$35 Bitcoin Miner Could Win You $250,000| 20 Hours to $200K ★

Yeah. So, uh, Bitcoin mining is it's an interesting subject and it's certainly, uh, a very controversial one. Um, some people think it's a waste of electricity, some people think it's a waste of money, some people think it's causing global warming, some people think it's melting Antarctica, the list goes on. >> Um, and the reality is is that when everybody whenever whenever somebody says like, "Oh, it's, you know, this is clearly not profitable. Why would you ever do this thing? Um, I like to mention that the Bitcoin mining uh global hash rate right now is the highest it's ever been. Uh, there's more miners than there have ever been before. More hash rate online. It only keeps growing. It only keeps getting bigger and bigger and more um companies decide to dip their toes into this world and start mining. So there must be something there if uh if all these companies are spending millions upon millions of dollars to invest in in it. Uh so that's the like the big you know supercaled end of the uh the spectrum there. >> Um I do I dip my toes in that in that portion with some big machines hosted a facility. I do that whole thing. >> Then there's the other end which is what you mentioned like home mining. >> Uh and home mining runs the gamut. Um >> right. Yeah, like it depends on what you're going to do, depends on your situation, depends on your electricity rate. It can be just money you're spending every month. It can be profitable or it can be something in between. >> Okay. >> Um, so I I did I brought some uh some visuals. >> Awesome. >> Here, uh, this right here, this is about as far on the uh small end of the spectrum as you can get. This is what's called a uh USB lottery miner. And the chances of you ever making money with this are very near zero, but they're not zero. They're just very near zero. >> Uh then you can work your way up to a larger style, more efficient lottery miners like this, which is a bit axe, which is very popular. You can buy one of these for like 60 to 100 bucks. >> Uh and then it keeps scaling up. You can get something like this, which is a Canon Avalon uh Nano3S, which a lot of people use under their desks at work as a little foot heater. Um it mines Bitcoin. And then we have some fancy ones with screens and uh they tell you the the price of Bitcoin and they they mine it um all the while. But most home miners like this are all going to be in the solo or lottery mining category. And I think that's the big distinction to make is uh there's pool mining and then there's lottery and solo mining. And feel free Rob at any point to stop me if you want to interject or ask question or whatever. >> Um pool mining is what the vast majority of people do. You join a mining pool. You contribute your hash rate to that mining pool along with a bunch of other people. You all pull together your hash rate and then collectively you try to solve a block. And when that pool of all that hash rate solves a block, you spit it, you split it proportional to the amount of work that your individual minor did. So you're getting little consistent payouts or if you have a lot of hash rate, bigger consistent payouts on the regular. Uh but you're not getting the whole block 3.125 Bitcoin or $250,000 just for yourself. Okay. On the other hand, you can solo mine, which means you by yourself with nobody's help, just your minor or your collection of miners are trying to solve a block on your own. And if you do solve a block, you get the entire 3.125 Bitcoin plus any transaction fees, $250,000 plus today, >> delivered immediately directly to your wallet, no questions asked. >> Um, >> okay, >> I like that. >> That's the full spectrum. The solo mining though depending on how much hash rate uh you have uh the chances can be quite quite low. U but the exciting part is is that unlike the actual lottery which you pay 10 20 bucks, you buy a couple tickets, uh you wait for Friday to roll around, you wait for the lottery numbers to get picked, uh you don't win, it's over. You spent your 20 bucks, you're done. with a Bitcoin lottery miner. That lottery, those tickets that you get repeat every 10 minutes 24/7, as long as you're going to run the thing. And machines like this, while the chances are quite low, uh did hit about 20 to 25 blocks just in the past year. So, people who ran one of these things woke up one day with 3.125 Bitcoin in their wallet the next day. So, very unlikely, but not a not not a zero um chance. >> Very nice. I got to tell you, there's a lot of people out there who invest into the safe stuff, right? They're like, I'm just going to do an S&P 500. That's pretty much it. Then there's the people that say, I want a little bit of risk and I want to get into just more traditional equities. Then there's the people that say, I want a lot of risk. I wanted to get into Bitcoin, which I don't think is that bad. And there's the people that say, you know what, I want the most amount of risk. and they get the hottest meme coin coming up today. I think it is inherently a value that people like to gamble just a little bit, but there's a there's different levels. So, when you talk about that, I got to tell you, I I can see the allure of getting into, especially the one with with the screen. And Andy, before I forget, if you have links to all of those devices, if like if you have an affiliate link yourself, great. Send it over and then I'll put it in the description so people can click on it and find it. I think that would be a pretty big thing if anybody is interested. The question that I had and I think we actually talked about this before >> is let's just say I like the one where you said this is a foot warmer. The one where the foot warmer and you can invest into that. What kind of price ranges are we looking at for these devices and if we get some kind of profit let's say we get into like Trumpcoin or something like that and made a little bit of money we're like I want to really gamble. What can we can we offset these capital gains with buying a Bitcoin miner? >> Yes. So, uh yes to all those things. >> All right. >> Uh again, little tiny USB uh minor, 35 bucks, uses one watt of power. You'll never notice this electricity bill. Again, you'll almost certainly never win a block, but it's at least fun way to like play around and figure it out and um have like a conversation starter. Or the way I run one of those is in a hub with seven of them and they all light up and they have screens and they look cool. I usually have in the background of my uh my videos. So, it's just like a fun like crypto nerd toy. [laughter] Uh the Bitax, which again is one of the most popular lottery miners on the market. You can buy one of these for like 60 bucks. >> Really >> uses somewhere in the neighborhood of 15 to 18 watts of power. uh which for me in Texas, my electricity bill, that means I'm adding one or two dollars to my bill a month, >> so you'll probably never notice it. It's normal fluctuations of your bill anyway. >> Uh then ones like this, the Canon Avalon Nano 3S, this is somewhere in the neighborhood of 200 220 bucks. >> Uh this one uses 140 watts of power. is going to cost you, depending on what your power rate is, five or 10 bucks a month um to operate. But a lot of people take these to work and plug them in at their at their office for free because it's totally normal at a lot of jobs to have like a little space heater or something and this you just say this is a space heater and now you're mining at the uh the office and some offices just don't care even if they did know >> um it was a uh Bitcoin miner. And then ones with a screen at 250 bucks. I will send you all the links to these. because I do have some discount codes and stuff. Uh, this one has basically a souped-up version of this inside. Uh, it's like whisper quiet and has a screen shows you, uh, the Bitcoin price and all that good stuff. So, in terms of electricity, anywhere from non-existent charge to your, you know, monthly bill up to five or 10 bucks for these types of units. As you get more serious, there are bigger units you can run at home. Obviously, are going to cost more, maybe a couple hundred bucks if you're running several of them. Uh, but most of my serious units like that I don't run at home. I run at a hosting facility. The one I use is called Musk Miners. Um, and their electricity rate is half of what my residential one is. Um, which makes a huge difference. So, my machines are profitable at even lower bitcoin prices and stuff, but you mentioned uh, you know, uh, eating away at these capital gains taxes. Can you get some relief um, from that if you're going to be mining Bitcoin? And the answer is yes. Uh, one of the beautiful things about Bitcoin mining is if you buy machines within an LLC, this depends on which state you're in or which country you're in and all that good stuff. But here in the US, um, uh, generally if you put it if you buy these inside of an LLC, uh, because of the tax code changes that happened last year, um, you can qualify for 100% bonus depreciation. Um there's also regular normal uh nominal depreciation you can do over time but your hosting rate or electricity rate or maintenance costs all that you can deduct um you can you know cost to running business um running the business there's a bunch of other advantages too um that you can take um that really help the tax burden help overall but there's also the beauty of if you buy at the right time you buy a bigger machine uh for example it's profit profitable even right now when we're coming out of a bare market. Uh you keep running it into the bull run, Bitcoin goes back to 126. It goes to 150, goes to 250. I don't know where it's going to go. Goes way higher. The p uh the miners making even more money per month. Well, then you can turn around. You can sell that machine uh for either a portion of, you know, some of what you bought it for, as much as you bought it for, more than what you bought it for. I don't know the answer to that equation. We are not in the future yet. Um, but there's all kinds of really fun tips and tricks and optimizations you can do around this stuff. Uh, that is not just the price of Bitcoin, how much do I make minus my my uh my cost. >> Got it. That's a that's an interesting proposition to go from, okay, we're just going to do this like like you said like a USB stick, not going to make make too much. Go to the foot warmer, a little bit something. You got one with the screen, okay, a little bit step up. But then to get into the hosting platform where you're able to reduce your electricity cost and to have the actual Bitcoin miners that at some point you can turn around and sell is an interesting proposition. That is for sure. So let me ask you this Andy when you how long have you been been doing the Bitcoin mining and uh what brought you to it? That's the first question. >> So I've been in the crypto space for 10 years now. Um and I was kind of in the world of Bitcoin. um buying it, stacking it, uh learning more about it until um uh 2021. >> Uh was when or no, I'm sorry, 2022. Uh that's when I decided I want to stop just stacking it and I want to start actually getting some skin in the game when it comes to mining. I was mining other cryptos long before that. My first ever mining was in 2014. I was mining Litecoin. I built a a rigin >> in my in my house to do that. Um, but uh 2022 was when I first started mining Bitcoin and I have not stopped since then. I now mine a bunch of other stuff as well. Um, and what got me into that um was the the question of uh it's it's a it's a variable. When you buy Bitcoin on the regular, you know exactly how much you're going to get. um like the price of Bitcoin might change and the value of that stack would change, but the actual amount of Satoshi's you're getting when you purchase that's locked in stone. You you bought it, it's done, you know how much you're going to get. With mining, you really have you can do some guesstimation, but you really have no idea. Um, like if when we get into the into the bull runs and uh and Bitcoin's price is pumping and people are transacting on the chain all the time, all of a sudden the transaction fees, they can go up 10x and now your minor is making twice as much as it was, you know, the day before just instantly. This has happened to me many, many times. Uh, and so I like I don't know. I like that wild card of like not knowing exactly how much I'm going to stack with this. Plus, I've made a lot of money um over the years and cycles with flipping the equipment um not just Bitcoin mining stuff, but altcoin mining stuff and just components and various things. And I love that uh other angle uh with it, too. >> That is something I've never even thought about, but it makes a lot of sense. We go, we steer more towards the real estate sector, and because of that, there's different things. We have short-term rentals, medium-term rentals, and then we also can, and we don't do this too often, where we flip actual real estate. And I never thought of what you just said, which is to flip mining or flip the chips, flip the operation that you have as it becomes profitable. So Andy, here's the thing, like when you got in 2016, 2017, I'm sure it was like, well, this is a fun thing, you know, not going to cost too much electricity, maybe I get a couple of Bitcoin here and there, whatever. But then as you got into 2021 and you saw the fees really really go up, was this an idea that like was it common place for people to to to flip this this these machines or was it like this is a new type of era and what's going to happen moving down like five years down the road? >> Uh yeah, I mean there's definitely every there's clearly every single cycle people who see those um those opportunities and try to chase after them. Um, when I first jumped into this whole world, the idea of like buying hardware so you could flip it and stuff, that wasn't really uh like a big idea. Uh, the last two cycles that became a much much bigger idea. Uh, last cycle especially, it was many factors larger than I had seen it in previous years. Whereas um this this last bull run uh 20 um 2024 2025 just before that I was watching people specifically buying hardware just to put it on their shelves just to wait until the bull run rolled around not even operating it or using it and stuff. Uh so yeah that's that's catching on. I think it's still um it's still there's some science to it but I think there's a lot of art to it as well which is a tricky part. Um, I've certainly been wrong about some of my purchases when it comes to, you know, specific hardware and whether it was going to um, flip. Um, but I I think as long as Bitcoin keeps climbing in price and as long as Bitcoin continues being the monolith it is in the space, um, especially around Bitcoin mining hardware, there's no reason why there wouldn't continue to be opportunity there in the next five plus years. >> That's a lot of information to take in. I got to tell you, this was in a very short amount of time. In roughly 14 minutes, we've covered a big wide swath of info. So, Andy, thank you. You know what? I I think that what we're gonna do is I don't do this too often, but I think I'm just going to go right to the uh to the questions as people are asking a bunch of them. This ought to be a good one. And of course, Andy, when you get those those those links, definitely send them over. >> Just send them to you on X and DMs. >> Perfect. Let's see. Uh let's start with Rusty. And I think we answered this. Can you pull mine with the footer? >> Yeah, you can pull mine with any of these. Um, it just comes down to whether it's worth it for you. Um, the foot heater one and several like it. If you're going to be running this at work where you're not paying for power, yes, absolutely stack some sats every single day for free. Uh, you can definitely do that. Um, or a lot of people who either have cheaper electricity at home will pool mine with them or these are all so low power. A lot of people with solar setups run these at home and pool mine with them and stuff. When you have solar, you've got again uh 15 watts. Like you will not notice that on your solar uh panel load and you can just stack a few sats every single day um for free with the power of the sun. There's lots of really creative ways you can you can do this stuff, >> you know. And then there's a great there's a great question from CR and uh he says, "So how does your g what how does your so who does your guest suggest you point your minor at Rob?" Just out of curiosity. And before you get into that, I will say that this would be a great one for me. I have 37 panels and it's actually being diverted to Luma, which is our our power company here. And I think I could use some of that for mining, but it's I never thought of it. So, but going back to the question, I'd get all over the place, but uh who do you point your miners at? And is it a multiple uh mining operation for pools? >> Uh so, the main pool I use for a lot of my stuff is Powerpool. >> Okay. Um, the reason I like Powerpool is I I mine Bitcoin, but I also mine u I do have script miners, which mine uh Litecoin and Dogecoin and like 15 other cryptos. That's a whole other merge mining is a whole other topic. >> And I also mine Zcash. That's my other big one. >> Um and and Z man, Zcash been those machines are incredibly profitable right now. They've been a huge win for me. >> But um I have I don't really care about Zcash. I just like the profitability. >> Exactly. >> Um and I have a stack of Dogecoin that I'm happy with. I don't need anymore. So both of those sets of machines all on Powerpool is one of the cool features of it. >> Uh they mine them those things that are profitable and they automatically convert every day to the currency of my choice. So I get paid out in Bitcoin and USDC and I stack those things. I can use the USDC to buy other altcoins that I see opportunity in. Um but Powerpool's the main one. uh with all like the solo ones, you can do like CK pool or you can run your own Bitcoin uh node at home and solo mine on your own. And then one more thing I want to mention here about like this whole lottery aspect is I'm talking about these things as Bitcoin miners, but a lot of people also um operate these and solo mine them on Bitcoin Cash. Uh, and Bitcoin Cash is like >> you're 30 or 40 times more likely to hit a block on Bitcoin Cash than Bitcoin. The payout is like $7 or $800 versus $250,000, but uh the chances are significantly higher. And I know lots of people who hit blocks on devices like this on Bitcoin Cash. you spend 60 bucks or 200 bucks on a machine and you get it even just one time pay out of $800, you're like, I'm in I'm I'm in the green. This is gold. >> That is a good one. I like that. I like that. That sounds pretty good. And then the last two before we get out of here is uh Mike says as I put this up, uh I missed the first part. Whoops. I missed the first part. What is the time frame for ROI? Now, this is a difficult question obviously and it depends on the minor and it depends on how you're going to hit and depends on your luck and so on and so forth. But I guess Andy the question is which one have you have the most profitability with besides well I guess Zcash would be the one but going to the Bitcoin miners how uh which one would be the most profitable for you? >> So all the small ones uh you definitely thinking about them in terms of ROI is the wrong way to think about them. Uh they're predominantly lottery miners, hobby miners, learning how to get into Bitcoin mining types of setups. Um the ROI is never or you know one day if you have free power or you know something like that. Uh big machines so like having a Bitcoin like hydro miner um a one to twoyear uh payback period is is pretty good. Uh of course as soon as a bull run rolls around and the price uh appreciates a lot that could be six months. Uh, Zcash machines right now are like nine months until you break even. >> Nine months. Interesting. Hey, but you know, like as you said, as time goes on and we start to see more of a big runup into the next bull run, they could be extremely profitable and it's about making the sacrifices now rather than later, I suppose. And then this is the last one here. Hey Andy, will these This is a good one. Will these AI machines become miners as they age out as technology improves? And can they do both? I thought it was just either you have the chips to do mining or the chips to do AI. How does that work? >> Yeah, Bitcoin, all these Bitcoin miners I've shown you, they have um what's called an ASIC uh chip in them, which is an application specific integrated circuit. Uh meaning it does one thing and one thing only, and that is mine the Shaw 256 algorithm, which is what you which is what Bitcoin uses uh to um create all the blocks and continue the chain. Uh so that's all they can do. You can't repurpose them for AI. And conversely, if you're going to be running a data center full of high powered uh Nvidia GPUs uh for AI compute, those technically can mine Bitcoin, but they'd be so inefficient at it inefficient at it that it would not be worth your time or or money. A one of these specific chips is so much more efficient at doing it. So, totally separate jobs, but so many publicly traded Bitcoin mining companies are now dipping their toes in the world of AI. And there are some AI data center companies that are expanding with some uh Bitcoin mining operations. So there's definitely lots of dual use facilities, but you can't use the one for the other. Of course, that's usually how it goes. Gotcha. Okay. So, good stuff. [music] So, and I uh just put this in. So, Andy, first of all, thanks for sending me those links. I appreciate it. The links right now are in the description, everybody. You can take a look at those different miners and pick some up. If you're if you got cold feet, there's one for [music] you. And if you want to make some money, there's other ones for that. But this will all be under your friend Andy Nerd. It's funny. Nerd Miner 2, super easy Bitcoin mining with Luke, Bitax, Bitax Touch, Cananan, Avalon, and uh where I host and buy my big machines, Musk [music] miners. So very nice.