Thinking About Shifting from GPU to ASIC Mining: What’s the Deal?

Been into GPU mining since like 2013, started with one Radeon HD 7850 and went all the way to 200 GPUs during the ETH hype. Lost it all when a big investor bailed in 2018, so I cut down and just ran one rig for a while. Now that I can work from home, I'm eyeing ASIC farming.

I doubt GPU mining is gonna die anytime soon. There will always be something to mine and they’re super versatile for different tasks. But why are you leaning toward S9s? They're kinda dated, maybe check out newer models if you want better returns.

For sure, GPU mining isn't going anywhere. But honestly, timing isn't great to dive back in with PoS looming. I plan to re-enter when prices drop. My focus is long-term.

Wait, this day-ahead index, that's a deal with the energy seller, right? Not ONCOR?

Exactly, day-ahead prices are just for the energy generation part, but it still travels through ONCOR. If I can reduce usage in peak hours, it's a big deal. I’m not worried about S9s overheating, they’re old tech.

Yeah true, but I think an experienced GPU miner might hesitate with ASICs. They lose value quicker than GPUs and if you don’t act fast, you could end up with useless hardware. Plus, mining ASICs really ties you down to one currency.

Absolutely, I get that. I’ll keep a close eye on depreciation and revenue versus power costs. A miner that makes $3 revenue and uses $2 in power is risky compared to a newer model making $6. It's all about balancing risk.

Better to diversify and not bank on one coin. If DOGE tanks, my Antminer L3s go to waste. But if ETH goes PoS, many GPU miners might wish they switched to ASICs.

Too bad you’re not in Europe. I’d partner with you, I have a decent capital set aside for a similar project.

We’re planning to invite outside investors soon, offering hosted mining without contracts for international folks. U.S. investors can grab non-voting shares for tax perks.

You mentioned profit from one ASIC. but what about the cost of engineers to keep everything running? I barely broke even in 2019 with low wattage.

Good point, that’s why I bought some older ASICs to test at home first. Gotta expect higher failure rates. My plan is to use them to ramp up power demand and score lower electric rates.

Can you share some tips on dodging US taxes?

Pretty straightforward. Get a reseller certificate to skip sales tax on hardware if you flip it quick enough. Electricity tax is trickier; it’s really for larger ops.

Interesting, I thought only manufacturing businesses got those exemptions. What’s the minimum scale to qualify?

You can still make profits with ASICs, but BTC is tough. Most of it is mined already, and retail investors are squeezed out. Best bet is to buy coins instead.

Yeah, new mineable coins can be a good call. Hop on them right when they drop.

Sounds like a headache for customers just trying to save on taxes. Only worth it for big farms really.

$380 for an Antminer S9? Is that even worth it right now?

That was the price back when I kicked off this chat. Prices have dipped since then.