The Great Crypto Hopium — $20k/month Passive Income

The Great Crypto Hopium — $20k/month Passive Income


It was the beginning of the pandemic; March 2020 comes to mind. I had started to work from home and as I began to settle into our new reality. I, like many people, was trying to find my new stride. In no time, I had started back into playing the stock market. It was honestly difficult to pick a loser when almost every stock was having a fire sale. I played around for a few months, patting myself on the back for a job well done and had even more to play with by late August. It was then that I paused long enough to ask…what is happening with Bitcoin? I used to be so interested in it back in the day but I never got around to buying any.

Many years ago, I took a trip back to Toronto. I met up with a friend to have a few pints and catch up on old times. He was really into Bitcoin and I was ready to plop about 3 grand down to get in on the action. I was quite resolved to buy into my dream of getting rich one day. When I asked my friend what Bitcoin was going for, he replied it was $60. I started doing some quick math in my head to see how many I could acquire. About 50 Bitcoin, not bad to start with I thought. It was then that I asked the question that would seal my fate…What did you pay? When I heard that he paid $35 I immediately felt late to the party. My response? I will wait until it drops to $35 and pick some up then. I hate to overpay! (Famous last words). That brilliant decision has delayed my early retirement. Fast forward, I am perfectly happy buying at $50,000. The big revelation? What looks expensive today might very well be cheap tomorrow. Stack your Satoshis!

With that said, this is actually not another Bitcoin write-up. I want to share something a lot more hands on. You see, I am a computer nerd and I love to tinker around with electronics. I love the idea of generating cash flow 24/7 with the least amount of effort possible, you know, what people refer to as passive income. I came up with “Operation Crypto” - my way of staying busy while Covid rages on. The goal I set out with was to generate $20k/month income from various sources while mitigating risks as much as possible. The general idea was to see if I could create 5 different streams that bring in $4k/month. If any single stream dried up I could either scale further into the other 4 projects or have time to find a replacement project.

Project 1

The first project was the most obvious; start mining Ethereum with GPUs. This was my first foray into mining. Needless to say, I was only able to get 8 RX580 GPUs before it become damn near impossible to get any more of anything, including toilet paper. It’s so bad that I have had an order with a distributor in for 12 months and I am still waiting. I can say project 1 is working but I am only generating an eighth of my goal. Proof of concept is good; I just have a supply issue. So, while I wait, I still keep busy forging ahead with the other projects.

Project 2

Project two is by far the most fun because it has the lowest cost to entry and the greatest returns…if you know what you are doing! I am talking about Helium mining. If you don’t know about it, I encourage you to read up on Helium and proof of coverage. Now most people just plug in their hotspot, place the antenna somewhere in their house and pray to get paid. When you look at the Helium explorer it is obvious most people are not savvy enough to dig into the details or test different configurations. However, a little effort goes a long way and if you have a good location and setup your device properly, a helium miner can generate anywhere from $1k-$4/month, and that is after the August 2021 halving. That is a far cry from the $20-$30/month being poorly setup. Even if the average monthly return is $500/month, eight units deployed will get you to your $4k/month minimum target. The best part is the ROI on these devices can be as little as 1–4 weeks. This project is working really well with a bunch of scaling opportunity. I typically throw every free cent into this endeavor.

Project 3

Project 3 is incredibly risky, extremely expensive, with no guarantee of survival, yet I am attracted to it like a moth to a flame. It’s Chia! Anyone who does proof of work mining can at least appreciate how power conscious this platform is. I decided to go all in and build a server that can utilize 1.4 petabytes of storage space to farm. My thinking was, at least I can still buy hard drives and do something with my time. The problem here is multi-fold with this project. I already mentioned there is no guarantee this project will succeed. Still, it is a sound concept with experience at the helm. In time, with further development, I believe there is space for Chia. In the short term however, I know this is a project that requires a lot of capital. To build my 1.4 petabyte system I will spend close to $60k. What’s worse is that the ROI is 2.5 years assuming the value of the coin does not plummet further. And did I mention it only gets me about 48% of my $4k goal? Oh well, I did say Moth to a flame!

Project 4/5

This is where is gets even trickier, for project 4 and 5.  I am still evaluating hardware projects like Deeper Mini Connect and the Akash Supermini. While I make a lot of other investments that generate income in crypto like liquidity mining, leverage trading, bot trading and HODLing, I only want to do hardware mining for the $20k/month project using at least 5 different streams. Each of the first three projects can achieve the $20k alone when properly scaled in but it is good to diversify and de-risk. The quest continues.

I hope this stimulated you into considering what you might do to generate income with the use of computers along with your target monthly income. I would also love to read your comments on some of the types of mining/farming you are having success with. Applied knowledge is power, so let’s learn from each other!

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For the last 24 years I have worked in the semiconductor industry. I have studied blockchain technology at MIT and I am currently working on a MSc. in Blockchain and digital finance.

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