Why am I still mining? - page 2. | Bitcointalksearch.org

joeventura

hero member

Activity: 854

Merit: 500

Quote from: googlemaster1 on March 14, 2014, 05:35:08 PM

Honestly, we need more hobbyist miners in it for the mindset of "isn't this cool?" rather than "I can't wait to convert all this straight to fiat woohoo!"

People who buy miners and stay in the bitcoin economy help the bitcoin economy and community by creating velocity in the currency, and by not taking fiat out of the bitcoin ecosystem. Large businesses that dump their earnings on exchanges constantly are hurting the economy more than helping, because they are creating downward pressure on the BTC price AND making it harder for the decentralized mining process to be incentivized.

So buy your miners, buy them smart, because everytime you do, you are making people who think its a good idea to open up massive mining farms think twice. Having a centralized mining effort across 3-4x datacenters would make BTC that easier to get hurt from centralized failure, government intervention, or natural disasters.

So if you want BTC to succeed, every holder in their mother should be hosting at LEAST 1 miner.

So think of it that way ;P

You need to take an economics class.

Just like money, the economy does not blossom unless people spend it and move it around.

That is like saying, I have a tree and I am going to carve it into toothpicks, and store them here, and because I am making toothpicks they will get more valuable.

If no one knows of your toothpicks and they have no perceived value then no one will think they are worth more than you spent making them.
If you have every Bitcoin you ever mined and you havent spent any of them, you are hurting the Bitcoin economy, not helping it. (for example)

googlemaster1

sr. member

Activity: 280

Merit: 250

Honestly, we need more hobbyist miners in it for the mindset of "isn't this cool?" rather than "I can't wait to convert all this straight to fiat woohoo!"

People who buy miners and stay in the bitcoin economy help the bitcoin economy and community by creating velocity in the currency, and by not taking fiat out of the bitcoin ecosystem. Large businesses that dump their earnings on exchanges constantly are hurting the economy more than helping, because they are creating downward pressure on the BTC price AND making it harder for the decentralized mining process to be incentivized.

So buy your miners, buy them smart, because everytime you do, you are making people who think its a good idea to open up massive mining farms think twice. Having a centralized mining effort across 3-4x datacenters would make BTC that easier to get hurt from centralized failure, government intervention, or natural disasters.

So if you want BTC to succeed, every holder in their mother should be hosting at LEAST 1 miner.

So think of it that way ;P

joeventura

hero member

Activity: 854

Merit: 500

Quote from: ChuckBuck on March 14, 2014, 04:51:58 PM

Quote from: joeventura on March 14, 2014, 04:27:26 PM

Quote from: ChuckBuck on March 14, 2014, 02:54:53 PM

This is a very good point. Right now, mining is a losing proposition unless you have free or cheap electricity and/or data center hosting. The difficulty jumps definitely don't help the steep price point of entry for these high end miners.

It's not even a race to ROI anymore. It's a race to come close to even - electrical costs, then sell the miner while it's still in demand. Only on the resale of the equipment would you maybe see some profit.

Like others have been saying, if you don't have a mining operation like the $8 million dollar a month miner(MBP?) in Washington, then mining is an expensive hobby.

All not true.

What is I told you, you could spend $10k on miners, that would produce BTC0.15 each day ($100), use less than 500w of electricity, produce zero heat, zero noise and you would be guaranteed ROI in no more than 120 days.

And this scales so if you spend $5k you get BTC7.5 a day and if you spend $20k you get BTC0.30 a day

That is what I am doing.

Care to share your current setup?

If you don't feel comfortable sharing in the forum, perhaps a PM so I can be better informed.

Happy to share,
50 Gridseed miners, pointed at a site like scrptyguild.com or clevermining.com

Mines the most profitable scrypt and pays in BTC

railzand

sr. member

Activity: 462

Merit: 250

Lux e tenebris

Quote from: Biontic on March 14, 2014, 02:39:37 PM

snip

Now I understand that there will possibly be some resale value on the miner - but not a lot on a 1TH box in September this year.

What am I missing here. snip

sell miners after three months

cloverme

legendary

Activity: 1512

Merit: 1057

SpacePirate.io

I find that it's better to purchase miners with fiat or buy with BTC when it is at a peak against the currency you use (USD/CAD/etc) so that you spend less BTC.

A lot of the profit calculators are wrong so don't put too much stock into them, they do a terrible job of trying to extrapolate pool payment results. You're probably looking at 2 months to get a return on your investment, less if BTC goes up. You also have to balance your investment strategy out and figure out why you want to invest and/or mine. If you're looking to "mine to get rich" and mine $1M a month, expect to buy about 500TH/s, likely financed with a large debt to begin with as a high risk/high reward. Otherwise you might want to balance out mining with purchasing BTC as a speculative investment hoping that BTC will rise again by another large percentage.

ChuckBuck

hero member

Activity: 1372

Merit: 783

better everyday ♥

Quote from: joeventura on March 14, 2014, 04:27:26 PM

Quote from: ChuckBuck on March 14, 2014, 02:54:53 PM

This is a very good point. Right now, mining is a losing proposition unless you have free or cheap electricity and/or data center hosting. The difficulty jumps definitely don't help the steep price point of entry for these high end miners.

It's not even a race to ROI anymore. It's a race to come close to even - electrical costs, then sell the miner while it's still in demand. Only on the resale of the equipment would you maybe see some profit.

Like others have been saying, if you don't have a mining operation like the $8 million dollar a month miner(MBP?) in Washington, then mining is an expensive hobby.

All not true.

What is I told you, you could spend $10k on miners, that would produce BTC0.15 each day ($100), use less than 500w of electricity, produce zero heat, zero noise and you would be guaranteed ROI in no more than 120 days.

And this scales so if you spend $5k you get BTC7.5 a day and if you spend $20k you get BTC0.30 a day

That is what I am doing.

Care to share your current setup?

If you don't feel comfortable sharing in the forum, perhaps a PM so I can be better informed.

-ck

legendary

Activity: 4088

Merit: 1631

Ruu \o/

If you are betting on buying in fiat and the value of BTC rising, you are always going to be better off just converting the fiat straight into BTC and be done with. But that's boring, and therein lies the answer as to why you're mining.

joeventura

hero member

Activity: 854

Merit: 500

Quote from: ChuckBuck on March 14, 2014, 02:54:53 PM

This is a very good point. Right now, mining is a losing proposition unless you have free or cheap electricity and/or data center hosting. The difficulty jumps definitely don't help the steep price point of entry for these high end miners.

It's not even a race to ROI anymore. It's a race to come close to even - electrical costs, then sell the miner while it's still in demand. Only on the resale of the equipment would you maybe see some profit.

Like others have been saying, if you don't have a mining operation like the $8 million dollar a month miner(MBP?) in Washington, then mining is an expensive hobby.

All not true.

What is I told you, you could spend $10k on miners, that would produce BTC0.15 each day ($100), use less than 500w of electricity, produce zero heat, zero noise and you would be guaranteed ROI in no more than 120 days.

And this scales so if you spend $5k you get BTC7.5 a day and if you spend $20k you get BTC0.30 a day

That is what I am doing.

ChuckBuck

hero member

Activity: 1372

Merit: 783

better everyday ♥

This is a very good point. Right now, mining is a losing proposition unless you have free or cheap electricity and/or data center hosting. The difficulty jumps definitely don't help the steep price point of entry for these high end miners.

It's not even a race to ROI anymore. It's a race to come close to even - electrical costs, then sell the miner while it's still in demand. Only on the resale of the equipment would you maybe see some profit.

Like others have been saying, if you don't have a mining operation like the $8 million dollar a month miner(MBP?) in Washington, then mining is an expensive hobby.

Abraxas601

newbie

Activity: 47

Merit: 0

If you crunch the numbers and use logic you will never find a profitable solution.

Only reason I do it now is just as a hobby.

Biontic

full member

Activity: 121

Merit: 100

HodL tight, it's gonna get wild

OK...

Been mulling this over for a while and am curious to hear what folks think - It seems to me that there is no miners available at the moment that will actually make money if it is purchased with BTC. There will be a profit to be made if the purchases are done using Fiat, and the price of BTC increases (like we all hope it will).

So hypothetically, say I pay 6.15 BTC for a 1TH/s miner, it will eventually make its cost back and a little more, but not much.

The numbers are as follows - from the lovely Coinplorer site https://coinplorer.com/Hardware/Simulate/532347f057ac900afc1d7224

Outlay = 6.15 BTC ($3899) for miner + Import tax if applicable = total 4699
Operating costs = 650 approx for six months.
So total outlay = $ 5349 or 8.44357 BTC
In the first 6 months the miner will generate 8.931 BTC, less operating costs of 1.029 BTC = Profit of just 1.758 BTC using linear Difficulty jumps. (If you change it to exponential Diff jumps - nothing makes sense or profit)

Right now - I can buy 7.41869 BTC for $5349

Now I understand that there will possibly be some resale value on the miner - but not a lot on a 1TH box in September this year.

What am I missing here. If I use Fiat to purchase miners, it almost makes sense - but not if purchased with BTC.

Topic: Why am I still mining? - page 2. (Read 2754 times)