Topic: No ROI on future Mining, its a FACT! - page 3. (Read 10203 times)

There is a world of difference between operating existing gear, and buying new hardware.

For the existing gear, your capital is already spent.  All you need to do is cover power, network and labor.  Any earnings above this level recover some portion of the capital you investing into the hardware, so you run it until your power costs exceed income.  Even if all you manage is to reduce the amount of your initial investment that is lost, a rational actor runs the gear.

For a rational person to buy new equipment there needs to be an expectation that all of the required funds will be recovered, and a profit commensurate with the risk will be earned.

With the current difficulty growth rate, and hardware costs, rational people are standing back.

or I am missing a very crucial point somewhere.

Basically, I was thinking of investing in 2T miners from various suppliers.

Lets take the most optimistic example, solar panels, electricity is free, all items gets shipped in time, lets say in March 2014 and also take the predicted end of Feb 2014 difficulty level of 5.4 mill as a base for March 2014

(http://www.vnbitcoin.org/bitcoincharts.php)

it means I can mine 0.18 coins a day till about 10 days, when the difficulty jumps to 7.1mill what makes 0.14 coins a day for 10 days:

0.18 BTC 10 days = 1,8 BTC - diff 5.4mill - 1 March 2014
0.14 BTC 10 days = 1.4 BTC - diff 7.1mill - 11 March 2014
0.11 BTC 10 days = 1.1 BTC - diff 9.1mill - 21 March 2014
0.08 BTC 10 days = 0.8 BTC - diff 11.1mill - 1 April 2014
0.06 BTC 10 days = 0.6 BTC - diff 15.1mill - 11 April 2014

Total 5.7BTC mined in a bit over a month in a very very optimistic scenario, now the cheapest 2Th is from black arrow for over $5k, what is over 7+BTC.

If I do the very same calculations with a 60Gh BFL mining rig, I get exactly the very same poor result.

It is just make no sense to buy any mining rig, rather than to buy the BTC instead, not mention lot less stressful and simple solution with better ROI.

Can someone pls enlighten me what I am missing from the calculations? how come that these rigs are sold? (neptunes for example?) and the BFLs are still selling way over priced on ebay?

Thanks much
Regards
Pete

Since you have no interest in a discussion based in reality, go do whatever you want.

Hand waving about dollar depreciation is meaningless when inflation is 4% a year and your are comparing to mining difficulty which inflates 30% every 2 weeks.

Some buy it for fun.

Everyone should stop mining. And buy bitcoins instead. 

Asics are about to make them selfs extinct,you have been warned

That sounds terrible...

20 years from now, if the printing presses (or digital ones), keep rolling like they are now, you won't be able to buy a burger with $10,000, and your retirement will be worth crap.

I'd rather take my chances with Bitcoin than with the Federal Reserve and crappy government social security promises. Veteran's pensions just got cut, on the whims of Congress. What's to say that won't happen again, and again, and also with Social Security?

 
Why can't you understand that taking 5 BTC, or funds equal to it, and turning it into a machine that will only mine 2 BTC before the cost of operating it exceeds the revenue from mining is a bad plan?

Mining hardware is an option on future coins.  If you can buy equivalent coins now cheaper than the mining hardware it's a bad investment.  It might ALSO be a bad investment to buy coins but that is an independent decision.  The first question is can I acquire more coins in the future buying this gear?  And if so, does the gain in coins at some point in the future justify giving up access to the funds, and the risk of hardware failure, late or non-delivery, and pay for the work of operating the equipment.

So you turned 5 BTC into 1.5 BTC?

Proof of Witchcraft, which is very well known for its energy efficiency.

What's PoW?

Bitcoin is based on PoW, how can you say that?

Bitcoin is based on PoW, how can you say that?

Bitcoin will revolutionize not only money/markets etc, but many other aspects of our life. It will bring free abundant energy possibilities soon enough.