Official Mining Thread

[KAC]

I had 17K USD lying around. I told my wife, I can either buy a house for 200K USD and rent it for about 15K a year or I can use this money to build a mining rig and give you back 15K a year. She said buy the damn thing.

[curio]

Basically the same convo I had with my wife; once we crunched the numbers she just said you better do this now

Oh and thanks Dave

[KAC]

**** you Dave is what I said.

[acroig]

Originally Posted by KAC

**** you Dave is what I said.

[nycdarkness]

My 4 star wars xp cards just showed up lol. OH man for once I feel bad for blocking a card.

[KAC]

Originally Posted by nycdarkness

My 4 star wars xp cards just showed up lol. OH man for once I feel bad for blocking a card.

So how many rigs are you building? Cards?

[Dave]

So wait, KAC IS building the rig afterall? lmao...

[OverclockN']

Originally Posted by Dave

So wait, KAC IS building the rig afterall? lmao...

I don't know what the heck is going on any more.

I do know that my 2nd 1080Ti will be here Wednesday, so looking forward to mining and gaming with that. I'm going for lowest production on the forum, and I don't think anyone else here is going to be even close!

[Mangler]

So, is it even worth mining with 980s?

Or would a single vanilla 1080 be faster than two 980s?

[andino]

Originally Posted by OverclockN'

I don't know what the heck is going on any more.

I do know that my 2nd 1080Ti will be here Wednesday, so looking forward to mining and gaming with that. I'm going for lowest production on the forum, and I don't think anyone else here is going to be even close!

I will be taking that spot. Looking to add 2 1080ti's. So total I'll have 2 1080ti's and 1 980ti in the farm. The 980ti will be all the time and the 1080's will be used when I'm not gaming.

I'm just wanting to get some ROI to cover some of the upgrade costs.

Depending on how it all goes I might keep mining to pay for a total computer rebuild by the end of the year.

I'm really not expecting much out of this.

[Riptide]

Hard to see how profitability will go up at this point with so many people jumping on board and throwing tens of thousands into it. Difficulty is set to blow up and go through the roof.

Guess we'll see what happens in the next 2-3 months.

Remember:
Past performance is no guarantee of future results.

Not trying to be a negative Nancy lol. I hope it holds out.

[andino]

Anyone know how to get around that 1 Per Household limit that EVGA has?

I'm really thinking of having my wife buy one and deliver it to her work.

[andino]

I'd be happy at $5 to $10 a day.

It was making $0 a day a week ago.

[OverclockN']

Originally Posted by andino

I will be taking that spot. Looking to add 2 1080ti's. So total I'll have 2 1080ti's and 1 980ti in the farm. The 980ti will be all the time and the 1080's will be used when I'm not gaming.

I'm just wanting to get some ROI to cover some of the upgrade costs.

Depending on how it all goes I might keep mining to pay for a total computer rebuild by the end of the year.

I'm really not expecting much out of this.

I have two 1080Ti's (one on the way) with no intention of expanding further. Like you, I'm just looking to get back a portion of the upgrade costs. No expectations beyond that. It's my only system, so it gets shut down to play games too.

[Riptide]

Coinbase is such a garbage website and service. Paypal still down I can't add the account. Tried two weeks ago and the window would just close out when I would click on it. Now they have a note up saying it's down.

I can't add a credit card. Tried twice once with a VISA and once with a MC. Their system still keeps telling me that I'm putting in the wrong amounts even though I am not.

I finally gave up and email'd them which basically means waiting for weeks if I ever get a response.

[andino]

I have to admit that I'm getting a kick out of watching Dave and KAC. I can see doing a small farm like them. $7K to $10K.... At the end of it they get nice stuff and it's a fun hobby that will make them some money.

What really freaked me out were the people dropping upwards of $50k into mining with the expectation of getting a return on startup within 3 to 4 months. That's just very optimistic.

There are going to be a ton of people that lose their shirt over this stuff. But there always are people that get into something and don't realize the technical skills that are needed to maintain a rig and the time and knowledge to use it wisely.

I can guaranty that there are people out there OCing the whole rig to burn through the algorithms and are killing their equipment. Sometimes slow and steady wins the race. That's why I'm not too keen on getting used cards right now.

It's still interesting to me. I'll see how it all goes. I'm now more concerned about how the transfer of bitcoin to cash will actually work and the fees associated with doing this long term. Then there are the taxes and what not with it all. I'd freaking hate to get audited over BitCoin.

[Dave]

Originally Posted by Riptide

Coinbase is such a garbage website and service. Paypal still down I can't add the account. Tried two weeks ago and the window would just close out when I would click on it. Now they have a note up saying it's down.

I can't add a credit card. Tried twice once with a VISA and once with a MC. Their system still keeps telling me that I'm putting in the wrong amounts even though I am not.

I finally gave up and email'd them which basically means waiting for weeks if I ever get a response.

Maybe if you didn't live in a shitty state you'd not have such problems or maybe switch to a bank that coinbase recognizes.

[curio]

Originally Posted by andino

I have to admit that I'm getting a kick out of watching Dave and KAC. I can see doing a small farm like them. $7K to $10K.... At the end of it they get nice stuff and it's a fun hobby that will make them some money.

What really freaked me out were the people dropping upwards of $50k into mining with the expectation of getting a return on startup within 3 to 4 months. That's just very optimistic.

There are going to be a ton of people that lose their shirt over this stuff. But there always are people that get into something and don't realize the technical skills that are needed to maintain a rig and the time and knowledge to use it wisely.

I can guaranty that there are people out there OCing the whole rig to burn through the algorithms and are killing their equipment. Sometimes slow and steady wins the race. That's why I'm not too keen on getting used cards right now.

It's still interesting to me. I'll see how it all goes. I'm now more concerned about how the transfer of bitcoin to cash will actually work and the fees associated with doing this long term. Then there are the taxes and what not with it all. I'd freaking hate to get audited over BitCoin.

Read my mind all around

And I've got to read up about the taxes part...

[Dave]

Originally Posted by curio

Read my mind all around

And I've got to read up about the taxes part...

"Did you buy anything online last year that you didnt pay taxes on"

[OverclockN']

I have to admit that I'm getting a kick out of watching Dave and KAC. I can see doing a small farm like them. $7K to $10K.... At the end of it they get nice stuff and it's a fun hobby that will make them some money.

Agreed. I can see the appeal and the potential profits involved.


I don't understand the tax part either. Are we suppose to be keeping a record of our "earnings" through the mining and keeping a portion of it for taxes at end of year? I've never had to do anything like that or even consider it before. Or does this only apply when you reach a certain eanings threshold that you then have to consider it a small business and is therefor taxed?

[andino]

http://fortune.com/2017/12/21/bitcoin-tax/

1099-MISC forms....

I'm currently looking at a stack of them on my desk right now.

BTW, they also changed the date that they have to be filed. The 1099 used to have a Feb 28th deadline. They are now Jan 31st.

So any BitCoin transactions that you had last year should be filled by this Wednesday.

[Hapatingjaky]

Under the new Tax law passed by the US Government ( *snicker* ) don't you have to disclose your Crypto Currency weather it be an online or offline wallet?

http://fortune.com/2017/12/21/bitcoin-tax/
(warning auto start video )

Yep.

Show of hands though, how many of you miners out there who have mind any type of currency have either:

A.) Converted said Crypto into hard cash.

B.) Swapped Crypto for another Crypto.

C.) Bought something using Crypto.

[curio]

Originally Posted by Dave

"Did you buy anything online last year that you didnt pay taxes on"

[OverclockN']

A.) Converted said Crypto into hard cash.
- None

B.) Swapped Crypto for another Crypto.
- None

C.) Bought something using Crypto.
- None


I just started a week ago and have about $40 in my wallet, having not transfered anything yet. With the whole thing being taxed, I'm not even sure I want to do it now. Won't that eat up 30-40% of the dough, depending on tax bracket? This significantly extends ROI, not to mention the pain in the ass having to keep track.

[Riptide]

Originally Posted by Dave

Maybe if you didn't live in a shitty state you'd not have such problems or maybe switch to a bank that coinbase recognizes.

Not my fault paypals been broken for weeks. I can't even add a credit card in there without it being messed up and those are major banks too.

As far as taxes go the miners have it the worst. Every time you take a payout from a pool or nicehash or whatever they want you to keep track of the value of that payout in USD and then claim at the end of the year as income. Some pools payout a dozen or more times a day. That is a giant PITA to keep track of. Plus when you cash out to USD you end up having to pay capital gains on TOP of the income reported.

If you can queue up the payout on demand instead of it being on a schedule you can take some of the work out of that. I have my own way of getting around that which will involve paying more in taxes than I'd like. It does however greatly simplify things.

A lot of people are just going to try and skate around this and not claim anything.

As far as having report the income by January 31st. That basically means you MUST file your entire tax return by January 31st. This is not practical. You should be able to claim the income along with the rest of your income in the report by the April deadline. Ditto on the capital gains.

[curio]

Originally Posted by OverclockN'

I just started a week ago and have about $40 in my wallet, having not transfered anything yet. With the whole thing being taxed, I'm not even sure I want to do it now. Won't that eat up 30-40% of the dough, depending on tax bracket? This significantly extends ROI, not to mention the pain in the ass having to keep track.

According to a link in the Forbes above article, apparently the IRS is only going after users that had $20,000 or more in any one transaction type (buy, sell, send, or receive) in one fiscal year

[curio]

Originally Posted by Riptide

Not my fault paypals been broken for weeks. I can't even add a credit card in there without it being messed up and those are major banks too.

As far as taxes go the miners have it the worst. Every time you take a payout from a pool or nicehash or whatever they want you to keep track of the value of that payout in USD and then claim at the end of the year as income. Some pools payout a dozen or more times a day. That is a giant PITA to keep track of. Plus when you cash out to USD you end up having to pay capital gains on TOP of the income reported.

If you can queue up the payout on demand instead of it being on a schedule you can take some of the work out of that. I have my own way of getting around that which will involve paying more in taxes than I'd like. It does however greatly simplify things.

A lot of people are just going to try and skate around this and not claim anything.

As far as having report the income by January 31st. That basically means you MUST file your entire tax return by January 31st. This is not practical. You should be able to claim the income along with the rest of your income in the report by the April deadline. Ditto on the capital gains.

Yeah who the **** is going to keep track of dozens of pools payouts every day? That's just stupid.

[Dave]

Originally Posted by curio

Yeah who the **** is going to keep track of dozens of pools payouts every day? That's just stupid.

We are talking about our federal government here

[curio]

True dat

[Riptide]

I agree that it is freaking ridiculous. Clearly they need to make changes because it is practically unworkable right now.

I intend to claim income when I file next year and to prepare for that I'm doing a couple things.
1) No trades unless ABSOLUTELY necessary

2) I "pay" myself every two weeks. I take the amount of coins earned in that period of time and then check the highest value the coin reached over that two week period. I multiply that value in USD x the coins earned and then that is the income I'm going to report. End of the year I'll add up all 26 transactions for the total.

This causes me to pay more in taxes than I should but simplifies things.

It is also GROSSLY UNFAIR. Think about how this works. I could end up having to claim say 20,000$ in extra income. And what if that coin I mined is worth ZERO at the end of the year because it crashed?

The IRS needs to fix this. All we should have to pay is capital gains on payouts to USD. That is IT.