Inside The Facility That Burns Natural Gas To Mine Bitcoin
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- Опубліковано 25 сер 2024
- I just bought 6 Bitmain Antminer S19 Pro 110Th Bitcoin miners which are in a container in the desert of West Texas and powered by flared natural gas. I drove out there with @SPACEDESIGNWAREHOUSE to see the entire operation and set my miners up. In this video, I tell you all about the operation, why I spent this money, what my expectations are, and more. ▼▼
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![How Irish farmers are turning cow dung into digital gold [Bitcoin]](http://i.ytimg.com/vi/xkVOJAWP688/mqdefault.jpg)
Andy, just here to say the production on this video is off the charts. Way to up the game (and save the planet while making money)!
Thanks Jacob! It was a lot of fun to make and yeah, we spent a long time on it!
Glad to see you jumping and explaining cool projects. Zzz club here showing love!
Thanks for watching Steven!!
Amazing video! 🔥 production level is off the charts. Thanks Andy
Much appreciated my friend! This was really fun to make!
Next LEVEL video! what an genius concept of using waste
Yeah, it's super cool. Thanks for watching!!
This is one of the best btc “diy” mining explanation
Thanks for making this video. Great job! 👍🏼 You did a great job analyzing and breaking it down. 👏
This is sick. Congrats man and amazing video
Thanks Kris! This one was super fun and a ton of work. Really proud of it! So of course it's been under performing haha. Thanks youtube!
@@YourFriendAndy nah give it time, this is one of those videos that's going to go viral, your initial audience isn't vibing with it but the masses are going to love it
@@KrisMcCauley%22 that would be great! We'll see! If not this one, hopefully another one in the future
This is my dream. I was talking about this exact set up with a coworker today.
it's been my dream for a few years now. Very surreal I've finally done it! Pumped for the future. Join me!
@@YourFriendAndy That is the goal. I'm just trying to come up with capital at the moment. I currently have a small gpu farm and Hopefully after this next bull run I will have what I need. I will definitely keep you in mind.
@@YouShortz22 yeah I hear you on that. I took me these past 4+ years to finally be ready to jump in myself. Super glad I did. Best of luck and keep on mining!
Actually, you'll break even in apx 2 years, but the problem is, your whole operation is subject to a drone attack, you'll need to find a solution for that and it won't be easy.
Actually on further reflection, a drone attack would bring too much attention, what is more likely would be a stealthier attack with a limited EMP device, I'm sure the Powers that Be, have such technology where they would target your epuipment and probably try to disable it permanately with a electrical surge so strong, it fry's your operation, but there again, a lot of attention would be brought on, because obvisously if this were to occur in the next 3 years, people would rightly assume the only people with access to such technology are elements of a nation state, like the USA or Russia or China, etc, Maybe, one thing you should be paying attention to is anti drone surveillance, or the ability to detect if drones are watching your operation at some point if not already, At least trust me on this point: when Bitcoin goes beyond 100K and remains there, the controlling narrative that money is the sole property of banks and governments, will have officially turned the corner once and for all. The wing of the Powers that Be , that are anti centralized money, won't go down in defeat without a fight, and retail miners like yourself, could get hurt in the process.
Your best video yet! Super cool!!!
Appreciate that!!
I live in Texas this is so amazing to me
Great video Andy! I just got my first Whatsminer BTC asic and am excited for it to go live on May 31. Keep up the great content.
Oh snap! Welcome to the BTC mining club!
hope u got 5 year warranties to go with those miners
"Hey friends, Andy here, how ya doin? GTSY" 👍😎 Love the intros.
Appreciate it!
Great that you found somewhere you can host your units. I have no idea in the UK where I would look to do the same.
They are at capacity for hosting right now, but you can get on their waitlist for when they open more slots soon. Even though you are in the UK, they can still help you with hosting (and buying). Just reach out the them.
ASIC miners are pretty cool and I will get a few that's reasonably affordable. Great video Andy
Thanks for watching!
Great video, Andy. The only thing you forgot to mention was bitcoin halving (2024) and how it's going to affect the rewards that your miners are earning.
It's really hard to say so I didn't speculate too much in the video. BTC price tends to lag with each Halvening. So I assume the price will go up after it happens in two years... but how much and when is the tougher part to guess on. Thanks for watching!
Interested in why they host rack space instead of just adding more miners themselves? Also, if after 5 years I need to replace the hardware that impacts forecasted profits quite significantly. I imagine you have crunched the numbers plenty prior to making a decision to invest in these hosted miners but there are some risks even if you plan to play this strategy out long term. How do you factor possibly having to replace those 6 miners in say 5 years time?
Great vid! One question - how is the electricity cost calculated? Wasn't the natural gas effectively free since it was going to be flared anyways?
Thanks for watching Ted! In this case, Musk Miners has an agreement with the company that owns this site. In exchange for providing the generators, infrastructure, and gas, Musk has agreed to an electric rate they will pay the company. Then Musk adds a little on top and they charge everyone that rate who is hosted with them ($0.085kwh). That's how they make money and how the oil company makes money. The end rate for the user is still quite low. So it's a win-win-win IMO.
Magical Internet Money hehe. Great video Andy! You and Space Design Warehouse need to partner up more often!!
haha Magical Internet Money is one of my favorite things. Yes! Nicholas is awesome. Had so much fun hanging out with him and making this.
Hi Jacob, Great video. Can you please give us an update, how things going on and is it still profitable to buy the rigs? Thank you
Those miners should have cost you 8 grand at most. Glad you found a seller you trust. But man did they take a cut.
I bought them over a month ago. They are significantly cheaper now.
Why are you being 8 cents / kwh? Aren't you doing them a favor by burning what would have been flared?
Facility rent it's added to the monthly calculation?
all fees are included in the flat hosting fee of $0.085/kwh they charge you. There are no other fees.
If you're looking, I have a brand new 1MW natural gas Genset that is perfect for this.
Hi, wondering if you still have that 1mw genset
I’m interested in the genset
Great
Hey Andy, where did you get the S19 thing and how much. Where is it cheaper
Musk miners that I talk about in this video
Great video as usual. One note is that if you are just holding you neglected to calculate you power costs over the first two years. Still profitable, but the two bit coin example would be going up against a 80k investment if you factor in the power.
Again in 5 years even if not coin only makes it to 100k you are still coming our way ahead.
Yes you are correct. I have many many calculations on spreadsheets for these, but I kept it as simple as possible for the sake of the video because it all gets boring quickly. But really, since I plan to hold for a very long time, I think all the fees will end up be a minor consideration. Still worth considering (and I have), but based on my numbers i believe I will come out very far ahead in the future. Thanks for watching!!
Yea boi !!
This is so cool !
Thanks for watching Alex!
8.5c US per kWh is about half our off peak power rate in Australia.
My 40kW solar PV produces around 200kWh per day. I'll need to find a new way to monetise the energy in 2028 when my feed in drops to 10c AU. Might set up a small mining rig.
My electric rate here in austin is $0.13/kwh base rate. So this is good savings for me. But really, the noise/power capacity is the biggest part. I don't have enough amps to serve this many BTC asics AND I don't have any spot where I can deal with the noise. Solar mining would be awesome!
Risks include theft, power outages. Lightning strikes., Malfeasance from those who run/oversee the place and of course btc price declines.
Yeah of course. Like all of crypto, there are risks. Have to make calculated decisions and gambles.
Question about the gas that is being used. Are we talking about a gas pocket that was breached and therefore kept releasing into the atmosphere? What's the plan for when it runs out ? Wouldn't have it been possible to stop the gas outflow instead ? Would much appreciate if you could give more details please
This is the gas that comes up when they drill for oil. If they capped it, the pressure would build up and it would explode. The rocks are breached by the drilling and that introduces a weak point. So they have to vent it or burn it to let it out. These sites can produce gas for many years. When it runs out, you ship the mining container to a new site. They are modular.
@@YourFriendAndy thanks for the answer
exellent bro !!
What did you think about GOMINING?
This is the way to go, Andy. brilliant idea! As you've recently realized when the markets dumps, some staking projects are no longer viable, but, what will always be always profitable are my miners. Do I have them in my spare bedroom? Yes, and they're noisy af. Wish these guys had a satellite in Connecticut. I may be borrowing ur idea and building a replica of your shed. Hope u don't mind.
Thanks for watching! A shed is a great way to do it, but you can also run GPU miners in your house or the mini ASICs like the KD_Box Pro. I just got a KD-Box from musk and it's very very quiet. Could easily run in your house. They only use 230 watts. Best of luck!
@@YourFriendAndy Oh yeah, I've got 2 gpu rigs. Been wanting the kd box pro and looks like Musk Miners has it fair price. I'll use your link to create an account. Anything is better than dealing w Goldshell. Thanks Andy!
@@salriggione nice! yeah they are awesome to deal with and they have a good price on the KD-Box pro right now. It's like impossible to use Goldshell to get them directly.
Andy, love the video!
Are you still running these 6 machines at 8 cents per kwh? Or have you shut them down as quick math shows you are only making around 75 cents per day per machine
I am running them! But I have moved them to another facility with lower electric. I pay almost half of what I was paying before. Musk has had some issues with their facility so I moved to a partner facility.
@@YourFriendAndy Nice! What facility did you move them to?
@@shanewitsman5056 They have a few partner facilities, but the one I went to is full now I think. I think they offer all the current ones at their normal rate, so you'd need to shop on your own. Hopefully I will do an update in the future on all this.
Hi Andy. superb video. I have 2 questions. 1. will this place be carbon neutral ? 2. do they host other miners (kda) ? thanks
thanks for watching! They will host other things I believe as long as it fits the same power/heat profile as the bitcoin miners, but you should reach out to them on it. As for carbon neutral... I would think not. It's oil and gas production which is inherently not carbon neutral. This mining facility IS making it cleaner and making use of otherwise wasted resources. So it's green adjacent, but it's not green or carbon neutral on its own. You can ask them about that too. That's just my best guess/understanding.
Andy, I know I’m late but this was an amazing video, which brings me to a few questions. First, as of today, is that particular model of the asic miner still profitable and can you give an estimated daily profit? Thank you and keep up the great work!
Thanks for watching Darius! Yes, still profitable and the miners are WAY cheaper now. You can buy the miner I have for $5500 or less right now. The make about $315 in raw revenue each per month. Power cost will be $150-200 per unit depending on your power/hosting costs. I plan to buy more miners soon since the prices are so much lower. Best of luck!
hmm physical security seems weak non?
It's super remote. They have a pretty serious fence with razor wire. Cameras all over the place. And they have someone on site all the time. Also rattlesnakes lol. The doors to the container are serious business too. Not sure what else could be done, but I feel good about it. Some of the other containers that are there mining have been there for many months with no issues.
Very good investment Andy b/c there will be a 1m BTC one day.
I really think so!
I love it, how much did you get the miners foe if you don't mind me asking. I live in Australia. And even one or 2 in my apartment in Bosnia. The prices in Bosnia for electricity are dirt cheap.
I paid $9.6K each, but the prices have dropped a decent chunk in the past month. Reach out to Musk and ask. They update their prices all the time.
Rookie question.. but is the miner pre-programmed to mine to your wallet etc or do you have to completely set up all the software on it?
The miners come with a firmware on board, that does need to be configured at startup. You point the minor towards your mining pool account, so the miner itself doesn't hold any of your wallet data.
yep exactly what Carl said
Thanks 👍 how easy is that configuration for someone who never done it before? Carl/Andy do you have a video or page outlining what to do?
Would it be possible to mine BTC on a VPS server like what you do with flux nodes?
@@jeremywalgers8743 If you buy and host with Musk, they will help you with the process. But it's really easy. Just look up some videos on youtube.
You didn't include the bitcoin halving in your estimates.. big deal..
The thing is, that mining gets harder and harder every bitcoin which is mined. So, basically there is an end to mining btc at some point.
Hey! That's not actually true. The difficulty to mine bitcoin doesn't happen with each new one mined. It's based on how much hashrate is online. If miners turn off their ASICs and the global hashrate goes down, the mining difficulty also goes down and the miners who leave their ASICs on, will make more BTC. It goes up and and down with the markets. It actually just dropped yesterday, so I am mining a bit more Bitcoin than my calculations show in this video. The end of bitcoin mining will be in over 100 years based on the code. Thanks for watching!
@@YourFriendAndy okay, thanks for the info on that Andy :)
Andy, I don’t want to discourage you (who actually could?) but the difficulty will go up faster, because brandnew mining machines will take away much more. The difficulty will grow exponentially and then inflation will also hit the whole operation, means costs will go up. The ex-post calculation about the older rigs isn’t correct because the market is now moving much faster than before...
All good points, but it's all speculation. The calculations change constantly. Here's my baseline beliefs: I think BTC will be worth a lot more one day. I think it will be worth so much, that even with rapid hashrate growth, I can still cut out a slice for myself. I have made lots and lots of money by making mining decisions in the past. BTC miners have won time and time again in the limited history so far. Trying to determine which factors are the most valid is fairy futile because this whole market shifts so quickly.
So I'm making a calculated gamble that this all works out. It certainly could fail (I have plenty of those). I have bought all my BTC up until this point. Now I am mining it too.
who put a question mark on the teleprompter? LMAO
haha, thanks for watching!
Are these mining to a pool of your choosing or one they pick?
You can mine to your pool of choice. I use Luxor (link in description).
Hi Andy, it seems like you are only using a small part of the facility for your miners. is there a way to buy miners and have them placed there to be managed for a fee? I am in NJ but if I had to fly out there to west texas I'm sure I'd find my way! hahaha keep up the good work
Yeah! They have a lot of open spots in the container. They also plan to add more containers in the future. You can host your miner there for $0.085kwh. That's the entire fee. All the hosting and everything is included in the electric fee you pay to Musk. You just ship your miner to their facility (or buy from them) and they set it up and host for you. The whole process is very easy. Thanks for watching!
How you get them
Nvm lol
Can you host KDA miners here also?
I think you can host the bigger ones there. Send them an email and they'll fill you in.
What’s your expected qty of BTC that you expect to mine per month or year?
he mentioned it on the video... with the 6 miners he is expected to get 1 BTC per year
Like Alex said, about 1 BTC per year with these miners.
@@YourFriendAndy did prices go up again…website quotes lower than what I got emailed
Why did you choose bitcoin mining over ethereum mining?
I have done lots of ethereum mining. But to more specifically answer. I much prefer Bitcoin. I think it's the better long-term investment. And within the next year Ethereum will likely not be mineable anymore.
@@YourFriendAndy
You can mine eth and earn a higher rate, then buy bitcoin with it? After eth is done, you can still mine etc and ravencoin at a higher reward rate
@@richardrace237 higher rate is relative and changes constantly. But again, I have mined ETH a lot. And will probably mine is again soon with GPUs. Long-term these BTC asics could be wildly more profitable than the same dollar for dollar GPU rigs though. I am adding to and diversifying my mining portfolio.
I'm jealous 🥰💜
Don't be jealous! Join me!
@@YourFriendAndy tell me how🤓🤗
I'm on WhatsApp for a work project I'm working on (same playing field), reach me there via this name.
Hello Andy, how much are you paying for KWH?
Hey Jaime, the rate is $0.085 all-in with Musk. Meaning there are no other fees.
How long did it take to receive your btc miners?
1 week. They are pretty fast!
Didn't one of these facilities go up in flames recently?
Maybe? I am sure there have been accidents. None of Musk Miner's have. I'm not sure why this would be a concern. We still live in houses despite them burning down every day. Accidents and bad building practices happen.
@@YourFriendAndy oh yeah I'm just mentioning that i swore i heard something about these facilities burning down like literally a day ago. I was worried it was yours or related but finding it's not thank Goodness! Looking at a google search it looks to be in NY that it happened.
That really sucks! And yeah mine are all good. Thanks for watching!
@@YourFriendAndy awesome! your video is so great btw!
@@YourFriendAndy Is there some form of insurance to cover the loss if something happens to the physical miners themselves?
Hope does not break anything. If that happens you are fried.
Yeah that’s the case with pretty much any miner anywhwre
My $Luna millionaire amigo ( lol) , great video. I like your "Long Term Thinking" investment philosophy, hard to find frens with that clear vision in real life, not just in crypto.
haha thanks for watching and yeah, I agree completely!
We need to have medals from all the battles we fought in the crypto wars. Luna, Time, any number of NAAS projects, Celsius, etc. I'd have a chest of medals at this point, 2022 has been a tough year to get into "Defi passive income opportunities" If I could rewind, I would just buy these miners instead.
Hello my best friend Andy, i was hoping you could lend me one miner 😄
Do these chaps sell and keep your BTC miner running at their facility?
Was wondering if they do that for non us citizens.
Yeah you can buy a miner from them and host with them. I believe you can do that no matter where you live. Just reach out to them!
@@YourFriendAndy well, i am strongly considering this.
Do you have any promo codes?
Still no contract? Lol