Smartest way to maximize the mining profits?

[favelle75]

For a while, I thought the best way to make money from Bitcoin was to mine it.  Then I saw the market and I thought, my not treat it like stocks and short it or day trade? Now, I think the best way is to do both.  Mine (if you can), and constantly flow that money into your Mtgox account. Several times a day, buy bitcoins with your account money and sell them. The massive fluctuations in a 24 hour times-span is unreal.  You can constantly buy and sell and make serious cash. All the while, still trickling in your mining proceeds to add to the endeavor.

Thoughts?

[1714763749]

1714763749

[1714763749]

1714763749

[DrG]

For every dollar lost there is a dollar gained, less exchange fees.  If it was easy to trade everybody would do it.  Obviously some people sold at $40 seeing BTC double instead of holding.  Unless they got back in under $40 you think they did well?

[jdbtracker]

Efficiency is the only way to do it, you'll lose your shirt on the market, the fees alone will drain your account... slowly and methodically.

Just take into account:

The Cost of living

The efficiency of your Mining Rig.

The Cost of Electricity

Average Daily Bitcoin generation/month

Average increase bi-weekly in difficulty over a year.

Maximum cost effectiveness of the system; At what difficulty is your mining rig going to be useless at current market value of BTC

How long it takes to order a ASIC

when will you have to upgrade to maintain your current standard of living.

http://www.butterflylabs.com/

ADVICE: Don't forget about monetary efficiency, be frugal.

Stop exchanging into fiat currencies if you are a miner, support the Bitcoin community buy from retailers that accept bitcoins. order, upgrades, food, pay rent if you can in bitcoins.

Let the people trying to get into the market control the price: live off your bitcoin earnings.

spend your bitcoins at stores when the price is high, hoard it when it is low and wait for when your purchasing power increases.

monitor the markets to know when to buy your groceries, etc.

http://bitcoin.clarkmoody.com/

get informed know who accepts bitcoins in your community spend your bitcoins there, the owners will appreciate your business because you are giving them your bitcoins when it is at the height of market price, they will convert it back to Fiat themselves and know they are getting more money thanks to your increased purchasing power.

monitor your electricity consumption for your whole house and use a kill o watt to monitor your mining rigs power usage.

replace everything you can in your home with more efficient, electronics and appliances bought from Bitcoin stores at market height.

www.bitcoinstore.com

Learn how to be self-sufficient, learn to fix you own computer/vehicle, make your own bread/sauces/beer etc from youtube or read a DIY blog like Hack-a-Day or instructables.

Buy Used, pay in bitcoins

http://www.bitmit.net/

Sell Used, accept bitcoins

Ask your local charity if they accept Bitcoin, donate and tell them the trick, use the bitcoins at market height to make purchases.

Trade on kijiji, buy what you can in bitcoin and exchange it for something that you want that you can't buy in BTC

Order out from Restaurants that accept bitcoin


In essence support your bitcoin community and you will notice that the bitcoins you generate will go way further.

Hope this helps.

[favelle75]

But is there transaction fees if you keep the balance in your Mtgox account (either in BC or in real $$)? Even if the fee is 0.6% and you are capitalizing on 10-15% swings in price, you are STILL coming out way ahead.

[grue]

if you have a GPU and not a FPGA/ASIC, mine altcoins whenever it's profitable http://dustcoin.com/