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Author Topic: Mining not ideal but not horrible  (Read 1192 times)
Sjalq
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July 13, 2011, 07:11:03 PM
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What other investment gives 140% ROI yearly when things are "bad" Huh

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KarlSpaat
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July 13, 2011, 07:21:11 PM
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If you calculate all costs you get about 20% ROI per year ...
bitebitebite
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July 13, 2011, 07:22:40 PM
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What other investment gives 280% ROI yearly when things are "bad" Huh

 Can you include your full calculations for this 280% figure/the coming year or loan me your crystal ball lol
mike678
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July 13, 2011, 07:25:14 PM
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If you calculate all costs you get about 20% ROI per year ...
I'd like to point out that people rely on the stock market to make money and most people are satisfied if they make 10-12 percent annually.
AngelusWebDesign
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July 13, 2011, 07:40:21 PM
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But with stocks you just buy them, and go on with your life.

No time spent tending machines, no noise, no heat, no equipment failures...

Mining is more like a business or job than an investment, unless you're buying mining contracts or something. (Or having a friend do the actual mining for a cut of the proceeds -- which is basically an informal mining contract)
Sjalq
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July 13, 2011, 07:42:09 PM
 #6

139% per annum, made a mistake most likely in the currency conversions.

21450 ZAR for mining machine. With difficulty and price relatively stabalized the machine is making about 82 ZAR per day. That's 29930 ZAR per year or 139% per year. That is assuming price does not rise further, then the scenario is even better since there is a lag time to get new mining equipment online.

(Not included here is the devaluation of the machine over time or the larger amount of BTC it generated early in its live)

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Sjalq
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July 13, 2011, 07:43:27 PM
 #7

But with stocks you just buy them, and go on with your life.

No time spent tending machines, no noise, no heat, no equipment failures...

Mining is more like a business or job than an investment, unless you're buying mining contracts or something. (Or having a friend do the actual mining for a cut of the proceeds -- which is basically an informal mining contract)


Agreed mining is not as good as buying it when you believe the price will ultimately just keep going up for a long time. But it's still better than most anything else you can get into.

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bitebitebite
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July 13, 2011, 07:47:23 PM
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139% per annum,

With difficulty relatively stabalized

 So its more of a ~this week calculation x52?, rather than yearly
mike678
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July 13, 2011, 07:52:19 PM
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But with stocks you just buy them, and go on with your life.

No time spent tending machines, no noise, no heat, no equipment failures...

Mining is more like a business or job than an investment, unless you're buying mining contracts or something. (Or having a friend do the actual mining for a cut of the proceeds -- which is basically an informal mining contract)

I agree stocks once purchased are much easier. It all depends on the type of person mining though. I spend all day working with and on computers so it's not very difficult to tend to the machines and doesn't take very long either. If the person is not tech savvy I would say just buy bitcoins out right if you want to get involved because I don't think the 10% increase between stocks and mining is worth it if you spend too much time making sure the servers are running properly.

The rest of the items you listed as down sides to mining are just based on how much your willing to tolerate. I can personally live with the noise and heat it doesnt really bother me too much.
Sjalq
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July 13, 2011, 07:54:41 PM
 #10

139% per annum,

With difficulty relatively stabalized

 So its more of a ~this week calculation x52?, rather than yearly

Yes, if I take the year to date into account and assume difficulty stabilises at close to its current level when price stabilizes (which seems reasonable) then the situation looks a bit better actually.

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July 13, 2011, 08:00:43 PM
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Yes, if I take the year to date into account and assume difficulty stabilises at close to its current level when price stabilizes (which seems reasonable) then the situation looks a bit better actually.

It is not reasonable.  Difficulty will continue to rise. 

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Sjalq
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July 13, 2011, 08:07:44 PM
 #12

I disagree, as does the difficulty history.

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bcpokey
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July 13, 2011, 11:40:25 PM
 #13

Yes, if I take the year to date into account and assume difficulty stabilises at close to its current level when price stabilizes (which seems reasonable) then the situation looks a bit better actually.

It is not reasonable.  Difficulty will continue to rise. 

You don't know that. Just a couple weeks ago you were just as sure that difficulty would continue to rise by 50% every 2016 blocks. Last rise was 13% I believe, next will likely be the same or potentially lower.

Similarly on the other side of the fence, the ROI is unfortunately unknown, that's the problem with this thread. ROI now is good, in the future it will be...? I have already made roughly 400% ROI from my cluster, including all costs to date, in a fraction of a year, but the rate of return is decreasing due to various factors. What I end up with by the end of the year I care not to calculate because it will be meaningless speculation. Regardless, mining has been good to me as an investment. But the strategy and outlook I take into the future will have to be far different than the one I used in the past.

So, ROI, we'll see. Nothing is guaranteed. Same with stocks.
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