freedomworkshop (OP)
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January 29, 2014, 03:42:32 AM |
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I have had a sleep (since my first day of learning about Bitcoin - yesterday), and I don't know when I came to this conclusion exactly (it's in my head, nonetheless), but -- does it really matter what the current Bitcoin exchange is worth? I mean, I know it has gone from being worth like $50, right up to $800 odd, and next week it could be worth $50 again. Yet I see people (around, online), saying: "Oh it's not worth mining this week, it costs xxx in electricity, so I am not mining"..
..I sit back in my seat and think to myself: "so what?" ..hello? ..the electricity cost is going to be the same whether the current rate is $50 or $800 - at the end of the day, you're mining for Bitcoins and those Bitcoins might have been generated at a loss, but next week might be worth 10 times what they were worth when you mined them. The opposite is true. You might mine Bitcoins while they're $800, and think you're making a great profit (and covering your electricity costs). You go to bed and wake up to find that they're all worth $50.
So, the way I see it, I think I am going to go ahead and buy some mining power, and just disregard the current exchange rate (and any electricity bills; I'll just suck them up), and just start pumping by wallet with Bitcoins. In 5 years I am either going to be the owner of a heap of dead Bitcoins, or the $500 I invested will be worth $25,000 -- and what the electricity rate was at the time I generated them is going to be the least of my concerns.
Am I right?
..or am I right?
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DeathAndTaxes
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Gerald Davis
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January 29, 2014, 03:45:09 AM |
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IF the electrical cost is higher than the value of the mined bitcoins why not just buy them instead? One way to look at it is mining is buying coins with electricity (and ammortized hardware cost). If right now you could buy one BTC for $800 or mine one for $900 why would you pick the later? You want less BTC? You are hoping to keep yourself from becoming too wealthy?  |
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empoweoqwj
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January 29, 2014, 05:06:30 AM |
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Like DeathAndTaxes said, there's no point mining if the coins cost more to produce than the current market rate.
Of course the electricity charge is only a part of that cost.
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mamaie
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January 30, 2014, 03:16:49 PM |
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i pay 0 for electricity so i`m ok |
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empoweoqwj
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January 30, 2014, 03:18:31 PM |
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i pay 0 for electricity so i`m ok Hope your mom still loves you when she finds out  |
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brooklynite
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January 30, 2014, 07:43:59 PM |
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I don't understand this thread. Can someone please enlighten me? How is it that electricity cost is an issue? My flimsy 2500kh gpu rig makes DOGE that I still immediately for about $25/day that's after my exuberant $5.40 electric cost from my 1250W rig.
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Undone
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January 30, 2014, 10:14:43 PM |
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Am I right?
..or am I right?
Too soon. You just learned about Bitcoin a couple days ago? You've got A LOT of researching to do. Bitcoin mining is the perfect storm where speculation and diminishing returns collide. And yes, electricity is a factor in margins. When you say you're going to invest $500 in mining...what exactly do you think $500 is going to buy you? |
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empoweoqwj
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January 31, 2014, 06:39:43 AM |
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I don't understand this thread. Can someone please enlighten me? How is it that electricity cost is an issue? My flimsy 2500kh gpu rig makes DOGE that I still immediately for about $25/day that's after my exuberant $5.40 electric cost from my 1250W rig.
Not everyone mines DOGE you know, however cool it is today. Bitcoin / litecoin mining is still pretty big |
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jermwerty
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January 31, 2014, 11:54:44 PM |
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 OP waiting for his $50 bitcoins... If you consider power usage a risk, sell coins ASAP to cover power usage and bank the rest. Simple. I'll put it this way, I have a buddy who had expensive power during the GPU mining rush in 2011. (built over a dozen multi-gpu rigs) He did the math the other day and figured out he paid out BTC during that time that would be worth more than half a million USD today! So in that sense power is nominal. I have cheap power and generally burn ~6KW mining which results in a couple hundred bucks a month of power costs. It just comes down to how large can you scale it? |
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Sonny
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February 01, 2014, 11:59:19 AM |
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OP waiting for his $50 bitcoins... If you consider power usage a risk, sell coins ASAP to cover power usage and bank the rest. Simple. I'll put it this way, I have a buddy who had expensive power during the GPU mining rush in 2011. (built over a dozen multi-gpu rigs) He did the math the other day and figured out he paid out BTC during that time that would be worth more than half a million USD today! So in that sense power is nominal. I have cheap power and generally burn ~6KW mining which results in a couple hundred bucks a month of power costs. It just comes down to how large can you scale it? If your profit comes from the expected uprising bitcoin price, I guess it will be better to simply buy bitcoin directly. If your friend didn't buy those gpus, and used part of his money to buy bitcoin in 2011, he would be a millionaire now  |
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jermwerty
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February 02, 2014, 12:30:19 AM |
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If your profit comes from the expected uprising bitcoin price, I guess it will be better to simply buy bitcoin directly. If your friend didn't buy those gpus, and used part of his money to buy bitcoin in 2011, he would be a millionaire now Well duh. But who says he isn't a millionaire? (hint: he kept plenty of coins to hit certain thresholds If you can buy a device for 1.45 BTC and it returns 1.9+ BTC over the next 3 months USD/BTC becomes irrelevant... (*cough* ANTMINER) |
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empoweoqwj
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February 02, 2014, 03:56:06 AM |
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If your profit comes from the expected uprising bitcoin price, I guess it will be better to simply buy bitcoin directly. If your friend didn't buy those gpus, and used part of his money to buy bitcoin in 2011, he would be a millionaire now Well duh. But who says he isn't a millionaire? (hint: he kept plenty of coins to hit certain thresholds If you can buy a device for 1.45 BTC and it returns 1.9+ BTC over the next 3 months USD/BTC becomes irrelevant... (*cough* ANTMINER) Umm .... not if the bitcoin price drops 25% in those 3 months. |
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Sonny
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February 02, 2014, 10:43:43 AM |
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If you can buy a device for 1.45 BTC and it returns 1.9+ BTC over the next 3 months USD/BTC becomes irrelevant... (*cough* ANTMINER)
True. Umm .... not if the bitcoin price drops 25% in those 3 months.
Embrace the bitcoin world, and measure all your asset values in btc  |
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oxfardk
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February 04, 2014, 05:47:42 AM |
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Umm .... not if the bitcoin price drops 25% in those 3 months.
Let him dream a bit  knowing that it's the most versatile cryptocurrency in the world |
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