Welcome to the first monthly mining summary for December 2021. Here I would summarize how much I mined in the specific month. Also how much would this amount would be worth if I sold the Bitcoins right away vs how much the BTC is worth at the time of writing the post.
A lot has happened in December 2021, since it was the first full month that I got involved with mining. So let’s start with the most important values:
Bitcoin Miners purchases so far
Wattum:
- 10 x Avalon 1246 – Live December 15
Zionodes:
- 1 x S19 95 TH – November 23
- 7 x S19 95 TH – November 24
- 4 x S19 95 TH – December 04
- 2 x S19 95 TH – December 29
Bitcoins mined in December 2021
BTC mined in December 2021: 0.2555 BTC
BTC value when mined: $12,470
BTC value now (January 4th 2022): $12,555
December 2021 was not a great month for Bitcoin price. There were several pumps and dumps. On December 1st, the price was $57,180. On December 31st it was $46,195. For me it does not make much difference at the moment.
I actually prefer the price to be lower for 2 main reason:
- The value of BTC when I mine it is what I have to report as revenues to IRS. So the lower the price now, the lower the revenues reported. Then once I sell the BTC mined for $, I have to pay capital gains. But if I sell after 12 months of holding, I only have to pay long-term capital gains taxes, which are lower than regular net income taxes. So I prefer to mine when the price is lower, wait for over a year and sell when it’s (hopefully higher)
- The lower price discourage more people from mining and so the difficulty does not increase as fast as if the price was constantly rising. Generally people don’t like uncertainty. If BTC pricing was consistently rising let’s say 5% every month, more people and companies would be mining, which would increase the difficulty significantly.
December 2021 blog posts and other news
- My Wattum order Avalon miners have finally been connected. Right on time on December 15th as expected. You can read my Wattum Review here and the Wattum Purchase experience here
- I am slowly falling in love with Zionodes. So far their customer support has been excellent and their prices are just the best out there right now. My Zionodes review is here. Zionodes purchase experience here.
- I did a small comparison between Slush Pool and ViaBTC here. Next one I will be reviewing is going to be ViaBTC vs F2Pool. That one should be published sometime next week.
- A small analysis on a hashrate deployed by big players in 2022 is here. Looks like a lot of power coming online. I am little doubtful that Bitmain will be able to deliver on all of those orders. If things will go as they are now, there will be a lot of delivery delays, chip shortages and other issues. But we will see. The later they deploy these, the better for us small miners.
- Compass mining opened their marketplace for used miners and the prices are just crazy. That happened a month ago, and still today the prices have not improved much. I am just happy I did not have to rely on Compass Marketplace to spend my 2021 budget on miners, because I would overpay significantly.
- Despite the drop in BTC price, the difficulty is not really dropping. I guess the good news is that it is not increasing significantly either at this moment. I will have another article on this by this Friday.
That seems to be all for December. I am very excited about this project and can’t wait to see how next few months will develop.
What are your thoughts after a month of mining? Anything you would have done differently if you are to start over again?