Bitcoin Forum

i keep hereing this but i dont no what it is and i cant find anything on google

Return on investment?
http://en.wikipedia.org/wiki/Return_on_investment

Yes, it's return of investment. If you invest into something, let's say, $100, RoI is the time you get your $100 back.

Its values range from the Planck's constant (instant-like) to infinity (never - you'll never get your money back).

If it's a lump-sum investment and a lump-sum payout the calculation is

(Amount you get - amount you put in) / (amount you put in) * 100%
OR an easier way: (amount you get/amount you put in) - 1 * 100%

Return on Investment

Actually everyone above was faster
It's the calculation of how much you can expect to make in profit
Cost of goods and services property plant and equipment land fees distribution etc. 1k
You sell said product for 2k
1/2 ROI = 50%

Other factors include Interest payments exploration drilling costs
Depends on the field

Bitcoin its difficulty to mine bitcoins versus profit
Although Mining has never been profitable I believe
Even in 2011 electricity is greater than value of bitcoins so some people are just like screw it buy it not mine it
Good old divides

ok thanks anyone no the average ROI for mining bitcoins

return on investment

EG if you invested $8k in mining rigs and you only got 0.5btc a day when mining. at current prices ($400) it will take 40 days of 0.5btc a day to get $8000 worth of bitcoin to break even.

more complicated is that the difficulty rises every 2 weeks. so depending on what day you began mining and considering the difficlty rises it may be 90 days before you have got $8k of btc purely because the difficulty change means your 0.5btc reward, starts to turn into less, at each difficulty jump. and that excludes more miners joining in between difficlty jumps, taking a slice of the shares, which also decrease earnings.

so ROI could be 90 days.

the funny bit is that most miners are shooting themselves in the foot, because either before or at the point they breat even, they realise the equipment thy are using is sucking such an amount of electric that the declining BTC reward is not covering the costs. and as such as soon as they break even they then spend the $8k on the next generation of equipment just to cut costs and TRY to make back their $8+ profit in a shorter timeframe.

endlessly chasing their tail


without knowing what rig you got, your electricity costs you got.. no..

Radius of Influence

Republic Of Ireland
Return Of Invoice
the movie RIO for dyslexic children

i was planing on buying 10 antminers for 500 each total cost 6200$ power is .10$ a kw antminers use about 400w each 4300w total

It really depends on your equipment and your electricity price.
You should take a look at a profit calculator before buying any ASIC.

I think it would be more accurate to say ROI is the return you get in a given time for a given investment after allowing for the costs (which may include initial capital and running costs), this may be a positive (greater than investment) or negative (less than investment) return.

A worked example (with simple numbers):

100 day ROI

For simplicity assume a stable BTC value of $500.

Capital cost: $1,000 spent on mining hardware (including taxes, delivery, etc.)
Running cost: $10/day spent on electricity to keep it running

Total cost over 100 days = 1,000 + (100 x 10) = 1,000 + 1,000 = $2,000 (or 4 BTC)

Return in Bitcoins = 0.02/day (ignoring difficulty increases)

After 100 days you will have mined 2 BTC, which is an ROI of 2/4 or 50% (less than 100% and therefore negative).

If difficulty doesn't change or BTC go up that example rig will never return a positive ROI (as it is only mining exactly enough to pay its electricity bill: 0.02 BTC = $10).

However, having said that, on this site most people use ROI as shorthand to say "How long will it take for this investment (hardware/cloud/group buy/whatever) to achieve a positive return?"

As you will see from the example above in order to get a positive return you must at least mine more than the electricity costs!

Unfortunately to calculate that with any accuracy you need to allow for both a variable BTC value (unless you can buy in BTC and thus avoid any exchange rate variability) and the change in mining difficulty (which at the moment is increasing significantly every 2 weeks/2016 blocks).

Hope that helps.

That is common nonsense, what you mean is break even, not ROI.

ROI means return on investment.

R--> Return
O-->Of
I-->Investment

Though as gilletto pointed out, (and I tried to) most people here say RoI when they actually mean "break even".

Return of investment it is.

The average ROI for mining bitcoins has been negative for more than a year now, i.e. most people have lost money. Generally, the reason is that the difficulty has risen quickly and most people paid more for their mining equipment than it has mined.

Guys you don't need 10 posts in the same thread explaining the same thing. If you see that someone has already answered ( especially when there are 10 of them ) there's no point posting the same shit again. It's just spam.

ROI is the full form of (Return on investment). Is the concept of an investment of some resource yielding a benefit to the investor.

I wanted to chime in too, but basically everything said is right. Basically its "if i invest xxx amount of money yyy amount is what I recieve". Its measured in percentage usually with return/principle.

Like many posters already mentioned ROI =Return on investment. Before doing any business frist thing you have to check is ROI.

Though actually there are two quite different definitions being proposed here:

1. Return ON Investment - the classical definition, and in my view the correct one, in other words, how much will I get back for a given investment (in a defined timescale)

vs

2. Return OF Investment - widely used here to mean will I get back the money I invest, and (by implication) when?

That's a valid point, they're indeed different, mainly you should be able to tell which one someone is referring to by context. However there are still multiple posts saying -exactly- the same as previous ones. :>

Do you add your initial investment to your ROI ? For ex. :
1.But 1 gpu with 100 $
2.Mine with it 30$
3.Sell for 80$

Your ROI is now 110%/110$ ? Or is it just 30$ ?

Mate, honestly: How it can be 110%?

If you buy a miner for 100$ and after all you have 110$ in your pocket...is that more then double for you?

This post makes the question very clear to me, thank you very much.

Well my profit from this investment would be 10$. I wasn't sure what roi represents.
Do you calculate ROI in days ? or in money?

For a single-period review, divide the return (net profit) by the resources that were committed (investment):

return on investment (%) = (Net profit / Investment) × 100

So in your case return on investment (%) = (Net profit 10$ / Investment 100$) × 100 = 10% or 10$ ROI.

learned just now.

If you are talking about "how long will I get back my investment?", the answer is usually called "payback period" or simply "payback".

I refer to it as breakeven period.

Return on investment which can be time, money or effort

Well, that makes sense as well. :)

Well thats what term that mining calculators use, so it just kinda stuck  :D