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Author Topic: Big set up question.  (Read 734 times)
ssraid
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September 08, 2011, 03:50:02 AM
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I have a friend who just went and bought 30 5970's and I was wondering is it worth it in to go that big.  Its about .12cents a kwh here. I think he might be a lil crazy to go that big. What do you guys think?
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Ponies
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September 08, 2011, 03:55:56 AM
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Thats a lot of power being used, he should make sure his wiring can handle that.
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September 08, 2011, 03:56:16 AM
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Right now, I wouldn't invest in bitcoin mining at all. Let me make some calculations on how much will he earn... Do you know how much did he spend with everything (cards+motherboards)?

EDIT: Those would need a lot of calculations, but at current prices it isn't profitable at all. I think it would take more than a year to cover the initial investment. And who knows how much a bitcoin is worth a year from now... If you want a calculator, check here: http://bitcoinx.com/profit/index.php

The 5970 should make around 700MHash/sec according to this: https://en.bitcoin.it/wiki/Mining_hardware_comparison
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September 08, 2011, 04:57:37 AM
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He spent about 30k total.  He think hes gonna be a millionaire in a year.  Not sure how big of a chunk the power is gonna cost him, but im sure its gonna be a lot. 
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September 08, 2011, 04:59:02 AM
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Hope he doesn't get a brain injury.
FreeMonies
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September 08, 2011, 05:09:59 AM
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Man 5-7 months ago he'd of made a killing. Now... probably not so much.
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September 08, 2011, 05:54:24 AM
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He spent about 30k total.  He think hes gonna be a millionaire in a year.  Not sure how big of a chunk the power is gonna cost him, but im sure its gonna be a lot. 

He is going to lose money. If he mines at 20GHash with 9000W with bitcoins at $10 each (now they are at $7), he will cover the initial costs in 1 year and a half. However, the 7000 series will come out in the next couple of months and the difficulty will rise a lot. So unless bitcoin's price jumps to $30, he may never break even.
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September 08, 2011, 07:03:48 AM
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He spent about 30k total.  He think hes gonna be a millionaire in a year.  Not sure how big of a chunk the power is gonna cost him, but im sure its gonna be a lot. 

He is going to lose money. If he mines at 20GHash with 9000W with bitcoins at $10 each (now they are at $7), he will cover the initial costs in 1 year and a half. However, the 7000 series will come out in the next couple of months and the difficulty will rise a lot. So unless bitcoin's price jumps to $30, he may never break even.

Hes probably losing money to electrical bills, so in theory he will never recoup his losses.
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September 08, 2011, 07:41:51 AM
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I would say it's a gamble...
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September 08, 2011, 09:37:19 AM
 #10

Mining with that rig will roughly break even right now, or probably be a little bit negative.  If the exchange rate falls (Likely in the short term; long term it's entirely speculation but I'm speculating it'll go down) his profitability will become more negative, since difficulty trails price.  Newer more efficient GPUs will drive profit down as well (difficulty will rise).  Long term mining is only really profitable when the price is rising faster than people can buy GPUs.

I advise against speculatively investing in BTC.  My reasons are over here:  https://bitcointalk.org/index.php?topic=40214.msg498449#msg498449

      War is God's way of teaching Americans geography.  --Ambrose Bierce
Bitcoin is the Devil's way of teaching geeks economics.  --Revalin 165YUuQUWhBz3d27iXKxRiazQnjEtJNG9g
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September 08, 2011, 10:51:37 AM
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30 cards is over doing it.
BitcoinRedLight
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September 08, 2011, 12:46:29 PM
 #12

This is not a good bet.

http://BitcoinRedLight.com A men's magazine of liberation.
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September 12, 2011, 09:55:40 PM
 #13

I would say he should have just bought BTCs with the money.
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September 13, 2011, 02:52:14 AM
 #14

He will be poorer by $30k depending on how he calculate depreciation Smiley .  Yeap I agree with the other members, might as well purchase bitcoin on the market
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September 13, 2011, 04:48:27 AM
 #15

He think hes gonna be a millionaire in a year. 

Wow, really? Totally unrealistic.
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