If you had $5000 to invest right now: Coins or Hardware? Whats your rationale? - page 3.

Fuzzy

hero member

Activity: 560

Merit: 500

Quote from: mufa23 on May 12, 2012, 11:09:07 AM

I am roughly paying $2.5MH/s. I spent $800 for 2GH/s. Which brings in about 1.2BTC/day (Mining at EMC). At $5/Bitcoin, I will have paid itself off in around 160 days (5.3 months). With the remaining 205 days left in the year, I would make 246BTC at current difficulty. Multiple those coins by 5 (dollars), and you come up with $1,230 of pure profit.

So now knowing this, I would spend $5k for roughly 12.5GH/s (7.5BTC/day). Which would pay itself off after 160 days, bringing in a total profit of 1,537.5BTC ($7,687.5 USD). Now if at the end of the year I could sell off the hardware for half of what I bought it for, I would have turned 5k into 10k within the year.

Sounds worth it to me.

How do you do that? $0.4 per MHs sounds unrealistic.

mufa23

legendary

Activity: 1022

Merit: 1001

I'd fight Gandhi.

I am roughly paying $2.5MH/s. I spent $800 for 2GH/s. Which brings in about 1.2BTC/day (Mining at EMC). At $5/Bitcoin, I will have paid itself off in around 160 days (5.3 months). With the remaining 205 days left in the year, I would make 246BTC at current difficulty. Multiple those coins by 5 (dollars), and you come up with $1,230 of pure profit.

So now knowing this, I would spend $5k for roughly 12.5GH/s (7.5BTC/day). Which would pay itself off after 160 days, bringing in a total profit of 1,537.5BTC ($7,687.5 USD). Now if at the end of the year I could sell off the hardware for half of what I bought it for, I would have turned 5k into 10k within the year.

Sounds worth it to me.

matthewh3

legendary

Activity: 1372

Merit: 1003

Quote from: Garr255 on May 12, 2012, 12:36:49 AM

Quote from: brunozisterer on May 12, 2012, 12:34:48 AM

Buy shares on GLBSE

+1
Do that with 1k or more then buy hardware with the rest.

+1

Do that and give the Hashking a large deposit as well.

Rational: Spread it around

Garr255

legendary

Activity: 938

Merit: 1000

What's a GPU?

I agree with the posts above. Just buy all the coins being sold for <$5 Cheesy

proudhon

legendary

Activity: 2198

Merit: 1311

Quote from: Fuzzy on May 12, 2012, 07:31:02 AM

Quote from: mufa23 on May 12, 2012, 01:12:18 AM

Hardware by far! It would pay itself off after 5-7 months (that's including the electric bill)

By my Calculations, even at a measly 5% difficulty increase per re-target, the hardware wouldn't have paid off even after a year.
And that's assuming you could get $5000 worth of Mini-rig Value hashing power delivered today.

From my calcs, you'd only have 821 BTC after a year, whereas you could buy 1000 BTC now and save yourself the electricity/heat/hassle of dealing with the hardware.

Will post excel img in a sec

Bingo.

Fuzzy

hero member

Activity: 560

Merit: 500

Quote from: mufa23 on May 12, 2012, 01:12:18 AM

Hardware by far! It would pay itself off after 5-7 months (that's including the electric bill)

By my Calculations, even at a measly 5% difficulty increase per re-target, the hardware wouldn't have paid off even after a year.
And that's assuming you could get $5000 worth of Mini-rig Value hashing power delivered today.

From my calcs, you'd only have 821 BTC after a year, whereas you could buy 1000 BTC now and save yourself the electricity/heat/hassle of dealing with the hardware.

This calculation is assuming:

$5000 worth of "MiniRig Value" hardware
No Delivery Wait Time
No Electricity cost
Difficulty increase of 5% every 13 days
Block split in 210 days
1000 BTC bought today at $5 ea

"Growth factor" should read "Daily reward multiplier"

EDIT: This is not an attack on people buying/making hardware or bitcoins. I'm looking for a logical discussion.
I am fully aware that a 5% difficulty increase cannot be/is impossible to guarantee/foresee, but it's the best estimate I can come up with.

mufa23

legendary

Activity: 1022

Merit: 1001

I'd fight Gandhi.

Hardware by far! It would pay itself off after 5-7 months (that's including the electric bill), then I'd really start bringing in the dough. Would have made $10k in a year (5k the first, 10k every other).

If I had a few thousand lying around, I'd be putting everything I've got into it right now. Only have a few hundred... Still have 2GH/s though. Better then nothing. 2k a year isn't too bad for now.

Fizzgig

full member

Activity: 154

Merit: 100

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.

bitlane

sr. member

Activity: 462

Merit: 250

I heart thebaron

I was/am in a similar position....and the hardware keeps a flowin' in Wink

kingkatari

full member

Activity: 126

Merit: 100

I would Buy Hardware most likely BFL singles to mine up more then enough coin to make another $5k

Garr255

legendary

Activity: 938

Merit: 1000

What's a GPU?

Quote from: brunozisterer on May 12, 2012, 12:34:48 AM

Buy shares on GLBSE

+1
Do that with 1k or more then buy hardware with the rest.

brunozisterer

full member

Activity: 265

Merit: 100

Buy shares on GLBSE

proudhon

legendary

Activity: 2198

Merit: 1311

With $5000 I'd go short on bitcoinica right now. Oh, wait...

check_status

full member

Activity: 196

Merit: 100

Web Dev, Db Admin, Computer Technician

Quote from: Astro on May 11, 2012, 10:50:11 PM

I'd invest it all in Matthew. What could go wrong?

Are more masks a good thing?

Astro

sr. member

Activity: 284

Merit: 250

I'd invest it all in Matthew. What could go wrong?

check_status

full member

Activity: 196

Merit: 100

Web Dev, Db Admin, Computer Technician

Right now I would buy coin and look for somewhere around $0.25 per BTC to sell at, study the markets to see when to sell and which price. Buy hardware from your profit. Cheesy

the joint

legendary

Activity: 1834

Merit: 1020

For me and my individual situation, the answer is hardware, without hesitation.

Edit: Zero electric cost to me.

Fuzzy

hero member

Activity: 560

Merit: 500

As the topic states, if you had $5000 that you wanted to invest, would you buy coins outright, or mining hardware? What and why? I'm sure a few people on these boards are facing a similar conundrum.

EDIT:

Quote from: Fuzzy on May 12, 2012, 07:31:02 AM

This calculation is assuming:

$5000 worth of "MiniRig Value" hardware
No Delivery Wait Time
No Electricity cost
Difficulty increase of 5% every 13 days
Block split in 210 days
1000 BTC bought today at $5 ea

"Growth factor" should read "Daily reward multiplier"

EDIT: This is not an attack on people buying/making hardware or bitcoins. I'm looking for a logical discussion.
I am fully aware that a 5% difficulty increase cannot be/is impossible to guarantee/foresee, but it's the best estimate I can come up with.

Topic: If you had $5000 to invest right now: Coins or Hardware? Whats your rationale? - page 3. (Read 7043 times)