Bitcoin Forum

Hi,

been mining with my 5870 for 5 days now, made about $50 at 400 hash avg on btcguild. I now have £1000/$1900 to invest, i could go the route of buying coins but i like hte computer side of things. Theres alot of talk about not putting any more cash into rigs but honestly what do you guys think? I could buy another 3-4 5870, or 2 6990 or something, id be getting well over 1500 hash then... you think its worth it? Im just bothered about making more money in the long run than the cash gets me in the bank. cst for electricity would be about £2/3 / $5/6 a day i believe....

Personally, id Rather Buy Equipment than buy bitcoins

I took your numbers and plugged them into the spreadsheet I use for this purpose, then tweaked the difficulty increase rate until I made it break even.

Hash rate: 1500MH/s
Electric cost/day: $5
Days to next diff increase: 5
Difficulty increase frequency after that: Once/9 days
Difficulty increase percent: 11% <--- This is lower than the historical increase rate
BTC price: $10 (constant) <--- Note that bitcoin prices have been trending up

With the above assumptions, on November 16th the system would cost more money to run than it would produce in BTC.   On that date it would have earned $1930.19 (i.e. you would break even cash wise) and would still own the hardware, to either use or resell.  Note that reselling computer components is often subject to a significant loss.

If the above assumptions are too optimistic, the numbers get much worse - e.g. if difficulty increases 15% per increment rather than 11%, then on October 11th the system would cost more to run than it would produce, and you would only have pulled in $1444.

If the above are too pessimistic (e.g. bitcoins continue to increase in value) you will end up making a profit.

It all depends on your assumptions.

Get two rigs, with 6 5850 or 5830s if ya can't find 5850s, about 900 each

Hmm, I've been saying that it's not worth investing in new rigs due to the difficulty increases probably putting an end to this soonish.

Can you spare that cash ?  Do you mind losing it or some of it ?

There's a good reason why I am faltering in saying not to invest, as there's something called Namecoins that has recently come to my notice. Just search for it on here.

When BTC are hardly worth mining you could then direct your rigs at Namecoins. That is what I plan to do. And in fact you could CPU mine Namecoins and GPU mine BTC.

hmmm namecoins.... i have heard of them but unsure what they are exactly, as I thought they were simply based on bitcoins. why not start mining namecoins now so in the future when prices rise i have a nice collection to offload...? where can i get more info on these coins?

 NAMECOINS (NMC)

They are used to register domains and to keep domains going... domains with .bit extension
All we are interested in though, is that people buy Namecoins (NMC) with BTC :)
Also, you mine NMC in the same way that you mine BTC, and you use the same mining software :)

A decentralized, anonymous and open DNS system based on bitcoin!
http://dot-bit.org/Main_Page

What are namecoins ?
http://www.reddit.com/r/Namecoin/comments/h908j/how_to_get_started_with_namecoin/

Namecoin forum
http://dot-bit.org/forum/?title=forum

Namecoin pool - there are others
http://bitparking.com/pool

Installation and Configuration
http://dot-bit.org/InstallAndConfigureNamecoin

Namecoin thread on Bitcoin.org
http://forum.bitcoin.org/index.php?topic=9711.0

Namecoin exchange - very very new
https://exchange.bitparking.com/main

Mining BTC is still more profitable than mining NMC, but I'm ready to move over once the time is right ;)

cheers for that, interested in knowing though, in your eyes when will be the right time?