I'm glad I didn't buy any more video cards, a 1080ti barley makes $1 a day

[toptek12]

2016. was the year to get into mining. After that GPU prices went up and mining difficulty followed. Now GPU prices are still high along with the difficulty plus crypto prices are going down. There are no reasons anymore to become a small miner because you can earn more by buying cryptos now while they are at a "discount" and hodling. I see very many people selling their relatively new mining rigs.

I don't know were you live but GPU prices are not high any more check out new egg or Amazon or even Ebay you can get some nice deals in the US again on new GPU cards with or without rebates.

Well it's probably much cheaper for people who live in the U.S. because if you are importing those GPUs into Asia you get taxed, have to pay for shipping, and even don't get qualified for all those promos and rebates. Not to mention the risk of your ordered GPU breaking during shipment because warranty isn't valid (well at least non-technically because it's such a huge pain and cost to coordinate warranty for international orders).

OK cool if you don't live in the US I understand why the complaint .

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[Bencus]

This is astonisisng, but in the bad way.
Looks like mining has became industrialised. This means that ones in households cannot compete, if not for anything else, then the price of the electricity will surely make the difference.

1080ti is a really expensive card, I really hope you have other plans for it.

[grendel25]

For example you mined emc2 at $2 bucks last quarter irs counts that as income right away the day it's mined. However emc2 is now .20 cents And your screwed.

I wish the IRS the best of luck trying to enforce that...

To the IRS your a criminal for mining if you don't report your earnings accurately or your hiding your mined coins,  According to them you will be faced with a 250k fine and be sent to prison for 5 years for not reporting or hiding your mined earnings of a buck a day for your 1080 ti.  LOL

Seriously hire an accountant, its not worth testing the irs,  They can audit your 5 years later for your past history.

https://www.irs.gov/newsroom/irs-reminds-taxpayers-to-report-virtual-currency-transactions

"taxpayers could be subject to criminal prosecution for failing to properly report the income tax consequences of virtual currency transactions. Criminal charges could include tax evasion and filing a false tax return. Anyone convicted of tax evasion is subject to a prison term of up to five years and a fine of up to $250,000. Anyone convicted of filing a false return is subject to a prison term of up to three years and a fine of up to $250,000."

happy mining folks, Enjoy your pathetic profits or losses and risking on catching your house on fire and be sent to prison.

Ok FUDlord. I filed my taxes last week and paid my taxes on mining profits minus electricity costs and hardware. The IRS does not currently have much in the way of defining how crypto is to be taxed yet. So pay capital gains on your profits and it is done.

Mining is still profitable unless you are like lunobird who either is terrible at it or missed the bus on it and is just salty. Probably just trying to deter noobs to keep difficulty low.

Yep you did your taxes wrong, You need to re-file, The Irs does have clear definition on how crypto mining is taxed.  I suggest you hire an accountant and pay them some big bucks to fix your mess up.  Its considered income on the day its mined and addition taxed as capital gains  if you sell it.

As mentioned by got-miner and also a publication from the irs on guidelines
https://www.irs.gov/pub/irs-drop/n-14-21.pdf

"Q-8: Does a taxpayer who “mines” virtual currency (for example, uses computer
resources to validate Bitcoin transactions and maintain the public Bitcoin
transaction ledger) realize gross income upon receipt of the virtual currency
resulting from those activities?
A-8: Yes, when a taxpayer successfully “mines” virtual currency, the fair market value
of the virtual currency as of the date of receipt is includible in gross income. See
Publication 525, Taxable and Nontaxable Income, for more information on taxable
income.
Q-9: Is an individual who “mines” virtual currency as a trade or business subject
to self-employment tax on the income derived from those activities?
A-9: If a taxpayer’s “mining” of virtual currency constitutes a trade or business, and the
“mining” activity is not undertaken by the taxpayer as an employee, the net earnings
from self-employment (generally, gross income derived from carrying on a trade or
business less allowable deductions) resulting from those activities constitute selfemployment
income and are subject to the self-employment tax. See Chapter 10 of
Publication 334, Tax Guide for Small Business, for more information on selfemployment
tax and Publication 535, Business Expenses, for more information on
determining whether expenses are from a business activity carried on to make a profit. "

After reading around and watching some youtube videos I ended up finally incorporating my own business and then applying for S Corporation status with the IRS.  This has been really great.  First of all, it forced me to be more accountable for all expenses which are accounted for BEFORE paying any profit.  Also, profits up to a reasonable salary are paid as a salary which also counts as an expense!  Now, when you really get to be a baller miner and are bringing in so much of that crypto gold that you exceed a reasonable salary... let's say more than $80K (which is taxed at employment tax rates), then you pay yourself a distribution above and beyond the reasonable salary which is taxed at the higher capital gains rate.  

So for the year I mined before this, I just classified the business as sole proprietorship and accounted for expenses than paid taxes on capital gains.  The S Corp is a little more complicated but it pays off if you end up in a bull market situation or happen to be lucky enough to rake in huge profits on some moon coin.

edited to add:  I still use tax tracking programs (called bitcoin.tax) to have an accouting of coin values in case I get audited. 

Now... of course all this totally defeats the privacy nature of what we find so likeable about crypto currencies.  However, it is worth mentioning the same can be said for fiat.  But with crypto at least the privacy options are more technologically advanced and still possible to use privately for the tech savvy crypto dude.

[Rasanders22]

Using whattomine.com :

1 1080ti = $2.20/$1.74 (revenue/after electricity. The lowest price card on newegg is 750. Thats 431 days till it pays for itself @ current price (mining Nicehash-Lyra2REv2)
1 rx580 8 gig = $1.39/$1.07. The lowest price card on newegg is 320. Thats 299 days till its paid off mining EthereumClassic.
1 1070 = $1.38/$1.10. Cheapest card on newegg is 450. Thats 409 days till paid off.



I know which one I would choose. more $$ does not equal better card for mining.

[leonix007]

Using whattomine.com :

1 1080ti = $2.20/$1.74 (revenue/after electricity. The lowest price card on newegg is 750. Thats 431 days till it pays for itself @ current price (mining Nicehash-Lyra2REv2)
1 rx580 8 gig = $1.39/$1.07. The lowest price card on newegg is 320. Thats 299 days till its paid off mining EthereumClassic.
1 1070 = $1.38/$1.10. Cheapest card on newegg is 450. Thats 409 days till paid off.



I know which one I would choose. more $$ does not equal better card for mining.

This is a remider

Whattomine calculations are based at present/todays profitability

you can't actually use this as reference on the number of days on your rig to get paid off

current difficulty and price is not the same for tomorrow, the next days/months or year

[gotminer]

Using whattomine.com :

1 1080ti = $2.20/$1.74 (revenue/after electricity. The lowest price card on newegg is 750. Thats 431 days till it pays for itself @ current price (mining Nicehash-Lyra2REv2)
1 rx580 8 gig = $1.39/$1.07. The lowest price card on newegg is 320. Thats 299 days till its paid off mining EthereumClassic.
1 1070 = $1.38/$1.10. Cheapest card on newegg is 450. Thats 409 days till paid off.



I know which one I would choose. more $$ does not equal better card for mining.

This is a remider

Whattomine calculations are based at present/todays profitability

you can't actually use this as reference on the number of days on your rig to get paid off

current difficulty and price is not the same for tomorrow, the next days/months or year

But if you wait ... And get jacked off later at a higher price on your alt, you win.  Problem is that this idiots like Digital Drug Lord (OP) and others are concerned about the daily.  No one that has any common sense is concerned about price.

[xlth]

From a profitability point view: does it make sense to use an algo switching software like Nemo or All-in-Miner?

Or is just better to stick to one algo such as x16r?

[Mike011]

If you have time and will, single coin mining is always more profitable. I have used Nemos for some time, but always ended getting payed less. Algo switching is for the lazy, way too busy, or people that do not have much knowledge.

[Wefud]

From a profitability point view: does it make sense to use an algo switching software like Nemo or All-in-Miner?

Or is just better to stick to one algo such as x16r?

It is better to use one algorithm if you can find the good coin to mine.

[Marvell2]

You need the ethlargement pill it's a real thing get 50 mh/second on ethereum

Mine ethereum on coinfoundry.org

why not nanopool

[adaseb]

We all knew this would happen eventually.

Take 2013 bubble for example. Back then the prices for the R9 280X was like $500 but the GPU made like $10/day back in Nov 2013.

Fast forward a few months to Feb 2014 and it pulled in $5/day, the month after $2.50/day, the month after that about $1.25/day and fast forward to the end of the year and I think it will pulling in $0.25/day.

And it was worse because it used much more power than most of the GPUs today.

The only difference between those GPUs and today is that there was less GPUs mining and GPUs to sell, so the supply got absorbed by the gamers. These days there are millions of these GPUs out there.

[ThePunisher49X]

You need the ethlargement pill it's a real thing get 50 mh/second on ethereum

Mine ethereum on coinfoundry.org

why not nanopool

Some say their minimum withdrawal amount required for a payout is too high at 0.05
With Ethereum going down $0.35 mining per day from just a week ago it will take longer and longer to reach this threshold if this keeps up.

[ThePunisher49X]

We all knew this would happen eventually.

Take 2013 bubble for example. Back then the prices for the R9 280X was like $500 but the GPU made like $10/day back in Nov 2013.

Fast forward a few months to Feb 2014 and it pulled in $5/day, the month after $2.50/day, the month after that about $1.25/day and fast forward to the end of the year and I think it will pulling in $0.25/day.

And it was worse because it used much more power than most of the GPUs today.

The only difference between those GPUs and today is that there was less GPUs mining and GPUs to sell, so the supply got absorbed by the gamers. These days there are millions of these GPUs out there.

And Nvidia is calling this past year a loss for them.
I think it was because of all those cards that got sent back to them in masses.

[Marvell2]

We all knew this would happen eventually.

Take 2013 bubble for example. Back then the prices for the R9 280X was like $500 but the GPU made like $10/day back in Nov 2013.

Fast forward a few months to Feb 2014 and it pulled in $5/day, the month after $2.50/day, the month after that about $1.25/day and fast forward to the end of the year and I think it will pulling in $0.25/day.

And it was worse because it used much more power than most of the GPUs today.

The only difference between those GPUs and today is that there was less GPUs mining and GPUs to sell, so the supply got absorbed by the gamers. These days there are millions of these GPUs out there.

And Nvidia is calling this past year a loss for them.
I think it was because of all those cards that got sent back to them in masses.

300k cards would constitute a loss? I cant see that, thats only like 300 million

[Metroid]

Smart people are buying coins right now, buying bits by bits cause they dont want this downtrend to end, this is the best time to buy because once it starts rising again it goes 20x - 100x of what is now. As for mining, anybody buying hardware will end up losing a lot of money if they mine and sell now, if they hold maybe it can be good, in 2014 ltc crashed from $50 to $1 and whoever bought those ltc for $1 at that time made a huge profit, times like this is the best time to buy coins and hold for 2 years or so.

[jamgd]

I've made a small fortune so I don't know what you are talking about...you are not mining right if you are losing money or making only a dollar a day on it. Come look what Hash-kings has done...https://bitcointalk.org/index.php?topic=4800698.new#new

If you want to make money, it takes a lot of effort...but alt currencies are alive and well if you know what you are doing

[gotminer]

I've made a small fortune so I don't know what you are talking about...you are not mining right if you are losing money or making only a dollar a day on it. Come look what Hash-kings has done...https://bitcointalk.org/index.php?topic=4800698.new#new

If you want to make money, it takes a lot of effort...but alt currencies are alive and well if you know what you are doing

Lol.

[FFI2013]

Using whattomine.com :

1 1080ti = $2.20/$1.74 (revenue/after electricity. The lowest price card on newegg is 750. Thats 431 days till it pays for itself @ current price (mining Nicehash-Lyra2REv2)
1 rx580 8 gig = $1.39/$1.07. The lowest price card on newegg is 320. Thats 299 days till its paid off mining EthereumClassic.
1 1070 = $1.38/$1.10. Cheapest card on newegg is 450. Thats 409 days till paid off.



I know which one I would choose. more $$ does not equal better card for mining.

This is a remider

Whattomine calculations are based at present/todays profitability

you can't actually use this as reference on the number of days on your rig to get paid off

current difficulty and price is not the same for tomorrow, the next days/months or year

Ya everyone on ETH this ETH that, hello there are way more coins than ETH I haven't mined a coin listed on wtm in months and really I don't care about ETH the chain is always over loaded and its a hub for hacks plus not one normal person can write a contact or even download the blockchain to run a desktop wallet

[gotminer]

Smart people are buying coins right now, buying bits by bits cause they dont want this downtrend to end, this is the best time to buy because once it starts rising again it goes 20x - 100x of what is now. As for mining, anybody buying hardware will end up losing a lot of money if they mine and sell now, if they hold maybe it can be good, in 2014 ltc crashed from $50 to $1 and whoever bought those ltc for $1 at that time made a huge profit, times like this is the best time to buy coins and hold for 2 years or so.

There are very few coins that I would buy and hold for 2 plus years other than BTC.  There are plenty of shitcoins to buy, wait/hope for a pump, and trade for BTC though.  There have been plenty of opportunities to buy BTC at a low this year, if you have the cash to do it.  Will you have another opportunity to buy lower than 5k this year ... Maybe.

As for mining, the way I look at gpu mining has drastically changed from the point at which I started last fall.  Back then, I was thinking "how much will I risk holding in btc".  As a few months went by, I realized that was a dumb question.  The answer is "all of it".  If you have gpu's that haven't paid for themselves (and most, if not all that were purchased last fall probably have not), there really is no other way than to mine ... try to sell your mined coins for btc at a time when the btc pairing is at a high, and continue to hold in btc if/when next bull run ... In addition to paying for the electricity out of your own pocket.

Some may disagree with that, but it seems like the best option to me.  Some may not have the means to pay for electricity out of their own pocket without selling mined coins, but all they are doing is prolonging the time it takes to pay yourself back for the investment in mining hardware.

All things considered, I don't regret buying gpu's last fall.  But I do have a longer term outlook as opposed to someone who is focused on daily profits in fiat.  I'm also happy that I've split my time/funds between mining and trading.  Trading has certainly helped me in obtaining more btc.

[Privatoria]

Me too, I don’t buy new cards from January of this year. Profit is miserable. I undervolted my cards as much as I can and I’m accumulating ETHs and Monero waiting for better time.