R--> Return
O-->Of
I-->Investment
Topic: what is ROI - page 2. (Read 1316 times)
ROI means return on investment.
Yes, it's return of investment. If you invest into something, let's say, $100, RoI is the time you get your $100 back.
Its values range from the Planck's constant (instant-like) to infinity (never - you'll never get your money back).
That is common nonsense, what you mean is break even, not ROI. Its values range from the Planck's constant (instant-like) to infinity (never - you'll never get your money back).
I think it would be more accurate to say ROI is the return you get in a given time for a given investment after allowing for the costs (which may include initial capital and running costs), this may be a positive (greater than investment) or negative (less than investment) return.
A worked example (with simple numbers):
100 day ROI
For simplicity assume a stable BTC value of $500.
Capital cost: $1,000 spent on mining hardware (including taxes, delivery, etc.)
Running cost: $10/day spent on electricity to keep it running
Total cost over 100 days = 1,000 + (100 x 10) = 1,000 + 1,000 = $2,000 (or 4 BTC)
Return in Bitcoins = 0.02/day (ignoring difficulty increases)
After 100 days you will have mined 2 BTC, which is an ROI of 2/4 or 50% (less than 100% and therefore negative).
If difficulty doesn't change or BTC go up that example rig will never return a positive ROI (as it is only mining exactly enough to pay its electricity bill: 0.02 BTC = $10).
However, having said that, on this site most people use ROI as shorthand to say "How long will it take for this investment (hardware/cloud/group buy/whatever) to achieve a positive return?"
As you will see from the example above in order to get a positive return you must at least mine more than the electricity costs!
Unfortunately to calculate that with any accuracy you need to allow for both a variable BTC value (unless you can buy in BTC and thus avoid any exchange rate variability) and the change in mining difficulty (which at the moment is increasing significantly every 2 weeks/2016 blocks).
Hope that helps.
A worked example (with simple numbers):
100 day ROI
For simplicity assume a stable BTC value of $500.
Capital cost: $1,000 spent on mining hardware (including taxes, delivery, etc.)
Running cost: $10/day spent on electricity to keep it running
Total cost over 100 days = 1,000 + (100 x 10) = 1,000 + 1,000 = $2,000 (or 4 BTC)
Return in Bitcoins = 0.02/day (ignoring difficulty increases)
After 100 days you will have mined 2 BTC, which is an ROI of 2/4 or 50% (less than 100% and therefore negative).
If difficulty doesn't change or BTC go up that example rig will never return a positive ROI (as it is only mining exactly enough to pay its electricity bill: 0.02 BTC = $10).
However, having said that, on this site most people use ROI as shorthand to say "How long will it take for this investment (hardware/cloud/group buy/whatever) to achieve a positive return?"
As you will see from the example above in order to get a positive return you must at least mine more than the electricity costs!
Unfortunately to calculate that with any accuracy you need to allow for both a variable BTC value (unless you can buy in BTC and thus avoid any exchange rate variability) and the change in mining difficulty (which at the moment is increasing significantly every 2 weeks/2016 blocks).
Hope that helps.
ok thanks anyone no the average ROI for mining bitcoins
It really depends on your equipment and your electricity price.
You should take a look at a profit calculator before buying any ASIC.
i was planing on buying 10 antminers for 500 each total cost 6200$ power is .10$ a kw antminers use about 400w each 4300w total
Radius of Influence
Republic Of IrelandReturn Of Invoice
the movie RIO for dyslexic children
Radius of Influence
return on investment
EG if you invested $8k in mining rigs and you only got 0.5btc a day when mining. at current prices ($400) it will take 40 days of 0.5btc a day to get $8000 worth of bitcoin to break even.
more complicated is that the difficulty rises every 2 weeks. so depending on what day you began mining and considering the difficlty rises it may be 90 days before you have got $8k of btc purely because the difficulty change means your 0.5btc reward, starts to turn into less, at each difficulty jump. and that excludes more miners joining in between difficlty jumps, taking a slice of the shares, which also decrease earnings.
so ROI could be 90 days.
the funny bit is that most miners are shooting themselves in the foot, because either before or at the point they breat even, they realise the equipment thy are using is sucking such an amount of electric that the declining BTC reward is not covering the costs. and as such as soon as they break even they then spend the $8k on the next generation of equipment just to cut costs and TRY to make back their $8+ profit in a shorter timeframe.
endlessly chasing their tail
without knowing what rig you got, your electricity costs you got.. no..
EG if you invested $8k in mining rigs and you only got 0.5btc a day when mining. at current prices ($400) it will take 40 days of 0.5btc a day to get $8000 worth of bitcoin to break even.
more complicated is that the difficulty rises every 2 weeks. so depending on what day you began mining and considering the difficlty rises it may be 90 days before you have got $8k of btc purely because the difficulty change means your 0.5btc reward, starts to turn into less, at each difficulty jump. and that excludes more miners joining in between difficlty jumps, taking a slice of the shares, which also decrease earnings.
so ROI could be 90 days.
the funny bit is that most miners are shooting themselves in the foot, because either before or at the point they breat even, they realise the equipment thy are using is sucking such an amount of electric that the declining BTC reward is not covering the costs. and as such as soon as they break even they then spend the $8k on the next generation of equipment just to cut costs and TRY to make back their $8+ profit in a shorter timeframe.
endlessly chasing their tail
ok thanks anyone no the average ROI for mining bitcoins
without knowing what rig you got, your electricity costs you got.. no..
ok thanks anyone no the average ROI for mining bitcoins
Return on Investment
Actually everyone above was faster
It's the calculation of how much you can expect to make in profit
Cost of goods and services property plant and equipment land fees distribution etc. 1k
You sell said product for 2k
1/2 ROI = 50%
Other factors include Interest payments exploration drilling costs
Depends on the field
Bitcoin its difficulty to mine bitcoins versus profit
Although Mining has never been profitable I believe
Even in 2011 electricity is greater than value of bitcoins so some people are just like screw it buy it not mine it
Good old divides
Actually everyone above was faster
It's the calculation of how much you can expect to make in profit
Cost of goods and services property plant and equipment land fees distribution etc. 1k
You sell said product for 2k
1/2 ROI = 50%
Other factors include Interest payments exploration drilling costs
Depends on the field
Bitcoin its difficulty to mine bitcoins versus profit
Although Mining has never been profitable I believe
Even in 2011 electricity is greater than value of bitcoins so some people are just like screw it buy it not mine it
Good old divides
If it's a lump-sum investment and a lump-sum payout the calculation is
(Amount you get - amount you put in) / (amount you put in) * 100%
OR an easier way: (amount you get/amount you put in) - 1 * 100%
(Amount you get - amount you put in) / (amount you put in) * 100%
OR an easier way: (amount you get/amount you put in) - 1 * 100%
Yes, it's return of investment. If you invest into something, let's say, $100, RoI is the time you get your $100 back.
Its values range from the Planck's constant (instant-like) to infinity (never - you'll never get your money back).
Its values range from the Planck's constant (instant-like) to infinity (never - you'll never get your money back).
Return on investment?
http://en.wikipedia.org/wiki/Return_on_investment
http://en.wikipedia.org/wiki/Return_on_investment
i keep hereing this but i dont no what it is and i cant find anything on google
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