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ebow3d
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December 08, 2015, 09:07:11 AM
 #1

I am completely new to Bitcoin mining. Now, I have some pretty basic questions. Please excuse me if you've heard these questions many time before.
If I buy an S7 and run it here in Hong Kong, according to profitability calculators, it should make around $220 per month, minus pool fees. Now, if I buy 10 of these, then I should make around $2 200 per month, not so? Now, at $1 650 per unit, that should pay itself off in around 6 months, give or take. Thereafter, I get $2 200 per month.
That sounds pretty good, is there a catch?
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fronti
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December 08, 2015, 10:20:44 AM
 #2

I am completely new to Bitcoin mining. Now, I have some pretty basic questions. Please excuse me if you've heard these questions many time before.
If I buy an S7 and run it here in Hong Kong, according to profitability calculators, it should make around $220 per month, minus pool fees. Now, if I buy 10 of these, then I should make around $2 200 per month, not so? Now, at $1 650 per unit, that should pay itself off in around 6 months, give or take. Thereafter, I get $2 200 per month.
That sounds pretty good, is there a catch?

yes there is a catch called difficulty.
If more and more "miners" running because they have the same idea like you, this difficulty will go up.
and therefor you will get less BTC every 2 weeks..

so, the hint is, before buying hardware, inform you about Difficulty and how mining work

If you like to give me a tip:  bc1q8ht32j5hj42us5qfptvu08ug9zeqgvxuhwznzk

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December 08, 2015, 10:23:45 AM
 #3

yeah its all about difficulty. Every 2 weeks what your miner makes gets gets less and less.
The difficulty isnt steady it always changes so all you can do is estimate and gamble.  Plus you gamble
that btc price stays high cause if it goes to 250$ then its really bad roi



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Rainbot
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December 08, 2015, 10:25:20 AM
 #4

I am completely new to Bitcoin mining. Now, I have some pretty basic questions. Please excuse me if you've heard these questions many time before.
If I buy an S7 and run it here in Hong Kong, according to profitability calculators, it should make around $220 per month, minus pool fees. Now, if I buy 10 of these, then I should make around $2 200 per month, not so? Now, at $1 650 per unit, that should pay itself off in around 6 months, give or take. Thereafter, I get $2 200 per month.
That sounds pretty good, is there a catch?

yes there is a catch called difficulty.
If more and more "miners" running because they have the same idea like you, this difficulty will go up.
and therefor you will get less BTC every 2 weeks..

so, the hint is, before buying hardware, inform you about Difficulty and how mining work

Exactly what fronti said, PLUS your calculation should also be based on:
1) the current price of BTC (which might vary)
2) the current block reward (which will halve mid 2016)
3) the current KWu price you pay (which might change)
4) the current difficulty (like fronti said)
5) the fact that you'll be able to mine 24/7 without any interruptions
6) you might be able to overclock your systems, but maybe you'll have to underclock them to keep them running stable
7) luck
notlist3d
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December 08, 2015, 04:47:04 PM
 #5

yeah its all about difficulty. Every 2 weeks what your miner makes gets gets less and less.
The difficulty isnt steady it always changes so all you can do is estimate and gamble.  Plus you gamble
that btc price stays high cause if it goes to 250$ then its really bad roi

Difficulty is a huge factor.  The calculators that show you a year or months with no difficulty are very bad for profit guessing.

Here is a good calculator: https://bitcoinwisdom.com/bitcoin/calculator it allows dificulty increase. What is your electricity price? If we know it we can give much better idea of if you have profit or loss running.
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December 09, 2015, 07:50:32 AM
 #6

i think you can come victoirious now that the price is increasing quickly, faster than the diff can ever dream about

but you need to sell it at some point to have your roi, because by how the thing are going you need more than 6 months to break even
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December 09, 2015, 07:58:24 AM
 #7

i think you can come victoirious now that the price is increasing quickly, faster than the diff can ever dream about

but you need to sell it at some point to have your roi, because by how the thing are going you need more than 6 months to break even

If you buy with BTC and have more BTC after a miner I would say you can mine and ROI without selling.  There are many inducing myself that will have long term holdings in it.

I do sell to pay for electricity, unless a few I though was to dang low and did not cash in any BTC.  But my goal is always to have more BTC.  I measure my ROI on BTC not USD.
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December 09, 2015, 10:07:25 AM
 #8

There is difficulty and then there is also price and then there is also a chance that your S7 can break!


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QuintLeo
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December 09, 2015, 10:50:25 AM
 #9

Is that calculator taking electric cost into account?

 Otherwise, the primary catch is the rate of difficulty increase.

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December 09, 2015, 06:02:34 PM
 #10

Is that calculator taking electric cost into account?

 Otherwise, the primary catch is the rate of difficulty increase.

It is hopefully he enters his own in there.  I think it's default is 10 cents.  But your right OP should change all settings custom to him.

As far as calculators go it's one of the best long term.  Assuming your difficulty is close.  But it can show what effects long term changes can have very well.
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December 10, 2015, 02:14:32 AM
 #11

Thanks for all the answers/advice.
So, it seems the two big factors would be difficulty and BTC exchange rate. Given, of course that electricity prices don't change and the miners don't break.
I'm beginning to understand now why its called speculation, rather than just plain mining.
One more question: does the difficulty ever decrease?
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December 10, 2015, 03:31:00 AM
 #12

Thanks for all the answers/advice.
So, it seems the two big factors would be difficulty and BTC exchange rate. Given, of course that electricity prices don't change and the miners don't break.
I'm beginning to understand now why its called speculation, rather than just plain mining.
One more question: does the difficulty ever decrease?

Look at bottom of page - https://bitcoinwisdom.com/bitcoin/difficulty .  It shows difficulty changes.

So can it happen... yes it can.  Right now with prices going higher and higher will it no.  We likely are in for some more high difficulty changes, but time will tell.
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