My own set up vs third party hosting

Bitcoin Questions and AnswersCategory: General questionsMy own set up vs third party hosting

Ryan asked 8 months ago

I am looking at purchasing 16 Antminer S9’s and I have a few questions.

  1. i have found several companies (in Canada) that offer hosting services.  They charge a fee to set up and house the customers equipment.  In Ontario the cost of electricity is not cheap.  The monthly rate they charge for hosting is pretty much the same as what my added in house electricity costs would be. so I think it makes sense but I’m wondering if you have any experience with these types of companies.  They cover internet fees and regular maintenance.
  2. Is 16 S9’s enough to warrant trying to mine on my own or do I stick with a pool instead?  If so do you recommend one?
  3. With 16 S9’s, I’ve guestimated at earning one bitcoin per month at the current difficulty.  Can you tell me that is correct or way off.  I have used a few different calculators.
  4. When should we expect an increase in difficulty and by how much.

Thank you!!

1 Answers
Steven Hay answered 8 months ago

Hi Ryan,
 
16 is quite a lot of miners, have you check out DragonMint? They are selling in batches of 5 and are said to be 30% more efficient than S9s. None have been reviewed yet but due to the recommendation of Adam Back and the involvement of btcdrak, I’m pretty confident that the firm is legit. Anyway, to your questions:
 

  1. Well, you should do your homework on the hosting company… But as mining is a noisy, hot business, it sounds more convenient. Then again, if you have a suitable space  for your mining operations, it’s nice to have full control and ownership over your hardware… I’d say this comes down to your personal situation and preferences. If you have time for mining as a hobby and the right space, then home would be better. If it’s purely a business decision and you don’t want to be too involved in the day to day, then hosting.
  2. I’d say a pool gives you steadier returns. I recommend Slushpool as they’ve consistently made Bitcoin-friendly decisions, as opposed to purely chasing profit at the expense of the ecosystem. This is an ideological rather than economic position, admittedly. You can see a comparison of the various pools here (but please don’t use Chinese pools, there’s too much mining centralisation in China already): https://en.bitcoin.it/wiki/Comparison_of_mining_pools
  3. 1 BTC per month looks right (at the current difficulty).
  4. Difficulty adjusts every 2 weeks. You should expect it rise considerably in the medium to long term as some big players in Russia and Japan are getting into BTC mining.

 

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