Investing in mining companies

[GraySocks]

Being a newbie and getting in late on the mining game, I believe the next step would be to invest in mining companies. But, I don't know anything about them. Can someone explain how it works and how to start investing? I know there are the Securities and Mining boards, but I don't want to approach those yet. Also figured there may be some people in this board that are interested in investing too.

[roslinpl]

Being a newbie and getting in late on the mining game, I believe the next step would be to invest in mining companies. But, I don't know anything about them. Can someone explain how it works and how to start investing? I know there are the Securities and Mining boards, but I don't want to approach those yet. Also figured there may be some people in this board that are interested in investing too.

too late on the mining game? Why it is so? So now minig is no more profitable or something

[SlidingHorn]

If you're going to invest in someone else's mining, you might as well build a rig yourself.  Mine alt-coins and trade them for bitcoin.

That's going to be your best bet.  Grab a couple decent GPUs, and let 'er rip.

[RodeoGoat]

If you're going to invest in someone else's mining, you might as well build a rig yourself.  Mine alt-coins and trade them for bitcoin.

That's going to be your best bet.  Grab a couple decent GPUs, and let 'er rip.

Isn't it expensive though? I mean I would love to mine, but I'm a poor college kid. Is the profitability off the mining of alt coins, in the end, worth the electric bill?

Plus the rig can't be cheap.

[GraySocks]

Being a newbie and getting in late on the mining game, I believe the next step would be to invest in mining companies. But, I don't know anything about them. Can someone explain how it works and how to start investing? I know there are the Securities and Mining boards, but I don't want to approach those yet. Also figured there may be some people in this board that are interested in investing too.

too late on the mining game? Why it is so? So now minig is no more profitable or something

Mining can be profitable, but you need to invest $$ to compete with a fraction of what the latest hardware can do. At least from what I'm reading on the forums. Setting up a GPU farm would be out of the question (electricity, noise, and heat).

I'm thinking that as the months and years go by, the hardware will be limited by the difficulty. The only ones left that have any real resources to turn a profit from mining would be the mining companies and the mining hardware companies.

[SlidingHorn]

If you're going to invest in someone else's mining, you might as well build a rig yourself.  Mine alt-coins and trade them for bitcoin.

That's going to be your best bet.  Grab a couple decent GPUs, and let 'er rip.

Isn't it expensive though? I mean I would love to mine, but I'm a poor college kid. Is the profitability off the mining of alt coins, in the end, worth the electric bill?

Plus the rig can't be cheap.

Your other option is to try to find a low-difficulty CPU coin.

[GraySocks]

but I'm a poor college kid

You're in a good position in you live in the dorms or know someone that lives in the dorms. You could have something (with grant money?) running 24/7 and not worry about electricity. And I doubt you crazy college kids would care about extra noise and heat.

Your other option is to try to find a low-difficulty CPU coin.

Any recommendations?

[RodeoGoat]

If you're going to invest in someone else's mining, you might as well build a rig yourself.  Mine alt-coins and trade them for bitcoin.

That's going to be your best bet.  Grab a couple decent GPUs, and let 'er rip.

Isn't it expensive though? I mean I would love to mine, but I'm a poor college kid. Is the profitability off the mining of alt coins, in the end, worth the electric bill?

Plus the rig can't be cheap.

Your other option is to try to find a low-difficulty CPU coin.

What about these pools I keep reading about. With the low-difficulty CPU coin and a pool, would the profits be greater? Or would I be better off self mining?

[SlidingHorn]

You should probably mine in a pool no matter what you end up doing. GPU or CPU

[BitSpot]

Check around on the forums in the service announcements. Whoever or whatever you do decide to do, make sure you vigorously research it. Mining can be a very bad headache if you aren't technically savvy. There is also a lot of troubleshooting and up-keep that most new users don't consider or take into account. You need to decide basically what is the cheapest USD$ / gHz you can buy. If you can "build" or buy a rig that costs an average of $10 per Ghz but you can become a part of a mining share / dividend group and get 1 ghz worth of shares for $8 then obviously the cheaper way is the shares. Also when you are investing in a mining company and/or buying shares then you just sit back and collect dividends, but this usually comes at a fee.

I think it's best to first initially sit and decide what you are wanting to do in the Bitcoin world. Are you here just because you think it's quick money or you're interested in the protocol? It all depends on what your goals are realistically and what budget you are working with. I believe most of us here are very Pro-Bitcoin and believe the value will always rise (as it always has). Some situations simply call for just buying Bitcoins and storing them away instead of fooling with more "risk". Any kind of Bitcoin related investment is a pretty large risk, but when you're investing in a Bitcoin Business you are not only risking that Bitcoin may go down or collapse, you are also risking and betting on the company to succeed or be profitable. We've seen one too many companies fall prey to negligence and lost everyone's hopes and dreams, let's try not to do a repeat.

Hope my little words of wisdom may bring you some clarity or anyone else on the forums. I catch myself always wanting to jump in on the next Altcoin or bitcoin business opportunity but then I usually back away. A few days or weeks later I see it's doing great and then I'm kicking myself in the face and go ahead and buy in. Low and behold a few days later: COLLAPSE. I've learned not to buy into the hype of things and wait for the hype to settle down. Things take off so fast around here they kick up dust and it's hard to tell where they really are at until all the shit truly settles.

[howzar]

Dont bother, either they will scam you or never make you ROI

[moriartypants]

What about these pools I keep reading about. With the low-difficulty CPU coin and a pool, would the profits be greater? Or would I be better off self mining?

My experience mining Primecoin in a pool was alright.  I made a little, and there wasn't much headache but it would never make me rich.  (Unless Primecoin goes to the moon.)  I'm sure there's easier coins to mine these days, but I got sick of trying to stay abreast of the latest fad coin.


To the OP:  Rather than investing in a mining company you could also check out the thread in my signature.  It basically boils down to renting mining equipment. It's still an investment that might not payback, but I have gotten good returns so far.

[marcotheminer]

Usually its not worth your investment and time for gains