HOW we got the BTC will be a lot less important in the future then WHEN we got the BTC imho
Well Searing, in your occasionally endearing homely way you have hit the nail squarely on the head. The usually unspoken but tacit assumption underlying the rationale for mining for profit is the HOPE that BTC will succeed on a grand scale and be valued ORDERS OF MAGNITUDE higher than it is now.
Of course, if you buy into this rationale, you join all the other gamblers, treasure hunters, pyramid and ponzi scheme perps and participants around the world who share one hope and one personality characteristic … the hope that one day their ordinary life will be alchemically transformed through the power of gambling into one of riches and abundance and that ALMOST ANY RISK at ANY PRICE is worth taking to make it happen, irrespective of the potential loss, which is always small because these sorts of people have mostly already lost much of what they had because their strategy has VERY LOW ODDS of succeeding.
Shovel and miner gear merchants love these people and go out of their way to try to minimize or hide the risk involved. They would rather talk about how their shovel is just a little bit lighter or doesn't rust so quickly or can be had today instead of tomorrow.
Far better to look at the best case AND worst case scenarios and then decide rationally how much risk you are willing to take.
And remember, you can always tell the missus : "Honey, KNC MADE ME DO IT"
~L)L~
unfortunately you have to get pounded on the head to get this thru your head..the problem is (and why the BFL scam succeeds) is at least for me it is a lot easier to chuck out 5k for equip
then 5k on coinbase even thou the result (at least for me so far looks like even this year) gonna be a tie if you just bought btc and held it
now as a Newbie you ALWAYS buy equipment...man no way I was gonna put up 7.2k more in coin last oct...but man i bought the shiny toy just fine!
so far this has worked out...the attraction for 'older miners' fades however...the thought of next fall paying 7.2k for a miner that will make like 7 btc maybe...even if the price goes up
rapidly loses it allure
however always a new crop of newbie 'sheep' that are 'shorn' by BFL or others and then (usually takes a year of getting hit in the head) you figure it all out
but yeah spondoolies was my last impulse buy Titan I put that up by being blinded by my Jupiter success and KNC could do no wrong hero worship....I mean 2 weeks after I
got the Titan ordered KNC went down the road of BFL at least ...walking the walk....got blindsided (sorry i was in love with KNC for a bit....so sad ..jilted)
but I have one other problem...my bank made a bunch of mistakes on wire xfers (which they canceled) 6 of them on my attempt to wire xfer knc for miners ..all over 10k
they were too dumb to just ask me or look at my account was made a big deal .(I had the sense to know they were likely to screw me..so sucked it up paid taxes)
which means I'm in the unenviable situation of mining legal in the states at least (hopefully) till rules are changed in 2015 by congress (likely imho)
anyway with equip depreciation etc i likely will get to the same point paid a token tax last year and token tax looks good this year (hard way to get back to the same
place you started but so far am pulling it off with the CPA lady)...not too bad actually being 'squeaky clean to the IRS' .heh
thus equip is more attractive in my situation as long as i make money mining and past equip depreciation applies...i will trickle off next couple of years and wind it up
so some equip purchases dumb for others likely are somewhat 'less dumb' for my situation..(although on 600 usd coin maybe not the case at all anymore)
Me and the IRS gerbil wheel will continue........(fiends!)
Just keep this in mind when I say I bought something after this point in time (you are likely correct future equip purchases from now on are really iffy for ROI imho)
Searing
