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Question: What type of pool payouts do you prefer?
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Author Topic: [2+ EH] Slush Pool (slushpool.com); World's First Mining Pool  (Read 4323879 times)
Hermonminer
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March 25, 2014, 03:14:23 PM
 #16001

ROI is just one model of thinking about mining. It is not the only one that make sense. An auto mechanic, plumber, electrician, or any skilled worker needs tools to accomplish their jobs and earn income. They have to purchase their tools upfront. While they can and do write the tools off for tax purposes, their goal is not to have a return on investment on their tools, their goal is too earn an income. They do not usually look at their paycheck and say, I haven't made any money yet because i have not made enough money that covers the cost of their tools (unless they borrowed the money but that is another issue).

Mining equipment is a tool to earn money. And unless you are amortizing the cost of mining equipment over time then you are wasting time thinking in terms of ROI. The value of equipment usually goes down over time. None of the calculators seem to be accounting for that. They keep the cost of equipment the same over whatever time period you are looking at for ROI. That is ridiculous and makes no accounting sense at all. And another thing is that the value of your mining equipment can actually either stay stable or increase based on the demand for equipment that is directly linked to the price of BTC (if it goes up, you mining equipment becomes more valuable because of its ability to always earn BTC no matter the price).

This doesn't mean you ignore the cost of mining equipment or do not factor it in to your finances. But the equipment is analogous to buying a car in addition to the tools analogy above. I get a certain value from using a car that is not directly related or impacted by the cost of the car. A car is a big money hole. It decreases in value over time and I have to keep putting money into it to keep in running in order to get the non-monetary value I get from its use.

I mine to make an income period and the rigs are the tools that allow me to do that. I do not consider recovering the cost of my tools as primary.
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robix
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March 25, 2014, 03:22:24 PM
 #16002

Another noob question... god I hate being a noob! lol...  Cheesy

Your bitcoin wallet does not have to be online for a transaction? Example: when Slush's Pool sends your rewards. Its wrapped up in a block transaction and next time your wallet is online and updates it should show there?

Is that right?
Yes.
TRSundown
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March 25, 2014, 03:29:51 PM
 #16003

ROI is just one model of thinking about mining. It is not the only one that make sense. An auto mechanic, plumber, electrician, or any skilled worker needs tools to accomplish their jobs and earn income. They have to purchase their tools upfront. While they can and do write the tools off for tax purposes, their goal is not to have a return on investment on their tools, their goal is too earn an income. They do not usually look at their paycheck and say, I haven't made any money yet because i have not made enough money that covers the cost of their tools (unless they borrowed the money but that is another issue).

Mining equipment is a tool to earn money. And unless you are amortizing the cost of mining equipment over time then you are wasting time thinking in terms of ROI. The value of equipment usually goes down over time. None of the calculators seem to be accounting for that. They keep the cost of equipment the same over whatever time period you are looking at for ROI. That is ridiculous and makes no accounting sense at all. And another thing is that the value of your mining equipment can actually either stay stable or increase based on the demand for equipment that is directly linked to the price of BTC (if it goes up, you mining equipment becomes more valuable because of its ability to always earn BTC no matter the price).

This doesn't mean you ignore the cost of mining equipment or do not factor it in to your finances. But the equipment is analogous to buying a car in addition to the tools analogy above. I get a certain value from using a car that is not directly related or impacted by the cost of the car. A car is a big money hole. It decreases in value over time and I have to keep putting money into it to keep in running in order to get the non-monetary value I get from its use.

I mine to make an income period and the rigs are the tools that allow me to do that. I do not consider recovering the cost of my tools as primary.

Great explanation! Thanks for taking the time to write that up. Thats kind of how I was thinking about it...
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March 25, 2014, 05:48:38 PM
 #16004

So at what rate are you hashing? Just want to see what levels people are at...
amspir
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March 25, 2014, 06:12:53 PM
 #16005

So at what rate are you hashing? Just want to see what levels people are at...

I'm near 200 GH/s, burning about 800W.   Currently making about 4 mBTC a round.
bebooba11
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March 25, 2014, 06:21:05 PM
 #16006

So at what rate are you hashing? Just want to see what levels people are at...

I'm near 200 GH/s, burning about 800W.   Currently making about 4 mBTC a round.

Is 4 mBTC = .004 per round? I'm at 225 gh/s and pulling .0049 to .0054 btc per round
TRSundown
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March 25, 2014, 06:45:28 PM
 #16007

Since I just got started I'm only set up at about 42GH/s... It comes out to around .001 btc per round. Not much, but its a start. Its really helped me understand more about the whole process and whats going on.
Trongersoll
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March 25, 2014, 08:29:55 PM
 #16008

Just a reminder, ROI is Return On Investment. It does not mean Profit or Break Even. Your Return On Investment can be less than your original investment.
TRSundown
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March 25, 2014, 08:37:57 PM
 #16009

Just a reminder, ROI is Return On Investment. It does not mean Profit or Break Even. Your Return On Investment can be less than your original investment.

True, bad choice of words on my part. There were some pretty good answers provided so I thank the community for pitching in! Still tons to learn!
nottm28
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March 25, 2014, 08:48:46 PM
 #16010

So at what rate are you hashing? Just want to see what levels people are at...

I'm near 200 GH/s, burning about 800W.   Currently making about 4 mBTC a round.

Is 4 mBTC = .004 per round? I'm at 225 gh/s and pulling .0049 to .0054 btc per round

Yes, 1 micro BTC = 1 BTC divided by 1000 = 0.001 BTC

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amspir
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March 25, 2014, 09:13:13 PM
 #16011

So at what rate are you hashing? Just want to see what levels people are at...

I'm near 200 GH/s, burning about 800W.   Currently making about 4 mBTC a round.

Is 4 mBTC = .004 per round? I'm at 225 gh/s and pulling .0049 to .0054 btc per round

Yes, 1 micro BTC = 1 BTC divided by 1000 = 0.001 BTC

Actually, you mean milli (1e-3 units)  micro is denoted as µ or u for 1e-6 units.

nottm28
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March 25, 2014, 09:20:12 PM
 #16012

So at what rate are you hashing? Just want to see what levels people are at...

I'm near 200 GH/s, burning about 800W.   Currently making about 4 mBTC a round.

Is 4 mBTC = .004 per round? I'm at 225 gh/s and pulling .0049 to .0054 btc per round

Yes, 1 micro BTC = 1 BTC divided by 1000 = 0.001 BTC

Actually, you mean milli (1e-3 units)  micro is denoted as µ or u for 1e-6 units.



Ah I stand corrected by that man - and I have a maths degree - how leveling Smiley

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amspir
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March 25, 2014, 09:29:56 PM
 #16013

Actually, you mean milli (1e-3 units)  micro is denoted as µ or u for 1e-6 units.
Ah I stand corrected by that man - and I have a maths degree - how leveling Smiley

Which is why we need a new word for milliBTC.
faxfan2002
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March 25, 2014, 09:50:07 PM
 #16014

1TH - 0.023 per round.
spazzdla
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March 25, 2014, 09:56:04 PM
 #16015

I like milliBTC !
nottm28
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March 25, 2014, 09:56:26 PM
 #16016

S
1TH - 0.023 per round.

Sounds about right - slush's pool can expect to find approx 33 blocks per week so with 1TH you are about 0.85BTC per week... for about 2 weeks then difficulty increases and you go down by approx 18% every 2 weeks...

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necro_nemesis
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March 25, 2014, 10:34:36 PM
 #16017

Just a reminder, ROI is Return On Investment. It does not mean Profit or Break Even. Your Return On Investment can be less than your original investment.

I don't get it. If you're not planning to profit from mining what's the draw? Difficulty would have to do an about face to make your mining equipment even hold value and the makers are pumping out more each day undermining it's value. If you're looking strictly for BTC to go up to get ahead, stop buying mining equipment and start buying BTC.
TRSundown
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March 25, 2014, 11:11:11 PM
 #16018

Its just like mining gold I guess... you have to spend money on mining equipment to dig for the gold just like buying btc mining hardware. You just hope at the end of the day that your mining equipment produces enough gold, or btc, to make it worth your while. The deeper you go into the mountain (difficulty) to get the gold the more equipment you have to buy... Its definitely not a set and forget system. You have to stay ahead of the difficulty curve and continue to reinvest some portion of your earnings to stay ahead of that curve.
nottm28
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March 25, 2014, 11:15:36 PM
 #16019

Its just like mining gold I guess... you have to spend money on mining equipment to dig for the gold just like buying btc mining hardware. You just hope at the end of the day that your mining equipment produces enough gold, or btc, to make it worth your while. The deeper you go into the mountain (difficulty) to get the gold the more equipment you have to buy... Its definitely not a set and forget system. You have to stay ahead of the difficulty curve and continue to reinvest some portion of your earnings to stay ahead of that curve.

As good an analogy as any. Not bad for a noob Smiley

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TRSundown
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March 25, 2014, 11:18:25 PM
 #16020

13+ hours for the round... ugg!!!  Angry  Sad  These super long rounds are killing me!!!  Cry
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