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1  Bitcoin / Mining software (miners) / Re: CGRemote - Remote Miner Management from the Developer of CGWatcher on: May 01, 2014, 10:17:43 PM
Meant set up on port 4028
2  Bitcoin / Mining software (miners) / Re: CGRemote - Remote Miner Management from the Developer of CGWatcher on: May 01, 2014, 10:13:02 PM
It seems i need to know the port of each of my 6 S1 miners in order to set up CGRemote. I have successfully set up one miner (port 2048) but cannot locate the ports that each of the other five miners are on. Can someone help me with how I can find those ports?

Thanks
3  Bitcoin / Pools / Re: [850 TH] Slush's Pool (mining.bitcoin.cz); TX FEES + VarDiff on: April 25, 2014, 02:25:25 PM
Not sure if it is just me but my numbers on the pool are as consistent and rock steady as can be (plus or minus 5%) for every round. And they have been that way consistently. Not sure why others are experiencing slow downs or low rewards.

Any one care to speculate why I am so stable and others see these wild fluctuations in their numbers?
4  Bitcoin / Pools / Re: [850 TH] Slush's Pool (mining.bitcoin.cz); TX FEES + VarDiff on: April 15, 2014, 07:43:22 PM
Further thoughts on the misuse and misunderstanding of the term ROI for bitcoin mining.

I continue to see both noob miners and experienced miners misuse the term ROI or saying they "invested" in a mining rig in order to mine bitcoin. ROI is a technical term with several meanings none of which have to do with buying an asset, keeping that asset and using it to produce something else. ROI only applies to buying and selling of the asset, not what it produces.

Buying a bitcoin mining rig is not an investment unless you are buying and selling mining rigs. Only under those circumstances can the term ROI be used correctly. The ROI is the difference between the price you paid for the miner and the price you sell it for. It does not apply at all to the amount of BTC you mine versus the price you paid for the machine. That is properly called your break even point and that will include any ongoing fees incurred through the use of the machine like electricity during the useful life of the machine.

A mining rig is a tool used to achieve some other purpose which is to mine BTC. 
5  Bitcoin / Pools / Re: [850 TH] Slush's Pool (mining.bitcoin.cz); TX FEES + VarDiff on: April 14, 2014, 05:00:23 AM
Further explanation of ROI and why it is not a factor in BTC mining since I am not selling my equipment and can realize no gain or loss until i do sell the mining equipment -- again, this is just one way of understanding ROI.

Return on investment (ROI) is a financial ratio intended to measure the benefit obtained from an investment. Time is usually of the essence in this measurement because it takes time for an investment to realize a benefit. An ROI calculation can be illustrated by the purchase and subsequent sale of a house. Let us assume a cash purchase of a residence for $100,000. The house is held for 10 years and is then sold for $150,000; during its 10 years of ownership, maintenance costs have been $1,000 per year, so that the net sales value is $140,000. This sum, less the purchase price, nets out to $40,000. That $40,000 divided by the purchase price produces 0.4 or 40 percent. The ROI of this transaction has therefore been 40 percent. This elaborate example is presented with a purpose. ROIs are typically calculated in different ways. In this example, for instance, the owner may have rented the house for $200 per month and realized a 10-year income stream of $24,000 as well. If that income is factored in, the net benefit will be $64,000 rather than $40,000, and the ROI will be 64 percent.

The general rule to keep in mind is that ROI is the ratio produced when all gains from a transaction, less the costs associated with that transaction, are divided by the initial investment. The most common use of ROI is to assess the profitability of a company (or an operation within a company) based on investment. There are other measures of profitability—as a percent of sales, for instance, or as a percent of total assets used. ROI is of special interest to those who put their money into stocks or invest their savings into their own business: they have different choices available, and ROI can help to guide them to where to put their money.

ALTERNATIVE WAYS OF CALCULATING ROI

The general formula for computing the ROI of a business is to divide the company's net income for a period by its invested capital. But the term "invested capital" does not have a universally or uniformly accepted definition. It is sometimes defined as net work or owners' equity. Other definitions include the company's long-term debt on the principle that, for operational purposes, money derived from debt is equivalent to paid-in capital. Barron's Dictionary of Finance and Investment Terms (1985), for instance, includes long-term debt in its definition of "return on invested capital," which it uses synonymously with ROI. When the company has no long-term debt, the measure becomes Return on Equity. MSN Money uses the same definition as Barron's and showed, in mid-2006, that the average return on capital (ROI including long-term debt) of the S&P 500 companies was 7.9 percent. Return on equity was 12.4 percent.

The small business can, thus, calculate its ROI simply by dividing its after-tax income by its net worth (the residue after total liabilities are deducted from total assets on the balance sheet) or can use net worth plus long-term debt. Consistency in the use of the formula is, of course, advisable. When asked by a lender or investor for the company's ROI, the owner might be well advised to find out the party's own definition. ROI will be lower if long-term debt is present.

ROI calculations are also typically employed to monitor the performance of divisions or of product lines within a company. The approaches used tend to be varied, but a common form of measurement is to use operating income for the division (income before taxes) as the "gain" and a composite measure to represent investment—funds expended on behalf of the division's operations including the depreciated value of capital equipment, the value of inventories carried, and the net value of receivables less payables. When all divisions are measured the same way, comparisons are possible across the board.

ROI can also be used to evaluate a proposed investment in new equipment by dividing the increase in profit attributable to the new equipment by the increase in invested capital needed to acquire it. For example, a small business may be able to save $5,000 in operating expenses (and thus raise profit by the same amount) by spending $25,000 on a piece of new equipment. This yields an ROI of $5,000 divided by $25,000 or 20 percent. If this figure is higher than the company's cost of capital (the interest paid on debt and the dividends paid to investors) prior to the investment, and no better investment opportunities exist for those funds, it may make sense to purchase the equipment.

In addition to the various uses ROI holds for small business managers, it is routinely used by investors in the stock market to compare the performance of different companies and by people buying and selling companies in merger and acquisition activity.
6  Bitcoin / Pools / Re: [850 TH] Slush's Pool (mining.bitcoin.cz); TX FEES + VarDiff on: April 14, 2014, 04:49:01 AM
I found this on the Internet so we know it is true.

My comment: If ROI has as one of its features the accounting of all expenses against the cost of equipment (just one kind of ROI, there are others) and that accounting results in the decrease of taxable income the only place to acknowledge t hat decrease of taxable income is as a savings of real money, then "writing off" (depreciation) expenses certainly does change the ROI.. The reduction in income tax goes directly to the bottom line. I keep more of my earned income since i am not paying a portion of that in taxes that i otherwise would pay without the depreciation of expenses. How can that not affect ROI?

What are the effects of depreciation?
The depreciation of assets such as equipment, buildings, furnishing, trucks, etc. causes a corporation's asset amounts, net income, and stockholders' equity to decrease. This occurs through an accounting adjusting entry in which the account Depreciation Expense is debited and the contra asset account Accumulated Depreciation is credited.

The amount of the annual depreciation that is reported on the financial statements is an estimate based on the asset's 1) cost, 2) estimated salvage value, and 3) useful life. Depreciation should be thought of as an allocation of the asset's cost to expense (and not as a valuation technique). In other words, the accountant is matching the cost of the asset to the periods in which revenues are generated from the asset.

The amount of the annual depreciation reported on the U.S. income tax return is based on the tax regulations. Since depreciation is a deductible expense for income tax purposes, the corporation's taxable income (and associated tax payments) will be reduced by its tax depreciation expense. (In any one year, the depreciation expense for taxes will likely be different from the amount reported on the financial statements.)

It should be noted that depreciation is viewed as a noncash expense. That is, the corporation's cash balance is not changed by the annual depreciation entry. (Often the corporation's cash is reduced for the asset's entire cost at the time the asset is acquired.)
7  Bitcoin / Pools / Re: [850 TH] Slush's Pool (mining.bitcoin.cz); TX FEES + VarDiff on: April 13, 2014, 04:52:59 AM
Been mining since Feb. 9th. Three of my 6 mining rigs have already paid for themselves, another will have paid for itself as soon as I sell the BTCs in my wallet (waiting for a slightly higher price) or can spend that disposable income that I did not have before on something else. Buying and selling BTC means staying glued to the computer all day and is too time consuming. If I wanted to day trade I would day trade stocks. As it is, I sit on my butt minting money or go do something else that is fun or interesting and mint money at the same time.

I get to write off the cost of the miners. They, like all capital equipment, are on a depreciation schedule so the price I paid for them does not stay fixed over the course of time. The calculators I have seen do not seem to account for this and that screws up the ROI formulas. I get to write off some portion of my home office, electricity costs, computer hardware that I use for monitoring or mining, and anything else a creative tax accountant can find. Do the mining calculators account for any of that? Not that I can tell. Sure, I have to pay income tax, so what, it is INCOME and so far it looks pretty good that I will have more income than outgo even if I account for the cost of the miners for ROI. My miners will keep making new money as long as running them does not exceed the cost of the electricity I use and the price of BTC does not fall too low. That too appears to be a long way from happening.   Kiss
8  Bitcoin / Pools / Re: [850 TH] Slush's Pool (mining.bitcoin.cz); TX FEES + VarDiff on: April 12, 2014, 04:00:27 PM
Things I've discovered about bitcoin mining: a noobs perspective

1. Many (not all) BTC miners are liars hahaha
2. You can make money mining BTC. This is abso#uckinglutely true.
3. Many BTC miners will say that is not true, but...see #1.
4. ROI is not the gold standard for for determining if you actually make money at mining! Caring about or thinking about ROI is just one way of thinking about mining. It is not the only legitimate way. I do not give a ratsa$$ about ROI. That money is gone, gone, gone. It is the cost of doing business. (Except for tax purposes and since many miners are liars, they will not be reporting their earnings to the IRS, so that is moot).
5. The only factors that matter to mining are difficulty as it relates to the amount of time a round MAY take, electricity costs versus BTC reward, BTC/$ exchange rate, and luck.
6. To make real money, go big or don't go at all. Unless you are hobby mining start with at least 1-2 TH/s or have as your goal to build toward this as fast as you can. Go up from there.
7. Read the damn forum posts noobs. Most of the info you need is already there.
8. BTC miners will generally not encourage new miners coming on to a pool because you dilute our rewards to some extent.
9. Mining at other pools will generally not earn you more rewards no matter what their payout formula is (PPlns, pps, dgm, etc.) but please go try them so I can earn more rewards on Slush's when you leave.
10. The BTC mining calculators are all based on certain assumptions that may or may not be true especially the more complex ones. I generally ignore them except to see if my actual earnings match what they say I should be earning (but only as a snapshot of today).
11. I am a BTC miner so I may be lying about all this.
9  Bitcoin / Pools / Re: [850 TH] Slush's Pool (mining.bitcoin.cz); TX FEES + VarDiff on: April 11, 2014, 01:43:27 AM
On east coast in USA, no problems whatsoever here. All miners running full blast.
10  Bitcoin / Pools / Re: [850 TH] Slush's Pool (mining.bitcoin.cz); TX FEES + VarDiff on: April 09, 2014, 07:50:42 PM
Is there a hash rate that actually allows a miner to keep pace or even outpace the estimated rise in difficulty or is that just a wrong way of thinking about difficulty?

Thnx
11  Bitcoin / Hardware / Re: Caveat emptor on: April 08, 2014, 05:42:39 PM
I continue to maintain that thinking of mining in terms of ROI on equipment costs is only one way of thinking about mining for money. As I have said elsewhere mining rigs are tools like mechanic, plumbing, electrician tools. In order to do your job and EARN money you need certain tools. Mechanics, plumbers, electricians, etc. need their tools upfront in order to work and earn income. The cost of tools is simply the cost of doing their particular job and they do not think in terms of ROI on a wrench or a pair of plyers (unless the tool is some major capital asset). They will, of course, for tax purposes, "write" the tools off as an expense but that is purely a tax issue.

Every BTC I earn mining is converted to $$ and is spendable income. I am not interested in "investing" per se except in the broadest sense of investing in the BTC economy. The only mining expense I care about is the cost of electricity which is a fixed utility cost for living. My miners are not really either depreciated or appreciated in their initial value although in truth the value of my mining equipment may go up as BTC prices rise but that is only if I sell my rigs. Additionally, as BTC drops in value relative to $$, my mining equipment (viewed as replacement cost) can, and has, gone down. I buy my rigs when that happens.

I have noticed that in some of the BTC mining calculators that the cost of the mining rigs is used relative to expected BTC earnings over x time. Yet, those calculators never amortize the cost of the machines and that is a flaw. If one is concerned about ROI, then the rigs must be amortized over time, the value simply should not stay the same over x amount of time. That is just a normal "business" accounting practice. But, then again, since I have a different philosophical approach to mining, I could not care less about ROI or amortizing the cost of the machines. As long as they continue to work as a tool, they are are earning.

I make/create between $800-$1500 a month mining. That is money I did not have before and all I do is sit on my butt and check that the units are running properly 2-3 times a day. My machines are paid for out of disposable cash I chose to spend on them. If earning money is your goal, money you did not have before, and all you do is sit there then do it and don't worry about ROI. If you are interested in thinking of mining as an investment, then knock your socks off but you are better off buying stocks and earning dividends. In the mean time I am spending my easily-earned money and I have long ago considered the money spent on the rigs as gone.   
12  Bitcoin / Pools / Re: [850 TH] Slush's Pool (mining.bitcoin.cz); TX FEES + VarDiff on: March 25, 2014, 03:14:23 PM
ROI is just one model of thinking about mining. It is not the only one that make sense. An auto mechanic, plumber, electrician, or any skilled worker needs tools to accomplish their jobs and earn income. They have to purchase their tools upfront. While they can and do write the tools off for tax purposes, their goal is not to have a return on investment on their tools, their goal is too earn an income. They do not usually look at their paycheck and say, I haven't made any money yet because i have not made enough money that covers the cost of their tools (unless they borrowed the money but that is another issue).

Mining equipment is a tool to earn money. And unless you are amortizing the cost of mining equipment over time then you are wasting time thinking in terms of ROI. The value of equipment usually goes down over time. None of the calculators seem to be accounting for that. They keep the cost of equipment the same over whatever time period you are looking at for ROI. That is ridiculous and makes no accounting sense at all. And another thing is that the value of your mining equipment can actually either stay stable or increase based on the demand for equipment that is directly linked to the price of BTC (if it goes up, you mining equipment becomes more valuable because of its ability to always earn BTC no matter the price).

This doesn't mean you ignore the cost of mining equipment or do not factor it in to your finances. But the equipment is analogous to buying a car in addition to the tools analogy above. I get a certain value from using a car that is not directly related or impacted by the cost of the car. A car is a big money hole. It decreases in value over time and I have to keep putting money into it to keep in running in order to get the non-monetary value I get from its use.

I mine to make an income period and the rigs are the tools that allow me to do that. I do not consider recovering the cost of my tools as primary.
13  Bitcoin / Pools / Re: [850 TH] Slush's Pool (mining.bitcoin.cz); TX FEES + VarDiff on: March 08, 2014, 06:46:41 AM
everything seems up and running (and has been) for me. I'm running (3) Antminer S1's and they have been chugging along.
14  Bitcoin / Mining support / Just added S1 on: February 28, 2014, 12:15:13 AM
I just added an S1 Antminer to my (2) Cubes mining Slush's on the same PC. I figure that would be okay since the Cubes use the proxy and the S1 does not. I added a new worker and input that info to the S1 so that it is mining at Slush's with that user name and password. Been up and running about 20 mins. So far no shares appear on Slush's pool under my worker's name. Is this a normal delay? The S1 shows I have shares. Is the a ticket worthy item? To new to know. My Cubes show shares pretty much immediately.

Thanks
15  Bitcoin / Mining support / Mode question for running two Cubes on: February 19, 2014, 04:42:34 PM
I'm running two Cubes both pointed to Slush's Pool. I have them set at Equal Priority Mode. Is there an advantage to setting to Primary/Backup Mode? Running in Equal Priority Mode gives me a hash rate of between 76-80 Gh/s. Will Primary/Backup give me that same aggregate? I would like to find out others experience before I experiment.

Thanks
16  Bitcoin / Pools / Re: [850 TH] Slush's Pool (mining.bitcoin.cz); TX FEES + VarDiff on: February 19, 2014, 04:33:33 PM
So, maybe I am the only one but other than confirmed rewards showing up a bit slow, I am getting them and they have remained at the same level since I started mining here. Whatever the glitch was a few days ago when my hash rate halved, was corrected fairly quickly in my opinion. I don't have experience with others pools. Do other pools experience these same kinds of issues, and if so, why jump from Slush's to others? Just askin. 
17  Bitcoin / Pools / Can a pool miner solve a a block by themselves? on: February 12, 2014, 06:38:39 PM
I was just wondering if a pool miner can (theoretically) solve a block by themselves? I understand that it is extremely unlikely unless one has a ridiculous hash rate but I am just curious.
18  Bitcoin / Mining support / Using ASIC Cube which requires Stratum proxy cause it still uses getwork on: February 09, 2014, 11:23:40 PM
reading some of the past news updates I noticed that getwork is going/went away. How does this affect those of us using Cubes that require the stratum proxy because it still uses getwork? Saw something about 10% fee for getwork users. Can someone fill me in on what this means? Thanks
19  Bitcoin / Mining support / Want to run two Cubes on: February 07, 2014, 10:56:51 PM
I have one Cube up and running just fine. Cannot find any real how-to on setting up second Cube to run at the same time. email me at szahm1663@gmail.com if willing to help.
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