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necro_nemesis
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March 25, 2014, 02:13:44 PM |
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WTF... why did the difficulty jump up so high!  Not fair to those who are just starting... Cause more people are starting....  |
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Even in the event that an attacker gains more than 50% of the network's
computational power, only transactions sent by the attacker could be
reversed or double-spent. The network would not be destroyed.
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TRSundown
Newbie
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Activity: 22
Merit: 0
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March 25, 2014, 02:16:44 PM |
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So, I understand that over time the difficulty will continue to rise and therefore people will increase their hash rates to keep up... But is there an time in BitCoin future where there will be no more ROI for mining? How long will profitability continue?
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kkurtmann
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March 25, 2014, 02:21:31 PM |
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So, I understand that over time the difficulty will continue to rise and therefore people will increase their hash rates to keep up... But is there an time in BitCoin future where there will be no more ROI for mining? How long will profitability continue?
need to use your 1337 math skillz to answer that one |
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spazzdla
Legendary
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Activity: 1722
Merit: 1000
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March 25, 2014, 02:25:39 PM |
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So, I understand that over time the difficulty will continue to rise and therefore people will increase their hash rates to keep up... But is there an time in BitCoin future where there will be no more ROI for mining? How long will profitability continue?
Peercoin  , also there will always be transaction fee payouts! |
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TRSundown
Newbie
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Activity: 22
Merit: 0
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March 25, 2014, 03:13:06 PM |
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Another noob question... god I hate being a noob! lol...  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? |
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Hermonminer
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Activity: 19
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March 25, 2014, 03:14:23 PM |
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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 |
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Another noob question... god I hate being a noob! lol... 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. |
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TRSundown
Newbie
Offline
Activity: 22
Merit: 0
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March 25, 2014, 03:29:51 PM |
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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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TRSundown
Newbie
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Activity: 22
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March 25, 2014, 05:48:38 PM |
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So at what rate are you hashing? Just want to see what levels people are at...
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amspir
Member
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Activity: 112
Merit: 10
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March 25, 2014, 06:12:53 PM |
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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. |
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bebooba11
Newbie
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Activity: 39
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March 25, 2014, 06:21:05 PM |
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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 |
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TRSundown
Newbie
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Activity: 22
Merit: 0
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March 25, 2014, 06:45:28 PM |
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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.
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Trongersoll
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March 25, 2014, 08:29:55 PM |
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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.
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TRSundown
Newbie
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Activity: 22
Merit: 0
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March 25, 2014, 08:37:57 PM |
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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! |
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nottm28
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March 25, 2014, 08:48:46 PM |
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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 |
donations not accepted
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amspir
Member
Offline
Activity: 112
Merit: 10
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March 25, 2014, 09:13:13 PM |
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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. |
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nottm28
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March 25, 2014, 09:20:12 PM |
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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  |
donations not accepted
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amspir
Member
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Activity: 112
Merit: 10
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March 25, 2014, 09:29:56 PM |
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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 Which is why we need a new word for milliBTC. |
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faxfan2002
Member
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Activity: 83
Merit: 10
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March 25, 2014, 09:50:07 PM |
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1TH - 0.023 per round.
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spazzdla
Legendary
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Activity: 1722
Merit: 1000
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March 25, 2014, 09:56:04 PM |
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I like milliBTC !
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