Bitcoin Forum

I'm planning to buy parts to make this rig:
https://en.bitcoin.it/wiki/Mining_rig#One_ATI_5830,_Approximately_245_Mhash/s
In about a month.

In a month will I still be able to get the same overall profit as I could with that now?
I realize the difficulty is increasing which means you make less bitcoins, and therefore less money, but doesn't that also mean a relative increase in the value of each bitcoin which should even it out?

As the value of bitcoin increases, one would expect the amount of cumulative mining processing power to increase as well (obviously, the more it's worth, the more people see money in mining it).

As the mining power increases, the difficulty increases, which in turn decreases the return a given amount of processing power would create.

So, here's how I look at it: The more people who mine, the more people who split a relatively fixed number of bitcoins being generated. HOPEFULLY that is all being driven by the increase in value of bitcoins, so your actual output would hopefully stay consistent.

But here's the trick...what if the value of bitcoins plummet? Will that cause people to stop mining? Maybe. Maybe not? They have a bunch of money invested, so would they see that they're spending too much in power and get out? Or would they continue to mine in hopes that the value returns?

Short answer is, there is absolutely no way of knowing. I advise everybody who asks me to NOT buy a dedicated mining rig, but to instead just beef up their primary computer....that way, if you decide to stop mining, you're not really out anything.

There is going to a significant increase to the complexity later this week.  Within a month there is likely to be additional increases.  Hopefully the prices go up with the complexity but that is no certainty.  You need to identify your risks and decide for yourself if it is worth it or not.

Nobody knows if you'll make more money or not a month from now. That's why they call it speculation. I suspect you have a good chance of making a reasonable amount of money someday in the future, if not a lot.

Companies deciding to invest in a gold or silver mine can't be certain of what their ROI will be 3-10 years later when the mine is in production either. But the investors are believers, and geological considerations aside, will probably reap the rewards.

If you are a believer in bitcoins ability to change the world, and you can afford to lose a bit of money, just do it, and at some point, by having been in early, you will probably be successful.

I, for one, think that even if you mined unprofitably today, if you held onto your bitcoins you'll make a lot of money in the future, especially when its harder to mine them in future years, and demand has risen accordingly.

Any given rig will mine less and less coins as time goes on, and difficulty increases. We are unlikely to see a fall in difficulty, although, technically, it could happen.

The future value of coins is, literally, speculation.

So the value produced by your rig in a week, a month is unknown.

Good luck!

simple answer yes ...solution = trade and expand.

Good luck scoring a video card.
That config calls for the long-lost $110 5830 from Newegg.  As of today, you can still score 5830s for about $145 new.  Start shopping for your GPU and buy it now.

Is the most efficient system also the most exspensive system?

Basically yes.  You want to have the fastest possible hash rate so that you can collect as many bitcoins as possible before the difficulty increases.  As soon as the difficulty increases, its basically the same as taking 40% of your video cards and throwing them away.

But, if the difficulty will get higher, more people will not have the power too encrypt so much mhash as before making bitcoins more rare and thus making it more valuable. Why should you renew your videocards when you can get the same profit with less bitcoins?

In what interval will the difficulty get higher? How many days?

And instead of throwing away your cards you could make a second, better, rig and leave the old one as long as it makes profit.

Firstly,

The value of Bitcoin or any crypto currency is depends on demand and supply.

Second, the difficulty depends on Network Power/Hash and that is dependent on Bitcoin price.


Hence, both of them are connected.

So, i would do START MINING now as nobody knows what is happening next one or two months time.

Yeah. Better less talking and more mining.