Bitcoin Forum

Alright so I'm new to the bitcoin world. I am considering making a large investment into bitcoin mining hardware. According to my calculations and research, I could be mining 900+ bitcoins a month with a 100,000 usd investment. I have a mt.gox account. I believe te maximum withdrawal per month once a user has become trusted is 500,000 usd. Since I am new to this whole scene my question to you is this. Is it likely that I will be able to sell upwards of 900 bitcoins a month on mt.gox? I will be using bitcoins for purchases, but 90% of them I will be selling for usd. Before I invest this money I need to know if the idea I have in my head is feasible. Help me out guys! Thanks a ton, any input will be greatly appreciated.   

If you can get the bitcoins (if your calcs are correct) then you shouldn't have a problem of selling 900+ BTC per month

The biggest risk factors are the mining difficulty increase (the Btc amount you receive will dimish over time) and actually getting your hands on the mining hardware in time/not being scammed.
Maybe you would be better off just investing in Bitcoins and selling them when they are higher.

Are you sure it is 900 bitcoins a month and not 900 bitcoins 1st month, 360 bitcoins 2nd month, 144 bitcoins 3rd month, etc. given that the difficulty goes up 20% every 10 days?

You won't have any trouble selling 900 bitcoins a month on Mt.Gox. That's only 30 coins a day.

25,000 coins were traded on Mt.Gox in the last 24 hours.

The problem with Mt.Gox is that they are currently very slow in sending USD. Many people are waiting weeks for their money.

You could sell the coins on other exchanges, but the prices are generally a few per cent lower than on Mt.Gox.

I'd say if you have to ask a bunch of strangers on an internet forum if you should invest $100k or not then you should not invest $100k.

Have you invested any money on a small scale to start with?

Are your calculations just scribbles on a napkin or robust models?

Do you have any experience operating mining hardware?

Do you have any experience managing enterprise quantities of hardware ($100k+)

Do you have a location planned for $100k of hardware?

Power for $100k of hardware?

Cooling for $100k of hardware?

Security for $100k of hardware?

Insurance for $100k of hardware?

Time for $100k of hardware? (You'd probably want to not be working in order to install/test/manage this much hardware).

Investigated timelines for obtaining ASIC hardware (and $100k of it at that... not a small order?), if you are not using GPU rigs?

Also, I may be wrong, but I think a single person moving $500,000 out of mt.gox per month is going to raise a LOT of eyebrows. Depending on where you live, The Tax Man is going to love you.

PS for other forum members: 900 BTC/month is ~4690 block erupter USB miners running continously at current diff  :D

To mine 900 BTC/month (30BTC/day, or 3.472e-4 BTC/s) at current difficulty 26.1M, you would need the equivalent of:

(2^32 hash *3.4722e-4 BTC/s /(25BTC/26162876)=1,560,676,344,296 hash/s (or 1560 GH/s). With what are you planning to achieve this speed?