Is Mining in the USA Worth It?

Would love to hear your thoughts on this.

Location matters a lot. Some places in the US are better for mining.

Yeah, New York is opening some mining facilities. 1) There are cheap data centers available. Big companies often leave old centers empty when they build new ones, so power and cooling are in place. 2) Upstate NY has cheap hydro power. 3) The cooler weather helps with cooling. 4) Plus, it’s a short trip to NYC.

What about taxes for miners in NY? How much does electricity cost there?

1) It varies a lot based on how you handle your sales and expenses. No simple answer. 2) I heard hydro power rates were around $0.03-$0.04, but that was a while ago. Seems like NY is getting stricter on this, though. Let’s see how that plays out.

Don't even think about starting a mining farm in NY. If you make a profit, you’re hit with crazy income taxes. Plus, sales tax is steep too. Electricity rates are higher than 3-4 cents unless you have a special deal. The state isn’t friendly to crypto.

How does sales tax even work in this context? What’s the calculation?

Sales tax isn’t relevant to mining itself. If you’re only focused on power costs, you’re missing the point. You should look for a facility that already has the power and cooling setup. Starting from scratch is super expensive.

If I sell a used mining rig, is that a taxable sale?

Maybe, but you need to figure out its value first. It can get a bit complicated.

Sales tax is key. It means you’re paying 5%-9% more for equipment. Some states have strategies to defer sales tax but you still need to pay it eventually. States like Montana or New Hampshire have zero sales tax and can be great if power is cheap.

You’re talking about different situations here. If you’re running a business in NY, some items might be tax exempt. If you’re buying for others, it could be taxable. It’s all about how you structure your business.

Right, seems like you’re spot on about NY. Other states also have exemptions for equipment used in production.

Can we get back to the main topic? Are there real benefits to mining in the US compared to other countries?

Economic freedom and property rights are big advantages. The government can’t just take your mining farm if you’re following the law. Banning crypto is tough since it needs legislative approval.

True, tax rates are high, but with depreciation incentives, you could end up paying almost nothing if you keep buying new gear.

Honestly, starting a business in your home country is best. Some places may not have taxes on mining, but there’s no guarantee for property rights. US has expensive lawyers and strict regulations.

Got any good websites for finding mining facilities? I always struggle to get accurate info on available power.

Important side note: miners usually get the worst power deals. In places like Texas, the heat can shut you down. Promises of cheap power can vanish fast.

In NE Oklahoma, we have hydro and wind power. I’m paying about 4.3 cents per kWh. That’s why big companies like Google are here.