Alt coin mining profitability - What am I missing?

miner2002

newbie

Activity: 26

Merit: 0

Quote from: wheatrich on November 30, 2013, 03:18:54 PM

nice apples to oranges math

OP--you're missing the fact that difficulty is about to spike like hell. Welcome to the arms race again.

Yes, it's better to buy but in some places *cough US cough* it's MUCH easier to buy mining equip than it is the coins.

In the case of GPU's you also have a hedge against a massive price drop.

I'm with you. I just got into this so I'm sure I don't know how bad the spike will be, but I would expect it to be much more difficult quickly as people see the potential. Worth the gamble in my opinion

wheatrich

member

Activity: 89

Merit: 10

nice apples to oranges math

OP--you're missing the fact that difficulty is about to spike like hell. Welcome to the arms race again.

Yes, it's better to buy but in some places *cough US cough* it's MUCH easier to buy mining equip than it is the coins.

In the case of GPU's you also have a hedge against a massive price drop.

Lauda

legendary

Activity: 2674

Merit: 3000

Terminated.

Quote from: PenAndPaper on November 30, 2013, 08:25:09 AM

Obviously almost in all cases it's better to buy bitcoins directly than mining equipment. People buy miners because they can't do basic maths. Are you among them? Tongue

Really? Basically you're saying that miners made a bad choice for investing in mining.
Your logic is beyond me. I've been mining for 2 months with rig C, kept all the coins it has generated. I've done the math and buying bitcoin back then (with the amount of money that I spend for the rig), would have earned me much less. While bitcoin is on the road for a tenfold increase, some coins have had much more than that.
*points at MEC, initial blocks of 500* Cheesy

Can't do basic math, pf.

PenAndPaper

sr. member

Activity: 252

Merit: 250

Quote from: miner2002 on November 30, 2013, 11:18:27 AM

With the jump in alt coin pricing over the last 30 days, I think we're in a different environment than before and the rules have changed.

I agree that the rules have changes and i think they changed 've in many levels not only on mining.
For all i know people are looking for the next coin that is going to get pumped. Seems it's ppc turn now.

Quote from: x0rcist on November 30, 2013, 11:22:10 AM

profitability is over 1000% more then a week ago, its crazy (on a hd7950 you can earn 30$ p/day atm).......... it looks almost like manipulated market Wink

What coin do you mine and you get a return of 30$/day with your 7950?

An amorous cow-herder

sr. member

Activity: 322

Merit: 250

Quote from: x0rcist on November 30, 2013, 11:22:10 AM

profitability is over 1000% more then a week ago, its crazy (on a hd7950 you can earn 30$ p/day atm).......... it looks almost like manipulated market Wink

Yeah, the prices on some of the alts are more than weird currently. My best guess is that in the wake of the bitcoin rise quite a few investors are buying alt coins "just in case". Might as well get going while the going is good Wink

No idea how long this will last, but i aint complaining.

x0rcist

full member

Activity: 238

Merit: 100

Quote from: miner2002 on November 30, 2013, 11:18:27 AM

Quote from: PenAndPaper on November 30, 2013, 08:25:09 AM

Quote from: Lauda on November 30, 2013, 07:28:42 AM

Quote from: An amorous cow-herder on November 30, 2013, 04:43:19 AM

Assuming a fairly low difficulty increase of 80%/month a block eruptor would make like $17 if it started mining today. Best prices on ebay are around $50. Well, assuming BTC hits like 3.5k it will break even. In which case it would have been better just buying bitcoins ...

You could have bulk purchased a while ago for less than that. Also if you use that logic (which is beyond any common sense), buying bitcoin is always better than buying mining equipment.

Obviously almost in all cases it's better to buy bitcoins directly than mining equipment. People buy miners because they can't do basic maths. Are you among them? Tongue

With bitcoins, I agree with you. However, if Alt coin prices stays high, there's a good chance you can make an ROI or break even and then mine speculatively from there. With the jump in alt coin pricing over the last 30 days, I think we're in a different environment than before and the rules have changed.

I'll bump this thread up in 30 days and let you guys know how my investment did.

profitability is over 1000% more then a week ago, its crazy (on a hd7950 you can earn 30$ p/day atm).......... it looks almost like manipulated market Wink

miner2002

newbie

Activity: 26

Merit: 0

Quote from: PenAndPaper on November 30, 2013, 08:25:09 AM

Quote from: Lauda on November 30, 2013, 07:28:42 AM

Quote from: An amorous cow-herder on November 30, 2013, 04:43:19 AM

Assuming a fairly low difficulty increase of 80%/month a block eruptor would make like $17 if it started mining today. Best prices on ebay are around $50. Well, assuming BTC hits like 3.5k it will break even. In which case it would have been better just buying bitcoins ...

You could have bulk purchased a while ago for less than that. Also if you use that logic (which is beyond any common sense), buying bitcoin is always better than buying mining equipment.

Obviously almost in all cases it's better to buy bitcoins directly than mining equipment. People buy miners because they can't do basic maths. Are you among them? Tongue

With bitcoins, I agree with you. However, if Alt coin prices stays high, there's a good chance you can make an ROI or break even and then mine speculatively from there. With the jump in alt coin pricing over the last 30 days, I think we're in a different environment than before and the rules have changed.

I'll bump this thread up in 30 days and let you guys know how my investment did.

PenAndPaper

sr. member

Activity: 252

Merit: 250

Quote from: Lauda on November 30, 2013, 07:28:42 AM

Quote from: An amorous cow-herder on November 30, 2013, 04:43:19 AM

Assuming a fairly low difficulty increase of 80%/month a block eruptor would make like $17 if it started mining today. Best prices on ebay are around $50. Well, assuming BTC hits like 3.5k it will break even. In which case it would have been better just buying bitcoins ...

You could have bulk purchased a while ago for less than that. Also if you use that logic (which is beyond any common sense), buying bitcoin is always better than buying mining equipment.

Obviously almost in all cases it's better to buy bitcoins directly than mining equipment. People buy miners because they can't do basic maths. Are you among them? Tongue

An amorous cow-herder

sr. member

Activity: 322

Merit: 250

Quote from: Lauda on November 30, 2013, 07:28:42 AM

You could have bulk purchased a while ago for less than that. Also if you use that logic (which is beyond any common sense), buying bitcoin is always better than buying mining equipment.

Sure at certain points in time it would have made sense or makes sense.
But whats wrong with my logic there? I look at the price of mining equipment in BTC (or whatever altcoin i want to mine), then i try to estimate how many coins i will get from mining. If i would get fewer coins back then i spent on the mining equipment its a bad idea. Simple as that. Otherwise you spent coins to "enjoy the luxury of mining".

PenAndPaper

sr. member

Activity: 252

Merit: 250

I don't think that you are missing something it's just that prices of alt coins are through the roof.
For all i know people will start buying gpu's again Tongue

Lauda

legendary

Activity: 2674

Merit: 3000

Terminated.

Quote from: An amorous cow-herder on November 30, 2013, 04:43:19 AM

Assuming a fairly low difficulty increase of 80%/month a block eruptor would make like $17 if it started mining today. Best prices on ebay are around $50. Well, assuming BTC hits like 3.5k it will break even. In which case it would have been better just buying bitcoins ...

You could have bulk purchased a while ago for less than that. Also if you use that logic (which is beyond any common sense), buying bitcoin is always better than buying mining equipment.

An amorous cow-herder

sr. member

Activity: 322

Merit: 250

Quote from: Lauda on November 30, 2013, 02:23:47 AM

Quote from: An amorous cow-herder on November 29, 2013, 11:19:25 PM

You might as well say mining is an addition then as well. At the prices some of the devices are going (USB block eruptors anyone?) a lot of people are likely wasting money instead of making it.

At the current prices, even USB eruptors ROI/make money. Correct me if I'm wrong.

Assuming a fairly low difficulty increase of 80%/month a block eruptor would make like $17 if it started mining today. Best prices on ebay are around $50. Well, assuming BTC hits like 3.5k it will break even. In which case it would have been better just buying bitcoins ...

Lauda

legendary

Activity: 2674

Merit: 3000

Terminated.

Quote from: An amorous cow-herder on November 29, 2013, 11:19:25 PM

You might as well say mining is an addition then as well. At the prices some of the devices are going (USB block eruptors anyone?) a lot of people are likely wasting money instead of making it.

At the current prices, even USB eruptors ROI/make money. Correct me if I'm wrong.

miner2002

newbie

Activity: 26

Merit: 0

Yes, I have noticed difficulty going up as well. To be expected!

Even still, with money flowing into Alt coins I think mining will continue to be profitable even for GPU mining without a custom rig. Who knows, but looking at the current numbers I think I'll be able to at least break even. You can look at threads from early november talking about GPU mining being dead and not worth it, but with the rise in alt coin pricing I don't think that's the case anymore.

I think if you believe alt coins will have a place in the market going forward (which I do) then mining is worth the gamble.

An amorous cow-herder

sr. member

Activity: 322

Merit: 250

Quote from: miner2002 on November 29, 2013, 07:20:37 PM

I'm using coinotron. Pretty easy to set up.

Does anyone else have recommendations for a different pool? I didn't put a ton of researching into the pool I selected so I'm sure there's better options.

Also using coinotron. And difficulty went up quite a bit during last retarget. If the next one has a similiar jump i might go back to LTC ...

An amorous cow-herder

sr. member

Activity: 322

Merit: 250

Quote from: Lauda on November 29, 2013, 06:45:58 PM

Quote from: An amorous cow-herder on November 29, 2013, 06:31:18 PM

Geez, some people have hobbies, you know. And a couple of lucky few gamers even make more a lot more money gaming than you could with mining.

That's like saying: a couple of lucky few tennis players even make more than you could with mining.
Nice comparison. It's most likely an addiction, not a hobby.

You might as well say mining is an addition then as well. At the prices some of the devices are going (USB block eruptors anyone?) a lot of people are likely wasting money instead of making it.

miner2002

newbie

Activity: 26

Merit: 0

I'm using coinotron. Pretty easy to set up.

Does anyone else have recommendations for a different pool? I didn't put a ton of researching into the pool I selected so I'm sure there's better options.

9971ea1a

newbie

Activity: 56

Merit: 0

Quote from: miner2002 on November 28, 2013, 07:22:28 PM

I'm currently mining FTC coins on my gaming rig (Nvidia 770) and I'm getting close to 10 coins per day.

Which pool are you using?

Lauda

legendary

Activity: 2674

Merit: 3000

Terminated.

Quote from: An amorous cow-herder on November 29, 2013, 06:31:18 PM

Quote from: Lauda on November 29, 2013, 01:03:10 PM

You should consider quitting gaming and just focus on mining, just a suggestion.

Geez, some people have hobbies, you know. And a couple of lucky few gamers even make more a lot more money gaming than you could with mining.

That's like saying: a couple of lucky few tennis players even make more than you could with mining.
Nice comparison. It's most likely an addiction, not a hobby.

An amorous cow-herder

sr. member

Activity: 322

Merit: 250

Quote from: Lauda on November 29, 2013, 01:03:10 PM

Quote from: miner2002 on November 29, 2013, 09:38:19 AM

Not to go too off topic here, but that's a matter of personal preference. You don't NEED a 290 to game, but when you're playing BF4 a higher end card like the 290 makes a very noticeable difference.

You have every right to your opinion though

No, it makes almost no difference. It is overkill.

You dont even know what kind of setup the OP has. Some people have dual or even quad monitor setups, you know.

Quote from: Lauda on November 29, 2013, 01:03:10 PM

You should consider quitting gaming and just focus on mining, just a suggestion.

Geez, some people have hobbies, you know. And a couple of lucky few gamers even make more a lot more money gaming than you could with mining.

Topic: Alt coin mining profitability - What am I missing? (Read 3017 times)