Bitcoin mining: the money you need to get started

How much money does it take to get started in Bitcoin mining? It depends on many factors, but what is certain is that it is not economical.

Something that’s clear to everyone is that to get into the Bitcoin Rejoin business you need money. Now, determining the exact amount is complicated. This depends on many factors, which vary according to the country in question where you plan to start the activity.

In other words, you have to keep in mind the cost of the equipment, which varies from country to country and with each supplier. At the same time, it is important to consider the costs of the materials needed to operate a farm and the rental of the space where the equipment will be housed.

Another fact to keep in mind when talking about entering the digital mining business is the magnitude of the initial operations. That is to say, how many machines are planned to be installed and which models. The greater the number of equipment and the newer, the higher the costs.

The money needed to start in Bitcoin mining

If you talk about starting in the Bitcoin mining with about 5 thousand machines, the cost in money can amount to several million dollars. This year, some companies in the United States, such as Marathon, Riot Blockchain and Core Scientific, made millionaire purchases of these machines. But the purchase is only a part of the expense.

However, here we will evaluate the investment cost with the budget of a normal person or small company. In this case, we could be talking about someone with the intention of setting up a mining room, for example, in an office or a house.

One such room could for example house 50 S9 machines, assuming that the electrical cost is low. If the bill is high, then other more efficient models should be considered. In each country, suppliers have different prices for the machines, so it is advisable to take that into consideration when looking for the price and multiply it by 50.

The first part of the expense is already evident, it is the cost of the equipment itself. In this same cost you can add the rental value of the site. This contemplates the initial payment (months in advance, deposit, etc.).

Cripto Youtuber invests USD $100.000 in Bitcoin and Ethereum

The investment to turn on the machines

Keeping Bitcoin mining machines running requires a considerable amount of money. You should consider that 50 ASICs model S9, with a 220V electricity, work with about 300 amps. Also, the consumption is about 115,000 kilowatts.

During the first case, one should consider the type and quantity of cable to be purchased and, in the second case, probably a transformer. In that sense, the cost of a transformer of about 100 or 160 KVA should be evaluated, plus the cost of its installation.

As for the cable, the place where the transformer is installed and its floor should be taken into account, assuming it is an office. From there, the number of lines is calculated, for example 3 (phase, neutral and ground) and the distance from the transformer to the office is measured, the number of meters is multiplied by three. For example, if there are 30 meters from the transformer to the office, then 90 meters of cable will be needed.

Of course it is not just any type of cable, but thick copper cable, for example 1/0 or its equivalent 3/0 in aluminum. In this sense, the price per meter of cable should be calculated and multiplied by 90. It is likely that, taking into account the amperage of these cables, one more line will be needed or, failing that, cables with a higher capacity.

Bitcoin miners‘ income grew 8% in October

Other material expenses

At this point, you already have practically 80% of the investment money for a quarter of Bitcoin mining. If you want to install a few pairs of machines, you’ll save a lot of money, since most of the expenses described above won’t be necessary at all.

Keeping the example of a room with 50 machines in an office or a rented house, you should move on to the next stage of investment. This is mainly about the extra materials and installation.

If the person who wants to install the mined room has knowledge of electricity, he or she will not need to hire an electrician. Otherwise, he should consider it as another important factor that comes into play in the budget.

The installation of extractors for air circulation and insulation material to prevent noise from disturbing the neighbors cannot be avoided. Depending on the site, no air conditioning will be needed, with a fresh air intake, that’s enough.