Thanks for clarifying DannyHamilton.
So I've been running some numbers and came across this thread. I have a question to ask: I know a lot of folks are into mining, but I can't figure out how it's really that profitable for them to do so, after all the costs are factored in. I then took a look at mining contracts, with electricity, and the myriad of other expenses factored in, and again, I still can't see how it pays off for folks at the growing level of difficulty.
What am I getting wrong?
So I've been running some numbers and came across this thread. I have a question to ask: I know a lot of folks are into mining, but I can't figure out how it's really that profitable for them to do so, after all the costs are factored in. I then took a look at mining contracts, with electricity, and the myriad of other expenses factored in, and again, I still can't see how it pays off for folks at the growing level of difficulty.
What am I getting wrong?
Nothing.
There are generally 3 types of miners.
1) Those with access to cheap electricity who are able to acquire the fastest, and most efficient new technology earliest at a competitive price, and are therefore able to turn a quick profit on their new equipment before the difficulty catches up with them.
2) Those who aren't very good at maths and fail to realize that they would have had more bitcoins if they used the same amount of money to purchase bitcoins directly as they spent on trying to mine them.
3) Those who participate in mining as a hobby, knowing that they are getting less bitcoins than they otherwise could have, but finding additional value in what they learn and the sense of contributing to something worthwhile.
I suppose there are some people who manage to find a really good deal on used equipment, or who have access to really cheap electricity, or who manage to find someone foolish enough to buy the mining equipment from them at ridiculously high prices. There is a chance that some of those people are able to turn a bit of a profit.
