What's up everyone, so back in 2017 we made our foray into the crypto youtube space with a video about GPU mining rigs And at the time it just absolutely killed it, you guys loved it, ate it up, we got like fifty thousand views in the first month

Which for a new channel was just insane And ever since then we've had constant questions about mining, both ASICs and GPU’s You know we have people asking “hey, you know, are you guys still mining? Is it still profitable, what coins are you mining, what rigs are you using, what gear are you getting into?” So, it’s been a while, about a year and a half, we’re revisiting the subject And today we're going to give you our opinion on mining in 2019, so i'm going to hop up here, I'm going to take you guys out to the rigs and were going to show you an inside look at what we're doing with our mining rigs in 2019

That's what we think of mining in 2019 Alright, so obviously, we touch on GPU’s too I was going to smash this, but I decided not to because at the end of this video i'm going to kind of come back around and tell you how you can save your hardware, maybe do a little something with it and take a complete loss on your gpu rigs But its miami, its summer, it's hot as hell, i'm going to go clean up and then were going to hop over and talk about the ins and outs of the actual numbers on mining Alright, I've cleaned up a bit

I'm no longer in the sweaty miami heat, and let's talk a little bit about what exactly happened to mining, what went wrong, and why we’ve kind of come to the point that we have So, obviously those of you that have been following the channel for a while; mining is actually how i found out about crypto I actually found out about mining bitcoin before i knew much about bitcoin itself I love it, i find it very interesting, it's a very innovative way to actually go through and encrypt this data and store it But there's a number of factors at play here that really kind of pulled that profitability back

And really the first one I think is the fact that mining was never meant to be a shot to the moon way to make money The reality is, that the way that many cryptocurrencies are set up, they go through halving periods; where after a certain amount of time and a number of coins are produced, the number of coins that are produced from subsequent mining operations are actually half of what the prior reward is So it's really inevitable without extreme inflation of price that eventually the profitability of mining is going to go down It’s just the nature of the beast You know, the technology isn't moving fast enough to make up for that gap

It’s an unfortunate reality, but it is what it is Now, that being said, as of right now obviously mining is still an integral part of blockchain technology It's a necessity to process the transactions An unfortunate reality about all of this is that you know, big money did step in You’ve got bitmain out there in China and really it moved from a situation where people could get their hands on basic hardware, do some mining; support the network and make some money, to a very much, kind of corporate profiteering type model now

Unfortunately with these ASIC miners that are coming out, and you know really the big farms that are able to put up big money up front are able to cut the line and get these miners before anyone else and that drives the profitability as well once those miners enter the general market So there’s really a lot of factors that come in and kind of intermingle to cause what has happened And with the ASICs the other one with kind of the big money, is also just an issue of ASIC resistance You know most of the general mining population that was making some profit off this on the side, or doing it as a small business; they were doing it on GPU rigs, these guys here Now, there’s still a few different currencies out there, a few different algorithms that have done their best to remain ASIC resistant

But the reality is, for example Lyra2Rev2 and equihash were some of the most profitable algorithms to mine nvidia series GeForce cards for quite some time And there’s still a few different currencies and algorithms that are still ASIC resistant But equihash now has an ASIC for it, Lyra2 now has an ASIC for it You know whenever an ASIC comes out, this technology is so much far and above GPUs it simply just pushes the GPU algorithms right out of their profitability area Now, I always talk about numbers

I like numbers more than just ranting about what’s going on and trying to give some kind of, you know, formal reasoning from what you see at face value So we’re gonna go, were going to look at whattomine, which is you know, the go to resource for profitability on mining Now, this just says it all you know When I started mining on the 1080ti graphics cards, at their absolute peak these cards were making about fifteen dollars a day, really steady state at their high point was about ten dollars a day, so you know, thats some decent profitability Youre talking about paying off the card within, you know a couple of months, you're making your return, and at this point, about a year and a half, two years down the line those same cards are, it's quite bad, they're bringing in less than a dollar a day

And you know, we got hit by it, its an unfortunate thing, a lot of people got hit by it It's just the way it is you know, on average you are paying about ten cents a kilowatt-hour for power Once you factor that in the profitability is simply not there to quantify the results Paying off the hardware, actually getting you’re money and getting that investment back is just an ever extending line because of the decreasing profitability, and the newer machines coming out, you're fighting a losing battle if you think that mining is still a truly profitable venture unless you have mega money, you can cut the line to the front of bitmain to get the asics early on and you're not paying for power You know, unless you have those things going for you it's simply not profitable anymore

And you know we talk about scams in the crypto space all the time, and one of the biggest ones is crypto mining, cloud mining, mining is profitable again! It just doesn't add up guys, you know These mega farms out there with all the money that are put in to cut the line and get these ASICs early on, they're not cloud mining, they're not putting out their hashing power for you, they're taking as many coins as humanly possible from their operation and liquidating them It's just the nature of corporate profiteering, that's the way it goes So seriously if you see anything about some new mining thing, some new cloud operation, and its promising you know daily payouts and great returns and this and that, guys, it's just not plausible You know, no matter what hardware yourte looking at

Let's take a look at you know, we've got our L3 which is now making a whopping eight cents a day after we paid well over two thousand dollars for it I mean you know, there's newer hardware thats out there certainly, some of the most profitable hardware here, we can see is, what? The fusion silicon is one of the only ones that out right now that has a supposed profit factor of $31 But $31 a day, the rigs are almost impossible to find now, and they're over $3000 a piece and that profitability is going down every day Even with that new hardware if you could get your hands on it, chances are you're not going to get a return on investment in any kind of timely manner So at this point as a solo person, as a smaller investor, mining just really isn't a worthwhile decision at this point in my opinion

Now thats not to say that if you've got a rig that it needs to be trashed ASICs I will fully say, it's a paperweight at this point guys, sorry But if you've got a GPU rig sitting around from your gpu mining days don't just trash it There's multiple options, if you're really not that computer savvy but you managed to set up a rig or maybe you bought one from someone, piece it out and sell it on ebay or amazon There's plenty of gamers out there that are tapped dry for GPU’s because of the mining surge, and they very much will sell, I guarantee you can sell it back

Another great option if you want to keep the hardware crypto centric is host a node You know look into some proof of stake blockchains I believe we have Neo, you know, ethereum is coming up on casper It's going to work in that proof of stake, granted minimum staking is a little bit high for your average user, but there's a number of different options You know, if you're invested in a coin and you find it interesting, host a node, help out the network

With general mining hardware if you did happen to slap in a pentium into the computer then you know realistically you could run as many as two or three nodes and a couple of proof of stake wallets, and you know, it's going to be fully functional So, don't completely write off your hardware if you were one of the people that went in heavy on mining and now you feel like you're sitting on a brick, there are other options for that So you know it's an unfortunate reality with what happened to mining but it's just the nature of the beast And you know, I really think the next big step is going to be diving and really concentrating and looking at what proof of stake can bring to the cryptocurrency offering And for our next video were actually going to do a little bit of that, were going to look at some different proof of stake coins, and we're gonna take an in depth look, because obviously, it's the number two crypto in the world, and then working to migrate to a proof of stake algorithm is I think huge

I think that's going to be a big change in the crypto space, so anyways I hope you guys enjoyed this video, hopefully you didn't throw any of your GPU mining rigs out the window, and good luck with the ASIC paper weights