Bitcoin Mining Profitable Not Anymore, through Hardware or Hashing Contracts!!I wanted to start some Bitcoin Mining but then as I did a little research, this is what I came across.
Scenario #1We buy a 1TH/sec capacity Dragon Miner by spending $1700 upfront for Machine and $650 in Power costs for 5 months till it stays profitable. Mining goes on for 5 months and we stop Mining at end of Nov 2014 where profits turn negative:
Total Spend: $2350 (1*$1750 + 5*$130)
Total Revenue: $1579
Total Loss: $771Gain: Bit-mining Hardware which may be worthless if it can't mine Litecoin and other Alt coins.
Check profitability details here, under Mining Payout Schedule:
https://tradeblock.com/mining/a/64db9d8003Scenario #2We buy a hashing contract at Cloudhashing.com ($5000 for $1TH/s) or at Bit-miner.com ($4000 for 10 Shares ~ $1TH/s), no need for any concern about Power Costs. Mining goes on for 12 months and we stop Mining at end of June 2015 where profits turn negative:
Total Spend: $5000/$4000 depending on contract you purchased
Total Revenue: $1907
Total Loss: $2100 or $3100Gain: NOTHING, just a big hole in your pocket (>50%)
Check profitability details here, under Mining Payout Schedule:
https://tradeblock.com/mining/a/057ce65576Some people will argue that Bitcoin Prices may rise. That's correct but in that case it's much better to spend your money directly buying Bitcoins right away. If BTC prices go up, so would your money!
As I understand so far, starting a Bitcoin Mining right now is not wise.
All opinions/counter-opinions invited.