Want to get into mining mid-2015.

[DVDMiner]

Hello,

I am hoping to get some advice to see if my direction and choice of hardware is good for mining Bitcoin.

I want to start mining, and I have done the calculation on using AntMiner 5S + PSU's for them, and with a 7% raise in difficulty level I will break in about ~11 months from now. Then start making about $200/month in profit with my power rate. (And assuming the price is roughly the same a year from now).

Is BitMain the company to go for? I don't want any pre-order junk... Is there something around the corner that's going to be released that is better than the ASIC or a better ASIC that I should wait for instead of going the AntMiner route?

Any information is appreciated.

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[alh]

One thing to remember when you start calculating returns that are pretty far out (e.g. 11 months). The next "halving" of the block reward is projected for July of 2016. As with difficulty adjustments, it's block count based, so when it happens isn't precise in terms of date. Most folks don't remember that the block reward will then fall to 12.5 BTC/bloock, from the current 25 BTC/block.

[DVDMiner]

Thank you for the insight. It's worth it just to buy the BitCoin at this point?

[QuintLeo]

Unless your power rate is under 5 cents/KWH, a S5 is real marginal for ROI once you factor in the cost of power supply before it becomes unprofitable. You'll probably pay off the S5 but you'll still owe some on the power supply, ASSUMING that difficulty average increase stays where it's been so far this year and Bitcoin price doesn't dump again.

 If your power is cheaper than that, you probably will ROI an S5 and MIGHT ROI the PS too unless profit factors change for the worse.

 The "halfing" is currently estimated as "end of July" right now, but every time we get a difficulty increase it's because the blocks got processed faster than "default" and that halfing moves forward a little bit - given current trends I'd guess halfing around mid-July.

 Without the halfing, a S5 profitability would probably be getting a little marginal by that point, but chance of ROI eventually would be VERY GOOD with electric at 7cents/KWH or less.


 IMO wait a month or two, the S7 appears to be in production but Bitmain wants to sell of their "farm"/Hashnest S5s and replace those with S7s before they start selling to the public - and Lktec has already pre-announced a 5TH 1KW unit that appears likely to be based on the Innosilicon A3 (for which tape-out has been quietly announced, likely in production fairly soon).