The former NFL player set up a mining farm inside a shipping container (sea cargo) that is proving to be a very profitable business. In addition to some accounting advantages, the model also allows for greater portability of bitcoin mining equipment, as need.
Mining farm: A profitable business
Former NFL federated football player Reggie Brown, who previously played for the Philadelphia Eagles, set up a bitcoin mining business in partnership with Rolf Versluis, an IT specialist who has worked on U.S. Navy submarines, with plants. The partners found in the mining farm a profitable investment, with the receipt of inflation generated by the reward of blocks that can be sold to the market to realize the profit and reinvest in the business – quite expensive, as revealed by some values. US$ 0.06 per kW of energy, in a contract they have with an electric energy supplier and criticized the monopoly in the sector, which makes negotiation difficult since “They have all the power [literalmente]”; joked with the pun ‘power’ which can indicate negotiation power and ‘electric power’. His partner, Versluis, opened up even more numbers by revealing that they have 150 s17 miners – at 56 TH/s each – and a cost unit of US$ 1,799.99. About US$ 270,000 in total. The entire structure with land, infrastructure and container cost about US$ 450,000 and the former Navy IT technician defines mining as “a capital intensive business”.
Advantage of mining in a shipping container
The partners list some advantages that motivated the choice of this business model, such as: tax avoidance (pay the least amount of taxes possible within the law); better use of space; system of ventilation suitable in equipment aisles; cleaning and maintenance every three months; and mainly, mobility.The portability, or mobility, of the entire structure is perhaps one of the biggest benefits for a mining farm in an environment of political uncertainty and monopoly of electricity distribution companies. By assembling your structure in a container, the business can be transported easily in a truck, to move within the same country, seeking better agreements with electricity companies, legal protection or even tax. And even better, the container can be easily moved to other countries as sea cargo; in the case of facing tougher regulations such as those that occurred in Kazakhstan, where more than 100 mining farms were closed and thousands of equipment were abandoned due to logistical infeasibility.Know more: 1 billion reais in Bitcoin mining machines seized
Bitcoin mining is a business
While the duo’s focus appears to be solely on the financial return they can earn from their investments in computing equipment, the mobility of a mining farm can also help with network decentralization; reducing the impacts on geopolitics subsystem.Know more:This ensures greater resilience and network security against possible attacks from governments and regulatory institutions; as well as oligopolies such as electricity. If a country prohibits or hinders the activity of miners, they can move quickly, at low cost, to another country. demanding lower liquidation of your assets to pay for the logistics (dumping less on the market) and retrieving the hashrate on the network with greater agility. Mining is a business and the focus of most miners is to be able to profit as much as possible in the shortest time, with the greatest possible financial security (risk/benefit), selling the mined bitcoins at the highest price and taking good reinvestment decisions; as Reggie Brown and Rolf Versluis stated at the end of the video.The good news for BTC enthusiasts – who could be hurt by inflation of 1.7% per year, which is the profit of these men [e mulheres] of business – is that the search for the most profitable business is aligned with the security of the network itself; creating a robust system when considering financial incentives and the search for better solutions. The problem is that, being a “capital intensive” business, as described by Rolf, it invariably ends up creating an economy of scale where it is more difficult to enter, the larger miners have better commercial agreements, better mobility and better capacity for reinvestment or maintenance. So, despite an increasingly robust network and difficult to reverse, with better geopolitical decentralization when operating in a container, another sector of decentralization is hampered with the gradual increase in hashrate dominance among a few participants and, consequently, in the consensus on the network. the next profitable business of the time, as the equity ends up being in reusable hardware and infrastructure.Read more:How much was a liter of gasoline in BTC in 2014 and 2018? Luna update could make Bitcoin price soar and make UST stablecoin safer NovaDAX is full of news! One of the largest cryptocurrency exchanges in Brazil has now ZERO withdrawal fees in real! NovaDAX also counts zero fees for Bitcoin transactions and more than 110 listed currencies, with cash withdrawal available and high liquidity. Cryptocurrencies with the best rates on the market! Simply activate the free Novawards program and enjoy reduced rates of up to 75%. Discover the NovaDAX Card and order yours now.