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Learn All About Bitcoin Mining With Guest Miguel from House of Rare

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Learn All About Bitcoin Mining With Special Guest Miguel From House of Rare (Crypto’s 1st NFT Tokenized Tequila Project)

SUMMARY KEYWORDS

crypto, bitcoin, mining, machine, electricity, people, miguel, solar panels, tequila, pay, listeners, sustainable, episode, network, solar, bitcoins, created, asics, coins, 

 

00:00

Welcome to the New To Crypto Podcast designed to guide you through the crypto landscape with pinpoint accuracy created for the new and intermediate crypto investor. Join your host Crypto Travels Michael as he takes you through the different facets of getting started and succeeding in your crypto journey. New To Crypto Podcast brings you new episodes daily, Monday through Friday with surprise bonus episodes sometimes on the weekend. Let me ask you, Are you new to crypto and don’t know where to start? Are you more experienced but have questions? Then you’re in the right place. This podcast is designed for you coming at you from the training center in the Lifestyle Dezign Studio. Here’s your host Crypto Travels Michael.

 

00:51

Hey, welcome to today’s podcast. I’ll tell you I’m excited about today. I have a very special guest here in the studio. And his name is Miguel from Mexico City. And Miguel is a serial crypto entrepreneur who’s involved in a variety of different crypto projects. He’s the founder and main trader of a crypto hedge fund. He’s also the founder and president of a mining company 100% Sustainable crypto mining company, which is powered by solar by the way, and we’ll get into that in today’s episode. And he also created his tokenizing tequila via NFTs. And maybe we’ll touch on that at the end of today’s episode. And he also was doing a host of other things. 

 

01:34

So I’m excited to introduce you today. Hey, Miguel, welcome to the studio today. Tell our listeners a little bit about who you are and what your connection is in crypto. 

 

01:43

Hey, Michael, pleasure being here in beautiful Mexico City. Well, as you kindly say, I am involved in a variety of crypto projects. I mean, I’ll give you a small review. The first thing we’re doing is a defy project that’s helping investment syndicates, that is people that get together to invest in different crypto projects, make better investment decisions and democratize the whole structure. Then we’re also doing an NFT tequila, which is a project that I’m very excited about. And perhaps at the end of the show, we can talk a little bit about that. I run my own garage, a crypto hedge fund, which trades in a variety of networks. 

 

02:18

And lastly, and I think that’s why I’m here. We’re building a 100% No bullshit, sustainable crypto mining company. We’ll get more into that. Why no bullshit, why? What’s sustainable? What’s mining? I’m happy to be here and tell you all about that. 

 

02:32

Excellent. Thanks for that intro, Miguel, let’s break down a little bit for him for a moment. Like what is mining? I know this might be an intro to our listeners. You know, they may have heard of Bitcoin mining. What is mining? But they may not know exactly what is mining? So could you break that down for our listeners for a little bit? 

 

02:52

Yeah, for sure. It’s certainly a question I get a lot right from from people that are not really acquainted with the term as it can be a term that can be a bit confusing right there like what Miguel? You go into, into the soil with a shovel and do some swings and get some bitcoins on there. But now in reality, Bitcoin mining is just a process where we add more Bitcoins into the Bitcoin ecosystem. So you know, how does it work? How do we mined new Bitcoin? Well, all Bitcoins are created by a computational process called mining study. See, it’s an algorithmic process that is already embedded into the network, you know, the creator of Bitcoin, which is Satoshi Nakamoto. Devise it this way, actually, I recommend our listeners to read the white paper, the Bitcoin white paper, it’s a great way to understand where bitcoin cash comes from, what was his rationale behind his or her rationale of creating this beautiful tool. And it also explains a little bit about mining and the all the things in the back that he was thinking and and the logic of why we need computational power provided to the network in order to get new, new bits. So I mean, how does it work? Well, basically, you have computer hardware, calculating complex math equations, by solving these calculations to become an integral part of the Bitcoin network. 

 

04:17

So this creates security nodes that validate all transactions that happen in the network. So the more miners we have, the more nodes we have, the more secure the network becomes. So basically, basically how it works is it’s a huge web with different knobs. Each Miner is in one of those nodes, and when providing the calculations in order to keep everything secure. Once we complete the complex math equation, the network rewards each miner with new Bitcoins. Right now the reward for solving a block which is what it’s called to solve the problem gives you six point 25 Bitcoin and each year while each period depending on how the network feels

 

05:00

The supply and demand of bitcoins and the supply and demand of computational power is halved. So at the beginning of time, we had 24, then went to 12. Now we’re at six, and probably in a couple years, it’s gonna go down to three. So this makes the process of it harder every, every year, it gets harder to mine Bitcoin. And this creates scarcity, which gives Bitcoin some value. Well, a very similar process happens in other networks that also use these proof of work VCs. So Ethereum Litecoin, and other coins you’ve heard of, also use this game. And they have a very similar process of mining those coins. 

 

05:42

Awesome. Thanks for unpacking, and, and providing the explanation of overview to our listeners, Miguel, let me ask you this, what is exactly involved in setting up mining equipment and actually doing it? 

 

05:55

Well, actually, there’s two options here. So if you want to start small, or basically what everybody does at the beginning, is build a custom matrix using state of the art graphic cards, the same ones that gamers or other programmers use. And then do you know you program this rig to be actually mining Bitcoin, or you can buy a ready made machine call that a basic, that is an algorithm specific, integrated chip, which, you know, there’s a variety of suppliers doing these, there’s bitmain, there’s many others doing it, basically, I mean, what it does is they sell you a ready to go rig that you just connect to electricity, you connect to your Ethernet network, and you start mining. The problem with ASICs is right now with the chip supply, which has been very meager in the whole world. You need to wait months in queue to get your hands on one, or pay ridiculous premiums to get them. No, I mean, here in Mexico in the US, Canada, all the all the Americas, I would say you’re paying maybe 40 50% of retail price, if you want to get your hands in a machine, waiting one month, if you want to pay retail, you’ll have to go to this place in China and wait maybe four or five months. 

 

07:15

Interesting. Miguel, you’re doing something a little bit different with your mining than than some of the others that I’ve come across, you’re actually using solar to power your mining. 

 

07:25

Yeah, we wanted to do something different with our mining. I mean, we can jump into that story a bit later but basically, I mean, we’ve been doing mining for years now. And lately, there’s been a lot of scrutiny on how non sustainable the Bitcoin mining industry is. I mean, we’ve heard news of China banning all mining operations. So they basically cannot mine Bitcoin anymore in China. Because it was you have towns with no electricity, but you had the mining, the big mining guys running the machines there. And then while also Elon Musk recently tweeted, actually, it was funny because it was right. One month after he bought $1.5 billion worth of bitcoin. And he started taking Bitcoin for his first payment for the Tesla’s but I mean, so one month after that, he came out and tweeted the following he said cryptocurrency is a good idea. But this cannot come to a great cost to the environment. He stopped right there, he stopped accepting bitcoin for Tesla. And we actually saw a little tumbling in the price of Bitcoin. 

 

08:30

So, you know, I was talking with my, with my associates and the main one is my brother. And we were like, Okay, let’s take this to another level. Why don’t we, you know, create a 100% sustainable mining company. We started doing some research, and we noticed a lot of companies are doing it already. But it’s, it’s bullshit. Why because instead of actually doing renewable energy, they use things like carbon bonds or take shortcuts. So we don’t want to do that. We’re doing it completely solar at the moment. So 100% solar, no bullshit. No, we don’t go to the jungle and plant a couple trees and call ourselves carbon neutral, you know. So yeah, we took the opportunity to create our mining company. And we’re this, you know, beautiful virgin, solar Bitcoin that we’re producing. So your electricity is actually powered by solar solar panels. Yep. For example. Yeah. So we have a, I mean, that we’re still at the pilot stage, I will call it. So we have a warehouse here in Mexico City. We installed some solar panels, and we connected them to our machines. Well, obviously, this sounds easier than said than done. These machines consume high levels of electricity. So the investment on solar panels is considerable. But we didn’t want to compromise on anything. And that’s the way we did it. And we’re also, I mean, thinking about solar. This is the first stage but we’re also looking at all their alternative renewable solutions like wind or hydro, and also partnering up with some people that have this plant and perhaps would like to get into a little bit of mining. So we’re helping them with a man, that sounds exciting. Let me ask you what kind of monthly mining reward per machine? Should someone expect if, if they were going to mind themselves. 

 

10:20

So normally the Asics we have right now will produce each machine, you’ll get the $1,200 worth of bitcoin a month at the current price, which by the way, today, we hit the world record of 64,000. And that’s very exciting. And then obviously, you know, so you produce 1200, then you need to subtract your electric costs, which will come around, I mean, I’m talking Mexico City, which is the average is the same as Texas, or some, like cheaper states in the US, of 300 to $400, you also need to put in some maintenance and operation costs. These are sensible machines, you need to keep them out of the dust, you need to make sure they’re not running hot, ventilate them properly. All in all, I think normally, it will take you around 18 to 24 months to make back your money at the current rates. 

 

11:08

Again, as we all know, Bitcoin is highly volatile. So you’re paying for machines in dollars, you’re getting rewarded in Bitcoin. So using it to be careful and, you know, making a wise investment if you’re getting to this. 

 

11:21

Absolutely. So approximately a year and a half to two years, you’re looking to break even on your initial investment, and everything after that is pure profit. Yeah, for the years to come. Yeah, I mean, you’re always depending on the changes in the cost of electricity, which is a problem we don’t have. Thankfully, that’s one of the beauties of being 100% renewable, if you go the cheaper alternative, which is building a rig, with graphic cards, that would normally last you, if you if you’re running them 24 hours, will last you between two and three years. 

 

11:54

And then ASICs, which are made for this. They’re made to run 24 hours without stopping, you will get maybe five to seven years with work. And also, I mean, we need to consider going back into the half in events for Bitcoin, that once I told you that each block you solve, you get six point 25 Bitcoin. So in two or three years, instead of six point 25, you get 3.125. So you know, that reduces your inputs. 

 

12:22

But obviously, I mean, technology evolves, the idea is that each year you renew your machines, or start getting new ones, start retiring the old ones, and just keep a fresh set of machines with the latest technology. Also, I mean, obviously for us, it’s not, it’s not only important to have a good cost to production ratio, we also need a lower energy, like we’re always looking for the machines that have the lowest consumption of electricity. Absolutely, I can definitely appreciate that. So how did you get started on this whole project? And, you know, in order to bring it to where you are now, what’s the backstory on that? You have partners? You know, what, how is everything going? Yeah. So well, we’ve been binding, I will say, well, one of my biggest partners, he’s my brother. 

 

13:10

Actually, he’s here in the studio listening to us. Absolutely. In some, some looks. Yeah, so he started mining maybe four years ago, you know, he was finding a variety of different coins, he had a gaming computer, you know, whenever he wasn’t playing Call of Duty or other games, he was using the graphic cards to mine Monero and ripple and other smaller coins. So he’s always been interested in that. I just came back from living in London for five years. And, you know, we started talking about, hey, let’s take this to the other level. So we started exploring, we built our our our own first rig, oh, we 60 Rafi cards, it’s actually still running, we have it connected in the in the warehouse. Nice. And you know, after that, we started digging into the bigger scene, you know, going into ASICs talking to the suppliers in China, talking to people here in Mexico that are already, you know, doing this on a larger scale, then that’s when we read out Elon saying, hey, you know, crypto is great, but at what cost? 

 

14:11

So that was you know, we had a breakthrough moment. We were like, Okay, this is definitely a differentiator for us. Cuz, I mean, there’s a lot of people mining, you know, and it’s one of those businesses where the sun shines for everyone. It’s not like you open your own mining company. And it doesn’t matter if everybody else is doing it, because you still get the same profit. But at the end, we want it to be different. I think that’s a great way to expand how the story sells for itself. You know, type of people are talking about it. That’s how the story went. Absolutely. No, that’s awesome. So let me ask you, where exactly are you guys headed now? Okay, yeah, so we just finished setting up the pilot mine, it’s going well, we never really talked about the cost of these machines, but normally, you’re expected to pay around 12 13,000 for each AC

 

15:00

So that’s 12 or $13,000 per basic mining rig. Yeah. So you know that that’s a high price point for most people. So now what we’re thinking and we’re already developing it, it’s a very interesting project. I mean, it’s been done in the States, but we want to do it a bit better. And we want to do it obviously 100% sustainable, which is that, like a shirt and ownership of the machines, you know, so we will buy one machine, and then find, I don’t know, people that want to invest $1,000 $2,000. And we will just, you know, split the machine between the people that are doing that, and we will charge them for electricity at the same price, they will prey on the regular grid, but guaranteeing them 100%, sustainable electricity, and just a small fee of maintenance and everything. So they could get in, they could actually get in on the benefit of mining without actually having to buy or pay for the entire machine. 

 

15:53

Yeah, they could just get in with a much smaller investment, lower entry point. Yeah, and without all the problems that entail, you know, learning the system, I mean, there’s plenty of seats like systems and apps out there, where we can be completely transparent with this. So the people that come into this scheme, they will have, you know, an app where they can see how much the machine is producing, how much electricity has been consumed, is it on, is it off, how hot it is even, you know, you can check temperature. So it’s very thanks to technology, and it can be a very transparent process for people, you know, by the machine, maybe, you know, they want to start investing more and more, one day, they’ll own a full machine. 

 

16:33

And if they want to take it home, they can take it home, because at the end of the day, it’s their, their machine, we just run it for them in our warehouse. Wow, that’s exciting. That’s definitely a different angle, a different direction. And, you know, additional services that can be offered, you know, to virtually anyone. Yeah, because we want to have three sources of revenue. The first one being our own mining. The second one is the share ownership concept. And the third one is we want to help mines that are already running, go green, okay, with the help of our partners, the solar panel, or the people who are going to be talking within hydro or other renewables, we want to approach and say, Hey, let’s go green together. And you know, we can help you. We already did it, it works. I mean, there’s a lot of skepticism around these machines, we know they consume a lot of electricity. 

 

17:21

So when you tell them, Okay, for each machine, you need around 12 square meters of solar panels installed on your roof. People get scared, you know, it sounds like a lot. But at the end of the day, you know, the solar panels will get paid for in seven to 10 years paying the same rate. If you pay the same rate, you were into the grid, you know, it takes you seven years, okay, it sounds like a long time. But if you pay the grid, you are left with nothing. After seven years, if you connect a solar panel, you have the solar panels, after seven years, you know, and you’ll have feeling electricity, then. That’s a really good point. That’s and it also helps the industry as a whole. 

 

17:58

Yeah, it does. On our website, we’re gonna have an episode blog post with all of Miguel’s info. So if you want to reach out to him if you want to see what he’s doing, and, Miguel, do you have anything else you’d like to add here on the show? Well, just to thank you, Michael, it’s been a pleasure. I was very excited to be here. It’s great to have, you know, so many listeners all around the world. Hopefully this inspires them to start getting into crypto, it’s a great thing, the blockchain technology that was created but Bitcoin and Mr. or Mrs. Satoshi is a technology that’s, that’s here to stay. It’s gonna, you know, take out the middleman, which is it’s just a disease of our society, you know, middle man, always taking the most and then the pod producer and the consumer gets less. So that’s the magic of decentralization and blockchain that we can get rid of the middlemen, the computers do all the trusting and all the smart contract things. And then I guess, you know, down the line, we’ll have a better world. No intermediary, we all love decentralization. Yeah.

 

19:04

 And most of what you’re doing, they will have to bring you back on the show when you can tell our listeners about what you’re doing with tequila and NFT’s and tokenizing. And all of that good stuff. I will talk to, I mean, real quick. NFT’s as you’ve heard in other episodes here with Mike are non fungible tokens, that means that you have a single token that has its own value itself, like it’s a limited edition, sort of token we can say.

 

19:29

We’re going to attach that to a real bottle of tequila. So it’s a really cool project. We only have 777 bottles, so they are super limited. And that’s the point of NF T’s right? Wow. So someone buys an NF T and that’s the only way for them to get the bottle of tequila with it. That is correct. So it’s like a super exclusive tequila label if you will. 777 NF Ts and bottles. You heard it first here live on the show from Miguel here in Mexico City. Awesome. Thank you, Michael. So we think

 

20:00

Thank you for coming on and we’ll have you back on the show soon. Until next time, make it a great day. Thanks for tuning in to New To Crypto Podcast. If you liked the episode, be sure to follow and subscribe. You can listen to every episode on all major platforms that have an interest in being on the show are one advertising reach out at newtocrypto.io. Head over to our site newtocrypto.io to access the resources mentioned in each episode. Until next time, remember to navigate the crypto landscape with pinpoint accuracy.

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Learn All About Bitcoin Mining With Guest Miguel from House of Rare
By: cryptotravelsmichael
0

Table of Contents

Welcome back to another podcast episode! 

Today, we shall be going over the best way to mine bitcoin, coming from a pro being interviewed today – Miguel, who is involved in a plethora of different crypto projects. 

A Background On Miguel

Miguel from Mexico City is a serial crypto entrepreneur involved in a variety of crypto projects. He is the Founder and Main Trader at LPCAM, a crypto hedge fund, Founder and President of Kinich Mining Co, a 100% sustainable crypto mining company, Co-Founder of an NFT shop tentatively called RAREgave, which will launch the first Tequila NFT, as well as Head of Investor Relations of Meryt.org an autonomous digital organization and Pynk.io a Fintech from the UK. 

Miguel has been involved in the crypto industry for more than 5 years and has concentrated lately on trading and crypto mining – the topic we will be discussing more in-depth tonight.

The Sun Shines For Everyone… it Doesn't Matter if Everybody Else is Doing it Because You Still Get The Same Profit.

- Miguel from House of Rare

Here's What We Discussed in Detail in This Interview

[00:01 – 02:34] Opening Segment

  • I introduce Miguel to the show 
    • A quick bio about our guest 
  • Miguel shares a bit more about himself 
    • In a DeFi project helping investment syndicates
    • NFT House of Rare 
    • Running a crypto hedge fund
    • 100% sustainable, no bullshit mining company

 

[02:35 – 04:26] Learn All About Bitcoin Mining 

  • Miguel shares what Bitcoin mining is
    • A process of putting more Bitcoins into the ecosystem
    • Mining is the computational process
    • Read the Bitcoin White Paper for more info
  • How Bitcoin mining works
    • Hardware calculating complex equations 
    • The network rewards miners with new Bitcoins 
    • Currently 6.25 BTC for each solved block
  • How to set up mining equipment and executing on it 
    • Starting out with custom made graphics cards
    • Option of buying a ‘Basic’ 
    • Current challenges with chip supply

 

[04:27 – 18:11] Making Bitcoin Mining More Sustainable

  • How Miguel is using solar power to mine 
    • The current issue of non-sustainable models 
    • Deciding to create a sustainable model 
    • How to make it ‘no-bullshit’ 
      • Fully solar no carbon bonds or other shortcuts
  • Navigating the immense amount of energy needed
    • Investing in solar as well as other sustainable options for the future
  • Miguel talks about the mining reward system for new miners
    • Currently $1,200 monthly in Bitcoin 
    • Electrical costs of around $300 to $400
    • 18 to 24 months to make back your money
    • Cheaper alternatives 
  • How Miguel got started into the project
  • The future for Miguel and his sustainable mining company 
    • Giving people the benefit of mining without an entire machine
    • Idea for an app for the sake of transparency 
    • Different resources of revenue for the company

 

[18:12 – 20:46] Closing Segment 

  • A quick rundown on NFTs 
  • Miguel shares how he is tokenizing tequila through House of Rare
    • Only 777 bottles in production 
  • Final words from Miguel

Killer Resources

HOW TO REACH OUT TO MIGUEL

Final Thoughts

What Is Mining?

 

Mining is an algorithmic process that is used to generate Bitcoin. Bitcoin Whitepaper is the best way to get into the creator’s mindset and understand the logic behind the mining process and what it entails. 

Essentially, it is this vast web made up of different nodes. Security is maintained by solving complex math equations—more miners – more nodes – more security. The network rewards miners for solving these calculations by giving them Bitcoin. 

 

What Is Involved In Setting Up Mining Equipment?

 

You could build a custom-made mining rig using high-level graphic cards – similar to ones gamers use. 

You could also buy a ready-made machine. This usually takes months to get a hold of unless you have a ridiculous amount of money to get your hands on one. 

 

What Is Different About The Way You Mine?

 

We are using solar panels to power our mining. This is because we want Bitcoin to be more energy efficient. 

China banned all mining operations. Not only this, but Elon Musk happened to allow Bitcoin to be used in Tesla purchases. Shortly afterward, he ended up stopping Bitcoin payments due to its inefficient use of energy. 

After some research, we came across different companies that were making mining more energy-efficient. However, we realized that their methods weren’t as efficient as they’d like to admit – so we went full-solar. Carbon-neutral needs to be done correctly. 

We are also looking at other alternative renewable solutions – such as wind energy, as well as looking into potential partnerships. 

 

Monthly Mining Reward Per Machine 

 

Typically, on these machines, you’d see about $1200 worth of Bitcoin (at current prices), subtracting electricity and other operating costs. You’d also need to purchase said machines.

You can expect to make the money back in 18 – 24 months. All in all, after breaking even from your initial investment, the rest is all profit. 

You can get about five to six years of work out of these machines, which are meant to run 24 hours a day. It would help if you also tried to keep new machines which consume the least amount of energy. 

We are also trying to create shared ownership of machines, so people can split the costs and get guaranteed electricity. This creates a lower entry point for people to get into mining Bitcoin easily. We shall also be completely transparent – how hot are the machines running, is the electricity on, etc. 

 

Final Thoughts 

 

Blockchain technology is here to stay – it takes out the middleman and helps the producer and consumer to get more. The need for intermediaries is wholly taken out, which opens up a whole new avenue of transparency. 

Miguel is also doing an exciting new project involving NFTs and tequila. NFTs are intangible tokens – these will be attached to actual bottles of tequila. These are super limited edition – 777 bottles. 

Share this podcast with a friend or family member, join our newsletter at https://newtocrypto.io/ and leave a review on Apple Podcasts. Let me know your thoughts on this episode.

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