Peeking Inside an Actual Bitcoin Mine: Care to Buy a Mining Operation?

What's a bitcoin mine look like? Let's take a look inside a Washington State mine.

Here are some image clips from a video article about an actual bitcoin mining operation. ​

Mine Details

  1. The mine is in Wenatchee, Washington has 1,800 servers running every day with very little downtime.
  2. The mine is run by Malachi Salcido, president and CEO of The Salcido Connection.
  3. The mine produces five-to-seven bitcoins every day. Salcido wants to expand his operation to get up to 50 bitcoin per day.

​Buy Your Own Mine

Kodak is branding a $3,400 bitcoin-mining machine that you would have to be ape-shit nuts to buy.

  • The Kodak-branded mining rig called the KashMiner, which was showcased at this year's CES. It's created and run by a company called Spotlite, and has licensed the Kodak name.
  • Users pay $3,400 to rent the mining machine for two years and give Kodak half of any bitcoins mined.
  • Kodak claims the KashMiner will produce about $375 worth of new bitcoins every month, which would lead to estimated revenues roughly $9,000 over those two years.

If these devices actually were profitable to anyone but Kodak, the company would start its own mine rather than selling them. If you are dumb enough to buy one of these devices, you will be competing against the Salcido Connection and every company like it.

Kodak

Kodak spiked from $3 to $13 over the past few days on this nonsense coupled with its KodakCoin announcement.

I expect to see shares of Kodak back under $3 in due time. And unless it comes up with a real product, which I highly doubt, it will go bankrupt again.

Meanwhile, I have no idea how high Kodak will go, but if the top is in already, I would not be surprised.

Beanie Babies vs Bitcoin

Bitcoins are nothing but the new Beanie Baby in my estimation.

For further discussion, please see What is Bitcoin Other than a $15,000 Beanie Baby?

Mike "Mish" Shedlock

Comments (25)
No. 1-25
Carl_R
Carl_R

From this article, there are 1800 servers running 24/7, and producing 5-7 bitcoins a day. If each server draws 500 watts, that means the "mine" draws 900 kilowatts. That means it draws 7500 Amps at 120 volts. It also means it uses 21,600 kwh per day, which at $.10/kwh would be $2,160.

Carl_R
Carl_R

If he's making, say, $80,000/day selling bitcoins, that's a nice profit, but he also has a hefty capital investment. Doing some other math, if 21,600 kwh produce 5-7 bitcoins, then mining a bitcoin uses about 4000 kwh per coin.

xil
xil

for some reason, i'm reminded of Aronofsky's Pi

thimk
thimk

I want one - "just set it and forget it" https://www.youtube.com/watch?v=tLq27iOW0R0

Top-GUN
Top-GUN

Cool,,, so what are all of those servers doing other than converting electricity to heat,,