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Title: Did I do the right thing? Post by: berupter on October 12, 2013, 05:37:10 AM Alright, so the bitcoin frenzy caught me big time to the point where I wake up at night and check how my miners are doing. I sort of became a gambler and risk taker having spend about $2500 on mining hardware already. It hasn't been two weeks since I started doing this and I'm already selling my two 10GH miners (block erupter blades) to upgrade to a beefier 60GH BFL unit. I know it's not a lot considering some people are running racks full of them but this has become a problem for me. I always get the buyer's remorse and wish have saved the money instead (my savings account has a little over $100 in it :() ... it's a gut wrenching feeling, I want to stop but I'm addicted to those freaking numbers!!!
My biggest fear is that once mining becomes unprofitable I won't even be able to sell the hardware for half the cost. I'm curios if anyone else is in the same boat or I just deserve to be smacked. Title: Re: Did I do the right thing? Post by: mufa23 on October 12, 2013, 05:43:40 AM At this point, consider just buying BTC rather than mining it. With $2,500, you could buy ~20 BTC. If you buy the hardware, wait for it to ship, then spend months (maybe a year+) mining you'll finally get that 20 BTC.
Whether it be tomorrow, or in another few years, Bitcoins are going to be worth even more than they are now. Whether you buy, or mine, both are smart investments. The dollar has been on the decline for the past hundred years. Either buying or mining are smart investment moves. And it's debatable which is the best. I personally think buying BTC is the better option right now. Once the difficulty starts to pan out, consider purchasing some hardware. Title: Re: Did I do the right thing? Post by: balanghai on October 12, 2013, 05:47:18 AM At this point, consider just buying BTC rather than mining it. With $2,500, you could buy ~20 BTC. If you buy the hardware, wait for it to ship, then spend months (maybe a year+) mining you'll finally get that 20 BTC. Whether it be tomorrow, or in another few years, Bitcoins are going to be worth even more than they are now. Whether you buy, or mine, both are smart investments. The dollar has been on the decline for the past hundred years. Either buying or mining are smart investment moves. And it's debatable which is the best. I personally think buying BTC is the better option right now. Once the difficulty starts to pan out, consider purchasing some hardware. Not just the dollar but all of the fiat are inflating badly at almost more than 7% annually. Also with your decision to sell it, its up to you but don't stop mining until you're about to ship it so you could squeeze few juice out of it. Title: Re: Did I do the right thing? Post by: berupter on October 12, 2013, 05:51:49 AM At this point, consider just buying BTC rather than mining it. With $2,500, you could buy ~20 BTC. If you buy the hardware, wait for it to ship, then spend months (maybe a year+) mining you'll finally get that 20 BTC. Whether it be tomorrow, or in another few years, Bitcoins are going to be worth even more than they are now. Whether you buy, or mine, both are smart investments. The dollar has been on the decline for the past hundred years. Either buying or mining are smart investment moves. And it's debatable which is the best. I personally think buying BTC is the better option right now. Once the difficulty starts to pan out, consider purchasing some hardware. Not just the dollar but all of the fiat are inflating badly at almost more than 7% annually. Also with your decision to sell it, its up to you but don't stop mining until you're about to ship it so you could squeeze few juice out of it. Oh yeah, my miners are hard at work as I type this ;D It's hard to stop knowing that every hour counts. The thought of keeping the two miners along with the BFL unit crossed my mind but I need to offset my debt somehow. Title: Re: Did I do the right thing? Post by: freedomno1 on October 12, 2013, 05:55:56 AM Don't buy the BFL unit ;)
Try Knc or if you feel a bit less gamblish than BFL for the same price cointerra or bitgarden Edit hmm BTCGarden offers 200 G/H got the price of a bfl 60 mumble Title: Re: Did I do the right thing? Post by: dhenson on October 12, 2013, 06:03:14 AM If you have cash on hand, buy btc and hold it. There isn't a miner or pre-order that exists where you would make more btc for your USD. And this goes without saying, but never buy a miner with bitcoin... The days of that being profitable are over forever.
If you are using a credit card, I would suggest KNC as they are the only one to my knowledge that currently accepts CC, or wait a week or two, as Hashfast is about to add Credit cards to their payment options. Most likely the USD you spend on a miner will make you money because of the BTC/USD exchange rate. This isn't really a profit from mining, rather a profit from hedging the falling price of USD vs. BTC. (if it were possible to buy BTC with CC I would be telling you to do that instead of mining) Don't buy anything with + 1W/GH power consumption, that means KNC, Hashfast, Bitfury or Cointerra are your only options (VMC is a joke). Cointerra has missed their tape-out deadline so don't plan on those coming in on time. Title: Re: Did I do the right thing? Post by: berupter on October 12, 2013, 06:07:10 AM What's the problem with BFL? In my case I already paid for it so I will have it delivered in a couple of days (ebay auction).
Title: Re: Did I do the right thing? Post by: freedomno1 on October 12, 2013, 06:10:05 AM What's the problem with BFL? In my case I already paid for it so I will have it delivered in a couple of days (ebay auction). Was about to say the damn things don't deliver but if you got one from ebay I guess that works Still 200/GH for same price as a BFL 60/GH interesting But agree with Dhenson on the points above to an extent (Nvm loss) Title: Re: Did I do the right thing? Post by: berupter on October 12, 2013, 06:15:13 AM What's the problem with BFL? In my case I already paid for it so I will have it delivered in a couple of days (ebay auction). Was about to say the damn things don't deliver but if you got one from ebay I guess that works Still 200/GH for same price as a BFL 60/GH interesting But agree with Dhenson on the points above to an extent the calculator shows profit though so interesting Are the 200/GH units ready to ship or pre-orders? This sounds very intriguing... Title: Re: Did I do the right thing? Post by: freedomno1 on October 12, 2013, 06:17:55 AM What's the problem with BFL? In my case I already paid for it so I will have it delivered in a couple of days (ebay auction). Was about to say the damn things don't deliver but if you got one from ebay I guess that works Still 200/GH for same price as a BFL 60/GH interesting But agree with Dhenson on the points above to an extent the calculator shows profit though so interesting Are the 200/GH units ready to ship or pre-orders? This sounds very intriguing... Not quite sure looks soon btcgarden looks like they are shipping very soon unlike labcoin It's a Chinese company though https://bitcointalk.org/index.php?topic=264696.msg3298572#msg3298572 Anyways have fun with it Cheers PS: I edited it re-looked at difficulty was a negative by january Title: Re: Did I do the right thing? Post by: cowandtea on October 12, 2013, 06:18:40 AM Just buy Bitcoin instead will get your further, but since you already bought why not sell it while it still have values :)
Title: Re: Did I do the right thing? Post by: CryptoBubbles on October 12, 2013, 03:07:44 PM Mine alts also :D
Title: Re: Did I do the right thing? Post by: hermann1983 on October 12, 2013, 09:45:16 PM Once the difficulty starts to pan out, consider purchasing some hardware. Will be interesting how low the price per 1GH/s can go next year. I waiting where the difficulty stop before considering buying... Title: Re: Did I do the right thing? Post by: dragonkid on October 12, 2013, 10:01:05 PM Don't buy BFL!! Haven't you read that everyone didn't get their BFL until 12 months later? :o
Title: Re: Did I do the right thing? Post by: duravello on October 12, 2013, 10:04:09 PM Don't buy BFL!! Haven't you read that everyone didn't get their BFL until 12 months later? :o Thats true, and while their products are shipping faster now, compettitors offer better deals in my opinion Title: Re: Did I do the right thing? Post by: odolvlobo on October 12, 2013, 10:26:17 PM Alright, so the bitcoin frenzy caught me big time ... having spend about $2500 on mining hardware already. My biggest fear is that once mining becomes unprofitable I won't even be able to sell the hardware for half the cost. I'm curios if anyone else is in the same boat or I just deserve to be smacked. There are a lot of people in the same boat as you and you all deserve to be smacked. Just the fact that you have invested $2500 in mining equipment without any idea of how much bitcoin you might mine is solid evidence that you have made a huge mistake. It's not clear from your posts what you got for your $2500, but I hope that you got at least 120 GH/s. That's how much you will need to break even on a $2500 investment if you start mining now. My prediction of the break-even price for 1 GH/s is about 0.18 BTC (before expenses). Selling your used equipment won't work (in theory). The value of your equipment will fall slightly faster than the difficulty rises, and even more if you overpaid. In a month, your equipment will be worth less than half of what it is worth now. Title: Re: Did I do the right thing? Post by: Shallow on October 12, 2013, 10:32:56 PM Mining is only for group buys and people with enormous starting capital now :P
Title: Re: Did I do the right thing? Post by: gooryheta on October 12, 2013, 10:39:16 PM Mining is only for group buys and people with enormous starting capital now :P Not if your courious and just want to try it a little as a hobby Title: Re: Did I do the right thing? Post by: berupter on October 13, 2013, 06:17:50 PM Alright, so the bitcoin frenzy caught me big time ... having spend about $2500 on mining hardware already. My biggest fear is that once mining becomes unprofitable I won't even be able to sell the hardware for half the cost. I'm curios if anyone else is in the same boat or I just deserve to be smacked. There are a lot of people in the same boat as you and you all deserve to be smacked. Just the fact that you have invested $2500 in mining equipment without any idea of how much bitcoin you might mine is solid evidence that you have made a huge mistake. It's not clear from your posts what you got for your $2500, but I hope that you got at least 120 GH/s. That's how much you will need to break even on a $2500 investment if you start mining now. My prediction of the break-even price for 1 GH/s is about 0.18 BTC (before expenses). Selling your used equipment won't work (in theory). The value of your equipment will fall slightly faster than the difficulty rises, and even more if you overpaid. In a month, your equipment will be worth less than half of what it is worth now. One week of mining at 20GH/s will get me about $180 in a month considering I've made $46 in a week or $540/month with both blades and the BFL unit mining in parallel (considering no difficulty increase). At this rate I will brake even in 6 months but my goal was to hold onto my bit coins and pay off my investment with fiat money. It is a risk I was willing to take from the start, I've made much worse decisions before... Title: Re: Did I do the right thing? Post by: odolvlobo on October 13, 2013, 08:04:38 PM One week of mining at 20GH/s will get me about $180 in a month considering I've made $46 in a week or $540/month with both blades and the BFL unit mining in parallel (considering no difficulty increase). At this rate I will brake even in 6 months but my goal was to hold onto my bit coins and pay off my investment with fiat money. It is a risk I was willing to take from the start, I've made much worse decisions before... But, don't you know that the difficulty is increasing about 30% every 11 days? Do you understand what effect that will have on your earnings? You say you currently make $540 per month, or roughly $18 per day. Over the next 11 days you will make $180, and then you will make 30% less, or $126, over the following 11 days, and so on. Let's look at what you will make (rounded to the nearest dollar):
After 6 months, you will have earned only $600, not $2500. Title: Re: Did I do the right thing? Post by: monbux on October 13, 2013, 09:06:08 PM It's better to invest by buying than in mining. If you really really want to mine, start mining scrypt coins with GPU's. Note: don't buy anything without proper research/advice on rigs. I'd suggest mining with diamond coin, this bitcoin mining compare calculator told me it's 300% more profitable. Title: Re: Did I do the right thing? Post by: sosulon on October 14, 2013, 01:53:28 AM you always did
Title: Re: Did I do the right thing? Post by: berupter on October 14, 2013, 05:05:09 AM One week of mining at 20GH/s will get me about $180 in a month considering I've made $46 in a week or $540/month with both blades and the BFL unit mining in parallel (considering no difficulty increase). At this rate I will brake even in 6 months but my goal was to hold onto my bit coins and pay off my investment with fiat money. It is a risk I was willing to take from the start, I've made much worse decisions before... But, don't you know that the difficulty is increasing about 30% every 11 days? Do you understand what effect that will have on your earnings? You say you currently make $540 per month, or roughly $18 per day. Over the next 11 days you will make $180, and then you will make 30% less, or $126, over the following 11 days, and so on. Let's look at what you will make (rounded to the nearest dollar):
After 6 months, you will have earned only $600, not $2500. Thank you for breaking it down, I had no idea that difficulty goes up this dramatically so fast. Time to get rid of the miners then... Title: Re: Did I do the right thing? Post by: sosulon on October 14, 2013, 05:06:53 AM BFL is a scam
Title: Re: Did I do the right thing? Post by: odolvlobo on October 14, 2013, 05:58:51 AM One week of mining at 20GH/s will get me about $180 in a month considering I've made $46 in a week or $540/month with both blades and the BFL unit mining in parallel (considering no difficulty increase). At this rate I will brake even in 6 months but my goal was to hold onto my bit coins and pay off my investment with fiat money. It is a risk I was willing to take from the start, I've made much worse decisions before... But, don't you know that the difficulty is increasing about 30% every 11 days? Do you understand what effect that will have on your earnings?You say you currently make $540 per month, or roughly $18 per day. Over the next 11 days you will make $180, and then you will make 30% less, or $126, over the following 11 days, and so on. Let's look at what you will make (rounded to the nearest dollar):
Keep in mind that these numbers are probably not accurate. The difficulty has been going up at this rate for 8 months now, but it can't keep going like this forever. Eventually, it will have to slow down and it is not clear when that will happen. My actual prediction is that the difficulty will continue rising at this pace for another 3 months before its starts to flatten out. I predict that it will go up an average of 20% every 12 days in the end, and each GH/s mining now will earn a total of less than 0.14 BTC. It is not quite as dramatic as the table above, but your 60 GH/s will earn only 8.4 BTC, which is less than what you paid. |