On the Fence About Mining? Your Top 5 Questions, Answered!
At Sazmining, we’re here to make Bitcoin mining simple and accessible. Whether you're just starting out or already familiar with mining, you likely have some pressing questions about how we operate.
To help you, we’ve compiled the top 5 questions potential customers ask.
Let’s dive in!
1. What’s the difference between the management and service fees, and why do management fees vary by location?
The management fee and service fee serve two different purposes:
- Management Fee: This is a percentage of the mined Bitcoin, in satoshis, compensating Sazmining for sourcing the data center and managing your rig’s operations.
- Norway: 20% of the pool payout (80,000 sats from the default 400,000 sat payout threshold).
- Paraguay: 15% of the pool payout (60,000 sats from the default 400,000 sat payout threshold).
- This fee is split when the transaction is sent from the mining pool (via Luxor) and varies by location to reflect operational differences and costs.
- We never have access to or custody of your mined Bitcoin, and vice versa. Both Saz and the customer await their respective payouts from the mining pool.
- Saz sets the default customer mining payout at 400,000 sats, but customers can change this threshold at any time to be higher.
- Service Fee: This dynamic USD fee covers electricity and maintenance costs. It is calculated based on the rig’s power consumption and performance.
- Norway (WhatsMiner M63S):
- Electricity Rate: $0.046/kWh
- Estimated Service Fee: $239/month
- 6.993 kW/rig x 730 hours/month x $0.046/kWh = $239
- Paraguay (Bitmain S21 Pro):
- Electricity Rate: $0.055/kWh
- Estimated Service Fee: $141/month
- 3.51 kW/rig x 730 hours/month x $0.055/kWh = $141
- Paraguay (Bitmain S21):
- Electricity Rate: $0.055/kWh
- Estimated Service Fee: $141/month
- 3.41 kW/rig x 730 hours/rig x $0.055/kWh = $141
- Norway (WhatsMiner M63S):
2. Why don’t I just buy Bitcoin directly instead of mining it?
Mining Bitcoin allows you to accumulate wild sats—Bitcoin mined directly from the Bitcoin network—without relying on exchanges. While it’s tempting to compare DCAing into Bitcoin via mining to a fiat bulk purchase, this is genuinely an apples-to-oranges comparison.
Here’s why mining is a wiser choice:
- Independence from Exchanges: With mining, you earn Bitcoin directly from the network, avoiding the need for exchange purchases, price fluctuations, or dependency on centralized platforms.
- Cost Efficiency Over Time: Buying Bitcoin in bulk locks you into a single market price, which can be risky depending on timing. On the other hand, mining acts as a natural dollar-cost averaging (DCA) method, spreading out acquisition over time with predictable and fixed costs like electricity and hardware. This eliminates the uncertainty of market timing and smooths out price volatility.
- Sustainability: By mining with Sazmining, you’re contributing to Bitcoin’s security while supporting a carbon-free energy approach, reducing environmental impact, and aligning with long-term sustainability goals.
3. How long until I see a return on investment (ROI)?
The ROI question depends on how you approach Bitcoin mining—are you mining to stack fiat or to stack sats?
If your goal is to stack sats, mining provides you with wild sats, and you’ll want to compare their costs to what it would cost to purchase them via an exchange.
Below is an example of the estimated earnings and costs for the rigs we offer:
- Norway (WhatsMiner M63S):
- Gross Monthly Revenue: $525 (535,319 sats)
- Estimated Service Fee: $239
- Management Fee: 80,000 sats (20% of 400K default threshold)
- Net Monthly Revenue: $286
- Paraguay (Bitmain S21 Pro):
- Gross Monthly Revenue: $340 (346,598 sats)
- Estimated Service Fee: $141
- Management Fee: 60,000 sats (15% of 400K default threshold)
- Net Monthly Revenue: $199
- Paraguay (Bitmain S21):
- Gross Monthly Revenue: $284 (288,832 sats)
- Estimated Service Fee: $141
- Management Fee: 60,000 sats (15% of 400K default threshold)
- Net Monthly Revenue: $143
Mining is a long-term investment. While a pure fiat ROI may take several months or years, it offers steady Bitcoin accumulation directly from the network, whose value is (almost) priceless.
4. Can I buy rigs elsewhere and ship them to you?
We don’t support third-party supplied rigs at our data centers—for many good reasons.
Rigs purchased from outside sources often pose significant problems, such as:
- Repairs and Maintenance: Outside rigs can arrive in poor condition or require extensive repairs, delaying the start of mining.
- Compatibility Issues: Third-party rigs may not be compatible with our renewable energy infrastructure, leading to inefficiencies or downtime.
- Counterfeits or Subpar Quality: Unfortunately, the market is rife with fake or low-quality rigs, which can create headaches for customers and our team.
By sourcing the rigs ourselves, we ensure they are brand new, fully managed, and optimized for immediate deployment. This allows you to start mining quickly, with no unexpected setbacks.
5. Can I choose my mining pool or control my rig directly?
Currently, Saz works exclusively with Luxor Mining Pool, a high-quality FPPS (Full Pay Per Share) pool. Luxor guarantees payouts in proportion to the hashrate contributed, ensuring you’re directly rewarded with wild sats mined from the Bitcoin network.
Here’s why this is beneficial:
- Consistent Payouts: FPPS pools like Luxor provide stable, predictable earnings by paying out miners based on their contribution to the pool’s total hashpower.
- Low Fees: Luxor charges just 0.7%, making it one of the industry's most cost-effective mining pool options.
- Seamless Integration: Luxor integrates perfectly with our operations, ensuring your rigs perform at peak efficiency.
We’ve heard from customers who prefer more flexibility in mining pools. Due to popular demand, we are actively working to integrate OCEAN Mining Pool into our service, giving you additional options for managing your rigs in the future.
Have More Questions?
We hope this FAQ addresses your biggest concerns about Bitcoin mining with Saz.
If you still have questions, don’t hesitate to contact our Customer Success Associates (CSAs) or review how our business model works. We’re here to help you make an informed decision and start mining with confidence.
Ready to mine Bitcoin sustainably and hassle-free 👉 Explore our rigs today!
Definition of Rig Performance
*Rig performance reflects the machine’s ability to hash at its OEM/nameplate hashrate, accounting for scheduled curtailment and excluding necessary maintenance downtime.
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