[Editor’s Note: The following is a guide contributed by @TucsonBitcoin on how agorism/agorists can interact with Bitcoin mining. I provided light proofreading assistance and added a conclusion, otherwise, all original content is his!
Big thanks to him for the submission — I know it helped me to think bigger when it comes to the potentialities at hand! Please enjoy. -Shane/Rayo2]
This article is not going to be an in-depth, step-by-step guide, but instead just a primer to get you thinking about the topic of how agorism can intersect with Bitcoin mining.
I am a firm believer that in order to create a voluntary society, we must begin taking steps outside of the current slave society that many reside in. Everything in “The Matrix” is built around coercion and dominating others through violence. Bitcoin is attractive because it truly is an exit from the system. It is a monetary network that, unlike fiat or any government issued form of currency, operates on a purely voluntary nature. Despite this, many individuals are finding ways to act as gatekeepers in the form of “regulated exchanges,” intrusive KYC laws, sophisticated surveillance systems, and social attacks on Bitcoiners. These are incredibly unattractive things to contend with as an individual seeking relief from the clown world. No intrusions by despotic maniacs have any place in our lives and should be rejected despite the fact that rejecting them is less convenient.
If you are a part of the P.A.Z.NIA Network in any way, it means you most likely value your freedom over convenience to some extent. That predisposition will make you a good candidate for the painful process which is Bitcoin mining.
Bitcoin mining comes into play as a way to truly circumnavigate the entire process of going through gatekeepers. Now you can purchase Satoshis through your electric company, which is significantly better, or even begin generating your own power. Though worth noting, it’s not as simple as just plugging a machine into the wall and making money, as there are a ton of pain points in the process…but it can be an incredibly lucrative process.
So, grab your sluice, chisels, and shitcoin filtration screens…it’s time to head to the P.A.Z.NIA Bitcoin Mines!
Power Generation is Undervalued and the War on Energy
Individuals who are able to generate their own power will be individuals who prosper. On the other hand, individuals living with unstable and expensive electricity are truly screwed. Wind and solar (in their current state) are a scam because it hijacks our desire to operate without dependence on the grid, yet dramatically limits our ability to generate and consume power. They can be used for some use cases, but to live in our technological world, it just doesn’t make sense. It is not a feasible way to generate enough power to really prosper, especially in such an energy dense field as Bitcoin mining is.
IT IS NOT FEASIBLE TO MINE ON SOLAR.
Often times, power sources such as hydro, oil, and gas are located in remote places. People all over the world are tapping these resources for mining. An individual could theoretically begin tapping these and build a community around this. Bitcoin mining could be a way to fund the entire infrastructure. This stands in stark contrast to the “Servile Society” and their anti-human climate change fear mongers who are currently shooting themselves in the foot by trying to reduce energy production by 90%. Raising the cost of energy in this manner is a sure way to make individuals more dependent on the system that we loathe and want to exit.
Being able to generate your own energy gives you a tremendous amount of freedom in not having to be reliant on utility companies. Energy prices are trending upwards across the board and being your own energy producer can ensure that this inflationary pressure is not a variable for you.
Unused Amperage = Untapped Profits.
Another option is building out from already established infrastructure such as a business or in your home. There is unused electrical capacity everywhere. That electrical capacity can be leveraged to help offset costs, or create off the books income for a “legitimate” business. The biggest obstacle is heat, noise, and space but all of this can be mitigated. One of the big benefits of doing this is that you have a reliable stream of income in Bitcoin.
You can do also do this in family members’/friends’ houses, and by building relationships with businesses in your area. Many business owners will be open minded to the idea of you renting out some space for you to run your miner, especially if it includes you teaching them how their business can utilize Bitcoin, and how they can safely store their wealth from the government parasites.
The majority of miners costs are in fiat: think power bills, hardware maintenance/upgrades, rent/mortgage on property, etc.
This is an opportunity for individuals to be able to acquire Bitcoin directly from those miners in exchange for fiat. The best way to do this is locally through cash transactions, or the exchange of goods/services, though it can be done with bank transfers, etc. Local exchange is more beneficial because it eliminates participating in the surveillance apparatus which is banking.
Peer-to-Peer Hardware Sales
There is a massive market for used equipment, and oftentimes it makes a lot more sense for the small-to-medium scale miner to buy used. Having a trusted network of individuals exchanging equipment would be incredibly beneficial because of how untrustworthy the space can be. When you buy used equipment, you will almost never know the conditions that they were ran in, it will almost always have a higher failure rate, and will not be covered by a warranty. Despite this, some machines are incredibly resilient and you will be able to scoop them up for far less. Currently, for most miner sales, there is no KYC process from established dealers. A trusted network to exchange is more based on, 1. supporting individuals in the network, and 2. being able to trust that you can know how the equipment was ran.
One benefit of buying used is knowing the model’s reputation. When you buy new, they have not been stress tested and there is not information floating around them. Also when you buy new, you might have to deal with stupid things like not knowing which variant of control board you’re getting (notorious on the S19).
Individuals in the network could provide valuable services such as refurbishment and repair. Repair is always a major pain point, as repair centers are slowly being built out and is a highly niche and specialized skillset. This is another place an individual could begin earning some off-the-books income.
Infrastructure and Valuable Skills
There is a ton of infrastructure needed in order to be able to mine. Generators may need mechanics. Installation will almost definitely need electricians. Individuals with these skillsets in the network could be tapped to provide these skills. Not only are these skills valuable in this capacity, but again can be valuable in a larger capacity for building out citadels. It is not far fetched to believe that agorist communities can be built around Bitcoin mining over time.
The mining industry is wide open for individuals to begin working in it. Nobody is an expert because things are changing incredibly quickly. If you are able to pick up new skills quickly, there is a ton of room to grow and learn here.
Ending Up with More Bitcoin from Mining
This is the hardest part of it all. Buying a miner is essentially buying a two year long position on Bitcoin. After that position is completed, and you have made an ROI on the machine/infrastructure, everything earned after that is a plus. The reason you want to ROI within 2 years is because the equipment is quickly devaluing and becoming obsoleted as new machines come onto the market.
The current way ASICs are priced makes it incredibly disadvantageous to enter into this market at any meaningful scale without taking on debt. Debt requires dependence on the system we are trying to avoid. Running a few machines in your house is doable. Running a few machines in your business and scaling up over time is doable. Running generators, drilling fossil fuels, or building hydroelectric turbines to not only power your miners, but also power a small community, is expensive. When you think of ROI, it needs to be priced in Bitcoin or this entire process is not worth it. Buying a Bitcoin miner is essentially placing a bet on the price of Bitcoin and the idea that you will be able to mine more Bitcoin over the life cycle of your machine. The higher you initial capital expenditure, the more difficult this can be. The economics of Bitcoin mining are incredibly brutal and are important to learn before apeing into buying machines.
Most ASIC repair centers are backed up, meaning it could take up to six months for board repair. Repair is not incredibly difficult to pick up, but does take time to really learn how to do well. An individual could provide repair services in exchange for Bitcoin within the network and easily do it from their house or business.
This is a valuable service because it will shorten downtime on machines and increase profitability for miners. Unfortunately, there are failure rates on equipment, so the need for repair is unavoidable. New equipment has a warranty, but that could take up to a month for turnaround. Used equipment will not have a warranty and must be repaired.
There are different levels of technicality for repair. Sometimes it is just replacing broken components such as power supplies, fans, or control boards. Sometimes, actual board repair is required which is time consuming and difficult. This is ultimately one of the biggest pain points in the industry currently.
Hosting or Colocations
I’m personally not a big fan of hosting because it adds a lot of counterparty risk to the mix. Hosting provided to individuals in a trusted network could be tremendously beneficial, though. The benefit of hosting is for individuals to be able to run machines at a more advantageous electricity price than their residential home, and not have deal with maintenance. Mining is not available to everyone because these are industrial grade machines that need constant power, produce a lot of noise, and are only profitable at very low power prices.
A colocation can be done as well with a similar mindset. These can be done regionally on a small scale where individuals can have 24/7 access to their machines. What is different about this approach is that there isn’t necessarily someone else holding custody of your machines or hosting fees. This can be done in industrial warehouses, small commercial buildings, or at someone’s house.
To Conclude: Bitcoin Mining For The Second Realm
Bitcoin mining is not only for big business or the well-connected. These benefits are now available to individuals, businesses, agorists, and to networks like the P.A.Z.NIA Network, making this digital tool of self-liberation that much more comprehensive.
To summarize, Bitcoin mining can serve as:
- A great way to directly acquire KYC-free sats, without the need for third parties, exchanges, etc.
- A way to get ahead by mining at a business and writing off the costs
- A way to fund the expansion of the P.A.Z.NIA Network, overall infrastructure, and the founding/continuance of agorist communities
- Potential routes towards financial independence, whether via price increase or Second Realm work (i.e. electricians are required, mechanics may be needed, ASIC repairs are hard-to-find, technicians to run the miners, etc.)
And alongside another Second Realm endeavor (the building of our own, trusted VPN/Tor network), hosting locations and technical expertise may already be in place, and so adding this bitcoin infrastructure would be easier in these regards.
Remember, these are still the early days of Bitcoin, and especially so for small scale mining. Think bigger, and keep your eyes open for opportunities…you may just strike digital gold.