Should I buy a bunch of rigs?

[Alik]

Sup peeps. Think I should just go out and buy parts to build like 30 rigs and set em up with custom cooling in a warehouse? I got the capital. Watcha think?

This guy seems to like the idea: http://www.youtube.com/watch?v=eLt8Se3vVNg&feature=related

[Bitatoes]

hey man, you might find this useful:

http://forum.bitcoin.org/index.php?topic=15634.0

[freequant]

Sup peeps. Think I should just go out and buy parts to build like 30 rigs and set em up with custom cooling in a warehouse? I got the capital. Watcha think?

This guy seems to like the idea: http://www.youtube.com/watch?v=eLt8Se3vVNg&feature=related

Bitcoin is based on a solid algorithm, but is driven by a community that seems to seriously lack objectivness, probably because of vested interest into ever increasing exchange rates. I am not sure if they are not going to crash the whole thing out of blind and zealous faith

If I were you I would wait and see if the whole Bitcoin ecosystem does not collapse entirely in the coming days.

Maybe you can start by building one rig, and convince yourself that the profit is worth the trouble.
You should also make the experience of one or two difficulty increases, and factor the outcome into you profitability model.
In bitcoin denomination, you profit is going to decrease exponentially over time, so you will have to rely on a permanent and proportionnal (therefore exponential) increase of the BTC/USD exchange rate if you want to have a stable income in your native currency.

Now if you have alternate business models for your hardware, like creating a GPGPU cloud service or if you would like to help cancer research by running folding@home, then it's a different story.

[Alik]

Sup peeps. Think I should just go out and buy parts to build like 30 rigs and set em up with custom cooling in a warehouse? I got the capital. Watcha think?

This guy seems to like the idea: http://www.youtube.com/watch?v=eLt8Se3vVNg&feature=related

Bitcoin is based on a solid algorithm, but is driven by a community that seems to seriously lack objectivness, probably because of vested interest into ever increasing exchange rates. I am not sure if they are not going to crash the whole thing out of blind and zealous faith

If I were you I would wait and see if the whole Bitcoin ecosystem does not collapse entirely in the coming days.

Maybe you can start by building one rig, and convince yourself that the profit is worth the trouble.
You should also make the experience of one or two difficulty increases, and factor the outcome into you profitability model.
In bitcoin denomination, you profit is going to decrease exponentially over time, so you will have to rely on a permanent and proportionnal (therefore exponential) increase of the BTC/USD exchange rate if you want to have a stable income in your native currency.

Now if you have alternate business models for your hardware, like creating a GPGPU cloud service or if you would like to help cancer research by running folding@home, then it's a different story.

Your right. Thought it seems that in the short run (say 1 year) looks very confident and seeing the sudden mainstream exposure may be a little shaky but over all probably beneficial in my mind, by simply exposing the currency to people and drawing more interest. So it seems your investment in the best situation could be returned in 8 - 10 weeks and rougher situation-say, 6-9 months?

[gmk80]

Yes, you should buy a bunch of rigs.

But you should not mine bitcoins with them. You should lease them out at cost to people that want to mine bitcoins to test if its profitable or not for a while, without buy a rig of their own.

Sort of like a cloud service provider for miners.

OK, you could reserve one rig to mine yourself and see which is more profitable.

I, for one, would like to assess the viability of rig for a couple of weeks while I watch the market dynamics before I decide to make a large capital investment.

[Alik]

Yes, you should buy a bunch of rigs.

But you should not mine bitcoins with them. You should lease them out at cost to people that want to mine bitcoins to test if its profitable or not for a while, without buy a rig of their own.

Sort of like a cloud service provider for miners.

OK, you could reserve one rig to mine yourself and see which is more profitable.

I, for one, would like to assess the viability of rig for a couple of weeks while I watch the market dynamics before I decide to make a large capital investment.

Good thoughts and agreed. I really wouldn't invest that sort of money without getting a good feel for the market place. I wouldn't play with more then say 4 rigs to start with parts cost around 9k capable of about a hair under 6GHash/second. This could be a good testing platform and also set up a competitively priced leasing. Of course, down the road one may become more profitable then the other as the market changes considering difficulty, value etc.

[Alik]

Also, because it's a start up and the machines would be hosted from a home network, security would be a concern.

[gmk80]

Also, because it's a start up and the machines would be hosted from a home network, security would be a concern.

There are ways around this. You could buy the rigs and have them hosted at Rackspace or equivalent.

[newmont]

If you have the Capital - i'm selling my quad 6950 Rig for 62 BTC - it gets 1200 mhash without Ocing the radeons. PM for more info.

[TyGrr]

i would really look hard at the math first. seems now might be a good time to buy coins, not rigs.

[ovidiusoft]

i would really look hard at the math first. seems now might be a good time to buy coins, not rigs.

Not entirely true. A rig is an investment that will keep on making BTC. How many and what is the time to recover the investment, those are the real (hard) questions.

The scenario "mining vs buying" is valid when you have the rigs (preferably already paid for) and you're comparing electricity costs to buying BTC.

[worldinacoin]

It is good to have the capital, but you also need to consider the opportunity costs when making such a decision.  Everyone has his or her own opportunity costs which you need to be mindful of when taking this step.

[bigewok]

Is the custom cooler necessary or could you do without it. Anything to make it a standard setup. This isn't any reason to be too proud to use a ton of box fans... if they die they are cheap and you can just flip em out.