Mining Log | 4month experiment

Back in June, I decided I wanted to venture into a territory that I’ve never fully known enough about: CryptoMining. A colleague of mine at work is a bit more than an “amateur” miner, having spent well into a few thousands on numerous rigs as well as developing software to communicate with your rigs. After weeks of speculation and discussion, I decided to make the jump myself and see where it takes me, scrapped my Hackintosh for use as a rig, and purchased an AMD rx 480 before the prices went crazy (i still spent about 80$ more than MSRP for an outdated card). The idea was, equipped with the card and a Kill-a-Watt monitor, I’d go ahead and try to calculate what my potential was as I dipped my hands in a few coins. My colleague’s recommendation was zCash and Etherium. Instead, since I also wanted to take advantage of the two cpus I had (my gaming PC and my hackintosh/miner) I decided against that and went with Monero.

A more secure coin

I chose Monero because it just seemed like a fascinating coin to me. It was relatively low for reasons I still didn’t understand, was supposedly immune to things ASIC chips (thus far this is true), and was at a decent price with a low difficulty. Specifically, it was around 40$ a pop and I was going to be able to mine a coin every week. Not great, but again, I was only in this as an experiment and only spent about $350 for my card. As things “appeared” stable around this low price, I began reading to look at monero’s true potential. Everything I read made the appearance that this coin was going to a more secure coin compared to the likes of Bitcoin. Also, with my previous experience with stocks, I felt like getting into a coin that I believed had forward potential, I needed to jump in more deeply. If only I would have spent money directly on buying the coin rather than looking to mine, I’d be in a totally different position today. Unfortunately, hindsight is 20/20, I’m pretty much blind the rest of the time.

Rig built – experiment continues | Diversify your holdings

When I started to really think about capitalizing on my new-found coin, the coin started to get a bit erratic. I had built my rig with a budget of about $1,500 to max it out with 2PSUs, 2 rx480’s, 1rx580, and 2 GTX 1060s. I would have added my old two GTX 970s but even with my PCI-e expansion cards, I couldn’t get my system stable with 6+ cards. My monthly power consumption was around 70$ and I was looking at about a coin every 3-4 days which I thought was great. However, I decided I needed to diversify my holdings, so once my wallet had around 10 XMR (monero), I thought to change it up. Turns out, https://whattomine.com is a resource that is out there and had exactly the information I needed. My colleague wasn’t wrong either about zCash, it was doing great for my setup. A few plug and plays of my cards, and I saw my potential was about 8-9$ a day. My cpu’s however were not going to make me much of anything with zCash, so I had a choice to make: stick with XMR or check out others, at which point I found AEON.

A testbed for monero

AEON is the coin that sort of seemed like a diamond in the rough to me. To others, I describe it as the Fedora to XMR’s RedHat, it’s considered by many to be a testbed for monero so developers can test out new ideas before pushing it out. The potential I saw in it was the fact that while XMR used Cryptonote, AEON used Cryptonote-Lite which is specifically designed for CPUs and mobile devices even. So as long as Monero stays alive, in my opinion, AEON will stick around as well. Compared to XMR, this guy was also a true penny stock, with each coin costing being valued at about $0.30, but the true secret sauce to my reasoning was it’s mine-ability with AMD’s Ryzen.

For a while, I had used my gaming machine’s GTX 1080ti and AMD Ryzen 1800x for idle mining. The GTX was atleast 3x better than any of my cards in my mining rig for zCash, and the Ryzen held amerable performance when mining XMR in my downtime. Then, one day while I was compiling my aeon-stak-cpu to test its performance, I saw that Ryzen for whatever reason absolutely destroyed AEON. Where I was getting only 5-600h/s with XMR, Ryzen was churning out 1.7kh/s, I was instantly hooked. I ended up dropping all support I had for mining XMR, and switched the few CPUs I had (more on that later) to start mining aeon. Before I knew it, I was earning around 5-6AEON a day, with the Ryzen itself making me close to 2$ a day by itself. Within the 3-4months of running, I had expanded myself to close to 400AEON coins, 10XMR, and 3ZEC, now I’m starting to see the true benefits of that.

Where’s the potential?

So you may start wondering, as many of my mining friends that I picked up along the way did, ‘where’s the potential?’. XMR was not a widely known coin to mine with my friends, largely due to the fact that it’s GPU solutions were not churning out the profits of ETH or ZEC, and AEON was NOWHERE on their radar due to the fact that who cares about a simple 40c coin? However, if you’ve ever held stock, you know to buy low and sell high, and when you have the opportunity to buy a lot of stock and believe in its potential, then you really should jump in.

XMR is great because of its ability to be truly anonymous. Every transaction hides the receiving wallet address, using pseudo/fake addresses for the ledger. So there’s a very unlikely chance that you’ll ever be track with Monero just because someone finds your wallet because that number isn’t listed anywhere else. This is vastly different from say Bitcoin where everyone knows how much coin is in your wallet and can track it entering and leaving until it finds a Point of Sale and a Point of Withdrawal. For me, this doesn’t phase me one bit, I could care less about how anonymous a coin is because in the end, I’m going to cash out at some point (and I’m not an idiot who buys illegal shit stuff off of the internet…or anywhere else i guess too). However, there’s obviously a market for anonymity, and working in the IT field and worrying about security while also watching all of the BTC ransomware, I know this market is all too real.

“So, there’s a market for anonymity and XMR provides it, but you only have 10XMR?” I get it, it doesn’t quite make sense at first, but I’m getting to it in a second. XMR is relatively stable, until about a month ago when it grew from 50$ to around 150$ and has since fallen back to a new stable of ~100$. XMR’s fluctuation, however, does not affect AEON itself, as they are still two different coins. So from one aspect, it’s definitely a strange reason to stick with AEON if it doesn’t ride the same waves as XMR. AEON though, like I said, is the test bed of XMR. So as long as XMR doesn’t dissolve, then, in my opinion, AEON won’t either. That means that while I’m mining alot of very cheap penny-stock coins, they should stay stable until AEON either grows into its own coin, or until the demand for them grow, which is the next fact-based opinion.

Supply & Demand is life

All coins have a finite amount that can be mined, and their rewards are basically a gradual descent. So while AEON is a cheap coin, and its a test bed of a popular coin, there’s still only a finite supply of those coins to go around. This leads to an opinion I have that, like other coins, at some point, there will be some sort of demand for the coin, regardless of if it’s artificial or it truly becomes its own coin that people want. This demand will drive the price up and turn my little collection of (around Aug/Sept) 275 coins into a potential to become something great. Well, my wish came true just before Sept, when the price of AEON doubled to around $1 per coin. Now I’m getting a little more than I could hope. Every coin that I mined at that ~3/day profit, had a realized gain of around 6$/day. So I knew that I had picked a nice winner, however, nothing could have prepared me for Sept 30-Oct 1st.

$3 and climbing

So, there I was, playing Rainbow Six Siege, and checking in on my mining pool to see how my rigs are running, and I noticed something strange: AEON was valued at about $2.7 per coin O_O. Now you have my attention. Within about an hour or so, it grew to $2.9 and I felt like something was off. Pump and Dump is a very serious issue that Cryptocoins have, especially something as low difficulty and easy to purchase as AEON. When you could have 1BTC turn your account into around 4000 AEON, its hard for some traders to not jump on it and force the market ticker to rise a bit. Then once it goes up, just go ahead and cash out and watch I nice sell-off happen while you already took your profits. However, this is the true idea behind buy low/sell high too. I already had about 400 coins mined, and I’ve never actually used an exchange, so I knew sooner or later I had to, so I jumped online and did some checks. HitBTC.com popped up as really the only exchange that took AEON, so I tested out with 25 coins. The whole process took roughly 10-15minutes, but before I knew it, I had made 2 transactions (12.5 coins each) and then placed 1 sell order at a Stop Limit of about .0003BTC above the market which was at about .00061 at the time. Before I knew it, Chrome had a notification stating my order was processed and fulfilled. That was it, I had .00064BTC in my account which was the first BTC I’ve ever owned. AEON was jumping between 2.90$-3.10$, so I decided, let’s get some more gains too. I now jumped in with 100 AEON coins, placed 33 at Market to lock in the $2.98 price point and set about 50 AEON to sell at about $3.05 to lock in those profits. All successful. Fortunately, I can’t count well and was pretty tired, so it wasn’t until about an hour ago that I had realized that I had 17 coins to go and the USD conversion was at about $3.6. Sounds like a time to sell to me. Sold for $3.65 just before the price fell to where it’s at right this second while writing ($3.52).

What’s next?

So I’m now down about 125 AEON, and hold around .1BTC which isn’t particularly great as BTC can only go so much higher (right?) but I’m still mining. Still churning about 9kh/s of AEON which is about 3.8 AEON/day and I fully expect this recent climb to become bearish and fall. I’ve yet to figure out what has caused my good-fortune thus far, but it’s obvious I need more coin to lock in more profits. If AEON doubles or XMR takes off, then I need to be ready. About this time last year XMR was in the same boat at around 2$, so anything is possible, so the key is to be on the right side of the timing and cash out when the timing is right. XMR in my true opinion has the potential to see ETH/ZEC prices of around 2-300$ if not more by Q1/2 of 2018, its difficulty is only going up making the supply/demand a much more crucial battle. AEON has all of its own pros/cons just like any coin, so it too could be on its own track. I think we all can agree if my 275AEON that I have now were to double or even more go up to around 10-20$ each, that’d be a pretty nice profit to take in. I can definitely see the Day-Trader of my yester-years come back in to the picture and compete against my conservative/long-term mindset that I’ve been living for a while.

My goal: Make around 15,000$ (minus $1500 in gear + 70$/month electric) total profit by Q3 of 2018 from just coin mining and smart trading. It can happen, just don’t get greedy.

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