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Writer's pictureDR.GEEK

Reward estimation by Cryptocurrency Mining

( 27th June 2019 )

Electric Power estimation

During mining farm design, estimation of cost of operation is necessary topics to consider before design. The cost of electricity which I mentioned before, it is required 4 US Cents per kill Watt is ideal value. The ROI estimation is following.

(IE) Initial expenses

Land

Mining building

Air cooling channel

(Or Mining RIG containers)

Contract of electricity per kill watt

Mining RIGs cost

Install cost (Network, setting of Mining RIGs)

Mining code optimization

Mining trading bot development

Pool design and its implementation

Security wallet establishment

(RE) Running expenses.

Electricity cost

Land rental fee or tax for real estate.

Other Infrastructure running cost. (Water, network, etc)

(ER) Expectablereward:

From mining

Crypto currency reward per RIGS.

From trading

Arbitrage

Crypto asset recycle investment

From IEO

Call IEO or token sale

(RTotal) Total estimated profits are……..

RTotal = ER - (IE+RE)

For Example, AMD RX580 Optimized Mining Hash Rate on 1st JUN 2019 was show as following reward estimation.


Here, we assume that 2,000 RIGs of AMD RX580 GPUs.

The case of Bitcoin2Gen gave 291.74 USD/ month/ RIG.

Therefore expected optimized mining reward is

291.74 USD x 2,000RIGs

=583,480USD / month.

By trading AI bot earns some profits per month, we assume that10% gain by them.


It shows 1.96 times by annual trading gain.


About the estimation of reward enhancement by recycle mining by AI arbitrage and mining coin selection. Assume 10% increment from original amount of crypto currency per month.

Annually expectable reward will be 196% from original.

The case of Bitcoin2Gen by 2,000 RIGs gave 583,480USD / month.

Therefore expected increasing amount of crypto currency is

= 583,480 x 12

=7,001,760 USD/ year.

Expectable AI trading will be

= 7,001,760 USD x 1.96

= 13,723,449.6 USD / Year.

Moreover, if we utilize AMD Radeon 7 series, the hash rate at Ethereum will be more than 120Mhps.

Therefore, expectable reward will be three times bigger hash rate than present value.

It will be 41,170,348 USD/ year.

Now, initial expenses, we purchased 10 areas lands and GPU Mining RIGs which has 12 GPU cards per RIG was assumed. The cost of initial expenses is

Land 10 acres = 2M USD

Shield building = 0.2M USD

Container x 4 = 0.2M USD

2000 GPU RIGs = 10M USD

Electricity cablingand other infrastructures = 0.6M USD

Total 13 M USD

Running cost was already calculated by reward estimation list,

Therefore,

Annual R total = Annual Reward - IE – RE

= 41,170,348 USD/ year. - 13 M USD

= 28,170.348 USD/ year

From second year, total profits will be 41,170,348 USD/ year. In case of same value of crypto currency.

The maintenance cost, let’s suppose the life time of GPU RIGs is five years, (Actually GPU life time is more than 1Millions hours, it will be failed most likely power supply and fans), we can consider 2M USD per year. But even so, it still higher profits.

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