persona-beaubot/context/BITCOIN MINING: WHAT INVESTORS NEED TO KNOW.en-orig.txt
2025-04-19 06:01:52 +00:00

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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]