If you are thinking of mining... learn what DIFFICULTY is first.

[thesmokingman]

Giving this a bump because its crazy the amount of new people here who are maxing out their credit cards buying GPUs.

I said the same thing in another thread and people got butthurt , better to let them do what they do , If they spend all this $$ and do not hedge thier bets with trading or ICO's you are basically playing casino games with your money

Yeah I'm at a point where I'm done trying to warn people. The emotional waters fueling all of this is going to be a tidal wave when it comes crashing down. I've been surfing the wave though using it to my advantage as I flipped all my 470/480 cards into 1070/1080ti's among the hype with little to no money out of pocket and sometimes with extra to spare. My 80+ cards are paid off since last year, so I'm just stacking my funds now while others are fighting to ROI.

I hope people go even harder with buying gear, especially those with high power or overhead costs so I can be there to bail them out, but for pennies on the dollar. We tried to warn but no one listened, so now let experience be their best teacher I say...

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[antantti]

Up.

[newtybar]

One benefit of mining is that you get to learn a lot more about the currency you are mining.

[antantti]

Bump

[adaseb]

Judging by some of the posts I am reading.

This thread that I created 6 months ago is still important and giving it a bump!

[allpozitiv]

I see every second post about some newbie who wants to quit his day job and mine for a living.

You need to learn what difficulty is first and why its important. When I started mining, I had no idea what it was. I just assumed if the price stayed constant I would make the same amount of money everyday.

Difficulty is basically a bad term for newbies. The correct term should be 'Competition ratio'. Basically the amount of coins mined in a day is capped. For ETH its 30000 ETH/day.

Unless there is some network protocol issue this figure will stay constant. So if there is 1 miner, he will receive 30000 ETH a day, if there are 30000 miners all with equal hashrate, each will receive 1 ETH a day.

Hence your enemy isn't only the ETH price, its also the amount of other people that start mining and who's profits you will have to share. In the past, difficulty rarely decreases.

When difficulty increases, it doesn't mean price has to increase. Its a false assumption.

Does this mean you shouldn't mine? No. In fact its highly unlikely you will end up losing money if you start mining. Unless you start a fire and burn all your equipment to the ground.

However for comparison consider this.

RX 470 mining @ 28MH/s ETH today makes ~ $4.63 USD
RX 470 mining @ 28MH/s ETH on March 1 2017 made ~ $1.04 USD

Many thanks for your post, as it gratefully helps in newbies in mining.