Topic: Please bail me out - I'm an idiot bought mining gear at the peak - page 3. (Read 21418 times)

Chicago electricity:  15c/ kWh (this is my #1 cost and its MAJOR)

Basically I'm in hell.. I'm praying for a miracle and all i see is MORE posts about people buying 6990's and other cards that are even LESS efficient than mine.. and I now realize that i'm basically up against a bunch of enthusiasts who really dont care about the economics of this at all, they just think its 'cool'

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Another very large unknown is security, with no government to create laws and more importantly enforce them with regards to stealing bitcoins, it is just like the wild west, people are stealing them and then the victims are creating lynch mobs and trying to go after them, except with absolutely no recourse as there are no laws pertaining to bitcoins.  People tout the decentralized nature of bitcoin as its greatest attribute, that may be true, but is also its greatest weakness.

I was kind of in a panic earlier, based on what i've seen here I think the solution is to mine full blast until difficulty gets too high, then in a month or so go into real-time power pricing and shut down during peak hours, then finally just sell off all rigs to gamers/miners with better power situations than me in approx 2 months.

the total hashing output should be around 12 ghash, but it would be coming online in the next few days (and im sure for others too)

Chicago electricity:  15c/ kWh (this is my #1 cost and its MAJOR)

If you really want to look at the long term, think of it this way. Eventually, an equilibrium will be reached between the people who can't maintain profitability and back out, or people discouraged with the btc values and back out, and those who stay in. Difficulty will level off, and eventually profitability will return with you at an advantage. This is in the long hall. Bitcoin has had one boom so far and I don't believe this is the end for it. I'm at about 1ghash/s and I'm satisfied to hold it out.

LOL are you guys for real?!  LOL why would he provide a proof of what he is saying??   If you think he is full of shit, just don't bother reading this thread. You keyboard commandos make me laugh.

Look, this guy really provided no proof he's even in this predicament and can't you all agree we've given him enough attention already?

Your statement reads to me as confusing. If the OP had bought in @ $30 and watched the coins plumet to $15 he'd have $5000 worth of coins now. Bitcoin prices can go... anywhere. Back to 30, up to 10000, or down below 1. OP doesn't sound like the patient optimistic type with $10,000 he can have lying around without regards for months or whatever potential time it would take to get back above $30.

Perhaps you bought in around march? In what way would you have made triple? In march prices were about $1 per coin? Let's say that. And prices were $30 per coin around Jun7th right? Difficulty was around 70,000 I believe.

So lets say you bought a mining rig on whenever and got it running march 7th, and you bought some coins on whenever around march 7th as prices were pretty flat until around april.

You could build mining rigs for about 1.7Mhash/$ pretty easily back in march, so let's compare a $10,000 buy:

$10,000 -- 10,000 coins vs 15GHash (bein generous with overheads other than rigs to compare to OPs costs), and use 15¢/kWh like OP, $26.64/day costs.

March 7th: Miner 0BTC $10000Debt , Buyer 10,000BTC $10000 Debt.

2 difficulty changes, both minor, avging to 80k difficulty generates 5,733 bitcoins in a month

April 7th: Miner 5,733BTC $10799Debt, Buyer10,000BTC $10000 Debt.

2 difficulty changes, both reasonable, averaging 90k difficulty generates 5,096 bitcoins in a month

May 7th: Miner 10,829BTC $11598Debt, Buyer10,000BTC $10000 Debt.

Here is where things got crazy, 4 difficulty changes, ending at 400k difficulty. for ease of my lazy brain will calculate whole month at 300k to be generous again.  Generating 1528 coins in a month.

June 7th: Miner 12357BTC $12397Debt, Buyer10,000BTC $10000Debt

If the buyer cashes out on June 7th smartly surmising the $30 bubble line, he is still $70,000 behind the miner. If you assume the miner cashed out to cover his costs each month the miner still has 11292 coins on june 7th, putting him $40,000 ahead of the buyer. This is a far cry from making 1/3rd as much. Not to mention even at todays difficulty rate a 15GHash machine produces 125BTC/wk

Your scenario is only true if you assume a miner must cash out immediately the moment he has generated coin all the time. Which doesn't make sense. If you have $ you can just let sit in the market, why couldn't you let your $ sit in easily resalable machines? If you were so finnicky about money that you need to see it recovered INSTANTLY would you really have been able to see bitcoin prices surge up, then make huge drops and not sell off? In the optimum scenario of a terrified miner vs a super bold coin investor maybe your statement makes sense, but otherwise not.

Your scenario is only true if you assume a miner must cash out immediately the moment he has generated coin all the time. Which doesn't make sense. If you have $ you can just let sit in the market, why couldn't you let your $ sit in easily resalable machines?

Spending $10k, then wanting to bail a week later... Did you not do any research about bitcoin mining before spending a gratuitous amount?

How the hell did you manage to spend what, $12,000 on 3600mhash?

Wow some of you guys haven't even read his post. He has EXTRA costs along with equipment and doesn't have most of his equipment setup yet. Anyway, I would sell while you can. Difficulty is going to sky rocket and the prices will be remaining as they are. That 25 BTC per block is coming sooner than you think because of over mining. When that happens, everyone is going to take a 50% loss compared to what they are bringing in now regardless of how much hashing power they have.