MinePro Documentation
  • Introduction to minepro
    • Project overview
  • The problem
    • Power cost
  • Solution
    • Logic Mining through MinePro
  • Halving effects
    • The gap increases further between industrial & retail Bitcoin mining
  • Competing solutions
    • Unattractive power rates and investment models
    • Startup style “cloud” mining, and zero revenue protocols.
  • Expansion
    • Hosting arm
  • Facility
    • Logic Mining's facility
  • $MINE deflation
    • $MINE as a deflationary asset
  • Opportunity size
    • Opportunity size
  • Internet Computer Protocol
    • Why ICP?
    • Decentralization
  • Long term vision
    • Long term vision
  • transparency
    • Transparency
  • team
    • The MinePro team
  • Tokenomics Abstract
    • The $MINE token
    • How $MINE works
  • In-depth tokenomics
    • $MINE use cases:
    • Tokenomics split
    • Staking mechanics
    • Sale minimums & maximums
    • SNS Parameters
    • Potential Attack Vectors
    • Funding Disbursement
    • Business model & profit split
  • Legal
    • Legal agreements and safeguards
  • Roadmap
    • Roadmap
  • Partners & ecosystem
    • Partners & ecosystem
  • more
    • Links
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  1. The problem

Power cost

The problem

PreviousProject overviewNextLogic Mining through MinePro

Last updated 10 months ago

Anyone who understands Bitcoin mining, knows that there is one variable which almost solely determines the profitability rate of a Bitcoin mining operation. Power cost. In 2024, most retail mining operations are barely breaking even. When it comes to these retail operations, most, if not all, Bitcoin mining profit is eaten up by the power costs of running the mining machines (ASICS.)

Based on current rates, if you operate one Bitmain Antminer S21 200TH machine, this machine produces 0.00466211 BTC per month (equal to $283.27 USD as of 6th of August, 2024).

This Bitcoin yielded by the machine per month is yours. In your wallet, to spend.

Now, where does this yield normally go for retail miners?

POWER COST.

Power is the most important overhead line item for mining Bitcoin, apart from purchasing the ASIC (mining machine.) For retail miners, power cost almost completely cancels out Bitcoin rewards, or puts them at a loss. detailed below:

One Bitmain Antminer S21 200TH machine operating with a power cost of 15.45 cents per KWH (US average) produces a loss of -$105.77 per month. (Confirmed by)

https://www.nicehash.com/
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