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It's important to understand the "functional lifespan" of a piece of hardware compared to it's "economic lifespan". ASIC mining hardware does NOT have a long "economic lifespan" (i.e the point at which it's not longer viable to run). The usual answer is to sell it off to somebody with a lower operating cost.
I would also suggest that in some, possibly many, cases you'll sell your miner to somebody that doesn't truly understand the economics of Bitcoin mining. I am 90% certain I have never "broken even" (aka ROI) until I sell the hardware. The less kind way to put that is "The greater fool strategy". Works best when BTC price is high, assuming you do your ROI calculations in fiat currency (as I do). Mining hardware seems to have a greater value on the used market when BTC price is high.
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If you are going to run a full node, ch3eck if you have any constraints on your total bandwidth consumption for a month from your ISP. Just the churn of the blockchain will push you past 120 GBytes/month, and climbing each month.
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If you have free electricity and if the prices remain stable at where they are, I mean more than $450, then there's a chance you can get out with some nice profit in the next few months, but that too before halving, as nobody knows what will be the scenario after halving takes place... There are chances that people might lose interest in Bitcoins, or might there happen something like a big pump that could take BTC to somewhere that will drag everyone's attention towards it again...  Well with the price 450 USD and having a Antminer S7 + a energy rate of like 10 cent / kW the ROI period is less then 120 days. It's a little bit high yes but 'doable' even more if you expect the price to rise even more. But looking towards the difficulty that skyrocket big time see: https://bitcoinwisdom.com/bitcoin/difficultyIt's very risky again. Therefore i wouldn't advice to buy mining gear right now. After 120 days, you still haven't paid off your S7, unless you got it for less than $600, or unless difficulty starts to fall off below 5% every two weeks. I have no idea what assumptions you made to get a payoff off of 120 days. Maybe you expect the price of BTC to increase faster than difficulty, and you got the S7 for "half price" maybe you can make it work out. I think that a 120 day payoff for an S7 require an incredible number of unlikely assumptions. |
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Quick idea since this once very vibrant thread and company comes to a resounding death.
What if Spondoolies created their own SHA-256 and if they accepted it for payment for their miners, or even only that for payment for their miners (cash and their new coin only). Even go so far as to team up with say Bitmain and whoever else is scattered in the field to accept this new SHA-256 coin.
Clearly the whole point is to get a new fresh coin that they can sell their miners again to house hold small time miners. Bitcoin reboot. Even go so far as it program something that still ensures the bitcoin network as attended to while mining for this new SHA-256 Spondoolie.
Need a new SHA-256 coin with a purpose so that the whole home mining can re-start.
What's the math involved? Viability? Way to find out if there would be enough people out there to make it worth while etc. etc.
Something needs to be done. This BS industrial mining only when you got tons of small home farm equipment laying around must be solvable.
I am really not tracking here. I think it's been amply demonstrated that any SHA-256 coin that isn't Bitcoin, is "Dead On Arrival". Every single previous example has been a "Pump and Dump" trade for Bitcoin scheme that fails. A new SHA-256 coin will NOT solve any problems for Spndoolies, or anyone else for that matter. |
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This is a really great article and discussion. One thing I think that was missing from the outset is that this will only work with an input voltage of 220V. It won't work on 120V (nominal) wall power.
I say this based solely on the label which suggests it won't supply enough DC power when powered from a typical 120V outlet.
Which breakout board are you using on this DPS-1200FB power supply?
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sorry didn't pay too much attention to what happens with halving in relation too litecoin.
so with bitcoin does the difficulty halve too. My S% really struggles with the difficulty at 79+
The immediate impact of the "halving" on difficulty will be zero. Difficulty is determined by the rate at which blocks are solved. not how many bitcoins are produced. The INCOME is what gets halved, not the production of blocks. Obviously that will impact some folks more than other. If enough gear gets turn off as a result of the reduced income, THEN (and only then), will difficulty fall. Also it will take quite a while for difficulty to fall. It's only when the 2016 blocks take more than 14 days to solve that difficulty will fall. The difficulty mechanism is quite unlike any other industrial operation we are familiar with. |
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I just love that word "decentralized".
For some it means instead of a 40MW data center operated by one company, it means ten 4MW data centers all operated by the same company.
For others it means instead of a 40MW data center operated by one company, it means 40,000 1KW home miners owned and operated by individuals.
After all, decentralized sounds so much better for all than just that plain old word: distributed.
We'll find out what they really mean in 2016.
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One other small item. Based strictly on the Business Wire release, it looks like the BitFury device would be in the range of about 5.5W to 12.8W. That doesn't sound like a "large chip" to me. In other words it looks like they went "lots of small chips" rather than the "fewer high power chips" (i.e. Spondoolies Rockerbox).
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So is BitFury going to "go to war" with Bitmain during this cycle of the "ASIC wars"? My limited view is that it was Spondoolies that did that last time, though my historical recollection may be wrong. Avalon seems content to hang out on the fringes and not really engage in a "pricing battle" with anybody.
The PR could be correct, and they could easily limit demand by pricing their chips "high" and with order limit caps. The PR never said the chips would be plentiful or cheap.
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wouldn't surprise me a bit if they'll drop the price to $500 in 2 mo considering the 16nm avalanche, which would basically mean (if no BTC price increase above $450) the more you bought, the worse it will be for you. S7 price trajectory resembles SP20 and S1 more than S3/S5.
Yeah, I hate myself now with those Batch 1 price in BTC The Batch 1 set had a low BTC price, and high fiat price to contend with. The fiat price has declined, which I expect is to encourage demand, and the BTC price has roughly doubled (for reasons unknown to me). I think there was "huge" pent up demand for the S7, and Bitmain priced it accordingly (in fiat). The changes in BTC price I think (and hope) are outside of Btimain's control.  |
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I would also add that the metric for "good" in terms of cloud mining is mostly "not a fraudulent or ponzi scheme". A "good" cloud mining site doesn't mean it will be profitable, only that it's not a complete scam.
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I wouldn't lose a lot of sleep over the "missing connectors" on the Batch 8 S7's. The vast majority of the existing S7 purchasers have no idea if their populated and unused connectors actually work. Some of have obviously tinkered with their machines, but 95% have used it as it arrived. After all, if they didn't work, what would you do? Bitmain makes no claim about the unused connectors, and won't "fix" them if they don't work. Even if they did, would you want to send in a working controller (disabling your miner) to get something "fixed" you don't need?
Yes, it looks a little cheap, but way better than some companies (e.g. one PCIe power connector on the KNC Neptune).
In the grand scheme of "S7 Batch number Confusion", this won't matter at all when you resell it.
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I would check VERY carefully the limitations on your "free" (i.e. already paid for) electricity. Also what kind of space are you getting? You might well not be able to support 15TH of mining hardware in terms of electricity, heating/cooling, or noise. If you are getting a 100 square feet of office space next to other folks, you probably won't have the freedom to run loud, hot mining gear, that needs more than would be expected by a non-mining operation (i.e. a lawyer, or accountant).
Also add in your cost of Internet access. You don't need high bandwidth, just reliable internet.
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This kind of analysis assumes that folks are entirely "rational" in terms of profit and loss. A rising BTC suggests that it might go higher, and hence I'll mine for a period of time beyond the point of strict profit. Yes, I expect the larger mining farms are more disciplined, but they also a fair amount of inertia in terms of what to do with gear that's only marginal in terms of profit. They might not have the money to replace it, and their electric rate increases if they fall outside of the commercial rate they currently have, or are contracted for.
There are humans still controlling things, so the decisions may not always be as cut and dried as you suggest.
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Personally I think it takes quite a while for gear to truly disappear from the network. With a BTC price in excess of $450, and locations where it's not hard to get electricity for less than $.05, lots of gear can still turn an operating profit. In addition, if a piece of gear gets sold, not destroyed, then it will be restarted. Nobody buys a miner with the intention of scrapping it. They are going to mine with it, even if it's at a tiny, or non-existent profit.
Sure a lot of big mining farms have gotten rid of their S3's and even S5's. If they sold them, then all they did was delay when and where they would hash. Only if they crushed them or recycle the hardware, did the hash actually disappear.
Look at all the interest by folks on setting up mining gear, with visions of a money-printing machine. Rising BTC price makes hash continue that might not otherwise.
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Does anyone lost his bitcoin buying from.this website  I am just not getting it here. You've inquired about this. Virtually all the responses have been "This is most likely a scam". I have not, nor do I expect anyone that has replied has likely sent off Bitcoin, or fiat either, to find out if it is NOT a scam. If you want to be that person to prove or disprove what everyone has told you, then be my guest. I expect you'll get excuses for a while on lack of shipment, until the website and such just evaporate, along with your money. With Bitcoin, it's way very easy to get scammed. If the efficiencies, and prices are so stellar, why would they just not mine for themselves? There is so little detailed info, the whole thing just screams SCAM!!! |
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I like to pay off electricity with BTC. Makes sure I'm not in too deep. If you don't at least track it you won't know when it's time to sell and get new gen's.
But I admit if I thought was to cheap I paid some out of pocket. I don't sell BTC when I think it's to low... but everyone is different.
So you have an electric company that has a fixed BTC price for your Kilowatt hours? What is the going rate for a KWh where you live (in BTC)? Boy I would sure like to know where that is and see how it compares to my electric company here in Minnesota!! |
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If it's a great deal, why ask here? Just go ahead and send your BTC or USD and hope it all turns to pure gold!!!
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I have a Batch 6, it is beeping.
The lights on the hashing boards flash right before it starts beeping.
The power draw from the wall is nominal (389 watts - typical for the miner not running).
The light on the front is red.
The temperature reported is 20C
I stopped the beeping by pressing and holding the button for a few seconds. My PSU power output is 12.2V, current power draw is 1121 Watts.
No X's, no other info, just beeping constantly while fan is at full blast.
Any chance it can't get to the Internet and your pool? The beeping and fan sound like "I can't to the Internet and need help. I'll run my fan and beep until then". I don't own an S7, so I may be way off. |
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So with BTC at $450, the miner price is about $1125. About the same as what Li is paying for his miners (i.e. $1150). See Group Buys for further details.
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