WEBVTT Kind: captions Language: en I'm going to answer the top five I'm going to answer the top five I'm going to answer the top five questions that investors like you and I questions that investors like you and I questions that investors like you and I have about Bitcoin mining question one have about Bitcoin mining question one have about Bitcoin mining question one what exactly is Bitcoin mining and why what exactly is Bitcoin mining and why what exactly is Bitcoin mining and why does it matter the answer to that is does it matter the answer to that is does it matter the answer to that is that Bitcoin is an international digital that Bitcoin is an international digital that Bitcoin is an international digital Financial payments Network it is not Financial payments Network it is not Financial payments Network it is not managed by a country company or an managed by a country company or an managed by a country company or an individual rather what Audits and individual rather what Audits and individual rather what Audits and secures This Global Financial Ledger is secures This Global Financial Ledger is secures This Global Financial Ledger is a network of computers all around the a network of computers all around the a network of computers all around the world these computers execute an energy world these computers execute an energy world these computers execute an energy intensive cryptographic process that intensive cryptographic process that intensive cryptographic process that helps make the Bitcoin Network safe and helps make the Bitcoin Network safe and helps make the Bitcoin Network safe and reliable for everybody on the planet to reliable for everybody on the planet to reliable for everybody on the planet to use as compensation for the electricity use as compensation for the electricity use as compensation for the electricity that's consumed during the process of that's consumed during the process of that's consumed during the process of Bitcoin mining that Miner is rewarded Bitcoin mining that Miner is rewarded Bitcoin mining that Miner is rewarded with newly minted Bitcoin and the with newly minted Bitcoin and the with newly minted Bitcoin and the transaction fees of the transactions transaction fees of the transactions transaction fees of the transactions that they help to settle because newly that they help to settle because newly that they help to settle because newly minted Bitcoin is an aspect of the minted Bitcoin is an aspect of the minted Bitcoin is an aspect of the reward that miners get people have begun reward that miners get people have begun reward that miners get people have begun to call this process Bitcoin mining as to call this process Bitcoin mining as to call this process Bitcoin mining as if they were mining something out of the if they were mining something out of the if they were mining something out of the ground question two how much does it ground question two how much does it ground question two how much does it actually cost to start mining Bitcoin actually cost to start mining Bitcoin actually cost to start mining Bitcoin this is where it gets interesting for me this is where it gets interesting for me this is where it gets interesting for me and my experience in real estate you've and my experience in real estate you've and my experience in real estate you've got to have things like down payments got to have things like down payments got to have things like down payments closing fees rehab costs depending on closing fees rehab costs depending on closing fees rehab costs depending on what kind of condition you get the what kind of condition you get the what kind of condition you get the property in and it may cost you several property in and it may cost you several property in and it may cost you several $1,000 to close on a property in Bitcoin $1,000 to close on a property in Bitcoin $1,000 to close on a property in Bitcoin mining there's really just one big mining there's really just one big mining there's really just one big upfront cost and that is the hardware or upfront cost and that is the hardware or upfront cost and that is the hardware or the computers themselves these are the computers themselves these are the computers themselves these are specialized machines called Asic Miners specialized machines called Asic Miners specialized machines called Asic Miners and they're really just a different kind and they're really just a different kind and they're really just a different kind of server after you buy the server up of server after you buy the server up of server after you buy the server up front the only ongoing cost that you front the only ongoing cost that you front the only ongoing cost that you have is your electricity bill if you have is your electricity bill if you have is your electricity bill if you host with a solid provider your host with a solid provider your host with a solid provider your electricity cost can stay low enough electricity cost can stay low enough electricity cost can stay low enough that you make a nice profit every month that you make a nice profit every month that you make a nice profit every month but if you try mining at home you might but if you try mining at home you might but if you try mining at home you might end up paying more in electricity than end up paying more in electricity than end up paying more in electricity than you actually earn in Bitcoin which is you actually earn in Bitcoin which is you actually earn in Bitcoin which is why this industry is so competitive why this industry is so competitive why this industry is so competitive people mining at home unless they're people mining at home unless they're people mining at home unless they're willing to mine at a loss and hold the willing to mine at a loss and hold the willing to mine at a loss and hold the coin for a long time aren't likely to be coin for a long time aren't likely to be coin for a long time aren't likely to be extremely competitive over the long term extremely competitive over the long term extremely competitive over the long term it really is all about chasing cheap it really is all about chasing cheap it really is all about chasing cheap electricity to get started in mining you electricity to get started in mining you electricity to get started in mining you might need around $10,000 on the low end might need around $10,000 on the low end might need around $10,000 on the low end if you're going to get Quality Equipment if you're going to get Quality Equipment if you're going to get Quality Equipment and a quality hosting provider but you and a quality hosting provider but you and a quality hosting provider but you can go up to a million dollar or more if can go up to a million dollar or more if can go up to a million dollar or more if you're looking to go big and generate you're looking to go big and generate you're looking to go big and generate some serious passive income unlike real some serious passive income unlike real some serious passive income unlike real estate though it's flexible so you can estate though it's flexible so you can estate though it's flexible so you can start at the level of your budget you start at the level of your budget you start at the level of your budget you don't have to get an entire property for don't have to get an entire property for don't have to get an entire property for sever 100,000 you can get one machine sever 100,000 you can get one machine sever 100,000 you can get one machine five machines 10 100 whatever is five machines 10 100 whatever is five machines 10 100 whatever is available to you at that time and scale available to you at that time and scale available to you at that time and scale up or down as you see fit question three up or down as you see fit question three up or down as you see fit question three what kind of returns can I expect and what kind of returns can I expect and what kind of returns can I expect and how passive is this really this is how passive is this really this is how passive is this really this is really the big question of all of them really the big question of all of them really the big question of all of them your profit in Bitcoin mining depends on your profit in Bitcoin mining depends on your profit in Bitcoin mining depends on a few things one is how efficient your a few things one is how efficient your a few things one is how efficient your machine is and two is what you're paying machine is and two is what you're paying machine is and two is what you're paying for an electricity and hosting costs for an electricity and hosting costs for an electricity and hosting costs maintenance also plays a factor in this maintenance also plays a factor in this maintenance also plays a factor in this but if you're working with someone like but if you're working with someone like but if you're working with someone like us regular maintenance and repair on us regular maintenance and repair on us regular maintenance and repair on small components is included in your small components is included in your small components is included in your hosting rate if you're hosting with hosting rate if you're hosting with hosting rate if you're hosting with someone reliable you might see around a someone reliable you might see around a someone reliable you might see around a 30% return on your investment every year 30% return on your investment every year 30% return on your investment every year and that's not even considering the and that's not even considering the and that's not even considering the price of Bitcoin which has historically price of Bitcoin which has historically price of Bitcoin which has historically gone up by about 50% a year on on gone up by about 50% a year on on gone up by about 50% a year on on average over the last 15 years the main average over the last 15 years the main average over the last 15 years the main risks are that your machine could have a risks are that your machine could have a risks are that your machine could have a technical issue or there could be a technical issue or there could be a technical issue or there could be a power outage but again if you're working power outage but again if you're working power outage but again if you're working with a good hosting provider on this with a good hosting provider on this with a good hosting provider on this they will handle those problems for you they will handle those problems for you they will handle those problems for you so yes this really can be passive you so yes this really can be passive you so yes this really can be passive you just buy the machines they get plugged just buy the machines they get plugged just buy the machines they get plugged in and you're getting paid 247 365 days in and you're getting paid 247 365 days in and you're getting paid 247 365 days a year with no maintenance no tenants a year with no maintenance no tenants a year with no maintenance no tenants and no issues that you have to deal with and no issues that you have to deal with and no issues that you have to deal with question four is Bitcoin mining question four is Bitcoin mining question four is Bitcoin mining environmentally unfriendly this is an environmentally unfriendly this is an environmentally unfriendly this is an important question one that comes up a important question one that comes up a important question one that comes up a lot unfortunately it's very much lot unfortunately it's very much lot unfortunately it's very much misunderstood at first glance it seems misunderstood at first glance it seems misunderstood at first glance it seems like a bunch of computers consuming like a bunch of computers consuming like a bunch of computers consuming massive amounts of energy must be bad massive amounts of energy must be bad massive amounts of energy must be bad for the environment and it's true for the environment and it's true for the environment and it's true Bitcoin mining does use a lot of power Bitcoin mining does use a lot of power Bitcoin mining does use a lot of power but this is the twist because our but this is the twist because our but this is the twist because our electricity costs directly affect electricity costs directly affect electricity costs directly affect profits Bitcoin miners are highly profits Bitcoin miners are highly profits Bitcoin miners are highly motivated to find the cheapest energy motivated to find the cheapest energy motivated to find the cheapest energy possible and the cheapest energy usually possible and the cheapest energy usually possible and the cheapest energy usually is coming from renewable sources like is coming from renewable sources like is coming from renewable sources like wind Hydro or solar this is the other wind Hydro or solar this is the other wind Hydro or solar this is the other interesting part that Bitcoin miners can interesting part that Bitcoin miners can interesting part that Bitcoin miners can actually help to reduce waste in the actually help to reduce waste in the actually help to reduce waste in the energy market for example there's a lot energy market for example there's a lot energy market for example there's a lot of energy out there that gets produced of energy out there that gets produced of energy out there that gets produced but never used maybe there's too much but never used maybe there's too much but never used maybe there's too much wind or solar power production on a wind or solar power production on a wind or solar power production on a given day and traditionally this unused given day and traditionally this unused given day and traditionally this unused energy would go wasted because there's energy would go wasted because there's energy would go wasted because there's no buyer for it but Bitcoin miners can no buyer for it but Bitcoin miners can no buyer for it but Bitcoin miners can actually step in and buy that energy at actually step in and buy that energy at actually step in and buy that energy at a discount using it to power their a discount using it to power their a discount using it to power their operations so instead of Bitcoin miners operations so instead of Bitcoin miners operations so instead of Bitcoin miners using polluting energy sources or using polluting energy sources or using polluting energy sources or letting energy go to waste that's letting energy go to waste that's letting energy go to waste that's produced unnecessarily that energy is produced unnecessarily that energy is produced unnecessarily that energy is actually put to to work this also drives actually put to to work this also drives actually put to to work this also drives the investment into renewable energy the investment into renewable energy the investment into renewable energy forward as it makes these operations forward as it makes these operations forward as it makes these operations more profitable than they were before more profitable than they were before more profitable than they were before the existence of Bitcoin another example the existence of Bitcoin another example the existence of Bitcoin another example that people usually aren't familiar with that people usually aren't familiar with that people usually aren't familiar with is natural gas that's either flared is natural gas that's either flared is natural gas that's either flared which means burned off during the which means burned off during the which means burned off during the production of oil this flared gas is production of oil this flared gas is production of oil this flared gas is usually wasted but some mining operators usually wasted but some mining operators usually wasted but some mining operators are now capturing it and using it to are now capturing it and using it to are now capturing it and using it to power their rigs instead not only does power their rigs instead not only does power their rigs instead not only does this process reduce the pollution but it this process reduce the pollution but it this process reduce the pollution but it also makes fossil fuel production also makes fossil fuel production also makes fossil fuel production cleaner and more efficient removing cleaner and more efficient removing cleaner and more efficient removing methane from the atmosphere which is 25 methane from the atmosphere which is 25 methane from the atmosphere which is 25 to 85 times worse than carbon dioxide so to 85 times worse than carbon dioxide so to 85 times worse than carbon dioxide so the answer is yes Bitcoin mining does the answer is yes Bitcoin mining does the answer is yes Bitcoin mining does have an environmental impact but it's have an environmental impact but it's have an environmental impact but it's not as straightforward as it seems and not as straightforward as it seems and not as straightforward as it seems and it's largely positive the incentives in it's largely positive the incentives in it's largely positive the incentives in mining actually drive a shift towards mining actually drive a shift towards mining actually drive a shift towards cleaner cheaper energy and reduce waste cleaner cheaper energy and reduce waste cleaner cheaper energy and reduce waste throughout the entire system and the throughout the entire system and the throughout the entire system and the industry is innovating extremely quickly industry is innovating extremely quickly industry is innovating extremely quickly to make the process even more to make the process even more to make the process even more sustainable as time goes on question sustainable as time goes on question sustainable as time goes on question five how does Bitcoin mining compare to five how does Bitcoin mining compare to five how does Bitcoin mining compare to real estate as an investment the answer real estate as an investment the answer real estate as an investment the answer is in real estate you're typically is in real estate you're typically is in real estate you're typically buying a property that earns you rental buying a property that earns you rental buying a property that earns you rental income and over time the property is income and over time the property is income and over time the property is what's depreciating in value with what's depreciating in value with what's depreciating in value with Bitcoin mining it's essentially the Bitcoin mining it's essentially the Bitcoin mining it's essentially the opposite you're buying equipment which opposite you're buying equipment which opposite you're buying equipment which is what you're depreciating and lose is what you're depreciating and lose is what you're depreciating and lose value year toe and then as compensation value year toe and then as compensation value year toe and then as compensation you're receiving Returns on your you're receiving Returns on your you're receiving Returns on your investment in the form of Bitcoin so investment in the form of Bitcoin so investment in the form of Bitcoin so whereas you would buy a house collect whereas you would buy a house collect whereas you would buy a house collect rent and expect the house to appreciate rent and expect the house to appreciate rent and expect the house to appreciate when you buy a Bitcoin miner the Bitcoin when you buy a Bitcoin miner the Bitcoin when you buy a Bitcoin miner the Bitcoin miners depreciating but you expect the miners depreciating but you expect the miners depreciating but you expect the Bitcoin itself to appreciate your Bitcoin itself to appreciate your Bitcoin itself to appreciate your Bitcoin once you produce it can be held Bitcoin once you produce it can be held Bitcoin once you produce it can be held or it can be liquidated at will so if or it can be liquidated at will so if or it can be liquidated at will so if you don't have a long-term time Horizon you don't have a long-term time Horizon you don't have a long-term time Horizon on holding your Bitcoin you can on holding your Bitcoin you can on holding your Bitcoin you can obviously just liquidate it for cash obviously just liquidate it for cash obviously just liquidate it for cash flow real estate usually offers more flow real estate usually offers more flow real estate usually offers more stability due to how common it is as an stability due to how common it is as an stability due to how common it is as an investment vehicle that Bitcoin mining investment vehicle that Bitcoin mining investment vehicle that Bitcoin mining on the other hand is a relatively on the other hand is a relatively on the other hand is a relatively untapped business opportunity that has untapped business opportunity that has untapped business opportunity that has really high growth potential Bitcoin really high growth potential Bitcoin really high growth potential Bitcoin mining also has no tenant risk no mining also has no tenant risk no mining also has no tenant risk no property tax and is extremely mobile the property tax and is extremely mobile the property tax and is extremely mobile the machines that you purchase can also be machines that you purchase can also be machines that you purchase can also be used as a tax write off similar to capex used as a tax write off similar to capex used as a tax write off similar to capex on your properties with any new on your properties with any new on your properties with any new technology like this there is a bit of a technology like this there is a bit of a technology like this there is a bit of a learning curve however with a capable learning curve however with a capable learning curve however with a capable hosting provider and phenomenal service hosting provider and phenomenal service hosting provider and phenomenal service Bitcoin mining can be a far more Bitcoin mining can be a far more Bitcoin mining can be a far more profitable and hands off passive income profitable and hands off passive income profitable and hands off passive income Opportunity by comparison to rental real Opportunity by comparison to rental real Opportunity by comparison to rental real estate at abundant Minds we're pretty estate at abundant Minds we're pretty estate at abundant Minds we're pretty selective about who we work with but if selective about who we work with but if selective about who we work with but if you've watched this and you think that you've watched this and you think that you've watched this and you think that it could be a fit for you visit us at it could be a fit for you visit us at it could be a fit for you visit us at abundant minds.com or follow us on abundant minds.com or follow us on abundant minds.com or follow us on Twitter or Instagram @ abundant minds Twitter or Instagram @ abundant minds Twitter or Instagram @ abundant minds and message us passive to set up a and message us passive to set up a and message us passive to set up a consultation and get our free resources consultation and get our free resources consultation and get our free resources to see if this could be a good fit for to see if this could be a good fit for to see if this could be a good fit for your next step in your investment your next step in your investment your next step in your investment Journey also please remember to like Journey also please remember to like Journey also please remember to like subscribe and leave a comment with what subscribe and leave a comment with what subscribe and leave a comment with what was most helpful for you thanks for was most helpful for you thanks for was most helpful for you thanks for watching watching watching [Music]