We already passed the point where buying hardware was profittable.
I did the computation for myself. Adding a new video card (only the card), a good bitcoin generation/dollar one, will not pay for itself. I didn't count the electricity.
How are you calculating profitability? I came up with the following naive analysis - can you guys poke holes in it and tell me how this isn't profitable?
- Each server has 2x XFX Radeon 5970 boards @ $900 each (approx)
- The rest of the server costs $1000
- Total server cost is $3000
- At the current difficulty level, each server will crank out 50BTC approximately every 1.66 days (4 x 5970 GPUs)
- 50BTC is worth 0.83 x 50BTC = about $40 USD
+ Implies daily revenue of approximately $40 / 1.66 = $24/day
- Power consumption per server is 1.5kW
- Power cost is therefore 1.5 x $0.10 x 24 = $3.60/day
- Net after power is about $20/day per server
- Days to recover hardware investment: $3000 / $20 = 150 days
- Depreciation rate of hardware: 45%/year -> implies $1350/year loss in value
- Net profit per year including hardware depreciation is $20 x 365 - $1350 = $5950
How is this not incredibly profitable? I must be missing something.