ROI is a key concept to wrap your head around, not just for bitcoin but for your whole life.
One big challenge humanity is up against is energy ROI, it is taking a larger and larger fraction of a barrel of oil to deliver a barrel of oil to market. Another similar challenge is the decline in the marginal utility of debt in a ZIRP environment, lower interest rates are failing to spur growth.
Topic: What is ROI ? (Read 651 times)
Wow thx everyone for answering, now I get it.. ! 
freeAgent thx for the link!
freeAgent thx for the link!
Investopedia is a great resource for this sort of stuff: http://www.investopedia.com/terms/r/returnoninvestment.asp
but back to hardware. So, you buy a couple of Radeon 5850's at $75 each, you buy a 1200W power supply for $150. You get some extra cooling hardware, say another $100. So your investment is $400 in hardware. We'll assume that your electricity is included in your rent. How long will it take you to earn $400 worth of bitcoins based on your chosen mining pattern? are you mining 24/7? 100hrs a week? let's say you are on a mining pool, you're generating say...i dunno..800Mhash. so you're earning around 0.4BTC per a day if you mine 24/7. (conservative). Let's say 0.5BTC a day. that's about $6/day. at that rate, it'll take you...67 days to recoup your $400 investment. Of course, many things can affect your mining performance, so let's be a little conservative and say 75 days. 2 and a half months. If you have to pay for power, then you have to factor those ongoing costs. Internet costs, etc.
in financial terms, it's the rate at which your investment becomes profitized. pyramining, for example, advertised a 10% ROI with zero referrals. so for a 1BTC investment, I would get back 1.1BTC after a certain length of time.
Return On Investment, basically, a prediction of how long you'll have to mine to recoup the money spent on mining equipment and operating costs.
Yeah, like the topic says: What is ROI ?
I've seen this while reading about different mining hardware and other stuff regarding BTC mining.
Yet I've not found an answer.
TY in advance.
and for the haters, FU in advance!
I've seen this while reading about different mining hardware and other stuff regarding BTC mining.
Yet I've not found an answer.
TY in advance.
and for the haters, FU in advance!
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