Economic viability of farming

#1

Hi Everyone, I’m looking for some advice or perhaps sharing of your experience regarding how you are finding the economics of farming. I’m very new to this (only 1 node up for 1 month) so I’m in need of a bit of guidance.

The specs of my server are as follows:
CPU: 32 cores / 64 threads (ThreadRipper)
RAM: 126 GB
SSD: 1 TB (not yet registering but I’ve already been given instructions how to fix this)
HDD: 48 TB
Total cost of this server: $10,000 NZD

The TFTA payment I received for the first month: 294~ TFTA (about $20 NZD)
That might cover the power bill with the machine at idle.

Depreciation on the hardware for the first year alone will be $4000.

Thanks in advance to anyone who can provide some insight on how this works for your own situation.

Alan Purchase, Auckland, NZ.

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#3

Hi Alan,

You only received that small amount of TFTA for the July period as you only had your node live for a few days. In the minting email you got you see the exact amount of seconds you have been online for July. For the August period minting which will be processed soon you will receive TFTA for a full month.

Here you can find all the details on the farming logic: https://wiki.threefold.io/#/farming_logic

Hope this helps.

Andreas

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#4

Thanks Andreas, the minting email must have gone to junk and it looks like my junk mail got emptied after that. I’ll check for this month’s one carefully and add to safe senders list.

#5

That link doesn’t work, Andreas. I think this is it: https://wiki.threefold.io/#/minting_logic

@Alan, you might also be curious to read my post on the minting process, which attempts to explain the math that’s used in the underlying minting code.

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#6

Could anyone say how long till break even on their investment in to a farming rig?

I’m not looking to get rich just eager to not lose money.

#7

Dear hwgttm,

good to hear from you. The break-even point depends on a number of variables which require your assumptions. The major variables are:

  • token appreciation. How much do you believe/think the token will appreciate in a certain period. The token appreciation is a function of capacity usage (demand) and to degree speculation. To date the token price has not done much, we have not reached out to find masses of people to consume the TF Grid capacity (this will change in the first half of 2021) and we have not done the appropriate marketing on and with exchanges to make the token know amongst token investors.
  • the grid utilisation (and more specifically you capacity utilisation).
  • base pricing in your territory for electricity and bandwidth.

We believe that investing in hardware and helping the grid to grow is doing good for the planet and with the ever (exponentially) increasing needs for digital service the TF Grid will play is a role in the future capacity generation for a decentralised future.

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#8

Best is to evaluate for your case using the simulator which is available on https://wiki.threefold.io/#/simulator_configure, referred to also in https://wiki.threefold.io/#/tf_grid_valuation?id=the-threefold-token-tft .

All depends also how you manage your infrastructure: in a DIY mode or hosted for you, or as a certified farmer or not.

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#9

please note TFGrid 3.0 launched
see newer posts how to get started