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Author Topic: is mining worth it?  (Read 1510 times)
Zosinburg
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June 08, 2017, 10:49:08 AM
 #21

do not invest more, than you can afford to loose

Tongue

I was just going to reply the same thing.

OP: the simple fact that you're having your doubts about the fact that it is or isn't worth it shows to me that:

-You haven't made a real analysis about your mining project in terms of ROI and what it's really going to cost you (electricity, time, maintenance etc.)
-Your investing a lot of money you're unsure of getting back. My pinky says your 10K is a lot of money for you

Personally, I think it's not smart to just drop 10K in something you seem to have little experience with. Start small and grow.

And when I talk about electricity, it's not just the cost per kWh, I'm also talking about having a secure installation. 10K will buy you quite a few rigs that will pull quite some Amps. I have no clue where you're planning on storing your mining operation, but you should make sure the electrical installation is top notch and can support a lot of Amps.

That said, it's your money, do what you want with it....

Believe him^ .. spending 10k on equipment is gonna have an electrician running you at least 2 solo circuits 20a each. Unless your an electrician, that job won't be inexpensive.

I'm just worried about spending money on a project that i don't even know how it works, I have just been into mining 16 days ago and the profitability of this thing is just crazy and i'm not sure how long it's going to last, could someone show me like a chart or something that shows the profitability of a specific coin (ETH/ZCASH/ETC.. etc) for the last 2 years?

Well I don't have a chart for you but you can check the difficulty rises of each coin you intend to mine and see how fast your income will reduce. Generally though people end up selling their mining rigs once the difficulty has risen too much to be realistically profitable. With ASICs that is impossible, but with graphics cards they are still useful in the secondary market.

That is right. But it also depends on the coin price.
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June 08, 2017, 11:36:09 AM
 #22

do not invest more, than you can afford to loose

Tongue

I was just going to reply the same thing.

OP: the simple fact that you're having your doubts about the fact that it is or isn't worth it shows to me that:

-You haven't made a real analysis about your mining project in terms of ROI and what it's really going to cost you (electricity, time, maintenance etc.)
-Your investing a lot of money you're unsure of getting back. My pinky says your 10K is a lot of money for you

Personally, I think it's not smart to just drop 10K in something you seem to have little experience with. Start small and grow.

And when I talk about electricity, it's not just the cost per kWh, I'm also talking about having a secure installation. 10K will buy you quite a few rigs that will pull quite some Amps. I have no clue where you're planning on storing your mining operation, but you should make sure the electrical installation is top notch and can support a lot of Amps.

That said, it's your money, do what you want with it....

Believe him^ .. spending 10k on equipment is gonna have an electrician running you at least 2 solo circuits 20a each. Unless your an electrician, that job won't be inexpensive.

I'm just worried about spending money on a project that i don't even know how it works, I have just been into mining 16 days ago and the profitability of this thing is just crazy and i'm not sure how long it's going to last, could someone show me like a chart or something that shows the profitability of a specific coin (ETH/ZCASH/ETC.. etc) for the last 2 years?

Just go on any exchange and look at the time frame. Most coins have increased pretty dramatically in value within a year. Yes the profitability is amazing.

I've been in mining for over a year, back when most coins made me a profit, but a pretty small one. I grew my little farm one rig at a time.

This comes back to what I was saying in my first post. If you're new to this and drop 10K in all this thinking you're going to get your money back in 2 months time, you're going in this the wrong way imho. It's not about charts. Charts can tell you a lot of things, but they can't predict the future (I'm talking about months in advance). Had I kept my 20 ETHs 6 months ago, I'd have 4000$ in my pocket! Even with the best math and trading algorithms, there's always a risk that all of this can crash tomorrow and all coins will be worth crap. For all we know, all coins could go to POS by the end of the month, rendering all mining hardware useless.

So yes, at this very moment, it is very worth it. But, if I were you, I'd invest gradually.

The other way to go into this is trading. You could buy 10K worth of ETH today and triple that money if it keeps growing like it does. It is actually the smarter way to go about this, but you need to understand trading, when to buy and when to sell.

I'm not trying to discourage you, but it's better to be safe than sorry. Buy 1-2 rigs, invest ~2000K, see how it goes and go from there. Worst case, you lose 2K and can sell the hardware on the second hand market. Best case, you make enough with your 2 rigs to buy more rigs and keep those other 8K in your pocket for hard times.

Zosinburg
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June 22, 2017, 08:55:17 AM
 #23

do not invest more, than you can afford to loose

Tongue

I was just going to reply the same thing.

OP: the simple fact that you're having your doubts about the fact that it is or isn't worth it shows to me that:

-You haven't made a real analysis about your mining project in terms of ROI and what it's really going to cost you (electricity, time, maintenance etc.)
-Your investing a lot of money you're unsure of getting back. My pinky says your 10K is a lot of money for you

Personally, I think it's not smart to just drop 10K in something you seem to have little experience with. Start small and grow.

And when I talk about electricity, it's not just the cost per kWh, I'm also talking about having a secure installation. 10K will buy you quite a few rigs that will pull quite some Amps. I have no clue where you're planning on storing your mining operation, but you should make sure the electrical installation is top notch and can support a lot of Amps.

That said, it's your money, do what you want with it....

Believe him^ .. spending 10k on equipment is gonna have an electrician running you at least 2 solo circuits 20a each. Unless your an electrician, that job won't be inexpensive.

I'm just worried about spending money on a project that i don't even know how it works, I have just been into mining 16 days ago and the profitability of this thing is just crazy and i'm not sure how long it's going to last, could someone show me like a chart or something that shows the profitability of a specific coin (ETH/ZCASH/ETC.. etc) for the last 2 years?

Just go on any exchange and look at the time frame. Most coins have increased pretty dramatically in value within a year. Yes the profitability is amazing.

I've been in mining for over a year, back when most coins made me a profit, but a pretty small one. I grew my little farm one rig at a time.

This comes back to what I was saying in my first post. If you're new to this and drop 10K in all this thinking you're going to get your money back in 2 months time, you're going in this the wrong way imho. It's not about charts. Charts can tell you a lot of things, but they can't predict the future (I'm talking about months in advance). Had I kept my 20 ETHs 6 months ago, I'd have 4000$ in my pocket! Even with the best math and trading algorithms, there's always a risk that all of this can crash tomorrow and all coins will be worth crap. For all we know, all coins could go to POS by the end of the month, rendering all mining hardware useless.

So yes, at this very moment, it is very worth it. But, if I were you, I'd invest gradually.

The other way to go into this is trading. You could buy 10K worth of ETH today and triple that money if it keeps growing like it does. It is actually the smarter way to go about this, but you need to understand trading, when to buy and when to sell.

I'm not trying to discourage you, but it's better to be safe than sorry. Buy 1-2 rigs, invest ~2000K, see how it goes and go from there. Worst case, you lose 2K and can sell the hardware on the second hand market. Best case, you make enough with your 2 rigs to buy more rigs and keep those other 8K in your pocket for hard times.



The difficulty of ETH is rising too fast. It might be wise to buy and hold ETH instead.
Heimer
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June 22, 2017, 10:25:12 AM
 #24

Let him invest anything he wants. If he loses its his problem. Maybe this will teach him a lesson about doing some research before investing
Bfljosh
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June 22, 2017, 10:37:26 AM
 #25

No it is not worth it.
Zosinburg
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July 08, 2017, 03:00:35 PM
 #26

Let him invest anything he wants. If he loses its his problem. Maybe this will teach him a lesson about doing some research before investing

I thought we are here to help him and clarify things for him.
blueMoonshine
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July 08, 2017, 04:04:55 PM
 #27

I feel it is hard to explain mining operations and investments in general.

Or, maybe it's not?

Invest in a machine. Run it. (Negative cash flow period 0)
Sum of net earnings from pool. (Positive cash flow period 1)
Sum of net earnings from pool. (Positive cash flow period 2)
.
.
.
Sell the rig (Positive cash flow period 12)

Determine the risk you are willing to take aka Discount Rate (%). Obviously, the discount rate for mining is higher than an insured savings account.

Plug the numbers into
http://www.investopedia.com/calculator/netpresentvalue.aspx

Is it positive? Invest.
Negative? Do not invest.

Have 10 positive project estimations and only enough money for 1 project? Rank the projects by NPV, pick the first project.

Last year, sometime when Zcash launched, I compared all my investments to find mining was the best NPV, ROI, IRR, BE value then anything I had going on. Stocks, real estate, and flipping houses all stopped. Sold everything and took the risk.

Try running any investment metric on Ethereum. Imagine you invest 20K in rigs with a 90 day break-even (BE). That's $6666.67 dollars per month gross. Hard to imagine other investments that payoff that well, or that fast. Rent a $20,000 home for $6666.67/month?
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