Is mining still profitable?

[kindle]

Hi fellow miners,

I bought a HD 5970 recently and was waiting for this weekend to get the rest of the hardware needed to complete a mining platform. However with the increase of 37% difficulty recently, I am hesitant now if I should continue with the project. My worries are bounded by the following considerations:

Electric Bill: 0.1903 usd/kwh
Hashing power: 5970 + 5850 = 600Mhash/s + 240 Mhash/s = 840 Mhash/s
Cost of Rig: 680 usd

Note that I am living in Singapore and the above rates are based on current exchange rates.

Please advice if I should proceed. Based on using the online bitcoin calculator. I will hit negative income on the 5/12/11. Will that be accurate?

[bitjet]

No you should probably just ship that card to me.

..but seriously you could just mine with it until it becomes unprofitable then sell the hardware and buy bitcoin with it. You would still make out in the end.

[kindle]

Hi bitjet,

thanks for the prompt reply, so it is a no go for me to make the investment of 680 this weekend for the rig? I am looking to cover the cost of the rig and electric bill, and to join in the mining community before the prime is over. Or am I at the end of the bitcoin mining prime now?

[casascius]

Hi fellow miners,

I bought a HD 5970 recently and was waiting for this weekend to get the rest of the hardware needed to complete a mining platform. However with the increase of 37% difficulty recently, I am hesitant now if I should continue with the project. My worries are bounded by the following considerations:

Electric Bill: 0.1903 usd/kwh
Hashing power: 5970 + 5850 = 600Mhash/s + 240 Mhash/s = 840 Mhash/s
Cost of Rig: 680 usd

Note that I am living in Singapore and the above rates are based on current exchange rates.

Please advice if I should proceed. Based on using the online bitcoin calculator. I will hit negative income on the 5/12/11. Will that be accurate?

I estimate your rig uses 600 watts, or that it costs you USD 0.114/hr to run.  You should average 50 BTC every 96 hours, and 96 hours will cost you $10.96 in electricity.

Cost of rig aside, your return is 387% the cost of the electricity.

If the difficulty were to triple with no change in the BTC price, that's when mining will be negative for you.  Of course, it would be negative (or at least a total waste of time) for the rest of us too, and difficulty wouldn't stay there for long.  I doubt that we'll see triple difficulty (220000+) with 85 cent BTC.

[qed]

It's not the best time ever to build a rig for mining. You have to keep in mind electricity is not the only cost. Having a 600W computer in your room during the upcoming summer will make your conditioner work way harder and consume more electricity.

[kindle]

Hi casascius,

thanks for the calculations! I am motivated now to purchase the rig tmr. =)

Hi qed,

I am in a tropical country, so its almost warm and humid every day of the year here in Singapore.
I guess I will find some place around the house to vent the warm air during the day =P


Cheers!

[Transisto]

Mining is bad for the environment.   

[marcus_of_augustus]

Mining is bad for the environment.

So are earthquakes, tsunamis, volcanos and meteor strikes.

But bitcoin will lead to a more efficient allocation of capital and resources for humanity.

[Grinder]

[I estimate your rig uses 600 watts, or that it costs you USD 0.114/hr to run.  You should average 50 BTC every 96 hours, and 96 hours will cost you $10.96 in electricity.

A slightly overclocked 5970 will use almost exactly 1 week (168 hrs) for one block with the current difficulty. I doubt it will use as much as 600W, though. Perhaps you were thinking of a dual card setup?

[Syke]

Nope, mining isn't profitable anymore. You can all stop mining now.

[kindle]

Grinder: I was thinking of getting an additional 5850 to boost the hashing performance.

chodpaba: Thanks for your insights =)

[Jered Kenna (TradeHill)]

Mining is bad for the environment.

So are earthquakes, tsunamis, volcanos and meteor strikes.

But bitcoin will lead to a more efficient allocation of capital and resources for humanity.

Mentioned the earthquakes / tsunamis about 2 hours before it hit? Nice timing.. I just heard a volcano is acting up in that area I seriously hope the meteor isn't next.

[Jim Hyslop]

Mining is bad for the environment.

So are earthquakes, tsunamis, volcanos and meteor strikes.

But bitcoin will lead to a more efficient allocation of capital and resources for humanity.

Mentioned the earthquakes / tsunamis about 2 hours before it hit? Nice timing.. I just heard a volcano is acting up in that area I seriously hope the meteor isn't next.

About 3 hours after, I think. It appears to me the timestamps are all UTC, and as I understand it the earthquake hit around 5:00 a.m. UTC.

[dust]

Mining is bad for the environment.   

Remember that mining/printing, storing, securing and transporting other commodities/currencies (gold, coins, paper money) have environmental costs as well.  Bitcoin's completely digital representation may make it very environmentally friendly in comparison.

[Jered Kenna (TradeHill)]

Mining is bad for the environment.   

Remember that mining/printing, storing, securing and transporting other commodities/currencies (gold, coins, paper money) have environmental costs as well.  Bitcoin's completely digital representation may make it very environmentally friendly in comparison.

If the energy source is relatively clean then BTC could be a hell of a lot better for the environment. If you mine for 2 weeks off of coal energy and get nothing then yeah, it's horrible. I look at from the perspective that what you're trying to accomplish justifies it. If you're destroying the environment because you like to have a big truck that is only going to benefit you that's not the same. Oh and I'm not that big on being green just saying.

[marcus_of_augustus]

Debt backed money requires continual inflation for the system to operate, and encourages ever increasing consumption because the longer you hold onto this kind of currency the less it is worth. In this way consumption is rewarded, but efficiency is not.

Couldn't have said better or more succinctly. BTC could easily be a net benefit for the "environment" (an ill-defined nebulous concept anyway) over the current dysfunctional monetary system.