GPU & Cloud Mining - a total and guaranteed loss?

[Razva]

Hey,

In the last couple of weeks I've began analyzing the market and something "doesn't clicks". Except Bitmain's ASIC miners I couldn't find any way to make a profit with bit/altcoins. Here are some facts.

Mining Rig
- GTX 1080 Ti
- cost: $1100 (GPU only)
- performance: 32 MH/s
- profit: $528/year
=> ROI: 2+ years

Considering the (high) chance of the GPU breaking after warranty, growing difficulty and energy cost, we can safely come to the conclusion that a GPU mining rig will never cover its own costs => ZERO profit.

Cloud Mining
- Genesis Mining
- cost: $2800 for 2 years
- performance: 100 MH/s
- profit: $1650/year

Considering the growing difficulty we come to the conclusion that the ROI is ~2 years => (almost?) ZERO profit.

Renting ASIC
- HashNest
- acquisition cost: $3600
- maintenance: $34/month
- power: $78/month
- performance: 504 MH/s
- profit: $683/month
=> ROI: 6 months

Here we have a $4000/year profit, without considering the difficulty increase. It's really too good to be true, so a second look from your side would be really helpful.

Are my calculations correct or am I wrong?

Thanks,
Razvan

[fr4nkthetank]

Your calculations are wrong.  First.  Cloud mining is mostly always NOT profitable and I hate the very idea of it.  But it is what it is.  Bitmain's cloud mining is a better option, but still bad.

You dont mine ETH with a 1080ti.  Go see whattomine.com
Plus a 1080ti is not the best option to mine with.  Profitability is not a decreasing curve - it is a fluctuating one.  It decreases over time, but once in a while it bumps up, so it averages out.  Plus you still have residual value in the GPU, if its undervolted it will last a long time with low fan speeds.  GPU mining is still profitable, and most likely will be for a long time.

[Bare]

Yeah total hate, cloud mining is like a fancy way for anyone trying to kickstart him or herself by saying: "Ey, gimme your money so I can build tons of rigs myself and eventually I'll try to cover your initial expenses" or if they're smart even make you lose your money. I just don't understand how people fall for that "fancy" crap...

[ahmedjamal1998]

I couldn't agree more regarding cloud mining. This has been my opinion and advice always.
Cloud mining isn't and will never be profitable. It's just selling some good promises and words to customers with no base.

Once you make the payment and wait for a month or two, you realize that you made a very big and costly mistake. And of course they make you pay for long-terms upfront.
The main question is why do people believe these websites/services ? They can literally just disappear with all the funds they collected and no one will ever get his money back which actually happens a lot if you just look back. Like how do these customers guarantee that the company will keep its words ? There is nothing to force them to do so.

From cloud mining, the very best thing to happen is to earn your capital back because usually that doesn't happen.

But when you talked about gpu mining that what I didn't like because it's all based on wrong information.

Mining Rig
- GTX 1080 Ti
- cost: $1100 (GPU only)
- performance: 32 MH/s
- profit: $528/year
=> ROI: 2+ years

Considering the (high) chance of the GPU breaking after warranty, growing difficulty and energy cost, we can safely come to the conclusion that a GPU mining rig will never cover its own costs => ZERO profit.

Who in the world mines ethereum with 1080 ti cards ? That's not a good idea. Here is the proper numbers for one mining rig.

Mining Rig
- GTX 1070
- cost: $450 (GPU only) $3300 for the whole 6 cards mining rig.
- performance: 460 sol/s (zcash)
- profit: $3600/year
=> ROI: 10 to 11 months max. (even less if you sell at price spikes.)

So no, gpu mining is still profitable.

[Razva]

You dont mine ETH with a 1080ti.  Go see whattomine.com
Plus a 1080ti is not the best option to mine with.  Profitability is not a decreasing curve - it is a fluctuating one.  It decreases over time, but once in a while it bumps up, so it averages out.  Plus you still have residual value in the GPU, if its undervolted it will last a long time with low fan speeds.  GPU mining is still profitable, and most likely will be for a long time.

Who in the world mines ethereum with 1080 ti cards ? That's not a good idea. Here is the proper numbers for one mining rig.

Mining Rig
- GTX 1070
- cost: $450 (GPU only) $3300 for the whole 6 cards mining rig.
- performance: 460 sol/s (zcash)
- profit: $3600/year
=> ROI: 10 to 11 months max. (even less if you sell at price spikes.)

So no, gpu mining is still profitable.

Yes you are right, thank you for correcting me! I've just checked my test Nicehash setup, it does ~$3/day (similar with whattomine.com's results) => 90/mo => $1080/year. That results in a 8.3% profit. I guess that joining a pool would add a 0.5% margin, so let's say that we could reach a 9% monthly profit which is...decent. It's basically similar with a decent FOREX setup (right now I'm making between 5-10%/mo via a MT4 FOREX EA). The advantage with FOREX is that inflation corrodes slower than a GPU (which can be sold or used more than one year), the disadvantage is that you need to risk 10% each second in order to be able to gain 10% each second.

What do you think about a mining rig VS Bitmain?

If you see anything else that is wrong in my calculations please let me know, I'm here to learn.