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Title: To mine or to buy? [Split from: Review of the SP10 „Dawson“ 1.4TH/s miner] Post by: Minor Miner on April 23, 2014, 07:33:22 PM I have another idea to cut the noise. For $4495, I just bought 9.35 BTC and did not have to wait until May to get the bitcoin and it made almost no noise producing them.
Or, you can give them $4495 now, and if the network only grows to 60PH/s by mid May (good luck with that), your noisy machine will start producing 0.08 bitcoin a day. It will only take you around 6 months to get the 9.35 coins that you could have in an instant IF everything goes perfectly. Sound like a good deal? Title: Re: Review of the Spondoolies-Tech SP10 „Dawson“ Bitcoin miner (1.4 TH/s) Post by: RoadStress on April 23, 2014, 07:40:07 PM I have another idea to cut the noise. For $4495, I just bought 9.35 BTC and did not have to wait until May to get the bitcoin and it made almost no noise producing them. Or, you can give them $4495 now, and if the network only grows to 60PH/s by mid May (good luck with that), your noisy machine will start producing 0.08 bitcoin a day. It will only take you around 6 months to get the 9.35 coins that you could have in an instant IF everything goes perfectly. Sound like a good deal? Bitcoin goes to 1000$-2000$, you change them to fiat. After a few more months bitcoin goes to 5000$. You lose. Title: Re: Review of the Spondoolies-Tech SP10 „Dawson“ Bitcoin miner (1.4 TH/s) Post by: Minor Miner on April 23, 2014, 09:50:45 PM I have another idea to cut the noise. For $4495, I just bought 9.35 BTC and did not have to wait until May to get the bitcoin and it made almost no noise producing them. Bitcoin goes to 1000$-2000$, you change them to fiat. After a few more months bitcoin goes to 5000$. You lose.Or, you can give them $4495 now, and if the network only grows to 60PH/s by mid May (good luck with that), your noisy machine will start producing 0.08 bitcoin a day. It will only take you around 6 months to get the 9.35 coins that you could have in an instant IF everything goes perfectly. Sound like a good deal? Title: Re: Review of the Spondoolies-Tech SP10 „Dawson“ Bitcoin miner (1.4 TH/s) Post by: xstr8guy on April 23, 2014, 10:08:47 PM I have another idea to cut the noise. For $4495, I just bought 9.35 BTC and did not have to wait until May to get the bitcoin and it made almost no noise producing them. Bitcoin goes to 1000$-2000$, you change them to fiat. After a few more months bitcoin goes to 5000$. You lose.Or, you can give them $4495 now, and if the network only grows to 60PH/s by mid May (good luck with that), your noisy machine will start producing 0.08 bitcoin a day. It will only take you around 6 months to get the 9.35 coins that you could have in an instant IF everything goes perfectly. Sound like a good deal? Yep, buying BTC coin at $490 is a great idea. That is until you panic-sell at $200. Title: Re: Review of the Spondoolies-Tech SP10 „Dawson“ Bitcoin miner (1.4 TH/s) Post by: Minor Miner on April 23, 2014, 10:20:14 PM I have another idea to cut the noise. For $4495, I just bought 9.35 BTC and did not have to wait until May to get the bitcoin and it made almost no noise producing them. Bitcoin goes to 1000$-2000$, you change them to fiat. After a few more months bitcoin goes to 5000$. You lose.Or, you can give them $4495 now, and if the network only grows to 60PH/s by mid May (good luck with that), your noisy machine will start producing 0.08 bitcoin a day. It will only take you around 6 months to get the 9.35 coins that you could have in an instant IF everything goes perfectly. Sound like a good deal? Yep, buying BTC coin at $490 is a great idea. That is until you panic-sell at $200. Title: Re: Review of the Spondoolies-Tech SP10 „Dawson“ Bitcoin miner (1.4 TH/s) Post by: xstr8guy on April 23, 2014, 10:55:17 PM I have another idea to cut the noise. For $4495, I just bought 9.35 BTC and did not have to wait until May to get the bitcoin and it made almost no noise producing them. Bitcoin goes to 1000$-2000$, you change them to fiat. After a few more months bitcoin goes to 5000$. You lose.Or, you can give them $4495 now, and if the network only grows to 60PH/s by mid May (good luck with that), your noisy machine will start producing 0.08 bitcoin a day. It will only take you around 6 months to get the 9.35 coins that you could have in an instant IF everything goes perfectly. Sound like a good deal? Yep, buying BTC coin at $490 is a great idea. That is until you panic-sell at $200. I wasn't comparing mining vs speculating. I was simply stating that speculating is not without risk either. I lost my ass with my brief experiment with trading but I've made a positive ROI with mining. What works for one person might not work for another. I'm not built for trading. Mining might not be as lucrative but it's a whole helluva lot more fun... for me. Title: Re: Review of the Spondoolies-Tech SP10 „Dawson“ Bitcoin miner (1.4 TH/s) Post by: philipma1957 on April 23, 2014, 11:07:01 PM yes but you are both ignoring USA tax law:
buying coins and holding is capital gain passive investment income. buying a miner is self employment income it is active. so for USA investing in coin vs mining with coin involves different tax laws. I realize neither one will earn fiat money if btc drops in fiat price. But if btc rises in fiat price both will profit and if you are USA based you will have different tax laws to follow. Title: Re: Review of the Spondoolies-Tech SP10 „Dawson“ Bitcoin miner (1.4 TH/s) Post by: RoadStress on April 24, 2014, 12:19:08 AM I have another idea to cut the noise. For $4495, I just bought 9.35 BTC and did not have to wait until May to get the bitcoin and it made almost no noise producing them. Bitcoin goes to 1000$-2000$, you change them to fiat. After a few more months bitcoin goes to 5000$. You lose.Or, you can give them $4495 now, and if the network only grows to 60PH/s by mid May (good luck with that), your noisy machine will start producing 0.08 bitcoin a day. It will only take you around 6 months to get the 9.35 coins that you could have in an instant IF everything goes perfectly. Sound like a good deal? Yep, buying BTC coin at $490 is a great idea. That is until you panic-sell at $200. I wasn't comparing mining vs speculating. I was simply stating that speculating is not without risk either. I lost my ass with my brief experiment with trading but I've made a positive ROI with mining. What works for one person might not work for another. I'm not built for trading. Mining might not be as lucrative but it's a whole helluva lot more fun... for me. This! +1 I'm find myself in the same position. That's why i love mining and my heart loves me for doing it. Title: Re: Review of the Spondoolies-Tech SP10 „Dawson“ Bitcoin miner (1.4 TH/s) Post by: Entropy-uc on April 25, 2014, 06:31:01 PM yes but you are both ignoring USA tax law: buying coins and holding is capital gain passive investment income. buying a miner is self employment income it is active. so for USA investing in coin vs mining with coin involves different tax laws. I realize neither one will earn fiat money if btc drops in fiat price. But if btc rises in fiat price both will profit and if you are USA based you will have different tax laws to follow. US tax law makes it extremely undesirable to reinvest BTC into mining hardware. If you buy gear with BTC you need to pay the short term capital gains on your BTC. That is an extra 20-45% that your mining hardware has to earn before you have a profit on the purchase. Plus you can only depreciate the hardware cost over 5-7 years, so most of the earning from the new equipment will be taxed as ordinary income. Since pricing of hardware barely supports break even as it is - a US miner reinvesting BTC is literally throwing BTC away by purchasing today. |