Best way to mine bitcoins
Shop for a used bitcoin rig, USB or other BTC mining device.
Target for ones with the highest hashrate (gh/s) irrespective of power load.
Buy one or more devices within your $100 budget selecting your acquisition/s based on what hardware you can get which has the highest hash rate relative to buy price. Specifically, you should buy that hardware with the highest [ (gh/s) / $ price ].
Note: you are likely best to join a mining pool for more steady, regular reward payouts.
You should capitalize on your competitive advantage (free electricity) by putting any and all revenues gained back into your business (ie. buying more mining hardware).
Also, once you have a reasonable idea of what revenues you ordinarily gain on a gh/s basis, per you should investigate expansion via external external funding sources. If you have opportunities to access additional capital (specifically any debt based funding facilities available to you) you should sure up access to these and, ideally, acquire loan financing facilities so you can access more capital via debt when it is advantageous for you to do this.
It will be advantageous for you to use debt funding where you can gain a higher RoI (return on investment) than the cost of the debt (based on the interest rate). To identify potential opportunities and examine whether they are commercially attractive to you, you should:
- regularly explore the secondhand market for used mining hardware.
- find any hardware where the buy price relative to the hash rate performance seems reasonable (in a ‘within the ballpark’ sense)
- Use the hash rate to estimate the additional revenues you can expect to gain if you bought and deployed the particular piece of hardware.
- Extrapolate annual revenues and discount these by some reasonable margin to compensate for project risk: ie. take projected annual revenue and multiply this by (100% minus a discount of, say, 20% to allow for risk). In short, for your ‘projected revenues’ use 80% of calculated annual revenues.
- Calculate your RoI. In your case, this is simply ‘projected revenues’ divided by hardware costs.
- Flag any hardware acquisition where the RoI exceeds your the cost of finance. Put simply: flag everything where Debt Interest Rate < RoI. For everything you flag, be sure to note excess RoI (RoI% less Interest Rate%)
- Rank all hardware acquisition opportunities by excess RoI% excluding any hardware too expensive for you to consider (where buy price is more than the available balance of debt finance facility) AND buy hardware where both you can readily afford to make the purchase & the RoI excess is sufficiently attractive to be commercially compelling.
To get even more business savvy, you should also maintain listings to sell each piece of hardware you own with the sale price set above the level where RoI exceeds your cost of capital (use debt interest rate % to approximate your cost of capital). By cycling your hardware (disposing via sale the lower RoI equipment and acquiring via new purchases equipment with the highest RoI available in the current market).
Managed in this way, your fledgling business will soon be operating like a larger commercial enterprise. Do this well and for long enough and eventually you might find interest from external equity investors. Take in external investors and generate consistently strong returns for them and, you are a successful business man (with the the future is yours to build as you see fit).
Enjoy and good luck! :)
AND, always something to remember: if you do not LOVE what you are doing, you are doing the wrong thing. To be ‘living the dream’ you must be successful at doing something. That one thing must be something you LOVE
