Bitcoin, Crypto currency, Blockchain

“Mining” series part 4: The procurement of Mining Hardware

af037dc2da9f97d247a7a712d55fbbc1 - "Mining" series part 4: The procurement of Mining Hardware

In the last two articles in this series dealt with the operation of the crypto-Mining, some of the selected crypto-currencies and their encryption algorithms as well as the possible Mining Hardware itself. Finally, we would like to address the subject of procurement and its problems, since it is the First frustration.

You need to purchase a miner to advance a concept?

After You get as the readers of my first three articles are in the mood for a Miner, would clarify what You want to achieve? You want only a certain or several Coins of the mines, of money on the side to earn or even a Farm?
Now You answer: of course, everything and especially to earn money.

Now, we have already arrived at a critical point, since these requirements demands everything in buying a miner from You. If You’re a first-time buyer of the Miners, I would advise You first of all of an ASIC. Why? The investment is initially high, often several thousand euros of start-up capital required (increasingly currently sometimes ruinous), and in the case of such a specialized equipment with a limited field of application, if necessary. a bad investment because You don’t have all the facts and developments of the market can test. In addition, it attracts You because of the generally high demand quickly to offers from fraud sites on the Internet (English: Scam Sites, Fraud Sites). More on that later in this article.

A removable Mining Rig Chassis with a Windows 10 operating system will make You Start financially, and the procurement situation, it may be easier to be a Miner.

In addition, an unprecedented demand for ASIC miners and Mining Equipment has emerged since the start of the “main stream” Mining in the year 2017, the prices dropped also in the case of manufacturers, permanent change. This makes the planning in the Mining without good advice on gambling.

So in the case of the procurement You should set goals that You want to reach, before You look around on the market:

  • Objective 1: by when do You want to be?
  • Objective 2: how Much money can You make for this?
  • Objective 3: What do You want to achieve and by when (in terms of output destination, or number of Coins)?

The first objective of the factor of time, it is important, how much money You can: time is money. The miner market is currently a market of providers, i.e. the provider have a certain amount of supremacy and can, in part, prices dictate. This is a first for many customers, because one of our product offerings showered markets are buyers markets. On this the customer can influence the price significantly due to its demand in times of Oversupply.

For many first-time buyers in us, this was a shock. Your supplier determines the terms and conditions, as it can procure the goods or stock goods. The latter is always only in small quantities because miners, especially ASICs are already sold out months in advance by the manufacturer (Pre-Order). Now add to that that this market, like many other markets, is subject to uncertain influences:

  • Course-development of crypto-currencies, its Algorithms, the Miner covers
  • Technical development of the Chip production (16nm, 14nm, 10nm, and 7nm)
  • Production monopoly in China, unregulated between trade and the black market

So all in all, worthy of the cost of the Miners is a good concept of what you must fit to You as a Person, because of entry into the Mining means to take a risk! Our in Germany, not necessarily for the risk-willingness of well-known society don’t want to transmit their view of things on this market, which simply works.

Crypto-currencies are and will remain in the next 10 years, a very volatile and unpredictable markets, because it is anticipated that States and similar organizations are pressing your stamp. Alone political decisions, whatever they look like, not be such markets to flourish. This is done with free markets, unfortunately, is always and thus on Your investment.
I advise, therefore, in the case of the miners, not jeopardize Your financial game rooms:

Use only the money whose loss You could get over!

Where can I buy my Miner: manufacturer, dealer, or private?

Do you think the question is stupid: of course the Internet!

Yes, I guess so, but here the Problem is exactly. The main supplier / manufacturer (in my last article (“Mining series – part 3”) in a non-full table with Domains listed) have their own Websites from which they sell their Hardware. In most cases, anyone can be here as a buyer and place an order.

Buy from manufacturers?

Definitely Yes, however, You need expertise, but not everyone brings.

However, there are a few pitfalls that You need to know previously:

  • It is generally paid when ordering in advance without collateral, often in certain crypto-currencies, several months in advance, the payment has to be made within a half an hour or to. This can be complicated if You asked in advance already in the downstream of the crypto-currency exchanged had and now because of crypto currency rate You a small amount of Coins missing. Prices of the devices are often quoted in US dollars, it cost for a power supply (PSU = Power Supply Unit) and freight costs (Shipping Costs) are also incurred later in the order. In the case of importation of the imported Miners a handling fee by the shipping company (UPS, DHL, or other) and, most recently, the referred to often in the network, falsely, as a “customs” import sales tax then falls. This is as high as the respective sales tax / VAT in the country of Your Miner, enter / import, so for the 19% would be in the purchase invoice (Commercial Invoice) in US dollars at the corresponding daily value declared in the invoice total. In fact, there are on the electronic article of this type with the country of origin of China for the EU, no import restrictions and no customs. You should therefore prepare well and correctly calculate.
  • The time of Distribution of the manufacturer (is it”tweets”) are irregular, and the stack of sales (Batch) quickly in a few minutes sold. In addition, intermediaries often with very large orders for artificial Shortages and thus to the early closeout of the Batch.
  • Since the manufacturer almost all in China, more precisely in the SEZ (Special Economic Zone) of Shenzhen have their headquarters and / or produce, there are a committed provider of oligopoly. It is competition, however, this effect is due to the high demand, quantities poorly on prices.

If You’re not now, become the respective manufacturer, in which You can usually confidence on delivery and at the best price buy can find, You’ll find Yourself in a minefield of dealers, private sellers, and cheaters have to go. Here’s Your first big loss can start already.

Here is an example of a Fake-manufacturer:

Buy from dealers?

Distributors are typically middlemen, since there is due to the direct marketing via Websites, actually no controlled and controlled between-the-trade and more. Here the Problem is exactly, because anyone can be trader. It is of You to decide, whether a dealer in Asia or in Europe or even only Germany is out of the question.

If You’re going to buy, is in Your discretion. But check a few facts before You order:

  • It is to the Webshop or offer a really existing company with the commercial register number, tax number, telephone number, point of contact, support (Support)?
  • Check whether the offer to the respective market situation is realistic (the price may be too low)?
  • Check Infos (Blogs, etc.) from the network, which are often also encounter with caution, since fraudsters influence these Blogs for years under anonymous accounts. In the network there are also a lot of chatter (Gossip), what you can’t see, so always as a reality or a unique truth.
  • Basically, I think payment processing forms alone is not for explaining whether a dealer is reputable or not:

Paypal is popular, but only due to the safe and cost the dealer, and thus You
a lot of money, because the number of orders for which Paypal is not fast values in the height,
was meant to be.
Credit card promotions are okay, but in Order for You is often simply not feasible.
Bank transfer to a European account, in the context of Payment are highly controversial and are You the one or the other possibility of a security offer, because in the case of reputable firms here is a right to restitution exists, what also to enforce. In addition, it will not succeed in the real scammers are so easy to open Fake Bank accounts under the name of a registered company and the banks today also have a sharp eye on this type of transaction (Due Diligence). In addition, the most favorable resolution, it is a possibility for both sides, and actually, in the case of transactions of this size quite normal.
Cash payment on pickup is a supposedly secure Form of when buying a miner, but from the real practitioners is not seriously considered, and this is due to the Following:

a) companies have today, orders often have no interest in Barabwicklungen in such a size, because they have to take advanced security measures in relation to theft / robbery, etc.

b) In the case of corresponding sums of money without proof of origin and/or unknown customers of a company is always a potential aid to money-laundering suspect, if these monies are accepted.

c) It is a lot of counterfeit money in the EU and is therefore for the naive paying customer as well as for the recipient of the payment, risks associated with the transfer of counterfeit money (the Crime) in large quantities. Also ATMs are spreading counterfeit money, of course, unintentionally, but it happens every day.

d) but This is probably the decisive Argument, that today, carry Around several thousand euros from A to B is with the Knowledge of an unknown creditor’s hardly a anzuratende action. Your safety of body and life You put in the game!

Payment in crypto currencies and I think that is the easiest way for Your money to get rid of, unless You’re at the dealer, did the Hand on the goods and send the payment. However, a reputable trade horseback riding company this way is only due to the dam, as there can be in Europe, here, too, money-laundering problems and, above all, the fluctuations in the price of some crypto-currencies currently, the trade is extremely difficult to calculate.

Buy from Private?

This topic is not a hot iron, as You know often, whether “private” is really private. Actually, I understand that someone hires a used Miner for a reputable selling price on the net and to a different private user wants to sell. In this case, the business is according to the rules of such a business (used goods), with appropriate caution, to be very useful. Payment arrangements can be easier, because at the time of Delivery to be regulated, and you should also here is my tip on the subject of cash not forget.

In my experience, there are due to the in the upper part of the article described market factors (provider market) is also a very active “black market” in the network. Most of the dangers lurk, because You get to do it with an unknown “private people”, the shy, the tax office and all the other institutions and, therefore, work in the dark, or other hidden risks. They often offer a “new item” in quantities uncharacteristic of the previously described private second-hand goods are selling the business. Often only contracts (orders) to ASICs in the future, or even discount Coupons.

Trade in all honor, but DE is a trading commercially for profit, so after three sales transactions of the same kind, as the industry and the relevant trade licensing office and tax office by the operator. The many reasons for this, by the way, in addition to the taxation of intent by the state. Why these providers don’t comply can be due to many reasons (no sales tax paid, no warranty, no return obligations, circumvention of consumer rights, etc.). However, these offers are not to be regarded in my opinion as a serious and therefore cannot lead You to problems that You wanted to actually. You could now say that in the future miners, which are anyway in a current grey area that might be of interest to hardly what the state is pursuing legitimate interests. However, since this way, most of the fraud transactions take place are You running here, particularly the risk of losing money or other damage. The course then after completion of the fraud but not to the state, for example, the police, and wish You the support and compensation of Your experienced injustice.

So: the brain is switched on in order to build confidence prior to a business transaction, and the alleged time pressure when purchasing. This is the most natural anti-fraud protection and has been reinforced in many thousands of years of trade.

How do You recognize Scam-Sites / Fraud Sites and Fake offers?

Finally, I would like to summarize, briefly, what You should not do in any case, if You won’t get You a Miner in the network:

  • Offers from dealers who want to be in Bitcoin and Co are paid, and that in the case of payment in advance. Caution is warranted, especially because outside of the European foreign action options are very restricted, and usually more expensive than the expected success. There is no serious company will issue invoices in Bitcoin and Co, since it prohibits the accounting currently in the world (yet). It should be ejected, therefore, always have a clear and well-known currency of the account, a tax number and correct company name with legal form.
  • Fake shops with a fictitious firm name without imprint, are without accessible telephone numbers without addresses are also suspicious. Even if the imprint obligations outside of the EU turning out to be much smaller than in this country, is a supplier without a clear company name on a Website – in my opinion – not a reputable provider (a list of known fake shops is the editorial).
  • Private providers often sell Miner and, therefore, as a black market dealer act, there are plenty of on the net. However, there is in addition to the delivery of private dealers, many scammers (scammers). If You embark on this market, You should know what You’re getting into.

As we leave You in the end, perhaps, with many specific questions from this article, You can use our blog function to a if necessary. to get interesting advice. To me personally a long time – not exhaustive – list of Scamsites, You can query with us. From editorial we have published reasons.

In the last part of our Mining series, the Mining scene in Shenzhen, China, and in January of 2018, there was held a business trip.

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