While some experts say that investing in bitcoin mining is significantly less profitable than before the hype train started in December, 2017, it is more than possible to earn massive income by mining. However, the entry level is higher both in terms of skill required and finances. However, it is possible to buy used equipment. Is it worth it?
What is used equipment?
Many miners tried to start a mining operation but either realized that they do not have necessary knowledge or dedication to keep going. Rigs that they purchased are quite expensive yet have no secondary market value or liquidity. You see, it is hard to use a mining rig to play games or even use at home. Selling these powerful computational machines on the secondary market is a challenging task. Many sellers have to cut their prices in order to sell their machines.
Most used equipment is in good shape. These rigs are not heavy duty excavators meaning that mechanical wear is pretty much not an issue. Some parts may need replacement. For example, fans and hard drives, they usually have some moving parts and can work less efficiently over time. However, these components are not as expensive as GPUs and replacing them is relatively easy even for a total newbie.
One of the biggest risks for anyone who wants to buy on the secondary market is the lack of any guarantees. Middlemen like Amazon and eBay may guarantee that you will receive your goods in a timely manner, but if GPUs are on the verge of dying or circuits are unstable, you won’t be able to request a refund. Buying from a stranger without any middleman can be even riskier. Consider these risks before making a purchase.
Financial efficiency of used equipment
When BTC was a young cryptocurrency with just a couple thousand enthusiasts mining, it was relatively easy to get a coin or two without investing in high-performance GPUs. However, with more people getting on the hype train and less BTC being available for mining, buying a good mining machine is a must. Here are three important factors to consider:
- Initial cost. A new rig can cost anywhere between $500 and $10000 depending on the power and quality of the components.
- Power usage. A rig that consumes over 1000 Watts will make your electricity bills scarier than ever before. Over time, these costs can pile up and become a significant downside.
- Maintenance and complexity. Overly complicated hardware will require a specialized environment with climate control. Repairs and maintenance done by professionals also cost more.
Jumping in this industry is very expensive. Buying powerful yet inexpensive rigs that don’t consume much power is exactly what you should be aiming for. Used mining equipment suits both requirements nicely. There are very affordable rigs like Antminer D3 (consumes 1350 Watts of energy and has 19.3 Gh/s rate) which you can get for under $100. Avalon Miners, Innosilicon Dominator and Terminator are all good options to consider. These rigs cost under $500 on the second-hand market and still deliver good results.