Cryptocurrency/Litecoin/Dogecoin Mining Business Plan

I like what Linus Media Group does. I’m not talking about the content they create, which is high quality and very useful by way, but how they run their offices.

They rent a big house out in Langley which they stuff full of computer and camera equipment which they use when it’s time to get some work done. Linus actually uses the kitchen for many of videos, although the recipes he’s teaching the audience have names like “budget gaming build” rather than “beef bourguignon.”

linus-tech-guy

Photo Credit: Linus Media Group and NCIX Tech Tips

But I’ve never had a compelling reason to rent office space myself – until now.

This new crypocurrency stuff allows me to stuff an office full of workers – virtual workers – whom I could manage remotely. I wouldn’t have to be physically present there unless I wanted to be. This office/house project makes a lot of sense for us right now because heavy equipment is about to turn piddlingly small bachelor pad into a 0BR 0Bath literal hole in the ground.

But is it feasible? I have no idea yet. But I’m going to find out right now with the power of spreadsheets!

Dogecoin Mining Earnings per Day

I’ve got about 2 weeks of data now on our new 700 k/h mining rig, which I can scale to find out what my equipment needs would be to pay for the office space + electricity. Meet Milky the Miner, creator of data points.

milky-the-miner

Now for the Data Dump

Based on a dogecoin value of $1.2 USD per 1000 Ð.

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doge-chart

What Does it All Mean?

In summary, for every 1000 kh/s in processing power, crypto mining is earning around$3.42 a day, or 102$/month.

Breaking Even on a Crypto Apartment

The first task is to earn enough from the space and electricity a mining rig requires to pay for the apartment.

Rent for a 2 bedroom apartment in burnaby runs $950/mo which would require around 9 mh/s (9216 kh/s). Based on current energy consumption of “Milky” (400 watts: 700 kh), a rig this size would conservatively demand around 5.5 kilowatts, which in this region costs $356/mo. So you need another 4 mh/s or so to pay for that for a total of 13 mh/s just to pay for the space.

Now we’re up to 13 mh/s for our very conservative rent paying mining array. We could actually shave 10% right off the top just for currency conversion and another 30% if we use the average price of Ð rather than the period low of $1.2/1000. This is a worst case scenario build with tons of margin for volatility.

Cost of a Rent-Paying Mining Build

Over on /r/scryptminingrigs are some great sample builds with detailed cost analysis. This is currently the largest, a sample build for 4000$ that hashes a hair over 7k mh/s. We would need two of these. $8,000 all-in and we can almost guarantee a rig that can pay for the space it lives in. But your living space better be damn secure.

A Sample Crypto Apartment

This 2 bedroom apartment sits near the highway in Burnaby. According to padmapper, 2 it’s 0% more expensive than the typical 2 bedroom apartment in the area.

It would be very important to check how well the circuits in a place like this would handle the large power draw. However that dryer itself would need about 4500 watts which almost brings us to our power needs on its own. I’m not sure if they make adapters for those high amp outlets though.

kitchen

bedroomPictures from Kijiji Listing

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