![]() "I wanted to do my part to secure the the bitcoin network - have my own hashrate, under my own power," said McClellan, referring to his share of the collective computing power of miners worldwide. ![]() For him, the desire to mine is part ideological, part financial. He currently has a single bitcoin miner with Compass in Oklahoma, which he purchased at the end of 2020. One of those plebs is Jon McClellan, a Texas based lobbyist for AT&T. Gibbs says he's noticed a lot of people who would normally invest in real estate are instead bringing those dollars to mining, because they're able to see a faster return on mining than they would if they were buying a rental property, especially as private equity steps in to buy houses and drive up prices.Ĭompass clients range from self-proclaimed "plebs," who stack the smallest denomination of bitcoin known as satoshis, or "sats," to billionaire bitcoiner Jack Dorsey. "We want to get 5% of the network being controlled by retail miners, and then move that up to 10% to 15% in the coming years." "It will effectively give small miners a substantial share of bitcoin's network hashrate, which has ultimately, always been our goal," said Gibbs. But Compass CEO Whit Gibbs says that's exactly the point: To capture market share for retail miners and put the network into the hands of the people. They typically buy one or two at a time and are not as price sensitive.ĬNBC spoke to multiple Compass customers to better understand the appetite for small-scale mining as they increasingly compete with major industry players with massive operations. Taing also earns income buying and selling mining hardware to retail customers on Compass' marketplace. They generate about 2.8 bitcoin a month, or about $111,000, according to digital receipts he provided CNBC. Of his 261 mining rigs, which include Canaan AvalonMiners, Bitmain Antminer S19 Pros, and Whatsminer M30Ss, 200 are hosted through Compass in Nebraska and Canada. ![]() So far, the experiment is working out pretty well, according to Taing. Taing decided to outsource most of that work by enlisting the help of Compass Mining, a service that hosts, supplies, and operates mining rigs for retail miners who don't want to deal with the logistics of physically handling mining equipment themselves. The process requires expensive equipment, some technical know-how, and a lot of electricity. "I just like to look at where I can get some good arbitrage advantage, and I thought bitcoin mining presented that both from just, 'Hey, I could get more bitcoin by having miners than buying bitcoin, especially at the scale that I can get into it - but also, that I am a big believer in bitcoin's future.'"īitcoin operates on a proof-of-work mining model, meaning that miners around the world run high-powered computers to simultaneously create new bitcoin and to validate transactions. I have a lot of apartment buildings, I have senior living homes. "I just like making money," Taing told CNBC. Now, Taing runs 261 personal mining machines generating the world's most popular digital token.
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