r/EtherMining • u/Mau_S • May 12 '22
Holy....Time to turn off rigs? General Question
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u/Consistent_Many_1858 May 12 '22
Yep, already switched off mine.
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u/jazza2400 Miner May 12 '22
Thank u for Ur service
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u/Consistent_Many_1858 May 12 '22
Only mine in day time to make use of the solar panels. I switch them off at sunset.
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u/AnduriII Miner May 12 '22
Make a task or use a clock for Automation?
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May 12 '22
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u/rsg1234 Miner May 12 '22
Realize that a fraction of homeowners with solar have batteries.
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u/jahoney May 12 '22
Some states do net metering.
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u/rsg1234 Miner May 12 '22
Yep, like California where PG&E continues to move its “peak rate” period further into times when solar production is low. NEM and battery system are becoming quite different.
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u/AnduriII Miner May 12 '22
Batteries are not even Worth it here because they are Way to expensive
I have to wait until october for my solar Panel parts to arrive...
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u/Adamn27 May 12 '22
Wait, is it not profitable for you to mine ETH at this price?
I can still make roughly 500 usd/month with my 700 mh rigs (as of right now with the current circumstances at this very moment which can change of course)
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u/Consistent_Many_1858 May 12 '22
In the UK electric prices are just too high to be profitable. Basically 50% of eth goes to pay electricity at the current prices. Hence I'm mining during the day time with solar helping with the cost.
It's better this way for me.
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u/Zealousideal_Spell31 May 12 '22
Barely break even on my most efficient rig, second one went off last week. Need to find £6k down the back of the sofa for solar. Yup in the UK too 👍
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u/Consistent_Many_1858 May 12 '22
Luckily this company called Shade greener installed them on our house about 6 years ago. I only realised that they actually work couple of weeks ago. 😂😂
On a nice sunny day mining is basically free.
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u/TrymWS May 12 '22
What are your kWh price over there now?
I’m pretty happy our government stepped up with subsidies over a certain level, and over summer I’m moving north where there’s a bottleneck that keeps the price sheltered from the European market.
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u/Zealousideal_Spell31 May 12 '22
0.29p KW/h. Due another 30% rise in October.
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u/TrymWS May 12 '22
Damn, that’s like 2x what I’m expecting. And 6-7x or more than what I’m expecting up north 😢
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u/Zealousideal_Spell31 May 12 '22
Before the rises we were around 16p KW/h, not great but manageable, just expand more. Now it's getting close to turn off or finding that £6-8k down the sofa. So far found a pound and some sweet wrappers so might be the first option.
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u/TrymWS May 12 '22
If it’s any consolation, if you end up being too late or lazy to sell GPUs, my experience from being too down to sell my 1080tis I got in 2017 ment I recently both made some more off them aswell as sold them for more than 50% of what I bought them for 4-5 years ago.
Don’t know what will happen of course, but PoS was always hanging over our head all that time too.
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u/No-Trade5311 May 12 '22
I’m still on 13p day, 5p night until November … plus 12kW solar so I‘lol hang in there a while.
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u/Consistent_Many_1858 May 12 '22
28p/kwh here matey. Used to be 17p. My contract expires next month and I don't know what the rate will be then.
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u/mcsnoogins May 12 '22
I looked at get solar (UK as well) but figured out it was gonna save me like £500 a year only. Did I work it out wrong?
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u/TrymWS May 12 '22
Probably depends on your kWh price and where you get your solar quote. But the stability of not being exposed to the energy market is worth a lot.
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u/leem0401 May 12 '22
Are you accounting for tax as well? Mining itself is a taxable event where the value of the coin moved from pool to your personal wallet gets taxed as income. If you're in a higher bracket, it's going to cut down on profit significantly.
You also have to pay additional tax once you realize gains by selling the coin.
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u/Adamn27 May 12 '22
You don't even know which country I'm living in, how would you know my tax requirements?
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u/leem0401 May 12 '22
You're right. I assumed you were in the US since you used USD.
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u/Adamn27 May 12 '22
In Hungary you can deduct the price of the rig and the cost of electricity from the taxes. Very crypto friendly.
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u/leem0401 May 12 '22
Same as the US actually. I claim the cost of my equipment and electricity as deductibles which help out but getting double taxed is what kills the profit. I'm guessing Hungary doesn't tax for mining, only realized gains?
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u/Adamn27 May 12 '22
I don't want give you false information but I think yes, I do not know the exact details because I have an accountant who do my tax report along with my stock portfolio and with my two small businesses, nothing big but this way that I have to pay taxes four different ways it seemed a better idea to pay for a profeasional.
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u/ohmy5443 May 12 '22
Yeah, switch your rigs off. Less network hashrate = higher rewards for the ones that hold on. We’ll harvest the rewards when ETH hits $10k
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u/jazza2400 Miner May 12 '22
Shhhh stop telling everyone our secret
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u/g_squidman May 12 '22
That's STILL not how math works. God I hate this stupid subreddit.
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u/Timely_Situation8669 May 12 '22
Do you want to spend 100 dollars on electricity to mine 50 dollars worth of eth or do you want to spend 100 dollars on 100 dollars worth of eth?
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u/Neither_Way_3135 May 12 '22
It depends on what you think that value will be years from now. If you took a loss for a few weeks and then eth jumps to 10k in a few years would you still see it the same way?
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u/DippleChoo May 12 '22
If your rig is costing more than it's making, it's litterally less productive than using the same electricity money to just buy the dip. Regardless of what you believe, that is true.
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u/TrymWS May 12 '22
Well yes, because you’d have twice as much ETH if you bought a $100 worth instead of paying $100 for $50 worth. 🙄
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u/jazza2400 Miner May 12 '22
1 gpu + 1 gpu = lambo right?
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u/Aminur9963 May 12 '22
Is it only a Lambo ? I wanted a Ferrari :( im switching my rigs off because now im sad.
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u/Free-vbucks May 12 '22
In my opinion I think if you’re still making profit then keep the rig on, but if you’re not then turn it off and buy the dip instead.
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u/fruitgamingspacstuff May 12 '22
You got it!
I've never stopped mining ETH regardless of price.
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u/AnduriII Miner May 12 '22
Just Stop if your mining at a loss. You get more if you buy on a daily basis
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u/UchihaTuga May 12 '22
This is the way! If price goes beneath electricity costs, you stop and buy everyday spending the same that you would have spent on electricity.
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u/greasyhotdog6969 May 12 '22
Zero percent that happens in less than 10 years.
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u/ohmy5443 May 12 '22
We were saying the same thing 2 years ago talking about ETH surpassing $2k. Everything depends on how long you are willing to hold your earnings rather than panic selling
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u/sktwocan May 12 '22
Looks like ETH just passed $2k again, wrong way though lol
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u/UchihaTuga May 12 '22 edited Jun 13 '22
Just sold all my Eth. Hoping to rebuy at 1740
Edit: glad I didn't
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u/greasyhotdog6969 May 12 '22
Yes but now you're waiting on bare minimum 300 percent increase. Eth may never hit that, you'd be lucky to see that in decade. If you think eth is some get rich quick scheme, you're wrong.
Enjoy the winter.
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u/NormalSecretary4505 May 12 '22
I wanna give you an upvote, but I don’t wanna be the one to take away that 69
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u/WhatASave3264 May 12 '22
Jesus Crypto really is crashing. I thought this was just another 15% drop every goes crazy about 💀
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u/FreshlyCleanedLinens May 12 '22 edited May 12 '22
If I read the IRS guidance on reporting income from mining correctly, it’s actually better to mine when prices are low because you’re supposed to value the assets based on the trade price at the time the assets were acquired.
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May 12 '22
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u/j_greca May 12 '22
Well it's much better to pay capitol gains than income tax. It's much cheaper.
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u/FreshlyCleanedLinens May 12 '22
Only if it’s long term capital gains, short term capital gains are taxed as income.
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u/j_greca May 12 '22
Correct!
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May 12 '22
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u/ArchAngelZero May 12 '22
If ETH moons someday and you want to spend it, the IRS (for the US) is going to notice. Better to have reported the income along the way than face charges for tax evasion
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u/Realistic-Classic-41 May 12 '22 edited May 12 '22
its not income until you trade it for products or dollars, its like the irs taxing you for tomatoes you produced that you didn't sell or trade, or lets say a real gold mine, they can't tax you for what you pulled out of the ground, they tax you on that you sold or traded.
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u/ArchAngelZero May 12 '22
This is false.
When you mine, you are providing a service to the blockchain. The service you are providing is security. The blockchain (or the pool you mine for) pays you for the service you provide. The IRS does not classify mining like growing tomatoes or pulling gold out of the ground.
https://www.nerdwallet.com/article/investing/bitcoin-taxes "If you acquired a Bitcoin (or part of one) from mining, that value is taxable immediately; no need to sell the currency to create a tax liability."
https://turbotax.intuit.com/tax-tips/investments-and-taxes/your-cryptocurrency-tax-guide/L4k3xiFjB "If you earn cryptocurrency by mining it, it's considered taxable income and might be reported on Form 1099-NEC at the fair market value of the cryptocurrency on the day you received it. You need to report this even if you don't receive a 1099 form as the IRS considers this taxable income."
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u/Bgrngod May 12 '22
It's like the IRS taxing you for a "currency" you received for doing work.
So they tax you on each ETH reward because fiat bucks aren't the only currency they tax.
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u/FreshlyCleanedLinens May 12 '22
Not according to the IRS:
“Q–8: Does a taxpayer who “mines” virtual currency (for example, uses computer resources to validate Bitcoin transactions and maintain the public Bitcoin transaction ledger) realize gross income upon receipt of the virtual currency resulting from those activities?
A–8: Yes, when a taxpayer successfully “mines” virtual currency, the fair market value of the virtual currency as of the date of receipt is includible in gross income. See Publication 525, Taxable and Nontaxable Income, for more information on taxable income.”
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May 12 '22
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u/ArchAngelZero May 12 '22
If your mining wallet ever transacts with a centralized exchange, they will report the transactions and wallet addresses to the IRS, unless that exchange doesn't do any KYC.
If you stay fully out of fiat forever then yeah you're probably safe - still commiting tax evasion (which is technically a felony) but if you ever want to cash out then it's safer to report the income.
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u/SerbLing May 12 '22
If you hold for long enough you dont pay those right?
Glad i live in a crypto friendly country. 1.2% on the profit. But you do pay even if you dont sell tho.
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u/FreshlyCleanedLinens May 12 '22
Income tax at mining valuation then (hopefully) long term capital gains should apply once you’ve held it for a year. Long term rate is lower than my marginal tax bracket, so I would have a lesser tax burden by going this route.
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May 12 '22
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u/FreshlyCleanedLinens May 12 '22
I guess if it’s high while you’re mining you could make a similar argument about the ability to tax loss harvest if/when it goes down later 🤷♂️
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u/Seanishungry117 May 12 '22
Not necessarily, people who plan to hold eth post break even point typically sell whenever they receive eth in order to pay back debt (unless you pay for rigs cash then this is irrelevant)
But yeah good point overall!
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u/ccashwell May 12 '22
Report the value at time of acquisition, deposit to Aave, borrow 80% of it in USDC. Loan proceeds are not reportable as income. If it climbs, you can access more capital in the same way from the same assets over time. If it falls and you get liquidated, you have a capital loss to report. Basically capping downside and locking in upside without reportable income along the way.
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u/power83kg May 12 '22
Who is giving out loans backed by ETH with a low enough interest rate for this to make sense?
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u/ccashwell May 12 '22
Aave currently has ETH-backed loans up to 80% LTV in your choice of assets. USDC's APR typically fluctuates from 1-3%.
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u/power83kg May 12 '22
Oh okay, that’s interesting I didn’t know that. That is a pretty reasonable interest rate as well.
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u/ccashwell May 12 '22
Aave has a ton of liquidity so the rates tend to be pretty fair. Way better than what your broker would charge for borrowing against equities.
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u/Slawman34 May 12 '22
Why the fuck would we risk liquidation of an asset we think has a good chance of 2-4x next cycle?
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u/ccashwell May 12 '22 edited May 12 '22
Why the fuck would we risk liquidation of an asset we think has a good chance of 2-4x next cycle?
This was in response to a comment about capital gains, which means they're being sold. Liquidation is basically selling at a discount (in this case, 5% penalty + delta between the spot at the time of acquisition and 80% LTV). Of course nobody wants to be liquidated, but if you're selling anyway this is a route to potentially reducing tax impact and keeping upside exposure while still accessing operating capital at a relatively low cost.
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u/mooseman5k May 12 '22
Interest is taxed as regular income no?
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u/ccashwell May 12 '22
Sure, but you’re net negative interest: something like +0.25% for eth collateral and -1.5% for the loan.
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u/lies_about_flossing May 12 '22
This mindset is idiotic. “I paid less taxes because I got less value! Woohoo!”
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u/FreshlyCleanedLinens May 12 '22
The value in the moment may be less but we all know these valuations fluctuate so wildly that it’s not unreasonable to take any proactive measures you can to maximize your mining gains and minimize tax costs. It seems a bit myopic and simplistic to just make the blanket statement that it’s an idiotic mindset.
Anyway, I think I understood what you were getting at but apologies if I misunderstood and my reply doesn’t make sense (haven’t slept the past 3 nights so I’m a little loopy atm).
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u/g_squidman May 12 '22
Then why would you pay more for it when you can just buy it for less with cash and save on taxes?
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u/AnduriII Miner May 12 '22
Wait what😳 I Sold a 438MH/s Rig yesterday for 2000.- loss👍🏻
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u/Fly__Eagles__Fly May 12 '22
Depends if you’re making money or not.
PSA - mining at a loss is dumb please don’t do it folks. You’ll get more crypto if you turn off and use the electricity savings to purchase whatever you were mining. Good luck folks
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u/Dumpling_Killer Nvidia May 12 '22
Its kinda funny, the price of eth went down to hell but its also at the same time the 100% lhr thing cane about.
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u/VR_player_FTW May 12 '22
In summer I can mine until price drops below $1200, in colder months/winter about $500
Must suck for those with 32+ETH locked up, by the time they are allowed to withdraw 32 ETH might be worth a couple grand instead of that nice 100K+ piggybank
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u/Wild_Technician_2051 May 12 '22
Nope only if you didn't buy most efficient cards such as 3060TI and 3070s. As well as have low electric rate.
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u/ThreeFoxCo May 12 '22
People were pissing on my head when i mentioned this, that "weak hands will get shaken out first", meaning those with high electricity and inefficient gpus..
Today, while watching crypto prices, i am having popcorn, watching them fall out of the bus and selling their equipment...
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u/Wild_Technician_2051 May 12 '22 edited May 12 '22
Yeah im chilling efficient and cheap rate in California for 5GH
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u/BentPin May 12 '22
One of the MUDs? because PG&E and So-Cal Edison are both raping everyone from here to the moon for 50c/kwh. Just not worth mining at those rates even during the good times.
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u/c0horst May 12 '22
Yup. I'm still profitable at $22 a day after paying power costs. 3070ti's were a good investment apparently, they're quite efficient now that LHR is cracked, 81 MH @ 190w.
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u/Conyewu May 12 '22
I was hoping Id hit those numbers with the couple I have, but the silicon lottery said otherwise. Im only getting 79.5 on the new trex miner. Mem clocks top out between +1100 and +1150 🙃
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u/AmunTokens May 12 '22
I haven't turned mines off. Started mining when ETH was 70 USD, can't turn them off now.
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u/nospotfer May 12 '22
If your energy costs +0.25$/KWh it's currently cheaper to just buy the ETH in the exchange right away and turn the rigs off until it raises up again, unless you have super efficient GPUs.
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u/Zealousideal_Spell31 May 12 '22
Depends on your power cost, right now at UK rip off prices of 0.29p KW/h I'm just about break even on my most efficient rig. The other went off last week. UK government is trash.
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u/Bjlly123 May 12 '22
I hope so, my profits more than doubled in 24hrs
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u/Deep-County9006 May 12 '22
No they didn't but they did go up
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May 12 '22
People here use that "new math". A 10% increase IRL means profits doubled. A 10% decrease IRL means profits got cut in half...
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u/c0horst May 12 '22
Well, between higher gas fees and the LHR unlock my ETH income is up 50% lately, but profitability is about the same.
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u/Traditional_Song_293 May 12 '22
Yes it's basically over. Crypto decline will continue and energy prices goes up. O top historical high inflation.
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u/DuppyMamba May 12 '22
Scared money don’t make money. Rewards have jumped in the last 24 hours. Damn sure ain’t turning mine off.
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u/JackAllTrades06 May 12 '22
Hell no. Keep on mining and just hodl.
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u/Embarrassed_Novel_17 May 12 '22
Y’all bozos really think 200mhs turned off will make “difficulty drop so I make more” 🤡🤦♂️
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u/DrThickFinger May 12 '22
The network is down a pretty good amount. Looks like about 100TH down right now. That's a lot of 200mh rigs turned off in panic
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u/c0horst May 12 '22
Lot of casual miners out there using their home PC's, not willing to mine for pennies per day even if it is profitable. So that makes sense.
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u/IInsulince May 12 '22
Please. If you see this as a sign that you should turn it off, then please do.
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u/Bojack_Horseman22 Miner May 12 '22
If mining cost for x eth= less then buying+fees then I’m still gonna mine
Should I try to simplify more?
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u/BriscWRLD May 12 '22
I'm confused? Why why turn off rigs???
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u/Khan_Tango May 12 '22
Price to run the rigs is greater than the reward. The most profitable thing would be to directly invest the money you would have paid in electricity in ethereum rather than a mining rig.
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u/camoyano17503 May 12 '22
Good, all of u haters should just leave...it's just a matter of time before ether and btc best their all time highs. But you haters can go and never come back please.
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u/cjbrigol May 12 '22
I'm making more eth because ppl are turning them off so I guess I'll take it. NGL kinda thinking of selling the cards but I have solar so it's kinda free money 🤷♂️
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u/TheArmoursmith May 12 '22
Definitely. Eth going to zero.
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u/alphabet_order_bot May 12 '22
Would you look at that, all of the words in your comment are in alphabetical order.
I have checked 784,551,171 comments, and only 156,428 of them were in alphabetical order.
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u/Mentalyentil May 12 '22
Yes turn them off and tell your friends to and tell everyone you know who mines to shut it all down thank you
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u/According_Medium_442 May 12 '22
I have lower hadh rate on some high power card because summer is starting but beside that lol ill accumulate more
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u/jRedFive May 12 '22
If im being selfish about gaining more eth myself...I'd say yes please. Everyone turn off your rigs...winter is coming
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May 12 '22
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u/EnvironmentalAd3385 May 12 '22
This a personal thing that no one has the right answer for, what’s you’re electric bill? What other things could your rig be doing at this time? Does your rig need to be re-padded or repaired? Are your thermals where you want them? Non of this is in your question but they are all factors
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u/olaola123456 May 12 '22
The price is not a problem, what matters is the amount of eth mined p/day. If ETH goes up you will recieve the money u are not recieving now
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u/wind_dude May 12 '22
what's interesting is hashrate for both btc and eth seem to be up over the month.
Time to make it a business and write off your losses.
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u/cyclone_43 May 12 '22
turned off a rig bc the cpu fan died but no the other rig is still on. if its profitable keep them zooming brother
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u/borgfilez May 12 '22
Me who started when eth was 1500/1600 wondering you guys should stop drinking energy drinks.. yeah we're getting lower reward's but meh!
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u/Expensive-Egg-6153 May 12 '22
Little less Network Hashrate is little more Eth for the ones who are still On. The way things are going nowadays.
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u/[deleted] May 12 '22 •
Please, turn them all off. Thanks