Hello, friends! its Richard, found of Short-Term Rental University and Airbnb super host. Today’s blog is to give you guys a little update on my crypto mining operation. I recognize this isn’t for everybody here but there are lessons to learn from this for any new venture, new business, new thing that you’re starting.
Last time we talked, I was venturing into crypto. I started doing some mining and as Bitcoin prices have come down, the returns have come down. This is not to be unexpected and it makes sense based on what has occurred lately. I think there’s an awful lot of really interesting and innovative things happening in blockchain and in crypto. I don’t want to only do it for the returns, I actually want to do it and see what it’s involved.
So I purchased some rigs, hired somebody who has been a great partner and here is what I have learned:
It’s like it’s the Wild West. I can’t believe how many things fail, have to be tested, are set up and are working and then they stop, Ram that dies, cat5 cables that don’t work, etc. I mean you can’t believe how manual this stuff is and how much effort it takes to get it up and running!
Then, once it is up and running, sometimes they go offline and you don’t really know why. You have to troubleshoot and troubleshoot and troubleshoot. It has been a really interesting and eye-opening experience to show me just how much opportunity there really is.
At the same time, I thought I was starting off relatively small with a total of 16 rigs, 8 GPUs in each rig for a total of 128 cards. I knew it was going to take an awful lot of electricity but I had no idea how much! When I actually got the space that we’ve converted into our crypto mine we were woefully undersupplied. I had to get an electrician and figure it out. We were on the phone with local power authorities trying to figure out how to upgrade everything.
We did something temporary that’s got my 16 rigs up and running and would allow me to expand another six or eight more without more tax on the system.
They also throw off an unbelievable amount of heat, I couldn’t believe that either! I knew it was going to be hot but I just couldn’t believe exactly how hot. I’ve spent almost three thousand dollars on commercial fans just to circulate the air and we’re still trying to tweak that and make that work. These GPUs can run as high as 80 or 90 degrees Celsius in cranking out. Just think of all of that going on behind the scenes as they try and crack the code in mining these cryptocurrencies.
When I first started taking a look at these investments and opportunities, the price of Bitcoin and other cryptocurrencies was higher. I don’t really care because the price of the currency at a point in time is just one data point. I think it’s going to continue to go much higher going forward, but I’m also recognizing that it could go lower which is basically what has happened. There are ups and downs, this is a business.
To put in perspective, when I first started looking at it I thought all of my investment would be paid off in about 12 months, which is a fantastic return on investment. Now, with the current prices and how much I’m actually mining on a day to day basis, that has stretched out. I am now somewhere between 18 and 22 months, but as prices start to rebound it will come back down.
Not only am I learning, reinvesting and growing but I’m also understanding that the price of the cryptocurrency has nothing to do with what’s actually happening. There are tens of thousands of people all over the world that are mining and building rigs or developing software, systems,and new coins.
I know this is going to have a very bright future. I don’t know whether my mining operations going to make a lot of money or whether this is going to be a successful investment for me. What I do know is blockchain and cryptocurrency is part of the future and I want to be at the early stages. I want to learn as much as possible. Even if this was a total loss, I’ll more than recoup it knowing what I learned from this investment.
So in closing, I love this stuff. Being an entrepreneur is all about taking risks and trying to make calculated bets. It is about trying to make a return on my investment but it’s about the trying but it is not about the guaranteed return. It’s about the lessons learned.
I’m really enjoying it. Even all the stuff that would really give somebody else heartache and pause, that’s part of the challenge, the fun and the learning. Change your mindset away from the goal and change the goal towards learning, growing and being involved. Then it’s a wonderful thing, we’re in a great time in America. Go and do whatever you need to do to be an entrepreneur and make it happen! Just change your mindset so that you’re enjoying it and then the money will follow.
I hope you found this interesting, I hope you can apply some of this to yourself. Whether it’s in crypto or your own little business ventures, it doesn’t really matter.
If you’re into crypto, let me know! Or tell me what your business ventures are!
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