1.1 TH/s Rig for $6000 good?

[arguelles84]

Hi, Sorry I'm a complete newbie but was looking to buy a bitcoin mining rig. I saw one which has 1.1 th/s and cost 6k. Based on mining profit calculators, there seems to be no drawback, I will get my ROI within 3 months, and then its all profit from there on.

Is there any drawbacks or risks to investing in a rig?

Thanks.

[serje]

Do you have to pre-order it? If yes, don't do it! No one delivered in time a mining rig!
If you buy it use escrow!

[arguelles84]

The machine is made per order, takes about 5-7 days apparently on ebay. Too risky?

Provided its legit, are there any other risks other than the coin collapsing suddenly?

[serje]

The machine is made per order, takes about 5-7 days apparently on ebay. Too risky?

Provided its legit, are there any other risks other than the coin collapsing suddenly?

I don't know what calculator you used but this one says you will never break even at the current price

If 1.1TH is 1126.4GH

http://www.vnbitcoin.org/detailcalculation.php?name=Bitcoin_Mining_Rig&startdate=2014-03-20&costperunit=6000&wattperhour=640&gigahazarate=1126.4&daytoincrease=12&testlopfirst=5&diffincrement=15.24&bitcoinperdollar=589.81&electriccostinput=.15&begindifflevel=4250217920


Keep in mind that every 12 days or so the difficulty increases and you will make less BTC

If you have 6000$ to spare and want to make a 1 year or maybe 2 year investment then I would go for it!

if you want to get your money back in a few months you will be disappointed!

[arguelles84]

Thanks for the reply.

I was using this calculator: http://www.bitcoinx.com/profit/

I guess the difference between the calculations you posted and mine is that yours takes into account the difficulty increment, whereas mine was calculated at the same difficulty over 3 months.

[serje]

Thanks for the reply.

I was using this calculator: http://www.bitcoinx.com/profit/

I guess the difference between the calculations you posted and mine is that yours takes into account the difficulty increment, whereas mine was calculated at the same difficulty over 3 months.

You can solo mine also and if you are lucky and solve a block alone you will make 25 btc

it's a lot of factors you need to take in consideration and you must be prepared to lose some of that 6000$ or win big!

Difficulty, btc price, electricity price!

Only you can decide if it's worth it or no, but I will never buy a pre-ordered rig ... If we would have been talking about one that was in hand and you were ready to lose around 500-1500$ then I would have said yes, but given in consideration that you have to pre-order it I would say no!

If you can held the money into escrow for 6 days until he sends you the rig go for it, otherwise it's a little bit to shady!

[BG4]

Just Buy $6000 worth of bitcoins..... You will be way ahead of the game at these coin prices....

[arguelles84]

Just Buy $6000 worth of bitcoins..... You will be way ahead of the game at these coin prices....

hmmm, if I bought $6000 bitcoins, and BTC price somehow doubles up to $1200 again, I make $6000. However if I buy litecoins at $15 each with $6000, it has peaked at $40 before and can possibly surpass that, my % profit would be much greater right?

Are people here predicting bitcoin prices to shoot much higher than previously?

[googlemaster1]

Ok, with that $6000 here is what I'd do:

Buy 2 S1's here:

https://bitmaintech.com/productDetail.htm?pid=00020140107162747992Ce5uBuxW06D6

That will cost you roughly $1250 after PSU

So we're left with $4750.  Right.

Buy 5 BTC ... Worst case you pay $590 for them so that would be about $2950.  Right so that leaves us with $1800.  Keep about $1600 in an exchange (you can either buy BTC and swap it to fiat right away, or whatever), to use to buy during mini crashes or flash crashes.  Over the next three months (your average primetime life of a miner) there are bound to be at least 1, if not 2 flash crashes, or EXTREMELY good news that creates a little bubble.  If you happen to be at your computer the minute the article is published, its worth it to play the spikes, even if you aren't a "trader".

So that leaves us with $200.  I'd use that on a couple REALLY nice bottle of Scotch to use while watching the price of BTC fall over the next couple weeks or just laying on the ground all depressed like.  It'll help.  A recommendation: http://www.thewhiskyexchange.com/P-3121.aspx

Just my 2 mBTC

[pdawg]

Horrible buy.  It should be half of that and even then the ROI is nothing to write home about.  you should be getting 5x the hashing power for that price and 1 week delivery.

[Chedda420]

Horrible buy.  It should be half of that and even then the ROI is nothing to write home about.  you should be getting 5x the hashing power for that price and 1 week delivery.

Completely agree with this. This person said it all.

[arguelles84]

Ok, with that $6000 here is what I'd do:

Buy 2 S1's here:

https://bitmaintech.com/productDetail.htm?pid=00020140107162747992Ce5uBuxW06D6

That will cost you roughly $1250 after PSU

So we're left with $4750.  Right.

Buy 5 BTC ... Worst case you pay $590 for them so that would be about $2950.  Right so that leaves us with $1800.  Keep about $1600 in an exchange (you can either buy BTC and swap it to fiat right away, or whatever), to use to buy during mini crashes or flash crashes.  Over the next three months (your average primetime life of a miner) there are bound to be at least 1, if not 2 flash crashes, or EXTREMELY good news that creates a little bubble.  If you happen to be at your computer the minute the article is published, its worth it to play the spikes, even if you aren't a "trader".

So that leaves us with $200.  I'd use that on a couple REALLY nice bottle of Scotch to use while watching the price of BTC fall over the next couple weeks or just laying on the ground all depressed like.  It'll help.  A recommendation: http://www.thewhiskyexchange.com/P-3121.aspx

Just my 2 mBTC

Any reason why I shouldn't just go ahead and buy 10 of those S1's with the 6k? Is it just better to play the trade market than mine these days?

Also if I were to buy a rig, is that site the best place for it?

Thanks.

[pdawg]

If I had 6K to invest in BTC I would buy in increments to average your cost.  At these levels BTC is a good buy IMO, just don't freak if your investment goes negative for a while, in fact it should be expected in the world of BTC.  Have a realistic horizon to see a return on your investment.

[ChuckBuck]

Like others have been saying, hedge your bets.

Put half into mining, half into just buying the coins and hold.  Good Luck!

[johnsl]

No, it is not good.

In my opinion 1.1 Th/s will earn you (if you start right now) :

3.6 BTC in 1 month (and you'll seem to be onto something good)

... but ...

only 7.7 BTC in three months (inlcuding the 3.6 above)

and only 11.6 in one year (including the 7.7 above)

... and will grind to a virtual standstill with only 11.8 in two years (including the 11.6 above)

Increasing difficulty is the key factor in killing this - will be more than 10 % harder in 4 days.

(P.S. It'll cost you 1 BTC of these totals if it takes a week before you actually turn on).

Power consumption and other support costs will increase the outlay and I don't believe the operation will ever make a return.

Discounting the change in value of bitcoins. As you can (as others have suggested) invest in bitcoin future by simply buying them now.

Private mining at these hash rates is not viable at any where near this level of entry cost per Th/s

Somewhere around month 5 or 6 the return will become so low that you will look to sell it (if you do the maths) - the only silver lining is that resale prices on old mining hardware are insanely high so your kit with a total residual mining capability of perhaps only 1 BTC could sell for much more that it really ought to. 

If you believe in Bitcoin - buy them.  If you want to mine them get your hashes more cheaply - much more cheaply - and roll in your infrastructure and operating costs.

John SL

[johnsl]

P.S. the link Serje provided, above, gives similar figures to mine (slightly different difficulty estimate - but similar profile over time).

Any return calculation that is based on just the current difficulty will be wildly off track after just a few weeks.

John S-L

[pdawg]

That's why you need to use a calc that goes off of difficulty adjustments as a %.

[lemfuture]

better buy bitcoin directly when down

[pbj sammich]

Do yourself some good and read the Hardware section, heck you could even browse the Goods > Hardware section and realize exactly how over priced this unit is.

[oda.krell]

Sorry to jump in like that. Just found the thread by chance. Especially big thanks to johnsl for a super insightful answer.

Question though: The link give by googlemaster, to
https://bitmaintech.com/productDetail.htm?pid=00020140107162747992Ce5uBuxW06D6

... I have to say, I've never been tempted to start mining because I always figured that, since BTC profitability is my goal, all mining rig proposals I've considered would have been BTC-negative ROI, and only (marginally) USD profitable if price increased, so buying/speculating with BTC directly was always the way to go for me.

But the Bitmaintech rigs above... they look pretty different. For, say, 100 btc I could get  upwards of 18 TH/s ... o_O

Are they realiable? Does anyone know if they actually deliver, in time?

The calculator at http://www.vnbitcoin.org/bitcoincalculator.php gives me a ROI of about 60 days, based on 15% diff increase after 2016 blocks... too good to be true?

EDIT: is there a BTC calculator that returns the BTC TOTAL generated by a miner (i.e. doesn't calculate profitability based on USD costs/income, which is irrelevant IMO, since like I said, the goal is BTC profitability)... if I approximate this right, with the bitmaintech miners, investing 100 BTC should return ~160 BTC over their life time (assuming 15% diff increase per period). I'd be very happy to take that .