I come from Italy and there the electric power for the retail customer can cost up to 0.22$/kWh. Anyway, in my experience I found that places can provide you the electricity down to 0.03$/kWh.

Let’s assume we are buying the last Bitcoin miner, the S19 Pro, with a 110 TH/s hashrate on the SHA-256 algorithm, which has a power consumption of 3250W. The cost at the seller is 2407$.

You must take into account shipment (1% of the cost, assuming we are shipping more ASICs), custom clearance (20% of the cost), and installation costs (1% of the cost). Plus of course the electrical wires, network connection and proper shelves to optimize space. Let’s assume these last expenses are comprised into the electricity costs.

Let’s say that this machine can work up to 2 years, with a decent production, but to make the calculation I will make a rough approximation assuming that the production for the next two years will be the same as today. I will go deeper into mining calculations in other posts, do not hate me. I am just waming up the engines.

So: for two years costs I would have to pay 1708$ in the 0.03$/kWh country or 12526$ in the 0.22$/kWh country.

Total costs in the cheap country would be: 1708+2407+24+481+24 = 4644$
Total costs in the expensive country would be: 12526+2407+24+481+24 = 15462$

Actual daily BTC production is 0.000745 BTC, that in two years would actually be 0.54385 BTC. Currently BTC price is around 10500$, so actual gain would be 5710$.

First though? Well, you may profit in the cheap scenario and you would be far far away from the break even point in the expensive country.

But you know what? I am a daily cryptocurrency trader and I learnt that the mining machines prices is 100% correlated to the price of the cryptocurrency, so, if Bitcoin is cheap now, ASICs will be cheap as well. If Bitcoin price goes up, the price of the miners will increase as well.

That is the first reason why you should never evaluate your mining investment basing your data on the current market value. I am quite confident that Bitcoin price will increase in the next future and the price of the ASICs will follow. So, if you wait to buy?

If BTC price goes down, you may find a lower potential profi, but you may buy the S19 Pro at a lower price. So in the mid term your percentage profit would be higher.
If BTC price goes up, you may find a higher potential profit, but you will find the S19 Pro at a higher price. So in the mid term your percentage profit would be lower.

That is why, with our mining farm, we do not buy the dip, but we try to buy mining machines when cryptocurrencies hit the dip. We then educate ourselves that mining profits must be watched with a mid term perspective and we avoid selling cryptos to pay the bills.