Topic: Please stop using "ROI" when you mean Capital Recovery. it makes you sound dumb. - page 5. (Read 1142 times)

Approved.
Someone give this man a cookie.  He is President of the Forum for the day.

If I had any merit to give away anymore I would do the same, just for putting that song from Willy Wonka and the Chocolate Factory called "Pure Imagination" running though my head.

Thanks Vann!

+25 merit. Love the attitude.

I don't think that educating yourself on the words you choose to use is a fruitless endeavor.  Slang has it's uses, but maybe I'm just getting old and cranky.

I used ROI many times ... So call me dumb. Don't care.
ROI ROI ROI ROI ROI.

Agreed, but still it doesn't really matter because the internet cannot be taught anything. People will continue to use the wrong acronym.

--ypsi

You can achieve a greater than 100% CR.  My examples were to illustrate that you can have a negative ROI.  What I didn't give an example on, is that it's impossible to have a negative CR.  Obviously, the goal of many people is to achieve a minimum of 100% CR.  What I take offense on is people claiming they need 100% ROI to break even... when that would actually doubling their money.  What they meant was they are trying to achieve a ZERO ROI... which is dumb... it even sounds dumb when you say it out loud.

While you're at it, you can discuss the other idioms and vernacular applied in a colloquial setting. YAY!

So, Capital Recovery limited to 100%. Means, when money-out equal to money-in it's called Capital Recovery. When money-in didn't reach 100% of money-out both term can use, Capital Recovery if we count from below (0%) and ROI if we count from above (100%), but this ROI still minus. But, if money-in more than money-out, we only can call it ROI, right?

But whatever it is, as long as we can understand each other, it is no big deal. Honestly, this is helpful. 

Thanks for the suggestion.  In fact tea does sound good right now. 

If you don't care to sound ignorant, then that's your prerogative.  I think people other than yourself do care though.

Maybe you can get together with your anally retentive 'Capital Recovery' pal for afternoon tea and cake to dscuss how ignorant we are. As if it matters or anybody cares, LOL.

And it's your free-speech right to look dumb when you do.  I hope you don't take offense to my characterization.


In my diatribe, I mention that I realize that ROI has become "miner slang" now... but it's still wrong.  We have hundreds of new miners show up every day, and we are teaching them the incorrect terminology.

I love Willy Wonka... but dismissing it as not important makes you ignorant.

Completely agree, puwaha. ROI is the wrong acronym.

Capital recovery is correct. One could also use "time to break even".

Thank you for educating the masses!

I'll continue to use ROI

Man, why this little thing botters you?
This term ROI is used a lot and will not change...

No, trying to be an internet professor is dumb.





https://bitcointalksearch.org/topic/please-stop-saying-roi-its-capital-recovery-1991180

THANK YOU FOR THIS!!!  Glad I'm not the only one that it bugs the hell out of.

I have a soapbox topic for today.

It's always bugged me that cryptocurrency miners have thrown around the term "ROI" (Return On Investment) as a euphemism for getting their initial capital investments in hardware purchases.  The correct term is "CR" or Capital Recovery.

When you see someone posting that they "got their ROI", or the "ROI on that GPU is 3 months", or "I've already ROIed so I'm hodling"... it makes them sound dumb.  I realize that using ROI as a stand-in for CR is probably just miner slang now, but in my opinion, words matter.  When you consider this is a forum where written words are the primary means of communicating ideas, then words matter.

Why is ROI an incorrect term?  It's incorrect because ROI is a simple mathematical formula to quantify the ratio or percentage of gains or losses based upon your capital outlay or investment.  You could have a negative ROI, but you don't really see anyone using that with the slang version of ROI used here.  They treat "ROI" as an absolute number, when the terms they really should be using are "CR" or Capital Recovery.


A simple example of ROI is this:  Miner A purchases a GPU for $1000, and over some period of time, that GPU mines $1000 worth of cryptocurrency.  Miner A did not "achieve" ROI... because the ROI is ZERO!  What did Miner A "achieve"?  They achieved a 100% "CR" or Capital Recovery.

Now, let's look at Miner B.  Miner B purchases a GPU for $1000, and over that same period of time, that GPU mines $1200 worth of cryptocurrency.  Miner B also did not "achieve" ROI.  The ROI is simply 20%.  Their "CR" or Capital Recovery is still 100%.  Both Miner A and B have "achieved" their CR, but their ROI is different.

Finally, let's look at Miner C.  Miner C purchases a GPU for $1000, and over that same period of time, that GPU mines $800 worth of cryptocurrency.  Miner C has an ROI of negative 20% (-20%), but their "CR" or Capital Recovery is still pretty good at 80%.


The above is a very simple comparison on why calculating "ROI" is not the same as CR.  There are actually several other factors to calculating ROI.  Time plays an important factor into calculating ROI, so it's never an apples-to-apples comparison unless all the same factors are considered.  In the case of physical capital like mining hardware, you also have to factor in your potential resale value if you choose to exit mining at that point in time.  It's rare to see anyone using ROI correctly, and it really has no meaning without all the proper context like time, resale value, and current coin pricing versus future coin pricing... so stop.



;TLDR
Simply put... stop using "ROI" when you mean "CR", as it makes you sound dumb.