Ok let me start off by saying this generally a bad idea, and under normal circumstances
you really shouldn’t leverage your credit this way. This year, for me has become the
year of taking “what if’s…” and turning them into “Lets see…” on some of my
more ill-advised pipe dreams - Ill direct you to a couple months ago when I sold my
house and put all the profit from it directly into ONE stock that I really believe in. I
have a pretty unique situation that makes this level of risk a bit more tolerable.
THAT SAID - Hi, my name is Nicholas Johnson, I’ve just spent $23,000 on a credit card
to buy ASIC miners, and Im about to spend $20,000 more! This is the Space Warehouse.
I got into the hobby of mining Ethereum a few months ago with an RTX 3080 I have in
a windows machine that I got to run my VR headset. It didnt take long before running
the numbers led to spending another 8 thousand bucks putting together a purpose built Ethereum
rig, albeit a messy one, that consists of 4 additional 3080’s and then a pair of air
conditioners to pump out all that heat so that my garage office was still comfortable.
Well by now I hope we all know about Ethereum 2.0 and how thats got a good chance of putting
an end to the party - SOME mysterious time in the possibly near future. So I took a little
peek into the ASIC side, the dark side of cryptocurrency’s proof of work.
I was under the impression that ASIC mining farms had hundreds of units simply because
they make like a penny more than the electricity they use to run, but I guess that was when
the prices of everything were a lot lower.. I picked up a Bitmain Antminer L3 to test
the water - and even worse I bought it on Amazon on a pretty significant markup so that
I would have the safety of a good return policy if the thing came dead on arrival.
It came, it was VERY easy to set up - I got it going and its on track to make a couple
hundred bucks a month!
Seeing these numbers unlocked a demon inside me that is just calculating, over and over
again, the fact that if I just spend MORE money, Ill make even more more money after
it pays itself off. (I am aware of the cyclical bear markets)
For now, though, every thousand bucks spent equates (at the current price of in this case
LiteCoin) to 150 more bucks a month brought back in - which will pay itself off in 7 short
months as long as nothing drastically changes. (I mean, since when does crypto change quickly
and unexpectedly, AMIRIGHT?)
I recognize a majority of people cant just be like, well then Ill spend 40 grand and
buy myself a 50k annual SALARY!? Those numbers cant be real. It cant be real. How can that
be real? Fuck it, lets find out…
Sidebar, will you thumbs up this video, pretty please? It tells YouTube to show me to more
people and that will act as a backup plan when this all falls apart. Thank you. Graham
Stephen says I need to reward you, so here’s possibly some of the only 4k 120 frames per
second video footage of an L3+ running alone in a warehouse.
So here’s the part where I explain how doing this next thing with credit cards ISN’T
TOTALLY insane. I DID sell my house, and I DID put all of that money into Microvision
Stock, MVIS. On the surface that seems like Ive got the potential to lose everything,
people always say “only invest what youre willing to lose.” And thats fine advice
to live by, but while this stock will definitely go up and down, and right now its going down
more than up; the odds of a company thats been in business for over 20 years and has
over 100 million in the bank, the odds of that company literally going bankrupt and
suddenly disappearing altogether are very small. The odds of them hovering where they
are, or going up some or going down some are far far far more realistic. That means I have
this 110 thousand dollar safety net where if I screw up the wiring and burn down the
warehouse and lose my whole mining farm - Im not going to lose my house, Im not going to
be in any real trouble or danger. Ill just have sell off some stocks and put a giant
L on the mining farm column of ideas leaderboard.
Second to that, I have a full time job with a salary, and I have a wife with a salary
who actually makes a bit more than me; we dont have any kids and enjoy living with roommates
who pay a majority of the mortgage! So if my mining farm goes down AND MVIS DOES go
to zero, in reality my daily life still won’t change - Ill take out a consolidation loan,
set it to auto pay and forget this year ever happened… I fully recognize how generally
unfair this is. Such is life, unfortunately.
SO.. back to this months bad decision making. With what Ive learned about LiteCoin and Bitcoin
and litecoin and bitcoin mining - I have made 4 additional purchases all on credit cards.
I bought in total three Antminer L3’s and an Antminer S19J Pro. And then Im putting
a pre-order in on an L7 for the November drop.
The three L3’s will earn around 150/month each mining litecoin and converting it to
Bitcoin.
The S19j Pro will mine Bitcoin Directly and profit at this very moment an estimated $800
monthly.
My 5 3080’s are already generating around a thousand a month mining Ethereum and will
continue doing so until the bitter end, at which point I suppose Ill make and sell 4
“custom gaming PCs.”
And this L7, which won’t be delivered until sometime in November will supposedly mine
a disgusting monthly $3300 also in litecoin OMG thats outrageous.
That will put my no longer a hobby mining operation at a profit, if I understand these
projections correctly, of $4550 a month, or $54,000 annually!! That is BONNNNNNKERS. I
already make something like $65,000 a year with me job and my side hustles - but now
as long as these chinese suppliers dont just send me a paperweight and go out of business,
I will be a 6-figure earner as of 2022.. this is going to make doing taxes SO confusing
and rewarding.
The second thing that makes this even possible at all, is the Space Warehouse itself! With
some of these machines, you cant just plug them into the wall at your house.
The S19J pro pulls over 3000 watts, the L7 Pulls 3400 watts and each of the L3’s want
800 watts to run. All of them prefer to run on 220 volts, which you typically only have
at your stove and your drier and those outlets are busy.
In addition to the very high power draw, these machines are very loud and most of that energy
gets converted into heat, so if you have these at home youre going to need to solve those
problems as well. But the warehouse has a 300amp panel and a
crap-ton of cubic feet of open air to dissipate the heat. Also no one lives there.
So.. Yes - I have spent $40,000, all on credit cards, on ASIC mining equipment, expecting
the profits to outrun both the electricity costs as well as the interest to the bank
for the opportunity. I did move $20,000 of that money onto a card with 0% interest for
18 months, which will be far more than enough time to pay the thing off.
Im a miner now. With a mining farm.. Im a farmer now! Who came up with these terms?
Follow me for progress updates on wether or not this worked out. Im pretty confident it
will.