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Author Topic: NEW TO MINING AND NEED HELP  (Read 630 times)
ikiya13
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July 21, 2017, 04:21:25 AM
 #1

NOOB ALERT:

I am somewhat new to cryptocurrency and I have many questions.

I somewhat understand how mining works. My understanding is that computers are used to process transactions to make sure that someone doesn't use the same coin twice or change one coin into ten. So from that I am able to deduce that the more people use cryptocurrency, the more miners are necessary to process all of these transactions. That brings up a question. If everyone were to, all at once, stop using cryptocurrency, then would there be nothing for the computers to mine?

Now moving onto the hardware side. My friend has a GTX 1080 ti and I recently persuaded him to use it to mine. The rate estimate that he was getting was anywhere from $3.00 - $4.20/day. Now $0.12 per kWh and that's anywhere from $750-$1000 profit per year, and about $2000 in the lifetime of the card (what I understand is that a GPU mining 24/7 will last about two years). That means that by the time his GPU dies, he can buy two more. Now I know that NVIDIA doesn't make the best GPU's for mining. From what I understand, are the RX480/580 cards the best for mining.  So why doesn't everyone just mine if its so profitable? I feel like there is a catch somewhere but I am just unable to find it. That brings up another question. What the heck is up with all the "hash" types? Like what in the world is Sols/s and Equihash? I thought that it would all be one unit of measurements, such as Hash/s. From what I know, hash/s is sort of like a GHz: the speed at which you mine or process. So why are there so many different types? I have also heard about ASIC cards. They show that the cheapest one goes about 1.115 TH/s (idk which hash type that is and how it converts to others). Coming in at $139 and being more power efficient than a PC why doesn't everyone just use those?

I have also seen pictures of racks of GPU's from floor to ceiling and I can't help but wonder how they connect all of those to a motherboard. Is it just one specialized motherboard, or is there one motherboard for every 4-5 GPU's?

Sorry that I asked so many questions but I am trying to get into mining and I am willing to spend a few K and I just don't want to make any mistakes that will cost me greatly in the future. What GPU is the best to use? I heard that for some coins the RX 480 is better but for others the RX 580. Is there any difference in performance between the 4GB variant and the 8GB variant? Sorry if I sounded dumb and uneducated. Thanks a lot if you take the time to respond.
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August 08, 2017, 09:03:40 PM
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Lets become specific. Since mid June profit from 1070 GTX in 5 weeks dropt by 3.35 times, following the drop in the price of ETH by 1.49 times and the difficulty rise by 1.82 times. So the ROI period for those who would pay $3000 to make a build with 6 GTX 1070 in the end of July rose to 9 months, and should the difficulty keep rising with the price of ETH staying where it is now or dropping, multiply that 9 month ROI period at least by the factor of 2, which gives us one and half years only to break even on the money spent on equipment (and that is in the best case scenario – if the prices of crypto currencies you mine rise sharply).

Not a bad tactic at all for the computer manufactures to release new GPUs at the prices 50% higher than they could have and then within a year pay miners those 50% via a certain altcoin – just to keep the mining rush going.

And before you call me a conspiracy theorist, think that as of now ETH network has hash rate of 72 138 000 MH/s, and one GTX 1070 produces only 30 MH/s, that means you need 2 404 600 GTX 1070 priced $400+ to produce that 72 138 000 MH/s, that is $1B, $330M of which where spent on GPUs since this video was uploaded 5 weeks ago – to achieve 25 000 000 MH/s increase in the ETH network hash rate. And while GPUs factories received a cash inflow of $330M, they have paid miners for the new GPUs that added extra 25 TH/s to the ETH network around $39M.

With difficulty of mining ETH growing each day by an average 1.68%, in one year from now those new GPUs will get additional $112M for mining, and some minor $256K after that, before mining ETH on 1070 becomes impossible. So in total we pay GPUs producers and retailers $330M to get from the mining only $150M (unless during the next 365 days the difficulty growth will slow, or ETH price will rise significantly)…

You say no way, I say – buy silver bullion and stay away from mining. Stop wasting fresh water that is needed to get oil from the ground (which is used to produce electricity) and feed those smart asses in charge of AMD and NVidia, sacrificing your comfort for nothing. The running of only one GTX 1070, consuming 150 Wh, makes disappear 10 liters of fresh water monthly.

And if you think you’ll be fine in ZEC, keep in mind that its difficulty is growing at the same speed with the difficulty of ETH. The only way you can get substantial profit from this new HYIP is buy cheating others in to it and by selling to them your expertise afterwards. But there is nothing noble and honorable in doing so (as the crypto currency advertisers want us to believe), isn’t it?

Cause with the current difficulty growth the mining of ZEC & ETH will become uneconomical in 5 months, since you’ll be paying more for electricity, than getting from your cards (and will get back only around 20% of your original investment, if you sell the altcoins the day you mine them, without waiting for their price to rise fivefold – just to break even).

If you found some fatal mistake in my thinking, do share your based on real numbers opinion on this matter.

https://gyazo.com/93246aade586737f6000f2d361f3b994
https://gyazo.com/7a3f496fa9253093f899b093227bc6db
https://gyazo.com/bd48e47e0ed50d683ddaf2a189973ebe
https://www.tradingview.com/chart/?symbol=BITSTAMP:BTCUSD
https://www.tradingview.com/chart/?symbol=BITFINEX:ETHBTC
https://www.coinwarz.com/difficulty-charts/ethereum-difficulty-chart
https://www.coinwarz.com/difficulty-charts/zcash-difficulty-chart
https://www.coinwarz.com/calculators/ethereum-mining-calculator/?h=25000000.00&p=0.00&pc=0.00&pf=0.00&d=1278044917428080&r=5.00000000&er=0.08000000&btcer=2800.00000000&hc=0.00
https://www.coinwarz.com/calculators/zcash-mining-calculator/?h=3000&p=1000&pc=0.067&pf=0.00&d=4434852.26455298&r=10.00062618&er=0.07810137&btcer=2792.88000000&hc=0.00
https://www.cryptocompare.com/mining/calculator/eth?HashingPower=25&HashingUnit=TH%2Fs&PowerConsumption=1000&CostPerkWh=0.1
https://www.euronuclear.org/info/encyclopedia/f/fuelcomparison.htm
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