Bitcoin Forum

Hello,

I am wanting to start a, mining company per say, the idea me and a partner had was to buy one of the new ASIC miners, and have it in a office space we have, where we dont need to pay for power, and just leave it on to generate money, and then we cna upgrade to bigger ASIC machines, but this is all well and good in theory, but practicly would this work out?

I dont a calculation on

http://www.alloscomp.com/bitcoin/calculator

With one of the biggest ASIC rig's it would tripple its money in a month, but it all seems to easy, what other factors are there?

Thanks
Best regards
Karl

In my opinion, the significant factors to consider is how many of the present miners would be shelling-out cash to upgrade to ASICs, and how much the difficulty would rise-up. Knowing those factors would let you have an idea how long it would take you to get your ROI back.

Increase the difficulty 20x current and rerun your calculations, then calculate it assuming 20x current plus doubling difficulty every 6 months and see how long it will take to pay it off.

Just times it by 20, and it doesnt pay itself off within 6 months, then doubled it after 6 months, and it still doesnt pay off, is this worst case senario or?

Oh my.. I thought a rough estimate of 20M difficulty is a realistic assumption. But I think now that I'm assuming far from what's it going to be. I wonder how much shares per hour ASICs such as the BFS Single SC would be yielding given the probable continuous rise of the difficulty? It sounds to me that it's better not to buy one, unless I get it at a very early time to take advantage of the not-yet-rising-difficulty and break-even early.

My plan was to start with the small ASIC systems, and use profits from that to buy the bigger machines, as we have eliminated one factor of electricity bills, i thought it may be easier to break even

The electric costs on BlockChain outweigh the profits.

BlockChain.info/stats (http://BlockChain.info/stats)

They estimate over $1K in losses because of electricity costs. I get what your saying, but its just not good planning. You need to think ahead further than "I buy this and make a lot of money". There is a chance the block takes longer to break than you think. Theres a small chance the thing breaks mid-block. There's also the heat, which has lead to police raids because the cops think the heat in the house is from lamps used in grow houses to keep pot growing. If that happens, you get billed just for the raid.

I know that's not very useful. But, hey, what's the worst that could happen? Besides bankruptcy. Or a SWAT raid.

Mining really isn't a way to make money, the only thing I see it as is a thing to do for fun or to transfer your own wealth, if you're going to do something with Bitcoin work for it, at least in this economy you have a chance compared to the dead inflationary currencies we're in now, it's actually really refreshing seeing all these new companies, sites and work postings spring up all over the place.