If you're thinking buying mining hardware, read this first

[DobZombie]

Okay, how much do you think a set-up that mines BTC in the top 20 percentile would run me?

$146,500

And in 6-12 months time if you we're still mining with the hardware you bought today, you would probably be in the bottom 10%.

[Jakers]

Lol nobody is stupid enough to spend $126,000 on a set-up when BTC are so unstable, are you serious? I'm thinking of having 5-10 Computers, because my powers free I won't need to worry about the power bill. Also, does it matter what kind of computer you buy, or does it just matter about the graphics card? Would it be better to buy a Mac, or a PC?

Btw, do you mean like one computer set-up would cost $126,000? Or do you mean the entire set-up (Comps, Power, Hardware, etc.)?

[crazyates]

Lol nobody is stupid enough to spend $126,000 on a set-up when BTC are so unstable, are you serious? I'm thinking of having 5-10 Computers, because my powers free I won't need to worry about the power bill. Also, does it matter what kind of computer you buy, or does it just matter about the graphics card? Would it be better to buy a Mac, or a PC?

Btw, do you mean like one computer set-up would cost $126,000? Or do you mean the entire set-up (Comps, Power, Hardware, etc.)?

I know of people that have preordered 4 SC MRs from BFL, which would be ~$120,000. So yes, people do have that much money to invest in BTC.

As I said, wait until the summer to decide what hardware you should buy. By the time June or July comes, you will see that mining with a computer (CPU or GPU) will be completely worthless, regardless of free power or what kinds of computer it is.

[Jakers]

Lol nobody is stupid enough to spend $126,000 on a set-up when BTC are so unstable, are you serious? I'm thinking of having 5-10 Computers, because my powers free I won't need to worry about the power bill. Also, does it matter what kind of computer you buy, or does it just matter about the graphics card? Would it be better to buy a Mac, or a PC?

Btw, do you mean like one computer set-up would cost $126,000? Or do you mean the entire set-up (Comps, Power, Hardware, etc.)?

I know of people that have preordered 4 SC MRs from BFL, which would be ~$120,000. So yes, people do have that much money to invest in BTC.

As I said, wait until the summer to decide what hardware you should buy. By the time June or July comes, you will see that mining with a computer (CPU or GPU) will be completely worthless, regardless of free power or what kinds of computer it is.

So you're saying computers will be useless by summer time? Some kind of super computer or mining machine is going to be created that will replace computers? I could see that happening, but as soon as summer time? It would take months and months, if not years to create it. Can Bitcoins be mined with anything that contains GPU or CPU? So say, could you mine with your phone if the right software is created? I'm not sure what you mean when you say something will replace computers.

Thanks for the info 

[crazyates]

So you're saying computers will be useless by summer time? Some kind of super computer or mining machine is going to be created that will replace computers? I could see that happening, but as soon as summer time? It would take months and months, if not years to create it. Can Bitcoins be mined with anything that contains GPU or CPU? So say, could you mine with your phone if the right software is created? I'm not sure what you mean when you say something will replace computers.

Thanks for the info 

Well for starters, yes almost anything that has a CPU can mine Bitcoins. People have actually compiled CGMiner to run on their android phones, and they have even gotten a few KH/s. Not really worth it, but interesting nonetheless.

When I say that computers will be useless for Bitcoin mining by summer, I mean that several vendors will be shipping ASICs by then. ASICs designed to mine Bitcoins have actually been in development for quite a while now, and will be the last step in the evolution of mining hardware. It's basically a device that you plug into a computer's USB port, and has a chip inside whose sole function is to mine Bitcoins. It can't do anything else except mine Bitcoins, but it does that one job exceptionally well.

People started mining Bitcoins years ago by using CPUs. Then they figured out how to mine Bitcoins 10x faster by using a video card (GPU). Now, ASICs will be 100x faster than a GPU, or 1000x faster than a CPU.

3 different manufacturers have offered pre-orders for ASIC hardware for Bitcoin mining: Butterfly Labs, BTCFPGA, and Avalon. Each device has their pros and cons, but they will all be leaps and bounds of any hardware that is out today.

So that's why I said that if you aren't even planning on buying anything until the summer, you should really just wait and see which of those 3 ends up being the best deal for you. Right now, it's a lot of speculation about which is going to be the most profitable, but in 6 months when you decide to order, you will have a lot more information to be able to make an informed decision.

[marketersales]

Wow, after read this i wont buy minning hardware.

[MPOE-PR]

Lol nobody is stupid enough to spend $126,000 on a set-up when BTC are so unstable, are you serious?

Not only is he dead serious, you're overlooking the fact that a lot of people are doing literally that. His figure comes from reasonable projections based on averages and such. The fact is the Bitcoin network does pour out 20ish TH/second, and has roughly for months and months and months. This is literally millions of dollars in op costs, and a lot more than that in fixed costs.

To ease the point into a "low information voter" sort of mental context, think of it in terms of television: you buying ten or twenty television sets does not make you "one of the top 20%" people in television. Even if they are all top notch plasma screens or something.

[SouthernComfort]

Well for starters, yes almost anything that has a CPU can mine Bitcoins. People have actually compiled CGMiner to run on their android phones, and they have even gotten a few KH/s. Not really worth it, but interesting nonetheless.

When I say that computers will be useless for Bitcoin mining by summer, I mean that several vendors will be shipping ASICs by then. ASICs designed to mine Bitcoins have actually been in development for quite a while now, and will be the last step in the evolution of mining hardware. It's basically a device that you plug into a computer's USB port, and has a chip inside whose sole function is to mine Bitcoins. It can't do anything else except mine Bitcoins, but it does that one job exceptionally well.

People started mining Bitcoins years ago by using CPUs. Then they figured out how to mine Bitcoins 10x faster by using a video card (GPU). Now, ASICs will be 100x faster than a GPU, or 1000x faster than a CPU.

3 different manufacturers have offered pre-orders for ASIC hardware for Bitcoin mining: Butterfly Labs, BTCFPGA, and Avalon. Each device has their pros and cons, but they will all be leaps and bounds of any hardware that is out today.

So that's why I said that if you aren't even planning on buying anything until the summer, you should really just wait and see which of those 3 ends up being the best deal for you. Right now, it's a lot of speculation about which is going to be the most profitable, but in 6 months when you decide to order, you will have a lot more information to be able to make an informed decision.

[crazyates]

Well for starters, yes almost anything that has a CPU can mine Bitcoins. People have actually compiled CGMiner to run on their android phones, and they have even gotten a few KH/s. Not really worth it, but interesting nonetheless.

When I say that computers will be useless for Bitcoin mining by summer, I mean that several vendors will be shipping ASICs by then. ASICs designed to mine Bitcoins have actually been in development for quite a while now, and will be the last step in the evolution of mining hardware. It's basically a device that you plug into a computer's USB port, and has a chip inside whose sole function is to mine Bitcoins. It can't do anything else except mine Bitcoins, but it does that one job exceptionally well.

People started mining Bitcoins years ago by using CPUs. Then they figured out how to mine Bitcoins 10x faster by using a video card (GPU). Now, ASICs will be 100x faster than a GPU, or 1000x faster than a CPU.

3 different manufacturers have offered pre-orders for ASIC hardware for Bitcoin mining: Butterfly Labs, BTCFPGA, and Avalon. Each device has their pros and cons, but they will all be leaps and bounds of any hardware that is out today.

So that's why I said that if you aren't even planning on buying anything until the summer, you should really just wait and see which of those 3 ends up being the best deal for you. Right now, it's a lot of speculation about which is going to be the most profitable, but in 6 months when you decide to order, you will have a lot more information to be able to make an informed decision.

Well for starters, yes almost anything that has a CPU can mine Bitcoins. People have actually compiled CGMiner to run on their android phones, and they have even gotten a few KH/s. Not really worth it, but interesting nonetheless.

When I say that computers will be useless for Bitcoin mining by summer, I mean that several vendors will be shipping ASICs by then. ASICs designed to mine Bitcoins have actually been in development for quite a while now, and will be the last step in the evolution of mining hardware. It's basically a device that you plug into a computer's USB port, and has a chip inside whose sole function is to mine Bitcoins. It can't do anything else except mine Bitcoins, but it does that one job exceptionally well.

People started mining Bitcoins years ago by using CPUs. Then they figured out how to mine Bitcoins 10x faster by using a video card (GPU). Now, ASICs will be 100x faster than a GPU, or 1000x faster than a CPU.

3 different manufacturers have offered pre-orders for ASIC hardware for Bitcoin mining: Butterfly Labs, BTCFPGA, and Avalon. Each device has their pros and cons, but they will all be leaps and bounds of any hardware that is out today.

So that's why I said that if you aren't even planning on buying anything until the summer, you should really just wait and see which of those 3 ends up being the best deal for you. Right now, it's a lot of speculation about which is going to be the most profitable, but in 6 months when you decide to order, you will have a lot more information to be able to make an informed decision.

Not really sure why you decided to quote my previous post in this very same thread, but thanks? Next time try using the quote button, tho.

[btcminer021]

Quite a few new posters lately on the board with really good posts, including this one. Welcome.

I just wanted to add:

6. Cost of lost opportunity. Consider what you could have earned if you were doing something that you do professionally instead of tinkering with arcane software and hardware. Or maybe how much fun you could have had if you've spent this time with your friends and family. How much interest you could have earned on the money you've spent on mining rig, or how much interest you would not have to pay to bankers, or how much profit you could make if you invested it into something else. YMMV, of course.

+100

[glendall]

Conversely, if you are a professional IT / hardware nerd, and you are some sort of freak who really enjoys tinkering for hours with software and hardware to improve performance, then mining is a fantastic hobby.

If the thought of spending hours and hours of constantly tinkering and improving and setting up mining computers does not appeal to you, you'll probably really regret get into this .

[dg2010]

If the thought of spending hours and hours of constantly tinkering and improving and setting up mining computers does not appeal to you, you'll probably really regret get into this .

7950's turned up yesterday. Took me 60 minutes to pull my PSU out and plug the cards up and replace my fans.

This morning I loaded up guiminer and joined a pool. My client is reporting 1500mhash and Slushpool is telling me I'm doing 1600.

And that is with a -s wait enabled, as I didn't want to leave them running at 100% whilst I was away at work, so they are ticking around 90%.

I don't intend of spending hours and hours tinkering, ever.

Oh and I've made 0.03btc already

[Chucksta]

Quite a few new posters lately on the board with really good posts, including this one. Welcome.

I just wanted to add:

6. Cost of lost opportunity. Consider what you could have earned if you were doing something that you do professionally instead of tinkering with arcane software and hardware. Or maybe how much fun you could have had if you've spent this time with your friends and family. How much interest you could have earned on the money you've spent on mining rig, or how much interest you would not have to pay to bankers, or how much profit you could make if you invested it into something else. YMMV, of course.

Very, very, very good point, but not everybody has the same goals/ideals/beliefs, whatever one wishes to call it.

People tend to spend LOTS of time on these hobbies/past-times/activities because they enjoy it. They are here for the buzz.

I tend to spend a crazy number of hours creating game bots and hacks. Not for any financial gain, but just for the buzz of it.

I spend hours every week in the gym and running in the morning, but where one person might exercise to improve themselves physically another may be in it just for the endorphin hit. I'm the latter Endorphin junky

I thoroughly enjoy studying (currently doing an Open degree with the OU), but have no intent to use my qualifications to improve my job prospects. It's just a great buzz to study

Mind you, I do have a serious problem with authority, which no amount of qualifications will ever help, lol.

Now I'm rambling....

Temporary insanity.... priceless

[glendall]

[/quote]

7950's turned up yesterday. Took me 60 minutes to pull my PSU out and plug the cards up and replace my fans.

This morning I loaded up guiminer and joined a pool. My client is reporting 1500mhash and Slushpool is telling me I'm doing 1600.

And that is with a -s wait enabled, as I didn't want to leave them running at 100% whilst I was away at work, so they are ticking around 90%.

I don't intend of spending hours and hours tinkering, ever.

Oh and I've made 0.03btc already
[/quote]

Well you either got lucky, or I got unlucky   Good on you...

For myself had a heck of a time getting everything going somewhat optimally. About a 30/30/30 split between the hardware, rebuilding some systems out of spare parts, installing new OS's etc, and then after that, figuring out some cgminer problems and power problems (burnt out 2 old psu's in a week!) then had a hell of a time finding a reasonable pool. Wasted tons of potential earnings on pools with 30% stale rates until finally finding a reasonable pool with 4% stale. No joke was 6 or 7 pool I tried.

Anyways did enjoy myself though and did most of this with a beer in hand

[pangu]

[clowe]

Every time I consider buying mining hardware I just jump over to http://www.coinish.com/calc/ and enter the numbers, pretty much every time the return on investment is NEVER.

This is one of the few calculators where it takes into account rising difficulty.

[SeanArce]

Heh

[culexevilman]

Heh

so true

[mairusu]

So, I just wanted to say with economies of scale taken into consideration is it even possible to be a profitable beginning bitcoin miner anymore?

[dben428]

So, I just wanted to say with economies of scale taken into consideration is it even possible to be a profitable beginning bitcoin miner anymore?

It depends on the resources you currently have available to you, the cost you pay for power, and how much you would need to earn to consider yourself profitable.

If you happen to have free power and a gaming PC with a 7970, then just download cgminer and you are good to go.