Sell the mine and take the cash or keep mining into the unknown?

Sell the mine and take the cash or keep mining into the unknown.

As presented with an interesting choice today, we have a mine and Ethereum mine that lives in South Australia of all places.

I live up here in Byron Bay.

And the gentleman that looks after that mine sent me an offer.

He said, hey, guess what's going on, we've got an option to sell the mine.

If you don't know, Ethereum has been highly profitable for the last couple of years, the mines have been doing really well.

But there is a problem on June 22 Ethereum is getting rid of the mines and instead, it's going to work on staking so staking is where you put up a whole bunch of Ethereum.

And you get paid a return on investment for putting up those coins.

So the mine becomes perhaps worthless, perhaps worth less than it does at the moment.

It's an unknown.

Certainly, its ability to do what it is currently doing.

goes out the window, and it will end in June 2022.

So as of this video, it's December 2021, we've got about six months left.

And the offer came and said, hey, I can get 12,000 for your mine in the States.

And the reason that we want to sell it to the States is over their electricity is three cents per hour over here in Australia 30 cents per hour.

Meaning that unless your coin is making more than $500 a quarter, roughly the cost of running the electricity here, then you're basically trading money for money, there's no point.

Now could you find ways yes, you could run more solar, perhaps you can buy a battery and have the cost of electricity dropped greatly.

But that wasn't the offer.

The offer was, hey, we'll give you 12,000 For what was 17,009 months ago.

And what do you want to do? Now, this is an interesting decision.

This is a sell the asset for cash now, or keep the asset mine for the next six months and then enter into the unknown.

Now if you're familiar with crypto, you'll be familiar with one word, which is volatility.

Even yesterday, or today, I believe Bitcoin was dropped like 20k in Aussie dollars down from like 95 to 75.

And is back on the up again.

But these massive volatile experiences make it very great for trading but difficult if you're looking for consistent income.

So we've got this event coming June 2022.

If it stays on course, up until that point, you can mine with the mine up after that point, unknown, unknown.

And so really the decision comes, should we sell the asset? Should I sell the asset and take the cash? Or do I keep the asset and keep the ability to keep going and take what I can until June 2022, and then deal with the problem there.

Now there are definitely other coins that can be mined, Raven coin Mineiro amongst them.

So it's not that there is no work to be done.

It's just that every miner will face the same problem in June 2022.

Suddenly, there is not going to be Ethereum to mine.

And the question will be what will get mined.

And as all of that resource, all of those graphics cards come into those other coins, what's going to happen to them, well, potentially they could drop and be worth even less.

So now we've got a lot of supply, not much demand, the coins go down, the cost of electricity now exceeds any production of coins.

And so the mine starts shutting down and then I'm left with a no 14 Odd graphics cards which are not cutting edge, there's no value to the game is and so they become just relatively worthless.

So this is a difficult decision.

Do I know what I'm going to do right now? I don't need to look at the sums I need to look at our risk and make the assessment.

And that assessment will largely at this moment go well, how much should I make in the next six months? And is it worth it? Will it be more than $12,000? I don't know.

But that's at least the sum.

Am I willing to take what I can earn over the next six months? subtract it from 12,000 and be happy to have 14 graphics cards worth potentially very little or should I take this cash now I don't know.

What I want you to consider is that when I sell the mine, the ability for that mine to make me money goes out the window.

This is logical if you sell an asset you no longer get to enjoy that asset.

But there is one class of assets where this is not quite true.

Do you know what it is? Well, guess what it is IT systems.

You see, if you have the systems for an operating business that thrives and works and is profitable without you, you can sell that business and take a copy of all of those systems.

Now, they may not be perfect, they may not be an exact match for the new business, but a lot of the business's functions will be the same, they're still going to need to market, they're going to need to advertise.

They're going to need to sell, they're going to need to fulfill, and they're going to need to run people and accounting and legal and insurance.

All of these things will remain the same, even if the actual product itself and who they're selling to changes.

And you see, once you have that initial business up and running, your ability now becomes to sell that entire business at a high margin, and immediately have a new business to go yes, it will take work.

But guess what, if you can systems systemize your business, you could also systemize the development of a new business, it's the same steps, it's going to be the same over and over, do this, do this, and do this.

And this is how naval Raava Khan is pulling off businesses every three months.

This is how people buy a broken business and flip it so quickly.

Why because when they sell the business, they do not lose the systems.

So this should be your focus.

If you're in business, you should be working on how quickly can you get to your first set of systems that run a business.

Once you got those.

Guess what, rinse and repeat, rinse and repeat.

Go again.

That's all I got for you today.

I hope you took the lesson I'm curious to see what we'll do with the theory of mine.

But until then, ask yourself well how far away am I from having completed a set of systems that run my business? Alright, I look forward to seeing you on tomorrow's episode as we continue this journey into the power of systems to create results if you need help head over to systemio.dev, look forward to seeing on tomorrow's episode.