Market Collapse / Mining Profitability

[slanislaw]

How low will prices need to drop before you start taking your rigs offline?

[1713967617]

1713967617

[1713967617]

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[1713967617]

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[gsrcrxsi314]

i can afford the electric. let it ride

[Vann]

Covering your ongoing costs is obviously a requirement. Otherwise you are better off buying what you’re mining instead. Anything other than that is a personal desicion based on your particular motivations and circumstances. Mining when profitability was low seems to have worked out well for those that mined ETH from November 2016 when it was $10 and barley covering electical costs. However a six card rig was able to mine several ETH a week. If you are in a situation where you have to sell what you mine to pay your costs, it makes it tuff to HODL when profitability is low though.

[Za1n]

At the current Ethereum difficulty levels, the coin price could go as low as $150 and still be at break even for electricity for most people. This of course works well for those who have paid for rigs, but those who just bought in the past 60 days they can say good bye to any quick ROI forecasts for the time being.

So I think the answer would depend on when you bought the majority of your mining gear, as people with paid for gear can probably keep mining as long as the daily profits exceed their electrical costs. Those with more recent purchases, especially considering they probably paid quite a premium for their GPUs may want to consider selling off while they can still get a decent price. If the coin price continues to drop and stays low for a month or more, I feel people will then start looking to get out, again with the more recent entrants the first to go.

[pickleburglar]

Covering your ongoing costs is obviously a requirement. Otherwise you are better off buying what you’re mining instead. Anything other than that is a personal desicion based on your particular motivations and circumstances. Mining when profitability was low seems to have worked out well for those that mined ETH from November 2016 when it was $10 and barley covering electical costs. However a six card rig was able to mine several ETH a week. If you are in a situation where you have to sell what you mine to pay your costs, it makes it tuff to HODL when profitability is low though.

that's market speculation, not mining.

[dagarair]

i'll mine even at a minor loss and just hold hoping that when it takes off i got a ton of eth banked.  As long as I can afford the electric bill I will be mining.

[blockchange88]

ill mine til i die. im only 29, been in the game for year. wish i got in sooner. not for the coin collection, but for the love of the game. the troubleshooting, the rig building, just watching my rigs hash while i daydream about my girl giving two shits about it. life

[treanski]

How low will prices need to drop before you start taking your rigs offline?

I'm not far off from barely covering electricity costs..  

i give a fuck about the current profitability, because for me mining is a long term investment

[BennyT]

When bitcoin was 20k, Ethereum was 1200, Decred was 100... your electricity costs should have been covered for the next 5 years. Not trying to mean at all, but it sounds like your first crash in .... anything. Everything crashes, everything recovers. Crypto has been crashing for the past 5 years, and it’s sky rocketed to new heights every single time.

Best advice I can give: When the market is at an all time high, take out your initial investment and cover your costs. When the market crashes, stop checking coin market cap and go spend time with family and friends.

[NobodyIsHome]

How low will prices need to drop before you start taking your rigs offline?

I'm not far off from barely covering electricity costs..  

I sold my holdings near the highs at the beginning of the year.  Got enough reserves to keep mining for another year or two.  At this point, some of the alt coins would have to drop by another 50% to force me to turn off my rigs.

[treanski]

“Be Fearful When Others Are Greedy and Greedy When Others Are Fearful”
-Warren Buffett

[slanislaw]

When bitcoin was 20k, Ethereum was 1200, Decred was 100... your electricity costs should have been covered for the next 5 years. Not trying to mean at all, but it sounds like your first crash in .... anything. Everything crashes, everything recovers. Crypto has been crashing for the past 5 years, and it’s sky rocketed to new heights every single time.

Best advice I can give: When the market is at an all time high, take out your initial investment and cover your costs. When the market crashes, stop checking coin market cap and go spend time with family and friends.

Nonsense. Bitcoin was at 20k for a minute. Bitcoins spectacular rise and fall all occurred in only a few months. Nov 2017 - Feb 2018. I made plenty of money but not enough to cover costs for 5 years..

I started mining in 2013 and stopped in disgust when Cryptsy stole all my coins.. My fault. Don't keep coins on an exchange. Lesson learned. I got back into mining in 2016. I have multiple rigs and asics. Most of it is already paid for. I'm not asking for advice.

I asked when are people going to start taking rigs offline. If it continues to drop I think we'll start to see a flood of cards on eBay.

[whycrypto]

Flood of cards on the market would be great, I could finally afford to build a rig or two 

[theOfficialJoeGG]

When bitcoin was 20k, Ethereum was 1200, Decred was 100... your electricity costs should have been covered for the next 5 years. Not trying to mean at all, but it sounds like your first crash in .... anything. Everything crashes, everything recovers. Crypto has been crashing for the past 5 years, and it’s sky rocketed to new heights every single time.

Best advice I can give: When the market is at an all time high, take out your initial investment and cover your costs. When the market crashes, stop checking coin market cap and go spend time with family and friends.

Nonsense. Bitcoin was at 20k for a minute. Bitcoins spectacular rise and fall all occurred in only a few months. Nov 2017 - Feb 2018. I made plenty of money but not enough to cover costs for 5 years..

I started mining in 2013 and stopped in disgust when Cryptsy stole all my coins.. My fault. Don't keep coins on an exchange. Lesson learned. I got back into mining in 2016. I have multiple rigs and asics. Most of it is already paid for. I'm not asking for advice.

I asked when are people going to start taking rigs offline. If it continues to drop I think we'll start to see a flood of cards on eBay.

I don't think that's necessarily a bad thing, let's more committed miners stay in and keeps the GPU market from being this weird shady aftermarket that it is currently. Ruining it for both miners and gamers trying to get the cards.

[tipac]

this crash is exactly the same as 2008 crash.
back then everything crashed because banks easily give credits to speculators to buy assets (houses) and drive prices up
now banks give you credit cards to buy bitcoins and price fuel sky rocket.
2st: bank takes the credit back from you, price crashes back
my prediction is this: the price will go back to where it has been before banks gave easy credit to buy coins

[tipac]

the moment you allow americans to buy something on credit, expect that to sky rocket in price, be it anything stocks, crypto coins, houses, cars, etc
just look at stocks: fed gave banks free money, stocks sky rocketed to ultra records the history never seen.
how easy it is to control people with this nice weapon they have 

[KaydenC]

Profitability is still higher than at the start of 2017, where an rx480 was grinding out a dollar a day before electricity costs. Now a 580 still does $1.6 a day, still well within 1 year roi after electricity costs, still way better than any traditional investment. (except for miners with high electricity costs)

[nsummy]

the moment you allow americans to buy something on credit, expect that to sky rocket in price, be it anything stocks, crypto coins, houses, cars, etc
just look at stocks: fed gave banks free money, stocks sky rocketed to ultra records the history never seen.
how easy it is to control people with this nice weapon they have 

It wasn't the Americans causing bitcoin to skyrocket.  Bitcoin was trading for much higher in foreign markets.

[phuocduong]

coinmarketcap and whattomine

[eyeflip]

if eth hits 500, I'm gonna give my rigs a couple days vacation, and reevaluate my path forward, electricity is not cheap by me unfortunately