Topic: Bitcoin Mining Not Profitable Anymore, through Hardware or Hashing Contracts!! (Read 8028 times)

In layman terms, what I see is that you are not even getting back 50% of what you spend if you start a bitcoin mining project/contract right now.

And though the miner manufacturers are shipping out new hardware every day, new investors fail to notice that there isn't going to be ANY profit at all.

People who invested in the hardware last year, broke even and are now profitable would as well start to give up by Jan/2015.

It's that tough. Cloud hashing companies are simply sucking away the money of novice mining investors.

  

using 20% as your diff jump number is wrong.   go back to dec 2013  the 21st  that was 30 % jump.

Since that date diff has average 18%.  

why is that asic gear has become more common and no longer offers   tremendous power improvement.

So power cost has become a bigger factor and growth has been slower.

I think the the 18% growth from Dec 21st 2013 to June 29th shows this post cost factor.

I think that the June 29th to Dec 30th growth will be under 18% if btc stays at 600 to 700 usd.

I think power savings will decrease  as asic tech matures.



So plug in 14% from June 29th 2014 to Jan 1 2015   and see what you get.

I'll give you simple answer without analysing it further.
It isn't profitable as difficulty rises by around 20% every 2016 blocks (9-10 days circa).

the only way Bitcoin is going to go up in value is if the USD that's backing it disintegrates much like the Deutsch Mark did during the Weimar Republic..

Then each BitCoin will be worth thousands if not hundreds of thousands, but what good will that do, when everything the dollar used to purchase, now takes wheelbarrows of Federal Reserve Notes to buy a fucking loaf of bread...

Unless you can somehow trade BitCoins for the Chinese Yuan or Russian Ruble. But unless you live in those parts of the world those currencies won't do you much good in the soon to be 3rd fucking world nation of Amerika.

 

Bitcoin Mining Profitable Not Anymore, through Hardware or Hashing Contracts!!

I wanted to start some Bitcoin Mining but then as I did a little research, this is what I came across.

Scenario #1
We buy a 1TH/sec capacity Dragon Miner by spending $1700 upfront for Machine and $650 in Power costs for 5 months till it stays profitable. Mining goes on for 5 months and we stop Mining at end of Nov 2014 where profits turn negative:

Total Spend: $2350 (1*$1750 + 5*$130)
Total Revenue: $1579
Total Loss: $771
Gain: Bit-mining Hardware which may be worthless if it can't mine Litecoin and other Alt coins.

Check profitability details here, under Mining Payout Schedule:
https://tradeblock.com/mining/a/64db9d8003

Scenario #2
We buy a hashing contract at Cloudhashing.com ($5000 for $1TH/s) or at Bit-miner.com ($4000 for 10 Shares ~ $1TH/s), no need for any concern about Power Costs. Mining goes on for 12 months and we stop Mining at end of June 2015 where profits turn negative:

Total Spend: $5000/$4000 depending on contract you purchased
Total Revenue: $1907
Total Loss: $2100 or $3100
Gain: NOTHING, just a big hole in your pocket (>50%)

Check profitability details here, under Mining Payout Schedule:
https://tradeblock.com/mining/a/057ce65576

Some people will argue that Bitcoin Prices may rise. That's correct but in that case it's much better to spend your money directly buying Bitcoins right away. If BTC prices go up, so would your money!

As I understand so far, starting a Bitcoin Mining right now is not wise.

All opinions/counter-opinions invited.