Phuket warning: Russians running "bitcoin mining" operations and not paying their bills

[webfact]

Phuket warning: Russians running "bitcoin mining" operations and not paying their bills

 

Caption: Bitcoin mining

 

A resident of Phuket has gone onto Facebook to warn people renting property about a group of Russians running bitcoin mining operations. 

 

The gang - allegedly in connivance with the help of Thais and possibly the police - rent properties and set up complex mining computers known as farms to hunt for bitcoins.

 

Stock Trader said that 100 machines were at one of his properties and electricity bills were not paid. 

 

The gang removed the machines and relocated elsewhere.

 

He said that 500-600 machines were set up elsewhere without giving further details. 

 

Picture: Thai Rath

 

He said that their leader was from Ukraine. 

 

Thais were suffering as a result of this foreign activity, he said. 

 

The comments were made on a group for Phuket people on Facebook and reported on by Thai Rath.

 

Bitcoin mining is the backbone of the bitcoin network. Miners achieve this by solving a computational problem which allows them to chain together blocks of transactions (hence bitcoin's famous  “blockchain”). For this service miners area rewarded with newly-created bitcoins and transaction fees.  

 

Source: Thai Rath

 

 

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[ThaiPauly]

All over my head...

[darksidedog]

6 minutes ago, webfact said:

Thais were suffering as a result of this foreign activity, he said. 

Not quite sure I can follow that logic. Thais are free to mine bitcoin too, just possibly don't know how.

I understand the man being pissed over an unpaid electric bill, though as getting it back anytime is difficult, he probably kept the house deposit, so may well not be out of pocket. So how exactly, are Thais in general suffering?

[Don Chance]

6 minutes ago, darksidedog said:

Not quite sure I can follow that logic. Thais are free to mine bitcoin too, just possibly don't know how.

I understand the man being pissed over an unpaid electric bill, though as getting it back anytime is difficult, he probably kept the house deposit, so may well not be out of pocket. So how exactly, are Thais in general suffering?

Probably the bills are very high.

[beechbum]

50 minutes ago, darksidedog said:

how exactly, are Thais in general suffering?

If it's a scam, moneys being made with next to no effort, maybe farangs being fleeced, Thais not getting their wedge, probably seen as suffering in their minds!

[jmd8800]

49 minutes ago, darksidedog said:

Not quite sure I can follow that logic. Thais are free to mine bitcoin too, just possibly don't know how.

I understand the man being pissed over an unpaid electric bill, though as getting it back anytime is difficult, he probably kept the house deposit, so may well not be out of pocket. So how exactly, are Thais in general suffering?

If those are Antminer S9 miners in the picture then each one of them draws 972 kWh per month. Rated at 1600W they generally run about 1350. This depends in part on how cool the room is. The hotter the room the less efficient the miner is. One would have to add in the air con bill for this mining operation because all of these miners running creates a lot heat.

 

From a reputable website: Antminer S9 with computing power of 14.5 Th/s and electrical power of 1350 Watt, consumes 32.4 kWh per day and 972 kWh per month.

 

It is very expensive to mine crypto coins in hot climates. Many farms are underground or in very cold regions like Iceland. I'd guess the only way this farm was profitable is by skipping the electric bill.

[Puchaiyank]

Are they using cheap illegal immigrant labor in their mining operation?  Add human trafficking to their list of sins...???? 

[LomSak27]

Bitcoin Breakout! Woohoo! That is how I am investing for the future ... Cryptocurrency.

 

Invest in the future. And the future is cryptocurrency. There is not going to be anymore ATM’s, Banks. Bit coin and Artificial Intelligence signal the end of our old corrupt way of life. It’s all true. I watched a you tube video ... I know these things.  

[Tradewind777]

BTC mining is a tight business model as I understand.it. As the computer speeds increase over time, the mining is more prolific which has the knock-on effect by increasing the level of computational difficulty as less coins are available to mine (finite limit is 21m BTCs. The depreciation of these computers runs at a great clip as the level of difficulty increases, dropping the yield per mining computer and reducing their economic viability. The only margin is based on the cost of power which is the only variable per site energy source. Running away without paying the bill is the only way money can be made as after a short while the mining computers are good for little more than landfill as their computational capacities are reduced to non-viable levels.

Edited May 3, 2019 by Tradewind777
Added commentary

[Jane Dough]

6 hours ago, darksidedog said:

Not quite sure I can follow that logic. Thais are free to mine bitcoin too, just possibly don't know how.

I understand the man being pissed over an unpaid electric bill, though as getting it back anytime is difficult, he probably kept the house deposit, so may well not be out of pocket. So how exactly, are Thais in general suffering?

How much do you imagine the electricity bill would be? My guess is it would be massive. 

 

"Stock Trader" in the story didn't say but I very much doubt that keeping the deposit covered it!

 

Rooster

[MaksimMislavsky]

7 hours ago, webfact said:

He said that their leader was from Ukraine. 

Most people from Ukraine would probably object to being labelled Russians these days...

[KneeDeep]

21 minutes ago, Jane Dough said:

How much do you imagine the electricity bill would be? My guess is it would be massive. 

 

"Stock Trader" in the story didn't say but I very much doubt that keeping the deposit covered it!

 

Rooster

 

 

If his estimates are correct, that would be 4000 baht per machine, per month. So 100 machines would cost 400,000 baht per month in electricity.

You are welcome to correct my figures.

[Justgrazing]

8 hours ago, webfact said:

The gang - allegedly in connivance with the help of Thais and possibly the police - 

Never .. What an outrageous thing to say .. 

[Justgrazing]

8 hours ago, webfact said:

rent properties and set up complex mining computers known as farms to hunt for bitcoins.

Eh .! Surely if these computers are miners then they would be underground which would make it a mine .. not the same as a farm .. I'm not surprised Thai's are missing out if they have trouble telling the difference t'ween a mine and a farm .. 

[jmd8800]

Here are a couple of reviews about the S9. Today mining bitcoins is a very expensive proposition. So why doesn't one just take the initial investment and long terms and just go buy bitcoins? Most do.

 

Some even buy mining contracts like https://www.genesis-mining.com/ But.... there are plenty of scams out there too.

 

https://www.bitcoinmining.com/bitmain-antminer-s9-review-bitcoin-mining/

 

https://99bitcoins.com/antminer-s9-review/

 

As the value of bitcoin goes up so does the hash rate. The hash rate is adjusted so that transactions take about 10 minutes. If transaction times fall or rise the difficulty increases of decreases to adjust.

 

The largest mining farms:  https://cointelegraph.com/news/top-five-biggest-crypto-mining-areas-which-farms-are-pushing-forward-the-new-gold-rush

[connda]

9 hours ago, webfact said:

He said that their leader was from Ukraine. 

That would make the group Ukrainian.  

So the lead should read, "Phuket warning: Ukrainians running "bitcoin mining" operations and not paying their bills."

 

Just looking at the obvious here.

[connda]

6 hours ago, Puchaiyank said:

Are they using cheap illegal immigrant labor in their mining operation?  Add human trafficking to their list of sins...???? 

Yeah.  They have Myanmar workers running in treadmills next to the house to generate the electricity.

[DrDave]

3 hours ago, KneeDeep said:

 

 

If his estimates are correct, that would be 4000 baht per machine, per month. So 100 machines would cost 400,000 baht per month in electricity.

You are welcome to correct my figures.

I think your estimate is absolutely correct, KneeDeep! 

At about 4 baht/Kwh x 1.35 kilowatts x 24 hours x 30 days/month = 3,900 baht/month per machine.

 

Even more interesting is that 100 of these machines would draw about 600 amps. Doubtful that any residential structure in Phuket has 600 amp service!

[khunPer]

11 hours ago, darksidedog said:

...he probably kept the house deposit, so may well not be out of pocket.

The electric bill might well be more than a house deposit...????

Quote

The amount of energy required to “mine” one dollar’s worth of bitcoin is more than twice that required to mine the same value of copper, gold or platinum, according to a new paper, suggesting that the virtual work that underpins bitcoin, ethereum and similar projects is more similar to real mining than anyone intended.

Source and article: "Energy cost of 'mining' bitcoin more than twice that of copper or gold"

 

Image originates from article: "Estimated Electricity Cost Of Mining One Bitcoin By Country".

Edited May 3, 2019 by khunPer

[KneeDeep]

32 minutes ago, khunPer said:

The electric bill might well be more than a house deposit...????

Source and article: "Energy cost of 'mining' bitcoin more than twice that of copper or gold"

 

Image originates from article: "Estimated Electricity Cost Of Mining One Bitcoin By Country".

 

Let's get ourselves to Venezuela! ????

 

[PingRoundTheWorld]

A typical Bitcoin miner consumes the same amount of electricity as 2 microwaves (1600 Watt). You couldn't even run two on a typical residential circuit breaker, let alone hundreds. Even if you got around that by replacing the circuit breakers you'd still be limited by the amount of power coming into your meter.

 

Also- miners are LOUD. In a condo or apartment the neighbors would be complaining about the noise for sure.

Also also- miners emit a lot of heat, there's no way a regular aircon can cool down a room with 100 of these running.

 

In other words- this story is bullshit or at the very least greatly exaggerated.

Edited May 3, 2019 by PingRoundTheWorld

[Thaidream]

20 hours ago, Tradewind777 said:

BTC mining is a tight business model as I understand.it. As the computer speeds increase over time, the mining is more prolific which has the knock-on effect by increasing the level of computational difficulty as less coins are available to mine (finite limit is 21m BTCs. The depreciation of these computers runs at a great clip as the level of difficulty increases, dropping the yield per mining computer and reducing their economic viability. The only margin is based on the cost of power which is the only variable per site energy source. Running away without paying the bill is the only way money can be made as after a short while the mining computers are good for little more than landfill as their computational capacities are reduced to non-viable levels.

I would rather have Cash- Thai Baht/US Dollars/Pounds/Euros will  be fine not an imaginary wallet with imaginary money in it.

[Mavideol]

couple days ago they arrested 9 Chinese now they are going after the Russians at that rate no friends left

[Just Weird]

22 hours ago, MaksimMislavsky said:

Most people from Ukraine would probably object to being labelled Russians these days...

The gang leader was quoted as being from Ukraine, the gang members were quoted as being Russians, so I doubt that anyone would have found the OP objectionable.

[balo]

And the Ukrainians have the work permits to do this ?  Of course not! This is all illegal , where is BIg Joke when you need him  ?  Okay the new guy whatever his name is should be interested.  

 

They are probably protected by the Phuket Mafia ? Big money in bit mining. 

 

 

[gk10002000]

6 hours ago, balo said:

And the Ukrainians have the work permits to do this ?  Of course not! This is all illegal , where is BIg Joke when you need him  ?  Okay the new guy whatever his name is should be interested.  

 

They are probably protected by the Phuket Mafia ? Big money in bit mining. 

 

 

ah work permits.  That would be an interesting issue comparing bitcoin mining in one's house to what many so called digital nomads are doing by blogging in Thailand.   Definitely fits the definitions of work to support oneself and not an attempt at a hobby.  Heck even if it were considered a hobby, Thailand has gone after some hobbyists that built and sold a boat or two as a project over a many year period.

[tabarin]

On 5/4/2019 at 5:36 AM, PingRoundTheWorld said:

A typical Bitcoin miner consumes the same amount of electricity as 2 microwaves (1600 Watt). You couldn't even run two on a typical residential circuit breaker, let alone hundreds. Even if you got around that by replacing the circuit breakers you'd still be limited by the amount of power coming into your meter.

 

Also- miners are LOUD. In a condo or apartment the neighbors would be complaining about the noise for sure.

Also also- miners emit a lot of heat, there's no way a regular aircon can cool down a room with 100 of these running.

 

In other words- this story is bullshit or at the very least greatly exaggerated.

There are tons of houses that have land around it to not bother anyone with the noise.
I also think it is relatively easy to pay any Thai electric guy to upgrade the house without questions. 

Edited May 6, 2019 by tabarin

[lapamita]

On 5/3/2019 at 11:14 AM, KneeDeep said:

 

 

If his estimates are correct, that would be 4000 baht per machine, per month. So 100 machines would cost 400,000 baht per month in electricity.

You are welcome to correct my figures.

400k..all bullshit

 

a normal house have a 15/30 meter )

the main line is mostly 2,5 or 4 or 8 if lucky

 

all the main electricwires must be burning due to this heavy consumption

[Pattaya46]

On 5/3/2019 at 8:52 AM, darksidedog said:

Not quite sure I can follow that logic.

Thais are free to mine bitcoin too, just possibly don't know how.

Of course Thais know how!

Or at least a small part of Thai knows, the same way that only a small part of Farang knows... 

 

Just have a look on Google: lot of second hand "bitcoin mining computers"

Examples:

- https://www.kaidee.com/product-340751365-AntMiner-T9-105T-Asic-Miner-Bitcoin-BCH-Miner

- https://www.kaidee.com/product-347095292-เครื่องขุด-T9-plus

...

 

Edited May 7, 2019 by Pattaya46

[jmd8800]

35 minutes ago, Pattaya46 said:

Of course Thais know how!

Or at least a small part of Thai knows, the same way that only a small part of Farang knows... 

 

Just have a look on Google: lot of second hand "bitcoin mining computers"

Examples:

- https://www.kaidee.com/product-340751365-AntMiner-T9-105T-Asic-Miner-Bitcoin-BCH-Miner

- https://www.kaidee.com/product-347095292-เครื่องขุด-T9-plus

...

 

Bitcoin (and other 'coins') and easy to mine. Take any computer like an old laptop or Raspberry Pi and install simple and easy to use use mining software, join a pool (there are many to join). An internet connection, host computer and the miner are all you need. Fire it up and walk away from it. Check it daily of every few days that is up to you.

 

You have to ask yourself why someone would sell this if it was making a profit. The process of mining is very simple. The truth is unless you have very very low overhead you won't make much profit.