While investing in real estate and mining cryptocurrency, the guy became a millionaire, holding $250 million in his hand
CNBC has just quoted the story of Eng Taing – an entrepreneur who owns his own joint stock company with a fortune of $250 million specializing in real estate investment. After a stint in data science and analytics at Apple, in 2013, Taing decided to enter the bitcoin market and bet passively on the digital asset. Taing currently operates 261 personal coin miners that can generate the world’s most popular digital tokens.
“I love making money and investing in a lot of things. I have many condominiums, high-end ground houses and GPU mines as well,” said Taing. “Hey, I can earn more bitcoins from miners instead of having to buy them on exchanges. I strongly believe in the future of bitcoin.”
To generate bitcoins, miners around the world run a series of high-powered computers that then validate the transaction. This process requires a lot of expensive equipment, especially consumes a lot of electricity. Taing decided to outsource most of the work with the help of Compass Mining, a service that hosts, provides and operates mining rigs for owners who don’t want to handle the logistics themselves like Taing.
So far, things are going pretty smoothly. Among the 261 bitcoin mining rigs, Taing has Canaan AvalonMiners, Bitmain Antminer S19 Pros, Whatsminer M30Ss and 200 machines hosted through Compass based in Nebraska and Canada. They generate about 2.8 bitcoins a month, or about $111,000, according to CNBC.
Income is generated when Taing buys and resells mining hardware to Compass retail customers. These people usually buy one or two at a time and don’t take the high or low price too seriously.
It is known that CNBC has interviewed many Compass customers to better understand the need for small-scale mining in the context of increasing competition between the big players in the same industry. According to Compass CEO Whit Gibbs, the key is that they have to capture market share for the retail miners, while also providing a customer network for them.
“It will be effective for small miners. This is also our ultimate goal. We expect 5% of the network to be controlled by miners, and then 10%, even 15% in the coming years,” Whit Gibbs said.
According to Gibbs, instead of investing in real estate, many people are pouring money into bitcoin mining. The reason is because the yield is much faster than the real estate rental business.
PEOPLE MINING COINS
According to CNBC, Compass’s customers range from small-scale operators known as “Plebs” to wealthy billionaires like Jack Dorsey. Compass’ close “plebs” can be mentioned as Jon McClellan. He purchased a Compass bitcoin mining rig in Oklahoma at the end of 2020 with the main purpose of raising stable financing.
“If I had a mining rig, I would literally buy bitcoin every day, every minute, every second, every hour, without caring about anything else,” said Jon McClellan.
According to McClellan, Compass is the only retail mining company where the average person can also reach. Compass Mining allows customers to purchase miners, new or used, for $4,500 to $25,800, then locate them in partner data centers and take care of maintenance.
It is known that the return on investment for individual mining depends on a few factors, including upfront costs, the number of mining machines or the cost of electricity… thereby helping a miner to link with thousands of miners around the world to increase your chances of earning bitcoins.
McClellan said he borrowed $10,000 at an 8% interest rate to buy a single miner with an ROI of about 2 years. After deducting some expenses, this man earns about 250 USD/month. In the near future, McClellan also plans to expand operations in Texas, Oklahoma or Wyoming, as all three states are favorable for the bitcoin mining industry.
According to Gibbs, Compass CEO, customers who buy 1 to 5 miners typically invest around $10,000 to $50,000.
“Our business over the past six months has largely relied on this group of customers, although we are trying to start serving more institutional clients,” Gibbs said.
Nevin Bannister is one of Compass’s potential customers. For large-scale bitcoin mining, Bannister purchased 6,000 rigs and 1,500 of them are active. Most are located in Oklahoma.
“Compass makes this process really simple. They are great turnkeys. The company helps you buy the machine, plug it in for you, and keep it running,” Nevin said.
Although not disclosing monthly revenue, but Nevin told CNBC that each rig will mine about 0.015 bitcoin / month. Thus, with 1,500 rigs, 270 bitcoins will be generated after 1 year, equivalent to 10.7 million USD.
“I am an entrepreneur who loves to learn new things,” says Bannister. “This is like accessing the Internet from day one.”
GOING TO JACK DORSEY HAS TO ‘MOVE UP’
Jack Dorsey’s Block (formerly Square) payments company is also looking to make bitcoin mining easier. Block’s general manager of hardware, Mr. Thomas Templeton, has come up with the next sketch, where the goal is to untangle complex algorithms and make the mining process efficient.
Doing this is not easy because mining rigs are hard to find, expensive, and shipping is not guaranteed. Block says it is ready to create a new ASIC, a specialized device used for bitcoin mining.
In addition, Block is also looking to improve the reliability and mining experience for users.
“One of the current problems lies in heat dissipation and dust. They happen almost every day and rebooting takes quite a while. We wanted to build something more efficient,” Templeton said on Twitter. “They are also too noisy to be used in households.”
Previously, Dorsey also shared on his personal page that, “Not everyone can mine bitcoin. And not everyone is motivated enough to tackle the complexities of running a miner.”
According to: CNBC
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