How did I determine if it was profitable to start a mining warehouse?

Phemex Trading

Below is a sample of some of the expenses one needs to consider before starting a small scale mining operation.

  • What ever amount of money you estimate to start add another 50%. There are expenses that come up that you would not have thought of.
  • What ever time you estimate to be fully operational add another 30%. It always takes longer then you think.
  • Plan on learning and doing as much work on your own as possible to keep your costs down.

Expenses

Expenses Category Description
One Time CostElectrical WorkCircuits
One Time CostElectrical WorkPDU, outlet and wires
One Time CostInside ImprovementsLouvers
One Time CostInside ImprovementsLouver Instillation
One Time CostInside Improvementsbuild box
One Time CostOtherRacks and supplies
Total One Time
Expenses Category Description
 Ongoing Costs FixedRent
 Ongoing Costs FixedInsurance
 Ongoing Costs Fixedinternet
 Ongoing Costs FixedAlarm
 Ongoing Costs VariableElectrical

Income

Forecasting your income is difficult but based on your miners hash rate, current difficulty and price you can determine a present value.

Taking your expenses and income components and model them in a scenario analysis so you can see best and worst case scenarios. Always plan for the worst case because it might be your most likely outcome.

Next – Crypto Currency Mining Resources

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