Bitcoin Forum

I have a B.S. in Finance and I cringe every time I read someone using ROI incorrectly on this forum.

ROI is Return ON Investment.  It is a rate of return denoted as a percentage. 

The formula: ROI = (Net Profit / Cost of Investment) x 100.

The correct term everyone should be using is CAPITAL RECOVERY.

A correct phrase would be "my capital recovery time frame is getting longer and longer with the difficulty increase"  or "I won't recover my capital for another 6 months"  or  "I finally recovered my capital yesterday"

However you can say "ROI is going down everyday with the difficulty increase."

Just my two cents and I am sure the snarky comments will soon follow.  ;)

Way to be anal about something so insignificant and create a thread about it but whatever floats your boat I guess.

Since everybody knows what people mean by saying stuff like "I reached my ROI" it's not going to change anytime soon.

You could have let the post fade away to obscurity, but the snarky comment bumped it to the top!



Oh I certainly realize that I won't change the vernacular on the forum, but I felt it needed to be said.  Hate to see someone in a business meeting and use the term ROI out of context and get some strange looks from the rest of the folks in the meeting...

LMFAO riiiiiiiiight... because the people that are using the pop term and general slang here are all going to VC meetings and pitching or trying to sign clients without having been properly coached/trained/schooled. Like someone is just going to miraculously be in a business meeting out of thin air. Shit I wish that were the case, I could have forgone college, not have to work under a broker to get my license, not taken any of the Series 6/7 and the rest of the FINRA exams and just be magically able to go into a business meeting.

Please tell us more about how you're just looking out for the little guys and you're really not a snarky anal micro aggression having effeminate nob gobbler

So, the only way to use business terminology correctly is to go to business school and get a four year degree?   These people who never went to college (and some dropped out of High School) might disagree: Walt Disney, Richard Branson (Virgin), Thomas Edison, Henry Ford, Ray Krock (McDonalds).  Oh and these guys who didn't finish college:  Bill Gates, Michael Dell, Steve Wozniak and Steve Jobs...ever heard of them?  ;)

I feel like you are just posting this nonsense so you can feel better about yourself. At the end of the day it just ends up making you look like a douche. 

I like none of the two definitions acronyms.
The Zen type would be to just think in terms of happiness. Jeez. I made 2 leafs in return.

First heard of ROI in lending club though.

If none of these other inbred basement dwelling idiots will say it.. thanks Bothebu for clarifying. Maybe everyone's already made so much money in crypto that they don't need to work again but some of us would like to use crypto as a springboard to open doors for future opportunities and I'd gladly sidestep sounding like an idiot during a pitch.

Many thanks for clarification :)
I have learned something new today.

In a collection of forums awash in the anality of bios straps, software coding, mining software setup, motherboard setup, the minutiae of risers and the use of coins whose value is quantified sometimes at the ppb level, I would think any regular member would exercise with some care, the application of the term "anal" to another member.

thanks, Mr BS in Finance.

A lot of professional people also use the term incorrectly.

When I was in school we visited a central plant with steam turbines for electrical generation and the engineer mentioned they would not see ROI for 10 years on their investment.

To those of you who appreciated the clarification of the terms, you are welcome.

To those of you with the snarky comments.  I am sure you "think" you are the smartest person in every room you walk into, ignorance is bliss...

As for myself, I know my limitations.  I used the information on this forum to setup my rigs.  I read, and I read, and I read.  My rigs were running before I commented here for the first time.  And I thank all of you who took the time to post your findings so that we may all LEARN from each other.  :)

Yes, the first dollar you earn is a ROI. Most people who use the term ROI here are simply talking about hitting 100% accumulated ROI.

This is exactly it.  The use of the term ROI, is accurate insofar as it's usually used to MEAN exactly that.

People talk about it as when the ROI ratio is 100% or greater.  While, TECHNICALLY, it's still being used slightly inaccurately because your discussing a capital investment in the cards, given that they produce the crypto investment vehicles you then trade it's not unlike VC investment in a startup with no existing valuation, so really it's accurate because of the unique nature of what we do.

ROI is used quite commonly in business to discuss just this, when your investment has attained 100% or better returns by SOME means.  My current company uses it to describe project timelines and costs all the time when discussing human and physical capital projects that involve cost reduction or some other form of quantifiable savings.  I'm sure there's some people in our finance department that might twitch a little in those meetings, but they KNOW what is meant, and no one bothers correcting it, because in common usage the meaning is clear.

Usually when we say "When do you expect to get ROI ?"  , we mean when will your roi ratio be 100% .

I don't really think it's that big of a deal. If both of us are talking and we say something that is mutually understood by the two of us then it fulfills its goal. :D

That's what a "language" is right ? Some sounds we make which we all know.

For US members, there is another reason why this comment is a waste of time, we could have discussed other financial stuff like tax consequences and received the input of the finance experts.

 I'm not a tax or finance person but for instance, when I put together a miner, from my previous work experience as an engineer, not only are the miner components capitalized, but I believe the total LABOR hours in assembling and making a miner work is a capital expense associated with the assembled miner and depreciated in the same way that the sum of the miner components are.