Is Bitcoin Mining Profitable in 2024?
Vložit
- čas přidán 17. 07. 2024
- In this video I show you how profitable bitcoin mining is in 2023 through Compass Mining. Compass Mining is a centralized platform that allows for resale of Bitcoin Miners and hosting services of your Bitcoin miner at different facilities across the world.
Unfortunately, the bad communications and user experience from Compass Mining undermine the product and make it very hard to recommend to anyone. Unfortunately, many people are still falling for the trap of wanting some passive income scheme that will let them retire early. Passive income is largely a myth, there’s no such thing as a free lunch, you have to save yourself, caveat emptor, etc.
🧊 Level up your Bitcoin Security with COLDCARD - use code “Rhett” for a discount: rhett.blog/coinkite
📊 Mining Spreadsheet Analysis: docs.google.com/spreadsheets/...
⚙️ Compass Mining Facility Updates: education.compassmining.io/ed...
❌ Why is your miner offline? support.compassmining.io/hc/e...
Recommendation 0:00
Bad Communication 0:44
When Will Your Miner Come Online? 1:45
Mining Pool 2:36
Compass Mining Insurance 5:01
Third Party Insurance 6:31
Biggest Problem with Compass Mining 8:03
Miner is Offline + Payments 9:20
Mining Data 11:33
Monthly Economics 13:44
Should You Use Compass Mining? 17:27
![Advanced Trade: Coinbase App Tutorial [2024]](http://i.ytimg.com/vi/jng2bdm9akc/mqdefault.jpg)
What are your thoughts on Compass Mining? Have you been able to get third party insurance?
Few things worth noting:
Physical addresses represent a huge security risk.
As an industry, unless designed for customer visitation and fully self-owned like a traditional data center, disclosing your leased location with millions of dollars in hardware with relatively low-security measures is a non-starter within the lease cooperative itself. When reviewing a site, the overall sites where operations take place are often 5,10,20,100MW with other clients - and based on their chart, they're getting 2-4.5MW of those.
Compass aside, one of the hardest things is working with Operations where you're a middle-man in which you do not control the complete vertical while obtaining energy at a reasonable rate and getting initialized. Most of the friction will originate from outside factors with increased time and limited CAPEX/OPEX.
1) Land & Energy: Expect the Operators to charge $100-300k per MW for access to reasonable energy. Without it, then nothing works for either the mining company or the end user.
- Buying/Leasing the land is a 5-10MW
2) Expect that the Host Mining company needs to cover the following build-out costs. (more or less depending on location and vendors) per 1MW (~300 miners).
- Containers - $100k for 40' if Air, and $400-800k for Immersion.
- Transformers - $100k for all-in (pad/delivery/transformer/groundwork)
- Groundwork - $20k Gravel/Leveling/Cement
- Electrical - $25-35k (Aluminum or Copper vs Distance of run)
- Mods - ie. Fans $20k
- Accessories/Parts/Storage - $5k
- Security Cameras - $20k-$30k
- Maintenance & Support Personel - 2
3) Companies like Compass may want to have walk-in ready terms as a result with the Host Company, the host-mining facility will need to be fully operational before end-user mining solutions are enacted.
4) End Users customers get online.
That’s a good point. There needs to be some kind of middle ground though that makes it easier for end users to get insurance. Ultimately that address would (I assume) show up on the policy anyway.
Might be the insurance industry that needs to change - calling for a policy over the phone during business hours is way too much friction.
1000% idk if I can pin replies to comments but this is why I’m reluctant to ever call compass a scam.
The nature of their business is insanely complex and, like you’re saying, they don’t have 100% control over the delivery.
I think ultimately any business would struggle scaling after “going viral” in the way that compass did in 2021. But a business with huge CAPEX/OPEX complexity (like compass) will just struggle even more.
On top of that, the average buyer is probably not sophisticated enough to understand everything we’ve outlined which makes the communication and advertising from Compass even more important 🤷🏻♂️
I also purchased a miner in Dec 2021. Luckily, my miner was deployed in Jan 2022, but the whole experience since then has been disappointing. I even had 4 months of downtime because the facility where my miner was hosted closed down and Compass had to relocate my miner. I honestly regret the experience and don't recommend then to anyone interested in getting into mining.
Jeez, 4 months is a long time. Definitely a rough experience :/
Very thorough review! Mining with Compass was my FTX. I'm currently out tens of thousands of dollars with no miners online. At this point I'm convinced they're using customer's miners for themselves or rotating the same units between multiple customers and pocketing the difference. Wondering if we'll ever figure out what's going on and maybe see a class action lawsuit.
Sorry to hear that, that sucks :(
Class action lawsuit will be interesting
Thanks for posting your experience. Hindsight is so clear, we all have mistakes we wished we never made (Celsius for example), but its part of life. Live and Learn.
100%
Thanks for your video!! What do you think about Mask Miners???
Haven’t heard of it, I’ll look into it
he is absolutely right
This guy is smart 🧠
Hey Rhett, do you have any updates on Compass Mining? As of now, the amount I make from my miner is virtually the same as the cost of the monthly hosting fee. I'm still debating whether I should sell my miner or wait till miner prices recover first. I have no rush. Do you have any thoughts on this? Thanks a lot!
I'm still mining, the payouts are smaller now after the halving (but up since the price has increased). The hosting fees are about the same. My miner is being moved to another location soon which is annoying but out of my control basically.
I still wouldn't recommend this to anyone. Not your electricity not your miner. There are better ways to make money.
I'll make another video update on this with solid data that I can better talk to later in the summer
Rhett, do you have any updates with Compass Mining and what you are doing with your hosted miner? Bitcoin broke up to new all time highs and at the same time halving is coming soon. Usually halving would cause older miner models' prices to decrease, right? Do you think miner prices will go up again? Thanks.
I’m still mining - there was a price increase on my lease after the first year but no other major changes. I’ll try to remember to make an update after I do my taxes that could be big benefit.
I think miner prices will increase because of mania caused by btc price increase. Probably smart to try to sell miner at the top of btc price but who knows.
@@RhettReisman Thanks for the reply! I bought my Bitmain S19XP miner at its all time high. My miner has been constantly offline and Compass Mining recently told me that my miner needs a hashboard repair that costs a few hundred dollars. My experience with their team has been horrible so I’m thinking about selling my miner when prices go up again.
Hi Rhett, thank you for the update and sorry about the experience.
Two things would be interesting:
1. to include just buying the bitcoin instead of the miner (initial invest and recurring cost) with your average prices for breakeven (as a comparison). My assumption would be that the miner was not that bad of an investment if you'd paid a high price for the coins at the time you've purchased the miner.
2. to compare the miner prices as of today (which seem like maybe 1/4th of the cost as you've paid). Of course, this does not really matter if the company is crappy, but it could be relatively profitable if one bought a miner today if the company was solid.
I think 1 would still not look good for the miner. 2 would be interesting, numbers might look okay but you’re also locked into this weird relationship with compass and the hosting site that isn’t reflected in the numbers.
Good ideas though I’ll consider making a video and doing all the numbers out :)
If not compass mining then what platforms do you suggest to turn daily profits?
None - theyre not profits. There is no hack, no one is just going to give you money. Learn a skill and trade your time for money to get started.
@@RhettReismanbeen using D-Central for years with zero issues. They are located in Canada. Those years contracts are wild from compass. D-Central has 3 month contracts instead of 3 years. 🇨🇦
Thanks for the video. This reminds me of the early days when I used to "Cloud Mine" back in 2013-15.
I definitely don't miss that stress.
-Blockchain John
Yeah very similar. Not your power not your miner. Cheers John
What do you think about current prices... they have 100TH at $2k per unit now.
I think no matter what the price is, the fact that you have no control over the energy or process makes the entire enterprise a gamble.
@@RhettReisman I certainly agree w/ you here but I'm curious about the economics of it. Maybe I'll stop wasting time reading comments and go do some basic math lol
Rhett, I have also been frustrated with Compass Mining's services. I want to sell my miner and exit my contract despite purchasing the miner at all the time highs. I am debating if I should sell my miner when miner prices recover a bit first or end my headache right now. What are your thoughts? Thank you.
I’m personally waiting it out - not financial advice (I have no debt and can handle the volatility). If miner prices spike again I’ll probably sell. But everyone’s financial situation is different.
Appreciate the video but to be fair you got in at peak and that’s how the mining economics work
Yeah 100% getting in at the top didn’t help
On the other hand because I paid for it with crypto maybe the margins are similar.
I think even if you look at it today the numbers don’t really work out - there are better more reliable ways to make money.
Might be worth revisiting and running more scenarios though
There are mixed reviews of compass, i would recommend Musk Miners or Millionaire Miners
I would recommend not getting into mining if you’re using someone else’s electricity. There are better ways to make money
@@RhettReisman millionaire miners charge only 0.08c per kwh that's a quarter of UK electricity and £9 a month fixed fee no brainer to host it and the noise is too loud for residential use anyway plus image having to repair one of these things.
Not your electricity not your miner
Video on F2 vs Luxor please?
I’ll switch to Luxor and update later this year :)
@@RhettReisman I'm really interested in your apple vr review. And if the world still looks the same in 2025 to you! Haha
Great review! It is called compass, not KUM PASS though....
Thanks 🙏
I refuse to say it differently 🤷🏻♂️
@@RhettReisman lol..company is garbage either way, many have had way worse experiences...
Facts 💯 my experience pales in comparison to some I’ve heard. People invested $100k+ into bundles that I’m sure has also not had good ROI + even more complexity
omg i had a hunch something was not going right thank you. i almost got in sep 2023
Yeah I would say don't lol
Rhett, what are we going to do if we can't off-ramp #SECvibes
If the SEC closes all the off-ramps we’re gonna find out who’s in this for the long haul lol
I’ll prioritize a video on how to use BISQ soon. It’s a p2p exchange
Hum...sounds scammy....are you able to get your physical miner? You can better mine yourself at home...
Yeah they’ll send the miner to your home if you want. Issue is the electricity prices at home vs mining facility
@@RhettReisman I had one sent to me, they charge you a bunch of fees as well...
I can't find a miner host without horror stories, are there any legitimate ones out there?
I think it comes down to the whole business model is flawed and inherently risky
No horror stories on my end. I've purchased 2 miners. Things have worked well and gone smooth. Granted, maybe y'all would consider it a horror story b/c:
1. I wasn't able to upgrade the miner OS (Braiins OS+) to get more efficiency from my miner
2. I bought when the market was high
With that said, I'm curious how the economics would work out if I bought a new miner (under $2k and deployed right away) recently. That's actually why I came here (too lazy to do the simple math myself and was hoping there'd be a quick calculation for me).
All in all, I'm bullish on btc and planning on putting money in btc anyways so I consider this as DCA basically (just debating whether to set up a monthly btc purchase, or whether to buy another miner) with some tax advantages
I think one thing overlooked in this video/analysis is that you have to look at any investment into btc/miners/etc as an investment into btc itself and OF COURSE it's a bad investment to buy something high/near it's peak. What if you had put this money directly into BTC in December 2021? You would've lost roughly half your money. Or if you bought a miner in Jan 2020? You'd have made a killing
As an average investor, it's a TERRIBLE investment given these figures. It's a volatile asset. It's a different story if you buy now, while mining equipment is cheap and BTC isn't work much. Maybe it's a great asset that blows away anything else
As btc investor (who expects btc to $100k in the next 2-3 years), I'm still unsure whether buying a cheap miner right now is better or worse than just putting that same $$ into btc
Thanks for posting your video (and for the comments). Really nice to hear other perspectives
I have a pending transaction for over 3 weeks now
Same :/ mine has been pending over a month now I think.
@@RhettReisman any ideal on how to work on it to be refund or
Released
Only way I know of is to use Replace by Fee by loading your wallet into Sparrow or Electrum - kind of a pain. I’m going to do it at some point. When I get around to it, I’ll film a video
@@RhettReisman ok thank you 🙏
But still will it be released or refund of possible
It will eventually be sent. I’m not sure if/when it will get kicked back to your wallet
Someone offers you a money printing machine, and you think it's real? Do the words "Ponzi vaporware" mean anything to you? What makes you think these people even have any of these miners anyway, and not just some deceptive dashboard software? If they were capable of making money, why would they sell them to anybody in the first place? What possible reason do you have to believe that this wasn't just a scam from day 1?
If the miners are fake they've been paying me something every week for about a year now and offer to send me the miner whenever I want. Seems more likely that the miners are real.
They'll send you the miner, but won't tell you where it is? Call their bluff. Look, people spend $30,000 or $60,000 or whatever, and I've been poking around, looking for ANYBODY who has made more than he spent, and have not found anybody. Who's to say that these people mine ANYTHING? All they apparently need to do is pay back some of the money they take in, and people think it's real. I still have yet to see how/why these people would even sell these miners at all if they're even capable of making money. Why not just build them, install them, and keep them for themselves? Why would they sell a single one of them? These people have a 1 star rating on BBB, lawsuits against them, and will offer you no real proof that the miners even exist. You said it yourself in your own video that you'll be spending more than you take in. Everyone online seems to have the same story about miners that just can't seem to stay online for some magical reason. Meanwhile, every other server manufacturer in the cloud has a 99.9999% uptime nowadays. But, not these guys, eh? Their stuff is offline constantly, right? Gee, could it be to drop the "revenue" to make sure they never pay out more than they take in?
Hey Rhett thanks for making this and being honest. I left some comments a long time ago on your other Compass videos. But to recap, I got sucked into Compass Mining back in late summer 2021. I had only been into crypto a few months total at that point and got duped by that shill VoskCoin talking about Compass. Anyways, I bought a miner I think in August 2021 or so and paid like $7500. It was crazy how much the price spiked from then until end of 2021. My miner was supposed to go online like within a month or two but then the delays started. At the end of 2021 they reached out to everyone in my batch and offered a few options one of them being a full refund. This was because the mining location we had chosen (South Carolina) had collapsed. I jumped in full refund and never looked back. I’m so glad I did and will never use them ever again especially after watching this. I’ve basically given up on btc mining however I do follow the James Pelton channel and he has some btc mining projects where you buy a NFT and get a % of btc mining profits back based on the amount of NFT you purchased. I have not done that.
Don’t feel too bad man. I got suckered beginning if this year for 6K on a “built for you” Facebook store. It’s been 6 months and it’s made exactly $0 😂. Totally got scammed on that.
That's awesome you were able to get out. Sucks about the Facebook store :/
Better to stack talents and make money on your own - this passive income stuff feels like 99% scams.
@@RhettReisman yeah for sure. I’m still searching for that holy grail of passive income. Maybe I’m an idiot. I’ve gotten into some other things like crypto trading bots and Forex trading bots (Google Waka Waka bot Valery trading) but right now just dabbling with a few hundred bucks in each. They both have their risks. I also kinda looked down on stocks the past few years as a boomer thing but the past few months I’ve kinda come to the same realization about passive income and looking more at dividend stocks like the SCHD etf.
@@austinfrazier7325 I read the simple path to wealth and like the way he lays out stock market investing (investing into VTI)
The sad part about your story is the value of btc spiking during that delay meant that this company made money on your refund
B/c the value of btc increased, so did the demand (and price) of miners, so they were then able to charge much more on your miner to new customers 😞