Why are profits so low? - page 5. | Bitcointalksearch.org

minerja

sr. member

Activity: 1249

Merit: 297

Quote from: Ryzen2700x on February 18, 2019, 11:31:20 AM

I think soon mining will be back with new 7nm GPU's/CPU's/Asics,
Just remember- going down from 12nm to 7nm for AMD meant "Same performance at half the power"- so just this will make mining much more profitable :-=).

You're missing the point entirely.
Is not just the nanometers, or the efficiency, you have to consider the "whole", and the biggest problem at the moment is the value of the coins.
Unfortunately, the idea of anonymous / decentralised / "give the banks the finger" has been blown out of the water. Yes, you can do all that with individual coins, but when you need to exchange to FIAT or virtually anything you now buy, needs "KYC", therefore the interest is rapidly diminishing. I can't see any reason why BTC will rise from the ashes...i think this is its new level, which against worldwide inflation, will diminish in value each year....BUT, hopefully i am completely wrong

lunobird

full member

Activity: 846

Merit: 115

Quote from: Ryzen2700x on February 18, 2019, 11:31:20 AM

I think soon mining will be back with new 7nm GPU's/CPU's/Asics,
Just remember- going down from 12nm to 7nm for AMD meant "Same performance at half the power"- so just this will make mining much more profitable :-=).

Tell that to the bitmain S15 folks. They are on 7nm now and it's not profitable unless you have near free electric

Ryzen2700x

jr. member

Activity: 157

Merit: 6

I think soon mining will be back with new 7nm GPU's/CPU's/Asics,
Just remember- going down from 12nm to 7nm for AMD meant "Same performance at half the power"- so just this will make mining much more profitable :-=).

adaseb

legendary

Activity: 3808

Merit: 1723

I agree with the above poster a few posts back. Basically mining these days is very easy to do and anyone can do it.

So this creates a huge supply of miners and causes the difficulty to go up and leaves less profit for everybody else's.

This is basically the way business is these days. Where there is easy money to be made, many people will pounce as fast as they can to get a piece of the profits.

Metroid

sr. member

Activity: 2142

Merit: 353

Xtreme Monster

Quote from: ?? on ??

my rigs cost me about $12 per day in electricity

im mining about $18+ per day worth of crypto, which i will not mention

to me, i am still profitable which is why i still mine

i do not sell my crypto to pay for electricity, i do that out of my own pocket

i invest all my mining earnings into a coin that i believe will be worth something greater in the future (gambling)

you are not winning, your gpus are getting old and useless, at least you are being smart for not selling your coins but would have been lot easier just to buy the coins from your pocket and wait it to multiply. you trolls just dont get it.

brooklynite1

member

Activity: 630

Merit: 10

In BTCz we trust. Organic slow growth.

Quote from: Metroid on February 17, 2019, 04:07:50 PM

Quote from: stomachgrowls on February 17, 2019, 12:13:30 PM

Solar panel wont really make such difference.Have you consider on how much do a panel set-up cost? If you do like to wait up for how many years for ROI then proceed.If not
then better not to go with this option.

Solar power roi is a myth, there will always be maintenance to be done and extra things to buy and wont be cheap. Ask them how much they pay for each kwh right now with their amazing solar power based on how much they paid for it to begin with, oh yeah they will say is to be paid in 25 to 40 years, some of them wont be alive hehe and the ones alive will regret that they could have used the money to buy crypto and have got from 1 to 200 times their solar power initial investment.

Solar power is only good in countries like australia where kwh per hour is very damn expensive.

Solar power is not free, its only free if:

1. You have no use for it
2. You cant sell it back to the grid

If you can sell your solar for 12c/KWh back to the grid, OR you can use the solar to reduce your 12c/KWh electricity bill then your solar power is worth 12c/KWh.

Plus solar panels have a ten or twenty year life cycle where their value goes to zero plus installation and removal cost.

Solar power is never free.

brooklynite1

member

Activity: 630

Merit: 10

In BTCz we trust. Organic slow growth.

Quote from: nostrings on February 16, 2019, 07:02:51 PM

So depressing, I used to make around $300 a day but now I'm down to like $70 a day. Probably won't even be able to live off this anymore and I have bills to pay.

Everyone talks about electricity cost. Here in Southern California it costs amywhere from 16c in winter at night to 35c in daytime in summer. I hacve no idea how people are paying 10 cents.

But my point is even in SoCal with high electricyt cost, the equipment depreciation is much higher than the electricity:

Example:

I am mining a coin that is 5 Satoshi per coin. I get 11,000 coins per day (used to be only 2500) basically making about $2 for a 6 x 1070 rig that I bought for $4000 last year so:

Coin value is 5 Satoshi
Electricity cost is 5 Satoshi per coin mined.
Equipment depreciation cost is 12 Satoshi per coin mined.

My GPUs lose value faster than the electricity they use.

Metroid

sr. member

Activity: 2142

Merit: 353

Xtreme Monster

Quote from: stomachgrowls on February 17, 2019, 12:13:30 PM

Solar panel wont really make such difference.Have you consider on how much do a panel set-up cost? If you do like to wait up for how many years for ROI then proceed.If not
then better not to go with this option.

Solar power roi is a myth, there will always be maintenance to be done and extra things to buy and wont be cheap. Ask them how much they pay for each kwh right now with their amazing solar power based on how much they paid for it to begin with, oh yeah they will say is to be paid in 25 to 40 years, some of them wont be alive hehe and the ones alive will regret that they could have used the money to buy crypto and have got from 1 to 200 times their solar power initial investment.

Solar power is only good in countries like australia where kwh per hour is very damn expensive.

bbvedf

member

Activity: 588

Merit: 61

Quote from: GarySeven on February 16, 2019, 09:24:40 PM

I am currently pulling $5-$6 a day each on my A9 Zmasters which pays for my electricity and are still profitable as I am heating my shop with them. When warmer weather hits I will have to unplug them. Angry

I am of the same opinion. Maintaining a warm room with 4 GPU is already a benefit

stomachgrowls

hero member

Activity: 3010

Merit: 794

Quote from: tippytoes on February 17, 2019, 12:04:22 AM

Quote from: d57heinz on February 16, 2019, 07:22:06 PM

Do yourself a favor and get out whilst you still have the shirt on your back. Don’t do what I did and think the little guy will be able to compete. I’m almost certain there is far more lucrative ventures now than this. Reality of it is your going to have to dig deep regroup and start something new. I moved into cell phone/tablet repair. And my busn partner is pushing hard on getting a screen printing/embroidery busn off the ground. Well we both are when I’m not busy fixing phones. Trust me if you have a setup that bets that amount of change then you have the wherewithal to move into something that will benefit you and society. This turned into a playground for the rich. I just as soon shit on my trezor. Parden my language.

Br

Energy consumption doesn't help anything at all when you are into mining especially if you are in the area where energy is pretty expensive. Maybe, if you have invested your solar panel at the start of mining, you can still get something out of it.

Solar panel wont really make such difference.Have you consider on how much do a panel set-up cost? If you do like to wait up for how many years for ROI then proceed.If not
then better not to go with this option.

If mining isnt already profitable then why proceed? We do already know the current situation of crypto market and so as on its mining difficulty minus the electricity cost consumption will really give a scratch on your head.
If you dont have any options then pack up and ready your resume and find a job. Grin

philipma1957

legendary

Activity: 4256

Merit: 8551

'The right to privacy matters'

Quote from: SpceGhst on February 17, 2019, 10:27:32 AM

While the drop in BTC has affected the price of all Alt coins, I believe the underlying cause of low profits is simply there’s no compelling reason to own them besides pure speculation. And when there’s more sellers than buyers, you get lower prices.

Coin Devs have been busy forking and changing algos to stay ahead of ASIC’s and FPGA’s instead of fulfilling the promises made in their white papers and roadmaps. The terms “decentralized” and “anonymous” are a myth. Sure, you can send coins anonymously around the world, but try converting them to fiat without giving personal information.

With most miners losing money these days, we should be asking how much longer mining can survive. At some point, people will just stop. And don’t tell me the small guy is done and only big corporations will be left. Big companies are in business to make money just like an individual, and if the profits aren’t there, they won’t be mining either.

My advice... If you truly believe in the future of a specific coin, just go buy it and save the costs of electricity and associated headaches of mining.

I have a good reason to mine.

I can use mining to develop solar power installs.
So even if mining fails in 5 or 10 years you still have the 25-40 year assets of renewable power.

See my solar build out link

this is the second buildout
https://bitcointalksearch.org/topic/new-buildout-with-buysolar-has-entered-stage-2-5099194

this is the first build out
https://bitcointalksearch.org/topic/solar-array-starting-to-look-good-1369207

So mining has a viable real world use it helps to develop renewable power.

forum member buysolar has created the method I merely helped to develop it.

SpceGhst

jr. member

Activity: 269

Merit: 4

While the drop in BTC has affected the price of all Alt coins, I believe the underlying cause of low profits is simply there’s no compelling reason to own them besides pure speculation. And when there’s more sellers than buyers, you get lower prices.

Coin Devs have been busy forking and changing algos to stay ahead of ASIC’s and FPGA’s instead of fulfilling the promises made in their white papers and roadmaps. The terms “decentralized” and “anonymous” are a myth. Sure, you can send coins anonymously around the world, but try converting them to fiat without giving personal information.

With most miners losing money these days, we should be asking how much longer mining can survive. At some point, people will just stop. And don’t tell me the small guy is done and only big corporations will be left. Big companies are in business to make money just like an individual, and if the profits aren’t there, they won’t be mining either.

My advice... If you truly believe in the future of a specific coin, just go buy it and save the costs of electricity and associated headaches of mining.

swogerino

legendary

Activity: 3318

Merit: 1247

Bitcoin Casino Est. 2013

It is because Bitcoin price is not what it used to be, this also impacts all other altcoins and the profits are low compared what they used to be in last 6 months of the year 2017.

I do not mine to pay bills, I mine with the hope that one day bitcoin price will skyrocket and I will be happy that I continued to mine it even when many people have quit.

xev790

brand new

Activity: 0

Merit: 0

new coins cannot be developed without support from GPU miners, and if its not profitable for GPU miners to at least offset their electricity there will not be enough hash power to test new coins and crypto will become the game of corporations with deep pockets again.. decentralization and disrupting the banking system will not happen in another 20 years, i am mining at a loss now also and paying the electricity bills from my day job

Metroid

sr. member

Activity: 2142

Merit: 353

Xtreme Monster

with the eth fork and as issuance going from 3 to 2 eth, minimum we can expect eth to rise is 50% from what is right now. 125 + 60 = 200 usd to be eth value soon, it might go much higher than this, if it consolidates around $300 after the fork then the fork will be a success.

Butterscotch Cartman

jr. member

Activity: 108

Merit: 6

Mining is simply too easy, anyone can do it. Since the barrier to entry is so low it became over saturated and made the profit margins razor thin.

tippytoes

sr. member

Activity: 1988

Merit: 275

Quote from: d57heinz on February 16, 2019, 07:22:06 PM

Do yourself a favor and get out whilst you still have the shirt on your back. Don’t do what I did and think the little guy will be able to compete. I’m almost certain there is far more lucrative ventures now than this. Reality of it is your going to have to dig deep regroup and start something new. I moved into cell phone/tablet repair. And my busn partner is pushing hard on getting a screen printing/embroidery busn off the ground. Well we both are when I’m not busy fixing phones. Trust me if you have a setup that bets that amount of change then you have the wherewithal to move into something that will benefit you and society. This turned into a playground for the rich. I just as soon shit on my trezor. Parden my language.

Br

Energy consumption doesn't help anything at all when you are into mining especially if you are in the area where energy is pretty expensive. Maybe, if you have invested your solar panel at the start of mining, you can still get something out of it.

arielbit

legendary

Activity: 3444

Merit: 1061

so it is 2 ways for miners.

1.) instead of scaling up, consider looking ways to cheapen your electrity like philipma1957

2.) diversify outside crypto, business, rentals etc.

of course you should strike gold first before doing 1 and 2..unless you already have capital ready.

Metroid

sr. member

Activity: 2142

Merit: 353

Xtreme Monster

Most of them are losing money mining, they do that to support the price of the coin in the market, for example, imagine if eth difficult was 10 times less than now, you would think that you would earn 10 times more right? but that is the problem cause easy access means easy sell, eth around $122 now, 10 times easier to mine it would probably make eth to crash to drop to $30, see my point. So coin difficult is there for many reasons.

As most are losing money to mine, only idiots would sell any eth they are mining.

GarySeven

member

Activity: 129

Merit: 17

I am currently pulling $5-$6 a day each on my A9 Zmasters which pays for my electricity and are still profitable as I am heating my shop with them. When warmer weather hits I will have to unplug them. Angry

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