Bitcoin Forum
September 24, 2017, 06:04:27 PM *
News: Latest stable version of Bitcoin Core: 0.15.0.1  [Torrent]. (New!)
 
   Home   Help Search Donate Login Register  
Pages: [1] 2 »  All
  Print  
Author Topic: All Miners Should Determine their 'Break Even' BTC Price  (Read 2294 times)
Meatball
Sr. Member
****
Offline Offline

Activity: 378



View Profile
August 03, 2011, 05:06:03 PM
 #1

There's a ton of posts debating the pros and cons of mining vs. costs, but if you're mining on anything more than just your GPU sitting in your main machine, you owe it to yourself to determine your 'Break Even' price of BTC vs. your Local Currency.

It's actually pretty simple.  First, figure out how much you spend on electricity mining each month.  If you can determine out your machine's power draw with a KiloWatt meter or something of the sort, you can get an approximation by seeing how many watts your machine is pulling from the wall and doing the following:

(Watts Drawn from the Wall / 1000) * 24 [Or however many hours per day the machine runs] * 30 [Or however many days there are in that month/billing period] * Kilowatt Hour Cost [Most power companies will list that on your bill or you can call them and get it]

There's your approximate mining cost for that machine per month.

Then just hit up any of the many Mining calculator's out there.  Plug in your hashing rate and tweak around with the BTC price until you find the price that you'd make back the same as your electricity costs are that month, there's your break-even price.

You'll need to recalculate that at every difficulty jump to find your new Break Even price and if you haven't already paid off your hardware costs, you need to factor that in as well.

Regardless, there's no reason to not be an informed miner and determine what price you will be 'profitable' and at what price you're spending more than you're making and then make intelligent decisions on your own about what works for you. 
1506276267
Hero Member
*
Offline Offline

Posts: 1506276267

View Profile Personal Message (Offline)

Ignore
1506276267
Reply with quote  #2

1506276267
Report to moderator
1506276267
Hero Member
*
Offline Offline

Posts: 1506276267

View Profile Personal Message (Offline)

Ignore
1506276267
Reply with quote  #2

1506276267
Report to moderator
1506276267
Hero Member
*
Offline Offline

Posts: 1506276267

View Profile Personal Message (Offline)

Ignore
1506276267
Reply with quote  #2

1506276267
Report to moderator
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
1506276267
Hero Member
*
Offline Offline

Posts: 1506276267

View Profile Personal Message (Offline)

Ignore
1506276267
Reply with quote  #2

1506276267
Report to moderator
1506276267
Hero Member
*
Offline Offline

Posts: 1506276267

View Profile Personal Message (Offline)

Ignore
1506276267
Reply with quote  #2

1506276267
Report to moderator
1506276267
Hero Member
*
Offline Offline

Posts: 1506276267

View Profile Personal Message (Offline)

Ignore
1506276267
Reply with quote  #2

1506276267
Report to moderator
Syke
Legendary
*
Offline Offline

Activity: 2380


View Profile
August 03, 2011, 05:29:08 PM
 #2

My best rig is 4x5830, 1080 mhps, drawing 650 watts.

Monthly electricity costs (~$.40/kwh) = $187
Monthly bitcoin income = 17.5 BTC
Break even at $10.7 per BTC.

Yup, I'm already at break even. So roughly, if difficulty goes to 2,000,00 and price stays at $10, then either I move out of California or shut down my rigs.

Buy & Hold
k9quaint
Legendary
*
Offline Offline

Activity: 1190



View Profile
August 03, 2011, 05:33:29 PM
 #3

Are you really paying .40 $/kWh? Ouch.

Bitcoin is backed by the full faith and credit of YouTube comments.
Elder III
Sr. Member
****
Offline Offline

Activity: 308


Hobby Miner - Twitter for Crypto Info - @elderiii


View Profile
August 03, 2011, 05:44:28 PM
 #4

I'm glad I don't live in CA...

Between 2 rigs I'm getting ~ 2.54 Ghash --- monthly power bill is about $85.00
40-41 BC per month
Break even @ approx 9 BC per month at current prices.

Looks like it can drop some more before I start to regret my time spent. Wink

BitSend ◢◤Clients | Source
www.bitsend.info
█▄
█████▄
████████▄
███████████▄
██████████████
███████████▀
████████▀
█████▀
█▀












Your Digital Network | 10MB Blocks
Algo: XEVAN | DK3 | Masternodes
Bitcore - BTX/BTC -Project












BSD -USDT | Bittrex | C.Gather | S.Exchange
Cryptopia | NovaExchange | Livecoin
CoinPayments | Faucet | Bitsend Airdrop













████
 ████
  ████
   ████
    ████
     ████
      ████
       ████
        ████
       ████
      ████
     ████
    ████
   ████
  ████
 ████
████

████
 ████
  ████
   ████
    ████
     ████
      ████
       ████
        ████
       ████
      ████
     ████
    ████
   ████
  ████
 ████
████
Starlightbreaker
Legendary
*
Offline Offline

Activity: 1484



View Profile
August 03, 2011, 06:01:55 PM
 #5

the lowest i can go before shutting down my rigs is $3.5/btc

still have a long way to go.

Sukrim
Legendary
*
Offline Offline

Activity: 2128


View Profile
August 03, 2011, 06:08:28 PM
 #6

Thanks to pool hopping and improved efficiency because of this, I still can mine a bit - but it already gets close. Most likely I will only mine with 1 PC (which is running 24/7 anyways + has a more efficient GPU) though.

Electricity here is also quite expensive, but if I feel the need for BTC, I can anyways just buy them - they get cheaper by the minute it seems! Cheesy

https://bitfinex.com <-- leveraged trading of BTCUSD, LTCUSD and LTCBTC (long and short) - 10% discount on fees for the first 30 days with this refcode: x5K9YtL3Zb
Mail me at Bitmessage: BM-BbiHiVv5qh858ULsyRDtpRrG9WjXN3xf
mike678
Full Member
***
Offline Offline

Activity: 182


View Profile
August 03, 2011, 06:13:36 PM
 #7

I'll use my 5830 rig:
generates 1320 mhash
thats .703 btc
requires 888 watts
Only costs me 6.7c per kwh
cost of electricty per day:1.43

A btc would have to drop to 2.03 for me to break even.
ManOfKnight
Full Member
***
Offline Offline

Activity: 145


View Profile
August 03, 2011, 09:17:14 PM
 #8

Mine is right about 3.70 with my 420Mh/s

Striking it rich in Bitcoin is no longer an option...I do it for fun.
*Image Removed*
Meatball
Sr. Member
****
Offline Offline

Activity: 378



View Profile
August 03, 2011, 11:01:14 PM
 #9

That's awesome, except for the CA power costs. Smiley

My whole point of the post is that people just need to spend a few minutes and then they can make intelligent decisions about their mining.  There's way too much panic/hype being spread on the boards by people that either don't know any better or are trying to push their own agenda.

Spend five minutes every difficulty bump and figure out when it makes sense for you to mine and when it makes sense to get out. 
Starlightbreaker
Legendary
*
Offline Offline

Activity: 1484



View Profile
August 03, 2011, 11:33:23 PM
 #10

scratch my 3.5/btc

my boss just approved me to move my server to the office....somehow.

1.4 is the new bottom...and below that, i just need to turn off my desktop rig at home.
haha.

Dargo
Legendary
*
Offline Offline

Activity: 1806



View Profile
August 03, 2011, 11:37:19 PM
 #11

I'm not sure I would stop mining the instant price drops below my BE point. Rather, price would have to do something to convince me it isn't going back above my BE point anytime soon. For example if my BE point is $4, I wouldn't stop the instant price fell below this. Due to the volatility in price, it could easily rebound and be above $6 in a week or two. But if it fell below $4 and stayed there for a while (two or three weeks) in a really tight range or something like that, then yes, I would stop. But this assumes that I'm not losing much at the current price so it isn't a big deal to keep mining for several weeks and just eat the small loss. This is a hypothetical point for me though, since I don't pay for my electricity. Even with free electricity, though, I think I would have a point where I might stop just because it isn't worth the trouble anymore.
BOARBEAR
Member
**
Offline Offline

Activity: 77


View Profile
August 04, 2011, 12:26:32 AM
 #12

No you forgot about the people that get electricity for free.
nebiki
Full Member
***
Offline Offline

Activity: 210



View Profile
August 04, 2011, 10:17:42 AM
 #13

this is about giving the big commercial miners a headache, we won't stop until they stop!!

▛ [ CENTRA ] Multi-Blockchain Worldwide Debit Card & Insured Wallet
▞▬▬▬▞▬▬▬▞▬▬▬▞▬▬▬▞▬▬▬▞▬▬▬▚▬▬▬▚▬▬▬▚▬▬▬▚▬▬▬▚▬▬▬▚
▙     FacebookSlackTwitterGithubMediumANN Thread     ▟
farfiman
Legendary
*
Offline Offline

Activity: 1440



View Profile
August 04, 2011, 02:19:15 PM
 #14

My best rig is 4x5830, 1080 mhps, drawing 650 watts.

Monthly electricity costs (~$.40/kwh) = $187
Monthly bitcoin income = 17.5 BTC
Break even at $10.7 per BTC.

Yup, I'm already at break even. So roughly, if difficulty goes to 2,000,00 and price stays at $10, then either I move out of California or shut down my rigs.


How can the rig take only 650 W?    Just the 4 gpus themselves take at least that much.

"We are just fools. We insanely believe that we can replace one politician with another and something will really change. The ONLY possible way to achieve change is to change the very system of how government functions. Until we are prepared to do that, suck it up for your future belongs to the madness and corruption of politicians."
Martin Armstrong
OgNasty
Donator
Legendary
*
Offline Offline

Activity: 2310


Monetize the Revolution


View Profile WWW
August 04, 2011, 09:10:59 PM
 #15

My break even price is about $4/bitcoin.  However, the price where I'd stop mining is $0.00.  Even if it were costing me money to acquire bitcoins, I would continue to acquire bitcoins.  You can get your profits from trading or waiting until the price goes back up.  These people who say they'll stop mining if the price falls below a certain point are idiots.  It could always go back up, then do you think you'd give a damn what the price was when you mined the coins?  If you're willing to stop once the price hits a certain point, do everyone a favor and stop now.  Mining is for big boys and believers.  Scared children needing to see immediate returns need not apply.

BITSLER                 ▄███
               ▄████▀
             ▄████▀
           ▄████▀  ▄██▄
         ▄████▀    ▀████▄
       ▄████▀        ▀████▄
     ▄████▀            ▀████▄
   ▄████▀                ▀████▄
 ▄████▀ ▄████▄      ▄████▄ ▀████▄
█████   ██████      ██████   █████
 ▀████▄ ▀████▀      ▀████▀ ▄████▀
   ▀████▄                ▄████▀
     ▀████▄            ▄████▀
       ▀████▄        ▄████▀
         ▀████▄    ▄████▀
           ▀████▄▄████▀
             ▀██████▀
               ▀▀▀▀
▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▄            
▄▄▄▄▀▀▀▀    ▄▄█▄▄ ▀▀▄         
▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▄      
█  ▀▄▄  ▀█▀▀ ▄      ▀████   ▀▀▄   
█ █▄  ▀▄   ▀████       ▀▀ ▄██▄ ▀▀▄
▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀
█  ▀▀       ▀▄▄ ▀████      ▄▄▄▀▀▀  █
█            ▄ ▀▄    ▄▄▄▀▀▀   ▄▄  █
▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀
█ ▄▄   ███   ▀██  █           ▀▀  █ 
█ ███  ▀██       █        ▄▄      █ 
▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀  
▀▄            █        ▀▀      █  
▀▀▄   ███▄  █   ▄▄          █   
▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀    
▀▀▄   █   ▀▀▄▄▄▀▀▀         
▄▄▄▄▄▄▄▄▄▄▄█▄▄▀▀▀▀              
              ▄▄▄██████▄▄▄
          ▄▄████████████████▄▄
        ▄██████▀▀▀▀▀▀▀▀▀▀██████▄
▄     ▄█████▀             ▀█████▄
██▄▄ █████▀                ▀█████
 ████████            ▄██      █████
  ████████▄         ███▀       ████▄
  █████████▀▀     ▄███▀        █████
   █▀▀▀          █████         █████
     ▄▄▄         ████          █████
   █████          ▀▀           ████▀
    █████                     █████
     █████▄                 ▄█████
      ▀█████▄             ▄█████▀
        ▀██████▄▄▄▄▄▄▄▄▄▄██████▀
          ▀▀████████████████▀▀
              ▀▀▀██████▀▀▀
            ▄▄▄███████▄▄▄
         ▄█▀▀▀ ▄▄▄▄▄▄▄ ▀▀▀█▄
       █▀▀ ▄█████████████▄ ▀▀█
     █▀▀ ███████████████████ ▀▀█
    █▀ ███████████████████████ ▀█
   █▀ ███████████████▀▀ ███████ ▀█
 ▄█▀ ██████████████▀      ▀█████ ▀█▄
███ ███████████▀▀            ▀▀██ ███
███ ███████▀▀                     ███
███ ▀▀▀▀                          ███
▀██▄                             ▄██▀
  ▀█▄                            ▀▀
    █▄       █▄▄▄▄▄▄▄▄▄█
     █▄      ▀█████████▀
      ▀█▄      ▀▀▀▀▀▀▀
        ▀▀█▄▄  ▄▄▄
            ▀▀█████
[]
Grinder
Legendary
*
Offline Offline

Activity: 1283


View Profile
August 04, 2011, 09:37:03 PM
 #16

These people who say they'll stop mining if the price falls below a certain point are idiots.
If you prefer to mine even if you could get more bitcoins by just buying them I wonder who the idiot is...
Zncon
Member
**
Offline Offline

Activity: 102


View Profile
August 04, 2011, 09:46:33 PM
 #17

There is one other factor that is being overlooked here when people say they will stop mining and start buying.

Even if you're below the point of breaking even, you're still getting discount coins. If coins are trading for $8, and it costs you $4 per coin to mine them, you're still getting coins at 50% off their cost.

Meatball
Sr. Member
****
Offline Offline

Activity: 378



View Profile
August 04, 2011, 09:58:59 PM
 #18

My break even price is about $4/bitcoin.  However, the price where I'd stop mining is $0.00.  Even if it were costing me money to acquire bitcoins, I would continue to acquire bitcoins.  You can get your profits from trading or waiting until the price goes back up.  These people who say they'll stop mining if the price falls below a certain point are idiots.  It could always go back up, then do you think you'd give a damn what the price was when you mined the coins?  If you're willing to stop once the price hits a certain point, do everyone a favor and stop now.  Mining is for big boys and believers.  Scared children needing to see immediate returns need not apply.

That's great for you, but it doesn't mean that works for everyone.  There's no reason people shouldn't be calculating at what point they are spending more on power than they are making in BTC.  At that point people can make their own, informed decision.  My break even is about $2.50/BTC.  If BTC drops to .01 tomorrow, I'd likely keep all my machines running for a month or two, but I can't afford to spend close to $500 a month on power to make about $2 in BTC...

As long as BTC is around, I'll at least keep one machine up and running, but there's no reason to hammer people for saying they aren't willing to pay to make BTC.
release
Member
**
Offline Offline

Activity: 81


View Profile
August 05, 2011, 12:06:05 AM
 #19

this thread should really have a "price/difficulty" as the break even point no just price because difficulty has a large impact too.
naypalm
Legendary
*
Offline Offline

Activity: 1239



View Profile WWW
August 05, 2011, 01:20:48 AM
 #20

Dang, and I thought my 14 cents per kwh was bad...

Uberbills Coin Analyzer | Coins | We Are Satoshi | Cryptocoin Liability Analyzer | Analyzer scans are now back online. Thank you for your patience.
Pages: [1] 2 »  All
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!