Sounds too good to be true, right? Tune in to find out how to do it.
Here are the partner companies I discuss in this episode:
Option 1: Compass Mining: compassmining.io
Option 2: Wattum: wattummanagement.com
Option 3: Blockware Solutions: blockwaresolutions.com
Table of Contents
Listen to the podcast here
How To Legally Print Money
Welcome back to the show. I’m sorry I missed you last time. I’m working on writing a book and I got super hyper-focused as I always do. Unfortunately, I didn’t have any extra episodes in the queue. I know you missed me last time, but I’m not going to let that happen again. I’ve got too much momentum going with this show to take a week off.
I feel like I’m back on track. I’m going to keep cranking away at the book. I’m up to 24,000 words. It’s coming along nicely. I’m excited about the content. It’s taken everything that I’ve done over the years and all my beliefs, philosophies, and stories that, hopefully, keep you engaged and put it into one central resource that will be inexpensive. It’s a great way for people to get to know my philosophy and a little bit more about how to build wealth.
With that, I’m going to talk to you about how you can start legally printing your own money. I know. This headline gets you curious. I bet we’ll have a lot of people clicking on this one, trying to figure out how to legally print your own money. Some of you probably already have a pretty good guess.I want to tell you a little story.
Creating Your Own Money
Arthur J. Williams is one of the most famous counterfeiters in history. He’s widely known as the person who figured out how to create perfect replicas of the counterfeit-proof $100 bill that debuted in 1996, so this wasn’t that long ago. At age fifteen, he started learning the business of printing fake money from an older mentor. By nineteen, he had his own warehouse operation. Over the next fifteen years, he printed millions of dollars, sold them to organized criminals, and used them for his own lavish spending habits.
Williams eventually got caught and served a couple of long-term stints in federal prison. The moral of the story is pretty clear. Only the US government gets to print as much money as it wants, or does it? In this episode, I’m going to introduce you to a way to legally print your own money. Unlike rapidly depreciating and devaluing US dollars, this money has been steadily gaining in value. You can get tax breaks from Uncle Sam along the way. It’s so easy that children are making as much as $30,000 a month doing it. I don’t know how they’re doing it at that level, but it is true.
Ishaan Thakur and his sister, Aanya, they’re 14 and 9 years old. They live in Texas. Together, with a little help from their dad, they’ve been legally printing money since April 2021. Like Arthur, they had to learn how to do it from the ground up. They watched YouTube videos and read various articles on the internet. Ishaan started using his gaming computer to start printing money. Five months later, the brother and sister were already making more than $30,000 per month. How is this legal? It’s because the siblings aren’t printing dollars, yen, or any other Fiat currency. Instead, they’re printing cryptocurrencies including Bitcoin and Ethereum.
I’ve been doing this since February 2021. I saw a post from my friend, Adam, who posted on Facebook that he was setting up a mining rig to mine Ethereum. It got my curiosity. I’ve known Adam for several years. He helped me build the digital online platform that we utilize to run, in my nutrition business, the body transformation challenges that we’ve been doing for multiple years. Several hundred thousand dollars have flown through those challenges and have been given away over the past couple of years. Over the last couple of years, he helped build our 21-day online challenge platform as well. He is a tech genius, in my opinion. He is an engineer and does this type of stuff for a living.
It is Not Just The Technology
When I saw that he was mining Ethereum, I know two things. Number one, I know that I have no technical capability. I’m simply not wired and not smart enough to be able to do it on my own. I would get the machinery, order it in, and then stare at it with a blank deer-in-the-headlights look for probably multiple hours. That would eventually tire me out. I’d probably go grab a drink to calm my anxiety down. That would be about where it would end where this machine would sit there, collecting dust. I don’t see that working out.
The second thing that I know is that I’ve got the capital to be able to do this. I’ve been doing everything that I teach you on my platform. We’re living below our means, working on increasing our income, keeping lifestyle creep at bay, investing that into cashflow-producing assets, and have been building up private businesses for multiple years. We have the means to be able to do this. We just don’t have the technical know-how.We have the means to be able to do crypto mining. We just don't have the technical knowledge. Click To Tweet
I said, “I will put up the money. You mine it and get a piece of the crypto.” In this case, we chose Ethereum. I then said, “I’ll get the bulk of it because I put up the money. We’re both win-win.” He’s like, “This is great.” I put up about $65,000. We got around 32 GPUs, which is the processing power to hook up, solve the problems necessarily, and validate the transactions on the Ethereum network to be able to get the Ethereum as a reward for doing that.
Understanding Crypto Value
I’m not getting rich doing it. However, I have gotten a little bit more than one Ethereum per month. With everything, we’ve averaged around 1.3 or 1.4 Ethereum per month. At its current price, it is close to $5,000. It is shy of $5,000. We’ve mined about ten Ethereum, which you multiply ten times $5,000, I’ve got $50,000 in value back out against the $65,000 investment. Three more months later and we’re about close to the breakeven point where the GPUs or game cards and all the hardware that we purchase to do this are going to be paid off through the value of the Ethereum.
There are a couple of things that could happen. Ethereum could drop in price. We get $2,500 in value. We’ve accelerated the breakeven to two years, or Ethereum could go up even more, which I believe that it is. I’m very bullish on Ethereum still. I believe that Ethereum is going to go to $10,000 at some point in 2022. In that case, let’s say it stays the same. It doesn’t move. It stays around $5,000. Once the machines are paid off, it is free money that’s being printed every month.
As you read this, you’re saying, “How am I going to do this? How does this apply to me? Thanks for nothing. This is bullshit. I’m onto the next show.” Calm down. I don’t ever do any episode or anything that you can’t take advantage of and get some type of monetary gain off of it. You’re going to have to stay focused. I’m going to cover this in a few minutes. I’m going to teach you how to do this yourselves. You’re going to like what you’ll read.
There’s $1.6 billion that’s up for grabs every single month. What does that mean? I’ve been using terms like printing and minting to talk about the creation of cryptocurrencies like Bitcoin, but most people refer to this as mining. Like a traditional mining operation, creating a new Bitcoin requires both specialized equipment and energy. Without getting into the weeds, miners provide the computing power necessary to run the Bitcoin blockchain. They solve complex equations to verify transactions to keep the network coming along.
The incentive for putting this time and processing power is a regular Bitcoin reward. The reward for mining a new block on the Bitcoin network is 6.25 Bitcoin. With Bitcoin trading around $63,000 to $64,000, that amounts to almost $400,000. We know that the reward goes down by 50% roughly every four years with the next set to occur in 2024. Bitcoin does limit its supply to $21 million. That’s not a huge concern for minors because the reward rate is reduced over time. We probably won’t see the final Bitcoin minted until sometime in the year 2040.
As the reward rate goes down, that typically creates less supply, so the price of Bitcoin then goes up. Add it all up. Based on current prices, the Bitcoin network will hand out roughly $2 million or $250,000 in mining rewards every hour. That is $54 million every day and more than $1.6 billion every month for the next several years. That’s a lot of money. Smart investors are rushing in to grab as much as they can.
More For US
China’s ban on mining has created a huge opportunity. China was the global leader in Bitcoin mining as measured by the Bitcoin hash rate. That’s the term used to describe the collective computing power of Bitcoin miners. In June 2020, China, being a communist country, began to crack down on Bitcoin mining and on all crypto mining and trading transactions. As a result, the global Bitcoin hash rate fell 70% from pre-crackdown levels. That simply means it became easier than at that time to mine Bitcoin. There’s less competition. The less competition, the easier it is.
Since then, the hash rate has recovered because the US has filled the mining gap that China’s crackdown created. China’s abandonment of its dominant Bitcoin mining position will go down as the single greatest destruction of a nation’s wealth outside of a war. Why? That is because the significance of being the hub for Bitcoin mining cannot be overestimated.
Within five years, when Bitcoin will be at $500,000 with a market cap of $10 trillion, which is more than gold, that’s a $10 trillion market China gave away to its biggest rival, the good old USA. China left the field wide open for other countries to step in. That’s exactly what happened. The US Bitcoin miners have become the biggest beneficiaries. They’re going to be earning the bulk of Bitcoin rewards and going to be sitting on a war chest of Bitcoin provided that they don’t sell. I believe that most Bitcoin miners will not sell. While institutions are moving into the mining space rather aggressively, this is something that regular investors like you and I can do as well.
Buying And Holding
Why does mining your own crypto, especially Bitcoin, beat buying and holding? Simply buying and holding Bitcoin and other cryptos is a great way to sell yourself up for life-changing gains. There are a lot of cryptos that can’t be mined or don’t make any sense to mine. However, mining your own Bitcoin adds another dimension when you use it to add to existing holdings or to start acquiring your very first crypto. By its nature, mining sets you up to acquire smaller amounts of crypto on a regular basis.
Think of it a lot like dollar cost averaging. I never could understand this concept, but it is simple. It’s the process of investing a fixed amount of money into a certain asset on a regular schedule. For example, putting $50 into the same stock every month instead of buying a large number of shares at once helps you manage your risk and limit your downside if that stock were to suddenly drop. When it drops, you’re buying it at a lower price with that continual fixed investment.
With crypto mining, the difference is that you make a single upfront investment for a machine and then continue acquiring more crypto for as long as the machine functions. It might take a year for you to break even versus simply buying them outright. From that point forward, your crypto holdings can continue soaring. It’s like my example. Once my Ethereum pays for the mining equipment, I’m printing money or mining money for free. It’s free cashflow from that point forward for as long as the machines will last. They can last for multiple years.With crypto mining, you make a single upfront investment for a machine, and then you continue acquiring more crypto for as long as the machine functions. Click To Tweet
Your specific numbers are going to depend on a lot of factors including how much the underlying crypto moves and how successful your mining operation is. Over time, the results can be quite impressive. Consider someone who decides to buy a top-end mining machine for $10,000. Even if Bitcoins merely stay around $60,000 over the next few years, they can expect to end up with nearly $29,000 by the end of that period. In contrast, $10,000 invested in Bitcoin itself would still only be worth $10,000. The numbers only get better if Bitcoin prices continue rising.
What You Need To Know
Under the forecast that I believe in, 500,000 Bitcoin and investing $10,000 in a mining rig would end up producing $235,000 worth of Bitcoin over the next five years. Buying and holding it would result in $83,000. On top of the crypto gains, it’s also possible to sell your used mining rigs to recoup some of the initial investment you made.
For example, back in 2017, an Antminer S9, which is a popular machine, originally sold for $2,000. If you ran that machine up until the present time, you could have mine anywhere from 1 to 2 BTC. You could sell your used machine for roughly $400. During extremely bullish times for crypto or periods of low equipment availability, in which we have seen both apply, it’s even possible to sell mining rigs for substantial profits. Used rigs can sell for far more than they cost new. Another investor said certain machines that we were selling for $2,000 a few years ago are fetching $12,000 or more. That’s a 6X gain in twelve months on top of whatever crypto is mined.
Beyond the financial rewards, mining crypto is also a way to provide real support to blockchain networks and a great way to learn how this technology works from the inside out. What does it take to successfully mine Bitcoin? When Bitcoin first arrived in 2009, there were far fewer miners, so successfully mining Bitcoin was much easier. It was even possible for someone to mine using a regular personal computer. Successful miners need more powerful computers. In keeping up with the mining idea, they call these computers rigs. Few Bitcoin miners are able to use or continue to use your standard personal computer that runs on central processing units. Instead, they opt for more powerful machines.
In a moment, I’m going to go over several methods that simplify the process of buying and operating a crypto miner. Before we get there, let’s go over a few more details of what to consider when getting into crypto mining. Most miners hear about two particular things in a given rig. The rig’s hash rate indicates how many hashes can be generated every second and is usually expressed in terahashes per second. A terahash is 1 trillion hashes. The higher the hash rate, the higher your chances are of mining a new block and earning Bitcoin. The higher the hash rate, the better that machine will perform.
The second major consideration is how much energy the machine will consume overall to create the given hash rate. These hashes are per kilowatt hour, or it’s expressed as H/KWH. When you go to do some research on this, you’re going to see that H/KWH. That means hashes per kilowatt hour. That is how much energy it’s going to consume.
To mine profitably, you want the very best chance of successfully creating a block at the lowest possible real-world energy cost. The price of the machine is another consideration, but buying the machine is the first part of it. It has got to be programmed correctly. The software might replace the computer’s operating system or run inside of it. The specific choice will depend on which particular crypto someone wants to mine, whether the mine is going to run its own or become part of a mining pool.
What’s a mining pool? In simple terms, it’s a collection of miners all working together to mine crypto and share the rewards. Especially for individuals, it makes a lot of sense to join a pool. You might expect to earn anywhere from $10 to $40 a day from a decent Bitcoin mining rig. The longer-term results vary with the underlying crypto price movements. Total breakeven could take anywhere from a few months, which I haven’t found to be too likely with the current pricing of machines, to about a year or more.
Here’s the thing you got to remember. You’re probably thinking, “It’s going to take a year to get my money back.” Let’s start thinking like investors. Long-term thinking is what is required to be a successful investor. With the machine’s useful life coming in somewhere around at least a three-year mark and many operating years beyond that, the odds of making serious money over a 3 to 5-year period look very good. That’s not counting on any appreciation of the crypto being mined.Long-term thinking is what is required to be a successful investor. Click To Tweet
Things To Consider
What to consider for anyone who wants to start mining crypto? Perhaps the biggest is your source of energy. Most machines require a bigger outlet, like a 220 or 240-volt connection. It might be possible to use an outlet that was originally intended for an oven or a dryer. Otherwise, it could cost several hundred dollars to have an electrician install one.
The cheaper the source of electricity, the more profitable your mining operation is going to be. This can greatly depend on where you live. People in Louisiana pay an average of about $0.7 per kilowatt compared to someone in Hawaii who pays an average of $0.35. Generally, in the US, it falls somewhere in that $0.10 range. There are lots of online calculators that can help miners run different scenarios on how profitable their operation might be. If you’re interested in going deeper, there’s a good one from CryptoCompare.com.
Mining rigs can also create a lot of heat and noise. Many home miners end up converting rooms, sheds, or garages solely for the purpose of mining. It might be possible to harness a rig’s heat for other purposes, like heating a swimming pool or warming the room itself. It’s also critical that the machine stays cool or else it could experience mechanical problems.
That brings up the topic of maintenance. If you aren’t tech-savvy, you’re going to probably need third-party help if your mining ring has a problem. In the environment, that could mean waiting weeks or months before you get back online, even if your machine is covered by a warranty. At the end of the day, only you could decide whether a home-based mining rig is something more tackling. If you’re technical in nature and you enjoy this type of process, then it could be for you.
Ways To Get Into Mining
I don’t think most of my audience here feel that that’s going to be the best way for them. Fortunately, I found three unique ways to help you get all the benefits of owning and operating a crypto rig without most of the above drawbacks. One of those ways is you’re not going to be able to get in on my personal mining operation. It is not open to new investors. I’m buying up as many as I can for my own personal use. As many as I can buy and get my hands on, I’m doing it.
In fact, I’m trying to buy Bitcoin mining machines from some dude in China. We bought five so far. He did ship them. They are working. They’re good machines. We’re buying ten more, but I’m trying to go very slowly because I don’t want to send a large wire where he ends up keeping it. What am I going to do? Go to China, try to settle the score, file a lawsuit, and contact the Chinese government. If the dude keeps my money, I’m fucked. I’m able to buy these machines cheaper than what they’re going on the market. There is always a risk versus reward including buying these machines at a lower price. You can get into that.
There are many different ways to tap into the massive profit potential associated with crypto mining beyond just running a home rig. For example, it’s possible to buy shares of various mining operators through both the public and private markets. I previously did an episode on Bitcoin mining stocks. Get this. Since I released that episode, those positions are up 64%, 8%, which isn’t bad in a few months, 62%, 162%, 23%, and 21%.
Those six positions featured on that episode, Why Bitcoin Mining Stocks are Set to Explode, are pretty impressive numbers in a short window of time. I still don’t think that it’s too late for those particular stocks. In fact, I see a ton of upside as those miners continue to hold their Bitcoin. When the value of Bitcoin goes up, that means the valuation of those stocks in those companies is gonna continue to rise.
It’s also possible to purchase so-called Cloud mining contracts. They get you ownership of a certain amount of mining output over a specified amount of time. However, if you want the best of all possible worlds, which is personal ownership of mining equipment without all the associated headaches of doing it yourself, there are some good options available. This is where you should be getting excited. I found three companies that allow you to purchase your own equipment and get it programmed properly for you while they host it and maintain it in secure cost-effective facilities with a few simple steps. Each of these three has a few different nuances. Let’s review them quickly.
One thing I do want to say is that you do have two options. If you want, when you get the mined crypto, you can immediately sell it and create that cashflow right then and there. You can also mine it and hold the Bitcoin, which is what I recommend. Although I know it would be fun to see those dollars and that cash coming in, be able to spend it, and do something with it, the long-term best place is to hold the Bitcoin, let it accumulate, and let that price keep going up. As the supply of Bitcoin continues to go down, it’s only going to cause one thing to happen, which is for the price to go up.
If you’re looking to start small, perhaps with a single mining rig, Compass Mining will probably be your best option. The company has only been in business for a year, but its founders have been in crypto since the beginning. They created Compass to open up Bitcoin mining to everyday investors. Growth has been phenomenal. Compass has done over $175 million in revenue so far as of November 2021 solely from selling mining equipment and lining up hosting facilities. The company doesn’t do anything else. It’s not involved with payments nor does it mine for itself.
The company offers several ways to get up and running. Option one is to purchase a mining rig for home delivery. Under this scenario, you’d be buying a brand-new mining rig, but you’d be responsible for hooking it up, running it, and dealing with any issues that arise. As far as when I checked, a couple of different machines are priced under the $10,000 mark.
Option number two is to purchase a new machine with bundled hosting. If you want a brand-new mining rig running at a low energy cost and without all the hassles of doing it yourself, Compass can help you set up with a machine in a hosting bundle. This is how it works. You pay a deposit for the machine and the first month’s hosting fee, which will typically run around $150, is free. This covers the physical space for your machine as well as the energy that it will consume. At this point, you’re locked in.
You’ll also decide which mining pool you’d like to join and provide a wallet address where your mined Bitcoin will be sent. You could set up a Coinbase account and have it sent to that wallet on Coinbase. That’s as simple as it gets. I like some other mining wallets, which I’m going to do a separate episode on because you can start staking it and earning interest on it as you go. That creates another additional stream of income. I’m going to talk about that again in another episode. That’s very exciting. Once your machine is delivered to the facility and plugged in, your personal mining operation is up and running.
Option number three is you want to purchase a used machine already at a hosted facility. It’s possible to purchase a used machine from a compass mining client. An owner of a machine at a Compass mining facility can sell their machine at any time, even including on the same day that it’s set up. Compass charges the seller a 5% commission for placing the machine with a new owner.
An Antminer S19 Pro 110 machine being hosted in a Russian hydro-powered facility was available for $15,800. Based on its historical output and with Bitcoin around $60,000, you would break even after the first year. That would mean after all that, the future output after that year was nearly free Bitcoin. Even a conservative three-year lifespan of that machine would give you quite an awesome return. Based on the research, Compass is the only major company offering the option to buy a single-used machine and host it at their facility, making it ideal for those getting started in this space. The majority of you, as readers, I would guess would go with that option to get some exposure to this investment.Based on research, Compass is the only major company currently offering the option to buy a single-use machine and hosted at their facility, making it ideal for those just getting started in this space. Click To Tweet
Number two is called Wattum. Wattum was founded back in 2017. It’s headquartered in Wyoming. While the company was hosting individual mining machines this past July 2021, it’s only selling packages of multiple machines for bundled hosting. That’s because demand has become too great and space is at such a premium in the wake of China’s Bitcoin mining ban.
You have two options. Number one is bundled hosting packages. About 95% of their business is new machines. They do not offer a secondary brokerage program like Compass. They only host used machines that have been mining for a few months or less. Minimums can run anywhere from 5 to 10 new machines depending on the specific hosting facility. With 100% upfront payment, the machines can generally be up and mining 4 to 6 weeks from the date of purchase, which is pretty fast. You can also put down a deposit and pay the remaining balances as the delivery date nears.
All-in monthly hosting costs are running around $200 a month including energy. You don’t have to buy $40,000 bundles to start mining through Wattum. There is also option two, which is new and used machines for home delivery. You can get these machines delivered to your home, and then you’d have to hook them up and run them. Wattam also gives you the availability to mine other coins like Ethereum Lite coin and Dogecoin. You have that option, too.
The third option is Blockware Solutions. Of the three companies, Blockware is the one most focused on high-net-worth individuals and institutions. I’m going to cover this one quickly. It’s probably not the best choice for someone looking to get started. However, it does have solid credentials and strong availability for anyone willing to invest a bit more from the start.
Blockware was the first company to introduce mining in the US in a big way, especially in terms of machine sales. While it started off doing relatively small retail sales, it is transitioning into more of an institutional provider for the big guys, big companies, big hedge funds, and that sort of thing. Many of his clients are corporations and even publicly traded mining companies, such as Riot Blockchain.
With Blockware, you can purchase new machines with or without the bundled hosting. In either case, there’s a current minimum of five machines. They’re not offering used machines. Monthly hosting depends on the number of machines you have at their facility, but it might be around $170 a month. You sign a 1, 2, or 3-year hosting contract. If you pull out early, you owe the balance of the hosting cost. Blockware is probably best for anyone willing to make a more serious long-term investment into the mining space.
Whether you’re already deep into the crypto space like myself or looking to get started, mining can be a terrific strategy to have at your disposal. By generating crypto at a relatively steady rate, mining helps smooth out any price volatility as you add your holdings. It can provide new coins with complete privacy and security, and it can help you support the crypto movement while helping you get inside. Look at how the ecosystem works.
It can help you start mining without the drawbacks of running rigs on your own. With that said, given price gains and the China ban, crypto mining is especially hot. Coupled with growing interest in ongoing supply chain issues, lead times and costs could be higher than normal. You got to know that going in. If you’re interested in getting started quickly, reach out to these multiple vendors. Maybe you already know it’s going to be Compass for you.
If you’re starting out small, alternatively, you can keep this idea in your back pocket and look to start it when you get some more cash to do it or should there be any market pullback that creates better availability in pricing. I don’t know what’s best for you. It depends on your situation always. Either way, I love this play. It is a safe way to get involved in crypto. It’s going over the long term. I believe it’s the smart way to buy Bitcoin. Given my belief that Bitcoin prices will ultimately hit at least $500 per coin, paying a premium to get started more quickly could be seriously a small concern a year or two from now. That’s it. I will see you in the next episode.