Friends coming at me with 40-50k to invest into mining rigs

[btcgolong]

A friend wants to get into mining...he knows I use to mine Bitcoin...he has 40-50k to invest into mining rigs.


I told him about the risks...we are meeting later today to talk more about this.


He already has a warehouse...and 50k is not that much to him, but as a business person you never want to lose ANY money.


I think he can make the money back, but it may take 6-12 months; and as you miners know, NOTHING is guaranteed.



What do you think, bad time? Isn't it always a bad time?


Also, what should I charge, I will be doing everything including maintaining the rigs...I was thinking 15-20%.

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[Andrew1337]

Hmmm , actually mining is still profitable if you want to mine ethereum/zcash/ . But the difficulty is still increasing by the time goes , so I think in my personal opinion , ethereum and zcash won't be so profitable in the next year , month December . But I heard lot of miners who are moving to the DUBAI Coin ( DBIX ) , this coin grew very fast and is still increasing . I think DBIX is the next coin for mining
I recommend you and at your friends to start mining as soon as possible and also i recommend you to mine dbix because if you are holding the coins long time you will get on a good profit

[Georgos]

Hmmm , actually mining is still profitable if you want to mine ethereum/zcash/ . But the difficulty is still increasing by the time goes , so I think in my personal opinion , ethereum and zcash won't be so profitable in the next year , month December . But I heard lot of miners who are moving to the DUBAI Coin ( DBIX ) , this coin grew very fast and is still increasing . I think DBIX is the next coin for mining
I recommend you and at your friends to start mining as soon as possible and also i recommend you to mine dbix because if you are holding the coins long time you will get on a good profit

The guy invested money, or will, so mining a YoBit pumped coin is the least thing I would recommend. Maybe that will become something legit, but maybe it is just a pump, and it is probably...

[iamnoobplzhelp]

Business decisions are always a gamble.

But instead of getting non-factual based answers on forums, you need to go out and do research on the actual facts of mining.

Realistically, what kind of mining hardware can you buy with $50k?
How much has Eth difficulty increased over the past few months? Can you extrapolate to find out what difficulty will be in 6 months? 12 months?
At that difficulty, can you still make a profit?
What are other factors that would change profitability?
Ice age? POS? New video cards? Price drop?
.... plus many more questions

There are tons of facts out there to build a business case and the associated risks.
Generally, the only thing you'll find here is speculation.

[Metroid]

Tell your friend that ropecoin is the next best coin to invest, ropecoin is going to fit your friend very well and if he does not get his money back in 12 months, he can always use the ropecoin to commit suicide hehe

[Za1n]

With most coin hashing difficulties still increasing at a rapid pace and with market prices declining, that $50k would be better spent on buying coins directly at this point in time. From now until sometime around August 1st, I think most coins will keep declining in price until BTC's immediate future becomes more clear.

Like it or not, most coins still sink or swim with BTC, so if you have faith in your preferred coin I think the next couple of weeks will present many excellent buying opportunities. You will get much more bang for your buck buying right now than investing in overpriced mining hardware, and your 6-12 months payback period is going to quickly become 18-36 months or longer.

Who knows, when the price for mining hardware comes back down from the stratosphere and you can actually buy for under MSRP, and once some of the excess capacity has bled out from mining, maybe in 6-12 months time you can look at getting back into mining. For right now the conditions are the worse they have ever been for anyone just looking to get started from scratch. You cannot use today's profitability figures to forecast several months out, as unless coin prices continue to exponentially increase to keep pace with their mining difficulty, the future mining profits are going to continue to plunge.

[andylittleton]

I hear people from 2-3 years ago saying difficulty is too hard with their current  hardware at the time and I hear people now saying the same thing with new hardware. There is no easy money. You gota mine and be willing to accept to break even or have slim profits in the short term to mid term. If your willing to accept that potential reality then go for it. The real gains come from holding your coins as long as you can, or until it has a nice price breakout after mining them if your lucky. That can take 6 months or more. The biggest mistake to me is giving up and not trying it. I rather try and fail and try again. Those are the winners. It's just like housing. Get in as early as you can. It's a long term game. Always think bigger picture, go against trend, and do things that not many people are doing due to difficulty.

Going back to specifics if your going to run a mining farm you're going to have to learn as you go, debug the hardware equipment and software,  find ways to better optimize cost of equipment as you build and go on.  Even if it's not the most optimized your fighting against time so you can make a few mistakes and keep improving as you go.  Ditch the shopping list and just do it and build your 1st fully functional working rig. Once that's running perfectly you'll build your next rig cheaper and more efficient. Start small and expand

[Juggar]

Tell your friend that ropecoin is the next best coin to invest, ropecoin is going to fit your friend very well and if he does not get his money back in 12 months, he can always use the ropecoin to commit suicide hehe

Why do you have some weird infatuation with suicide? I don't get on here that often but half your post (that I have seen) have something to do with killing oneself.

[thesavoyard]

A. He'd make a lot more if he invested directly into a winning coin. He'd lose flexibility though, so he'd better get a winning coin.

B. Better get industrial power rates for that big of an investment. Get a single grinder and call it a machine shop.

[fanatic26]

The real issue is sourcing hardware right now. Chances are it will take 3 months to find all the hardware you need.

[Georgos]

The real issue is sourcing hardware right now. Chances are it will take 3 months to find all the hardware you need.

Frankly it depends where he lives. I have seen some countries where there is for example plenty of 1060s, while there is a great shortage in some other countries. Unless we know more about his case we cannot tell him more.

[antantti]

Tell your friend to wait, now it is time to be in cash.

Wait, wait, wait and then some more wait. It is always the hardest part.

When the time is right, buy. But don't buy mining hardware, buy something that is cheap and still alive.

Just my two fiat cents...

[btcgolong]

A. He'd make a lot more if he invested directly into a winning coin. He'd lose flexibility though, so he'd better get a winning coin.

B. Better get industrial power rates for that big of an investment. Get a single grinder and call it a machine shop.

He is zoned commercial.

Maybe a hybrid approach, 25k in mining equip., buy some "coins" and hold some cash for deals (on equipment and buying coins on drops)

[Georgos]

Tell your friend to wait, now it is time to be in cash.

Wait, wait, wait and then some more wait. It is always the hardest part.

When the time is right, buy. But don't buy mining hardware, buy something that is cheap and still alive.

Just my two fiat cents...

You are giving probably a precious advice, and coming from an Hero Member I respect it a lot . BUt it is not very precise : you are telling him to wait, but you do not tell him to wait fpr what, and moreover, you tell him to buy something, which you do not precise too.

That is probably a good point, but could you be a bit more precise please sir ?

[Metroid]

Will be so much fun, this guy spending 50k on mining rigs and selling them for 80% of the price hoping to get at least 20% of those 50k hehe, I have seen many people losing 80% or more in 2013, this will be so much fun hehe, you op you must be careful, your friend might waste you after hehe, even though you said its risky, he will not remember what you said hehe and then he will shoot you to death hehe

[Juggar]

Will be so much fun, this guy spending 50k on mining rigs and selling them for 80% of the price hoping to get at least 20% of those 50k hehe, I have seen many people losing 80% or more in 2013, this will be so much fun hehe, you op you must be careful, your friend might waste you after hehe, even though you said its risky, he will not remember what you said hehe and then he will shoot you to death hehe

The fuck is wrong with you boy? You ain't right in the head.

[Metroid]

The fuck is wrong with you boy? You ain't right in the head.

Does reality scare you? if yes then that is good thing. People wanting to invest 50k on a saturated market then they better to pull the trigger and shoot their heads because they are not their research correct and by the way people should have common sense and not be greedy and assume on false assumptions that they will get their money back in few months, right now pending doom is coming, difficult will increase 300% in 2 months.

[antantti]

That is probably a good point, but could you be a bit more precise please sir ?

I am really far from sir, haha!!

I don't know what will be a good buy, I can only guess...

1) Stay away from ICO

2) Do not buy ICO projects

3) Also, remember to not to invest into ICO

edit: Metroid is actually trying to help you guys, really 

[comp]

Mining party currently playing last record on the cd. Party is almost over

[Jdope]

I would say don't buy gpus currently, go with the asics, difficulty wise ethereum turned from almost 80TH to a 1037TH today, while bitcoin on the other hand only doubled, dash from january quadrupled, still a big increase but not as much as gpus.