably have equipment like this,
or you're researching the latest announcements from Nvidia or AMD,
because they both got really big announcements for 2020 about new GPU hardware.
But if you're a gamer, you already have that kind of stuff lying around.
So take inventory of the PCs, the laptops, the desktops, and especially the GPUs
if you're a--if you're a PC gamer that you have lying around, the hardware that could be used for mining,
and then just get it all down on paper.
Figure out what do I have, and what is it capable of, how powerful is it?
The second step would be to figure out what kinds of algorithms those GPUs or CPUs are capable of mining,
and if you're not familiar with--with what I mean by algorithms that they can mine,
I mean hashing algorithms, and you can usually figure that out by going to a website, such as whattomine.com,
and it'll just show you an assortment of different kinds of hardware,
and then you'll recognize what you have because you'll see it in the lineup,
and then you can select it,
and it'll kind of just show you that it does this much on, say, Ethereum and this much on maybe Monero or other coins you may have heard of,
and then you'll have a sense for which algorithm it can do,
and then the last step, which coins are best based on those algorithms.
So that's kind of the--the steps, those steps.
First, figure out what you have,
figure out what it can do by way of hashing algorithms,
and then figure out which coins that translates into,
and then the sort of last step is figure out how much profit that yields per day over the loss of spending on electricity.
Yeah. And that's the big thing to keep in mind here is,
when people are looking at, you know, how many coins they can be bringing in, you also have to look at how that's affecting your power bill.
Okay. That's the main--the electricity costs that you’re spending, that's the main thing that you sans to the profit, correct?
Pretty much. Yeah, I mean, the other stuff, like, if you have consumer hardware like a PC that you're using for gaming,
you can always resell that later on.
But, yeah, you can't sell the electricity that you burnt back to the grid.
- It's just gone. So you're stuck with the bill. - Yeah.
Yeah, and I, you know, some countries have, you know, better or more friendly power rates than others.
I know, how is it in the United States with our power rate? How much does it vary from, you know, maybe city to city?
You know, it's--it's such a broad range.
Actually, if you're in a state like California, which, first off,
ugh
I feel for you. I feel for you and I went--I've--I've used to live there. I'm not going back.
That's just my opinion on it. I mean, none of--none of these opinions from this side of the screen, I think, reflect the BitBoy channel,
but for me, I'm never going back.
And you also pay over 20¢/kWh in most larger--more populous areas of California.
It's really not possible to turn a profit mining in those areas of California.
You can go to the “flyover states” within the central United States,
and you can go down south into states like Texas,
where they've got really big--they've got a lot of diverse sources of energy for electricity there.
Then, it's everything from solar to wind to hydroelectric to, of course, you know, Petro Power, right?
So, so, coal-fired plants and everything else, everything in between.
And it's really low cost there.
When it gets all the way to somebody's house for the commer--
the a--wait, it’s not that commercial, but the residential rate for--for power,
it winds up being anywhere from one side of the country to these really inexpensive sides,
anywhere from on the high side, like 25¢/kWh, that's how they meter it, all the way down to maybe 7 or 8.
Be really lucky to get that rate.
And the national average is somewhere floating around 10¢ to 12¢.
That's kind of what most people can expect today.
Yeah. It--it's really just, you know, very different, a lot of variants.
And then I've seen, you know, people--the people who can really make bank,
the people who can make the most money are going to be people that are getting free power.
So, if you have free power now, it won't stay free for long if someone were--your landlord finds out,
or whoever it is, you're getting free power from,
realize your mining because it can get quite expensive pretty quick.
Yeah. But I'll offer you a hack there.
One way you can deal with that is if you're renting from, not just the landlord but you're renting from a property management company
that has, you know, 100 or several thousand doors under management, so to speak,
where in the real estate world, they call them just doors, right?
But if they have several hundred or several thousand doors under management,
then it's very possible that they've got just one giant invoice from the power utility
and that the extra cost of you mining in that one little facility, maybe--maybe it's a rental for your office like for work
or--or a rental if you're living in an apartment or something, you're doing a rental situation for your--your personal living.
It's very possible that for them that's just a drop in the bucket.
So, you never can tell, right? I mean, worth--worth exploring.
Yeah, absolutely. So tell us about--tell us about mineyour.biz.
Tell us about that.
Well, I appreciate you asking. mineyour.biz is--it kind of--it came up when I first re-entered the crypto scene.
I first heard about crypto, and specifically Bitcoin, back in like 2012/2013, didn't act, right?
Like I can't pretend to have some backstory now where I was like,
"Oh, yeah, actually, I was just this and on, like you didn't--you didn't see me, but I was there on Bitcointalk."
Nah, I can't. That's not me. And I'm not gonna pretend like, you know, and come up with some fake backstory.
I heard and I didn’t act, right? I snoozed.
And I lost and I felt the FOMO when people who talked to me about crypto in 2013 said,
Hey, I, you know, I missed out on the Ethereum ICO. They--they weren't sure if they were going to do it.
And then when I heard those stories from people who I knew that said they felt FOMO
and they’ve really felt regret for not picking up Ethereum during the ICO,
well, I said, okay, well, it's profitable to mine in 2016, maybe I should really start thinking about this
because I've built systems, and that's not too difficult for me to wrap my head around
this--this mining concept and building systems specifically for mining.
And then in 2017, I realized it was undeniable, right?
Like to everybody, it was undeniable that the market was running up and that I had to act.
So, end of 2017, I just--I looked for the handle.
And it just--it seemed unreal to me that nobody from the beginning of crypto had taken that--
that nickname or that handle, mineyourbiz.
- Yeah. - I was like, alright. For a domain, mineyour.biz.
And I was like, the domains available too, like, Alright, I'm doing this. Let’s just jump in with both feet.
- Yeah, awesome. - And then--
- Yeah, go ahead. - Got to the website itself though.
The mineyour.biz domain, went to some cryptocurrency merch that’s kind of mining theme
kind of--GPU mining-themed and also privacy-oriented,
very big privacy advocate when it comes to cryptocurrencies, like Monero or--or others that are privacy-focused,
or privacy technologies like VPNs, and TOR, etc, all the stuff that we're told we should be more mindful of,
but it's really easy to ignore because we think that's for--that's for nerds, right?
- Yeah. - They'll figure that out. It's--the average person can't do that.
I really think that's important. So now it's sort of a double entendre, right?
Like mineyourbiz, as in mine rewards from crypto, you know, Bitcoin and other blockchain, block rewards.
But on the other side, mineyourbiz, like, some things should stay private.
But it's up to us as individuals to secure that by using technologies like encryption and Signal.
A poor teenager, he's--he got his first phone not that long ago,
and the first app I made him install was signal so his mom and I can text him with encryption.
So, but yeah, mind your business, both those things.
Yeah! Cool. Well, yeah, privacy--privacy coins are, you know, I'm sure there’s been a lot of what you've mined,
as you've been mining, I mean, because a lot of those are minable.
And I think that they're facing a lot of criticism right now, and,
or they're about to be facing a lot more regulation than they are,
which can't really regulate something open source, but regardless, you know, they're gonna regulate on-ramps and off-ramps
to privacy coins and make it where they're not tradable on exchanges, you know, the regular way.
So it's kind of scary. And, um, you know, a lot of times we just--
you just say, Well, this is where we're at, you know, like, it's just okay that we're not gonna have privacy in our transactions,
and that's part of what crypto is about.
But it's always nice when you kind of have that, you know, contingent of people that are still passionate about that
because it is super important why privacy, you know, I mean, you don't want people tracking every single thing you do,
but yet, that's where we're at. So,
- Let's talk about-- - For sure.
What's that? Go ahead.
Oh, yeah. I was gonna say for sure, like you're saying with privacy, as a,
as a small business owner in the United States would, you know, rest--rest and peace, right?
- Recent--recent shutdowns and such have really messed up the-- - 60% of businesses that closed will never reopen.
Yeah.
And that's--that, I mean, this is a travesty, right? To see that happen in our markets.
But for those that are still holding out and still have income,
the last thing you want to do is give your competitors the advantage
- of being able to look into your records, right? - Have a look.
So privacy coins, or, or cryptocurrencies that behave like cash,
- they're pretty darn important, as far as that goes. - Yeah.
Yeah, I agree 100%.
Well, let's, real quick, let's just finish up by talking about your YouTube channel.
If there was,
I guess, a better way to ask this will be,
What kind of content on there would,
you know, if somebody's thinking about subscribing to your channel, they want to check it out,
what kind of content could they look for if they're not really super into mining or maybe don't want to get into mining, like,
is there still value for them? There--
Shill your YouTube channel. That's what I want you to do.
Well, hey, I appreciate you giving me the opportunity to do that.
Here's--here’s how I would shill it to somebody that isn't necessarily interested in mining.
I’ve got interviews with Roger Ver, which I know, it's--that's like having an interview with John McAfee at this point in the crypto industry.
- It's just kind of like it's expected. Sort of a Who's Who. - Yeah.
However, I've had several anonymous developers or several developers who work on privacy coins dox themselves on my channel.
I'm kind of this weird, geeky developer whisperer.
I talked to really interesting guests that nobody's ever talked to before in the crypto industry,
and some of them are flying really low under the radar.
For example, the guy that created the CryptoNote spec, the author of the CryptoNote spec,
which, that doesn't mean anything to you.
It's the technology that Monero and all that family of coins are made from.
So 350 forks of this coin and this technology, this guy made, in almost eight years ago, he worked on it.
He was anonymous for years.
His first video interview ever? On my channel.
And he--his team sought me out to do that.
I don't know why. I'm just--I'm just flattered and humbled that they chose me.
So, that sort of thing happens on my channel. It's really weird.
I mean, I'm biased. I think it's a little bit undervalued because of stuff like that.
But then I also try to translate some of the technical aspects of mining into common language
and help people figure out, like, what's the best fit for me in terms of educating myself?
Like, can I come up with a process to educate myself so that I can start with mining,
start with masternodes and things like that,
and generate passive income in maybe a slightly more technical way,
and carve out something more for myself within crypto other than just referrals.
And I mean, because we've all, you know, newsflash, we all joined Coinbase.
We can't click on your link, right? Anymore.
So, there are other ways to earn awards inside of crypto and I try to talk about those.
Awesome. Well, you guys make sure to go check out mineyourbiz on YouTube and checkout domain mineyour.biz.
Seth, thank you so much for joining us. We'll put some links down below for people to go check those out.
Thank you everybody for watching.
But now it's your turn.
Do you think you might start mining?
Do you think it can be profitable in today's crypto environment?
Let me know what you think in the comment section down below.
I hope you enjoyed this video.
If you did, please make sure to smash the Like button and hit Subscribe to become a member of the BitSquad.
Thank you so much for watching.
Have a blessed day boy.
BitBoy out.