RCMco wrote:I have (12) S9 units and (12) L3+ but most are shut down too. I was looking forward to this time of year when I could run everything and not need to deal with the heat issue (live in Rhode Island) but I never thought it would get to the point when the generated income does not even cover the electric even without the cooling expense.
Hi, I'm just wondering, do you actually sell your rewards as soon as you receive them? I.e., are you taking USD via Coinbase or do you take BTC and sell that directly on your favorite exchange each day?
If you don't and you're hodling them to sell at a later date then the daily $ value you reportedly earn is not as important as it sometimes seems. In fact you really want it to be as low as possible relative to the amount of coins you're earning. That way you pay less tax this year (perhaps Zero) and defer tax until you sell your coins later for hopefully more than their 'mined' value and enjoy some capital gains. Some of my highest reward days (measured in coins) have been my lowest $ days relative to the whole macro market.
Lets say you mined 0.8 LTC on Dec 16 when Diff was 5.5M and it's price was approx $24.
You earnt $19.2 but your running costs were $21 so technically you lost money that day. Bummer
Now lets say you mine LTC again today with the Diff at 6.25M (up 13%) and the price at $38. You mine .704 LTC which is worth $26.75. Your running costs are the same ($21) so you've made $5.75 today. Happy days.
But hang on. You earnt .8 LTC on the 16th and .704 today which is .096 less so which day did you earn more? That .8 is now worth 30.4 so you actually made $9.4 on the 16th Dec when you thought you had lost $1.80.
Ok, you could take that $21 you spent on Opex on the 16th and buy more LTC directly (in theory), but depending on where you are, there can be a lot of slippage converting small sums like $21 into crypto, so you'd have to factor that in plus all the hassle. Depends where you are of course but for me, I just keep mining and focus on rewards, not $.