I have $40,000 to invest

[BitcoinMillionaire]

Hey folks, I have a spare $40k

I want to know if its worth it to buy a mining rig and if so, what should I buy and how do I run it?

Or is it better just to put the cash into bitcoins and just sit on them for a few years?

I want to try mining just for fun, but am a complete noob.

Someone please enlighten me.

Note, this is cash that I can afford to lose, but obviously I'm looking for a profit

[1715141588]

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[1715141588]

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[BitcoinMillionaire]

P.S. What is the ideal price for electricity per kw/Hour to run this profitable if we assume bitcoin price hovers around $100?

[01BTC10]

You will most likely get a lower ROI if you try mining. I would buy bitcoins and hold. Maybe read and learn more while using dollar cost averaging method: http://en.wikipedia.org/wiki/Dollar_cost_averaging

[DyslexicZombei]

You could do split it 3 ways: BTC, a Cointerra IV at $14K, and maybe a couple of KnCs, BitFurys or a HashFast since they have the best Miner Protection Program. You'd be hedging your bets on some of the strongest ASIC mfgs. IMO while still holding BTC long term.

I'm not an investment adviser, of course, and I can't tell you what to do with your money but: Your best returns may come from just buying & holding BTC with the way the net. difficulty is going at the moment.

[Operatr]

Depends on what your goals are really.

Mining is quickly becoming a serious game with serious capital involved. If you are wanting to invest $40k into mining gear, you would be moving far past mining as a hobby. Bitcoin mining is going pro quickly, but can still enter easily with something as simple as a Erupter USB as long as you don't care too much about ROI and are doing it just because it is cool and want to support the network, as every little bit helps. The ROI issue will likely level out but not for some time in a period of explosive growth, so doing the math is very important if you want to see a profit.

I would say start small and see how it grows on you with some Erupter USBs or other lower cost options. Diversity in your portfolio is recommended as it is impossible to tell ultimately where it all goes from here. Buy some coins, securities (or start a securities fund), mining gear, or use your funds to start a Bitcoin accepting business of some kind. In my case I am doing all of those things in the form of BlockBurner  

[BitcoinMillionaire]

Hey folks.

I understand that the first people to get the best miners can make a lot of profit, but as more competition comes on to the market, obviously difficulty goes up and the hardware depreciates/captures a smaller piece of the pie. On the flipside, theres probably not many average bitcoin loving joes who bother to mine, and even less who have the required capital to buy the best miners.

Therefore is it worth it to just buy the best and take a gamble that no better miners will be released?

[fivesky55]

Hi,
IMO, let's get back to some true stories before we hop in either trying to mine or buying bitcoin as an investment!
Firstly, Bitcoin price is hovering around USD 130 per pieces by now! Since I have noted that you have written a post saying how many kWh suggestions if BItcoin hovering around USD 100? So if you thinking the price will only about there, what makes you a decision of only buying instead of mining it all by yourself? You are buying at USD 130 when you think the price will go at USD 100 only, it only brings mean that you are burning money slowly and not sort of investing!

Secondly, with a 40k of investment, since we called it investment and it should be a long term instead of touch and go! Yes indeed mining difficulty is keep rising and miner gets not that fast and not that much anymore! But 1 fact is the machine that you invest in are yet to stop and it is still continue generating a small income to you although not that much anymore!

Third and last, investing using only buying instead of mining only give you one way instead of multiple chances to reach your target! Lets get back some basic decision making! What makes you a strength in your heart to buy Bitcoin? Of course you see the market potential in Bitcoin makes you to purchase it and keep as investment! So if this makes you to do a decision to buy, then why don't you let it keep generating instead of only that amount in your wallet? Isn't it mining is more multiple way and buying is only a one way ticket?


Just in my opinion and I am not a financial advisor!


Cheers

[bcp19]

Hey folks.

I understand that the first people to get the best miners can make a lot of profit, but as more competition comes on to the market, obviously difficulty goes up and the hardware depreciates/captures a smaller piece of the pie. On the flipside, theres probably not many average bitcoin loving joes who bother to mine, and even less who have the required capital to buy the best miners.

Therefore is it worth it to just buy the best and take a gamble that no better miners will be released?

The mining equipment market is very saturated with pre-orders at the moment, and the prices today are virtually guaranteed not to make a positive RoI in comparision to buying and holding BTC.  I'd suggest you buy BTC for now and watch the mining equipment manufacturers for the next 4-6 months and see which ones excel and which ones fall to the wayside.  Buying equipment at this moment in time means you are gambling that you can get it fast enough to benefit you.  The downside to this is all of the other people who have invested as much or more than you that have been happily mining away from the last several weeks to several months or will soon be happily mining away on their delivered pre-orders.

Some of the 'potential' miners that may or may not become available in the future are down under $10/GH.  In 6 months time, when this insane growth has tapered off and only something like quantum computing could cause a repeat, would be the time to evaluate what is available and whether the cost vs return is more worthwhile than holding the BTC you invested in.  The current trending indicates you may need $1-3/GH(or less) to be profitable.

Do not buy now is the best advice to follow.

[fivesky55]

Hey folks.

I understand that the first people to get the best miners can make a lot of profit, but as more competition comes on to the market, obviously difficulty goes up and the hardware depreciates/captures a smaller piece of the pie. On the flipside, theres probably not many average bitcoin loving joes who bother to mine, and even less who have the required capital to buy the best miners.

Therefore is it worth it to just buy the best and take a gamble that no better miners will be released?

The mining equipment market is very saturated with pre-orders at the moment, and the prices today are virtually guaranteed not to make a positive RoI in comparision to buying and holding BTC.  I'd suggest you buy BTC for now and watch the mining equipment manufacturers for the next 4-6 months and see which ones excel and which ones fall to the wayside.  Buying equipment at this moment in time means you are gambling that you can get it fast enough to benefit you.  The downside to this is all of the other people who have invested as much or more than you that have been happily mining away from the last several weeks to several months or will soon be happily mining away on their delivered pre-orders.

Some of the 'potential' miners that may or may not become available in the future are down under $10/GH.  In 6 months time, when this insane growth has tapered off and only something like quantum computing could cause a repeat, would be the time to evaluate what is available and whether the cost vs return is more worthwhile than holding the BTC you invested in.  The current trending indicates you may need $1-3/GH(or less) to be profitable.

Do not buy now is the best advice to follow.

Hi,
Maybe your type on investment are in more conservatives type! If for myself with 40k available to invest and I can take the risk, why don't I invest in multiple ways instead of only a way to success! What you suggest is buy now and wait for another 4-6 months only making decision to jump in mining or not? So after 4-6 months, will all the manufacturer stop saturated with pre order machine? So if it is the result going on same, so there is no point to jump in anymore by that time because you have late for another 4-6 months!

Another point, we can't envy someone to start earlier mining, we can only blame ourself why we are so late to know the market of Bitcoin! So the earlier miner gets all mining gear earlier on pre order? They are still the same just keep upgrading the machinery instead of only waiting the pre order to arrive!

I only can says, if I gonna invest in this time, I will not only purchase in pre order and wait them to arrive, I will go 2 way by purchase pre order and current shipping machinery to start building a farm if I can see a good market future in Bitcoin!

Remember, TIME is the most important in the world that money can't buy and of course it won't wait you! Waiting is just let the chances slips away from you! When you only use basic calculation instead of taking some risk or gamble, you are not the only 1 in the world who can use basic calculation for ROI! If there is a risk, there are hidden opportunities!

No offense, just my silly point of view!


Cheers!

[crazyates]

There are many places you can buy ASICs: BFL, KNC, BitFury, ASICMiner, Avalon clones, and maybe a few others I'm not sure are scams or not.

There are 4 big factors: Price, Speed, Power Consumption, and Lead Time. Each manufacturer has their own pros and cons.

ASICMiner has the absolute lowest lead time, but their prices, speed, and power requirements are pretty crappy. BFL's Monarch is the opposite: it has great price, speed, and power efficiency, but the lead time is a bitch.

I know BitFury is now shipping, and customers are mining away with their devices. I don't think KNC has delivered anything to-date.

If I were choosing, I would go with BitFury, or if you feel like taking a risk, go with Monarchs.

[01BTC10]

There are many places you can buy ASICs: BFL, KNC, BitFury, ASICMiner, Avalon clones, and maybe a few others I'm not sure are scams or not.

There are 4 big factors: Price, Speed, Power Consumption, and Lead Time. Each manufacturer has their own pros and cons.

ASICMiner has the absolute lowest lead time, but their prices, speed, and power requirements are pretty crappy. BFL's Monarch is the opposite: it has great price, speed, and power efficiency, but the lead time is a bitch.

I know BitFury is now shipping, and customers are mining away with their devices. I don't think KNC has delivered anything to-date.

If I were choosing, I would go with BitFury, or if you feel like taking a risk, go with Monarchs.

You forgot: http://cointerra.com/shop

Currently available for pre-sale are the TerraMiner IV 2TH/s mining rig and packages of GoldStrike1500GH/s ASIC chips (with price points for 10 and 25 TerraHashes). Please visit our shop for more information. 
TerraMiner IV

Mining Controller with Ethernet Connection
Uses 4 GoldStike1 ASICs for 2 TH/s performance
Estimated Power Usage 1200 Watts
Buy a 5-pack and save
GoldStrike1 ASIC Packages

500 GH/s ASIC
Estimated Power usage 0.55 watts/GH
Sold in 10 and 25 TerraHash Packs
Larger Packs Available, Please Contact sales@cointerra.com

GoldStrike1 (GS1) is a 28nm chip with a 0.5TH  rate and power consumption of 0.55 watt/GH.

The GS1 chips and products are expected to ship in December 2013.

For any undelivered orders in Batch 1, if CoinTerra changes the price of TerraMiner IV systems or GoldStrike1 ASICs before delivery, CoinTerra will re-price all orders and offer either a cash refund or a larger and more valuable hash power credit

Chances are slim, but if we do not deliver your confirmed December delivery within 30 days of our promise, we will credit your account 20% of the hash power.

I would probably order from them instead of BFL Monarch. In fact, I would never order from BFL.

[hellfrozenow]

I don't think KNC has delivered anything to-date.

I don't think KNC has showed working prototype to-date, but they have less than 30 days to deliver first batches of units - Good luck. Amen.

[crazyates]

There are many places you can buy ASICs: BFL, KNC, BitFury, ASICMiner, Avalon clones, and maybe a few others I'm not sure are scams or not.

There are 4 big factors: Price, Speed, Power Consumption, and Lead Time. Each manufacturer has their own pros and cons.

ASICMiner has the absolute lowest lead time, but their prices, speed, and power requirements are pretty crappy. BFL's Monarch is the opposite: it has great price, speed, and power efficiency, but the lead time is a bitch.

I know BitFury is now shipping, and customers are mining away with their devices. I don't think KNC has delivered anything to-date.

If I were choosing, I would go with BitFury, or if you feel like taking a risk, go with Monarchs.

You forgot: http://cointerra.com/shop

For someone who is just getting into BTC mining, I would not recommend anyone who has not already delivered. Has Cointerra delivered anything in the past? I say this for the same reason I'm not recommending KNC, even tho I don't think KNC is a fraud/scam.

[01BTC10]

There are many places you can buy ASICs: BFL, KNC, BitFury, ASICMiner, Avalon clones, and maybe a few others I'm not sure are scams or not.

There are 4 big factors: Price, Speed, Power Consumption, and Lead Time. Each manufacturer has their own pros and cons.

ASICMiner has the absolute lowest lead time, but their prices, speed, and power requirements are pretty crappy. BFL's Monarch is the opposite: it has great price, speed, and power efficiency, but the lead time is a bitch.

I know BitFury is now shipping, and customers are mining away with their devices. I don't think KNC has delivered anything to-date.

If I were choosing, I would go with BitFury, or if you feel like taking a risk, go with Monarchs.

You forgot: http://cointerra.com/shop

For someone who is just getting into BTC mining, I would not recommend anyone who has not already delivered. Has Cointerra delivered anything in the past? I say this for the same reason I'm not recommending KNC, even tho I don't think KNC is a fraud/scam.

Good point but I wouldn't recommend BFL neither. I would recommend not mining at all for now unless the main goal is not achieving a positive ROI. It's way less risky to simply buy bitcoins and hold.

[Dalkore]

Hey folks, I have a spare $40k

I want to know if its worth it to buy a mining rig and if so, what should I buy and how do I run it?

Or is it better just to put the cash into bitcoins and just sit on them for a few years?

I want to try mining just for fun, but am a complete noob.

Someone please enlighten me.

Note, this is cash that I can afford to lose, but obviously I'm looking for a profit

I would buy coins at this point.  Hold them and wait until Generation 3 comes out and see how the profitability is.  Anything under .07/Kwh is getting into the lower tier of power.  I personally pay .02/Kwh but I had to build a data-center to take advantage of it.

[BBazaar]

Hey folks, I have a spare $40k

I want to know if its worth it to buy a mining rig and if so, what should I buy and how do I run it?

Or is it better just to put the cash into bitcoins and just sit on them for a few years?

I want to try mining just for fun, but am a complete noob.

Someone please enlighten me.

Note, this is cash that I can afford to lose, but obviously I'm looking for a profit

Look, mining isn't just an "investment", you would be purchasing equipment that you are responsible for and have to run to make a profit.  The only way around this is to pay for hosting somewhere.  In this case, the hosting company would keep your hardware on site, connect it to a pool on your behalf, and pay out to your wallet.  Take a look at KnC, you will find the fees though are actually quite expensive.  You may never actually get an ROI on your investment because difficulty is increasing at a rate of 110% per month right now, rapidly diminishing returns that can't really outlast the cost of expensive hosting.

You do have other options, you can buy BTC, or you can even invest in BTC businesses.  My business partner and I are working on two projects right now.  We have purchased our own mining equipment and identified a commercial location with electric rates at .04/kwh.  This is significantly less than the average .15 to .18 that most americans pay, and in the EU rates can exceed .30/kwh.  We are planning out a data center for a hosting service on this location.  Our rates would be considerably less than most hosting services given that we can pass on the savings to our clients.

The other business involves a billpay service.  The company is CoinChex LLC, site is under development.  I'm spreading my risk all around and investing in multiple aspects of the bitcoin economy.  This is probably the best way to generate ROI and reduce your risk.

[peasant]

Just buy coins and trade them for profit. Mining is not worth it anymore. I have a few usb erupters to keep things going but they won't produce much with the diff increases. Any mining gear you buy now will take some time to get and will be mining at a fraction of the expected output when you actually receive it. Trade between BTC,LTC, and USD. Good luck.

[crazyates]

If I were choosing, I would go with BitFury, or if you feel like taking a risk, go with Monarchs.

You forgot: http://cointerra.com/shop

For someone who is just getting into BTC mining, I would not recommend anyone who has not already delivered. Has Cointerra delivered anything in the past? I say this for the same reason I'm not recommending KNC, even tho I don't think KNC is a fraud/scam.

Good point but I wouldn't recommend BFL neither. I would recommend not mining at all for now unless the main goal is not achieving a positive ROI. It's way less risky to simply buy bitcoins and hold.

Please reread my suggestion. BFL was not my first choice for the OP.

Mining is not worth it anymore. I have a few usb erupters

I found your problem.

[GodHatesFigs]

Buy and hold.

[WikileaksDude]

Hey folks, I have a spare $40k

I want to know if its worth it to buy a mining rig and if so, what should I buy and how do I run it?

Or is it better just to put the cash into bitcoins and just sit on them for a few years?

I want to try mining just for fun, but am a complete noob.

Someone please enlighten me.

Note, this is cash that I can afford to lose, but obviously I'm looking for a profit

Why not invest instead in a mining company?

Thats what im doing atm

I would get some shares from ActM

https://bitfunder.com/asset/ActiveMining

Check the last PR from eAsic

http://www.easic.com/vmc-uses-easic-to-achieve-24-756-ths-bitcoin-miner/

Active Mining FAQ:

http://www.activeminingbtc.com/