This is a follow up post to https://forum.zcashcommunity.com/t/physically-locating-gpu-servers-at-massive-scale/13128/15
I've spent the last couple days building a cost model for a zcash mining operation that starts with # rigs, calculates upfront investment and monthly costs, and projects a "time to ROI". I've built a cost model that does the calculations associated with above.
Whats nice about my cost model is that it's "just add water" -- the more rigs I add, the more the upfront cost, but the more daily profit (defined as revenue minus electricity) I make. And best of all, it doesn't change my "days to ROI" because I'm not a big enough fish to affect the network hashrate!
What I'm having trouble modeling:
* how much the mining reward will go down over time as my mining equipment depreciates
* how price swings in zcash affect my ROI
* how my "macro thesis" about crypto supports an appreciation in price (and how to know if i'm wrong early)
* how $ETH going to POS is going to affect the ROI of GPU mining
* how much cost-benefit there is to overclocking (or making more power-efficient) the cards
Other things I could use help with
* anyone have contacts with a distributor that sells equipment in bulk?
* at what stage is it worth hosting in a data center vs renting my own office space, vs placing mining rigs around my house?
I'm thinking of ante-ing in with 10-12 rigs to start, then I'd like to eventually scale up to a 30 rig operation, and then up to 100 rigs after that if the operation proves to be a worthwhile endeavor.