If you had $5000 to invest right now: Coins or Hardware? Whats your rationale?

Fizzgig

full member

Activity: 154

Merit: 100

Quote from: Fizzgig on May 12, 2012, 01:02:27 AM

I would buy coins, what can equipment return in a year? after 1 year the inflation rate cuts in half, then less as demand inevitably increases. Speculation ftw.

Price of bitcoin during time of quote (May 12): $5.10
Price of bitcoin now (Aug 4): $11.10
Invest $5000 into bitcoin during time of original post: 980 bitcoins
Value of investment after 11 weeks: $10,878, increase of 118% IN 80 DAYS!

How long can this insane increase continue? Who still doubts bitcoins are going to be worth hundreds some day?

Anyway...Sell half and invest $5400 into equipment. Problem solved.

notme

legendary

Activity: 1904

Merit: 1002

Quote from: Shadow383 on August 02, 2012, 11:37:48 PM

Quote from: notme on August 02, 2012, 11:36:34 PM

Quote from: Astro on August 02, 2012, 08:04:38 PM

$5000 of Facebook stock, all in.

Lol.

When they IPO'd at $38, I told several friends and family it would hit $20 before the year is up. Now, at around $23, I'm thinking the low will be around $16 for this year. I doubt it will reverse direction much next year either. Maybe sideways if you're lucky. Look at the P/E ratio and ask yourself can you wait that many years to get your money back. Sure, revenues could rise, but why would they? Every step they take seems to drive away users since they are slowly realizing they are the product, not the customer.

Did you short it? I did, made a month's pay in one trade Grin

Nope... all my trading money was already allocated. Mostly in bitcoin Wink

. Stocks are iffy for me anyway since there is too easy for them to get away from reality with today's financial system.

Shadow383

sr. member

Activity: 336

Merit: 250

Quote from: notme on August 02, 2012, 11:36:34 PM

Quote from: Astro on August 02, 2012, 08:04:38 PM

$5000 of Facebook stock, all in.

Lol.

When they IPO'd at $38, I told several friends and family it would hit $20 before the year is up. Now, at around $23, I'm thinking the low will be around $16 for this year. I doubt it will reverse direction much next year either. Maybe sideways if you're lucky. Look at the P/E ratio and ask yourself can you wait that many years to get your money back. Sure, revenues could rise, but why would they? Every step they take seems to drive away users since they are slowly realizing they are the product, not the customer.

Did you short it? I did, made a month's pay in one trade Grin

notme

legendary

Activity: 1904

Merit: 1002

Quote from: Astro on August 02, 2012, 08:04:38 PM

$5000 of Facebook stock, all in.

Lol.

When they IPO'd at $38, I told several friends and family it would hit $20 before the year is up. Now, at around $23, I'm thinking the low will be around $16 for this year. I doubt it will reverse direction much next year either. Maybe sideways if you're lucky. Look at the P/E ratio and ask yourself can you wait that many years to get your money back. Sure, revenues could rise, but why would they? Every step they take seems to drive away users since they are slowly realizing they are the product, not the customer.

smoothie

legendary

Activity: 2492

Merit: 1473

LEALANA Bitcoin Grim Reaper

Coins.

Simply because with mining it is a race to who gets their order first and also who pays the least for electricity.

I say coins will be a better bet than trying to mine. Just like in early 2011 if you bought a ton and didnt mine you would still have had 2.5x more coins than if you tried mining 24/7 for the next 6 months.

Bitcoins are waaaaaaaay undervalued. Once mining hardware hits the scene difficulty and price will skyrocket.

Shadow383

sr. member

Activity: 336

Merit: 250

Quote from: Astro on August 02, 2012, 08:04:38 PM

$5000 of Facebook stock, all in.

You sure you don't want to pick up some Greek government bonds whilst you're at it? Wink

Astro

sr. member

Activity: 284

Merit: 250

$5000 of Facebook stock, all in.

Garr255

legendary

Activity: 938

Merit: 1000

What's a GPU?

Quote from: notme on August 02, 2012, 07:15:17 PM

Quote from: check_status on May 13, 2012, 03:25:07 PM

This Trend Graph is based on the market prices for each month, projected out until march 2013.

Horrible X-axis labeling. What month does it start at?

You can't subtract from

Quote from: check_status on May 13, 2012, 03:25:07 PM

march 2013

?

notme

legendary

Activity: 1904

Merit: 1002

Quote from: check_status on May 13, 2012, 03:25:07 PM

This Trend Graph is based on the market prices for each month, projected out until march 2013.

Horrible X-axis labeling. What month does it start at?

Phinnaeus Gage

legendary

Activity: 1918

Merit: 1570

Bitcoin: An Idea Worth Spending

I have not read past post #2, therefore this may be already addressed. I would say either if you have faith in Bitcoin. As for buying hardware, I say the hell with the electricity cost, for that would be overcome down the road provided you hold unto your bitcoins, paying the electric company with fiat.

Via buying coins, I would hold onto them until the price you paid for your coins doubles, then spend half your coins, keeping the other half. Then if by chance Bitcoin goes to zero, you are even, but cashing out at any point prior to even is your profit. If the price doubles again, do the same thing, at which point you have made another 100% profit and still have 1/4 of your coins in your wallet(s).

Hope that helps.

~Bruno~

Aseras

hero member

Activity: 658

Merit: 500

Or for someone who mined a ton of coins early and can afford to "waste" them on FPGA or asics or whatever without real cost to them. The buy in cost is killer. Long term is useless if you don't have a powerful setup and be able to stay on the bleeding edge long enough to break even. even now that gap is widening between the hobbyists and the professionals to the point where unless you are perpetually investing returns you won't make it long. I've paid for my 5830s and 5850s many times over. I doubt many will see 3-4 times the cost of the next big thing. FPGA or mini rig or asic unless they are willing to invest at a loss long enough and hard enough to drive the little guys out and essentially carve a niche out.

Bitcoin Oz

hero member

Activity: 686

Merit: 500

Wat

Mining will only be profitable if you dont have to pay eletricity or rent.

Find someone who has free/cheap electricity and rent on glbse and buy their shares is my tip.

Aseras

hero member

Activity: 658

Merit: 500

Well if I had to pay, power here is 5 cents. $.05/kwhr here. It's cheap. Luckily I can run my farm where I have "free" power and climate control. Aside from maintenance and reinvestment, my mining is pure profit.

SgtSpike

legendary

Activity: 1400

Merit: 1005

Quote from: Aseras on May 25, 2012, 11:01:34 AM

If anyone can figure this out they should be playing the stock market.

$5000 can buy a lot of hardware depending on the goods and a deal.

I just saw 6 5830, 2 5850 and 4 5870 sell for ~$1000. ( http://hardforum.com/showthread.php?t=1695049 ) That's 5.8gh

Figure a couple good deals like that plus some other hardware costs and you have 15-20 gh for your 5 grand.

If you have cheap or free power you are golden and break even in 3-4 months.

That's a big if though. 15-20 GH/s of GPU hashing power is gonna be 5,000 to 10,000 watts of power. You have to be able to have wiring to support that much of a power draw, as well as cheap enough electricity to make it work.

Assuming worst case scenario, and it draws 10,000 watts while only getting 15 GH/s, and also assuming that you don't need HVAC, you'd have to have an electric rate less than $0.14/kwh in order to make ANY money whatsoever.

Aseras

hero member

Activity: 658

Merit: 500

If anyone can figure this out they should be playing the stock market.

$5000 can buy a lot of hardware depending on the goods and a deal.

I just saw 6 5830, 2 5850 and 4 5870 sell for ~$1000. ( http://hardforum.com/showthread.php?t=1695049 ) That's 5.8gh

Figure a couple good deals like that plus some other hardware costs and you have 15-20 gh for your 5 grand.

If you have cheap or free power you are golden and break even in 3-4 months.

Fuzzy

hero member

Activity: 560

Merit: 500

Quote from: Seal on May 24, 2012, 07:45:47 PM

Spend $2k on Mining Hardware (sounds like you wanna play anyway)
Spend $2k on coins
Spend $1k on Bitcoin investments (setting up a site... buying bitcoin related shares etc...)

Diversification. The lowest risk, and the highest potential upside. Mining will return you consistent income on your spending, but will by no means make you rich.

Seal

donator

Activity: 848

Merit: 1078

Spend $2k on Mining Hardware (sounds like you wanna play anyway)
Spend $2k on coins
Spend $1k on Bitcoin investments (setting up a site... buying bitcoin related shares etc...)

Diversification. The lowest risk, and the highest potential upside. Mining will return you consistent income on your spending, but will by no means make you rich.

Fuzzy

hero member

Activity: 560

Merit: 500

Quote from: arklan on May 24, 2012, 06:59:03 PM

of course, i think 1 year is short sighted. afterall, the hardware isn't ALL going to melt down into piles of goo in exactly 12 months.

I've talked to a CA and am working on a even more flawed 2 year projection that accounts for capital gains, net losses, and hardware depreciation write offs.

This WILL require an estimate of BTC value in 2 years, but will be used as a user input, so you can guess at whatever value you think is best.

So many negative trolls, so few tangible solutions Tongue

arklan

legendary

Activity: 1778

Merit: 1008

Quote from: giszmo on May 24, 2012, 07:19:28 PM

Quote from: arklan on May 24, 2012, 06:59:03 PM

very interesting thread.

of course, i think 1 year is short sighted. afterall, the hardware isn't ALL going to melt down into piles of goo in exactly 12 months. it'll keep earning. also, as we've just seen, the difficulty is far more fungible then a steady 5% increase.

i say hardware - and the lower the electricity it uses, the better!

oh, i guess in one year you will not burn all your hardware but with my 8 cards the trend was going in that direction.

...ouch. sympathies. maybe i've been lucky, i don't know. been running full tilt for 8 months or so now without a mining related death.

giszmo

legendary

Activity: 1862

Merit: 1114

WalletScrutiny.com

Quote from: arklan on May 24, 2012, 06:59:03 PM

very interesting thread.

of course, i think 1 year is short sighted. afterall, the hardware isn't ALL going to melt down into piles of goo in exactly 12 months. it'll keep earning. also, as we've just seen, the difficulty is far more fungible then a steady 5% increase.

i say hardware - and the lower the electricity it uses, the better!

oh, i guess in one year you will not burn all your hardware but with my 8 cards the trend was going in that direction.

Topic: If you had $5000 to invest right now: Coins or Hardware? Whats your rationale? (Read 7041 times)