A newbie that needs a few questions answered

[The1AndOnlyMessia]

 Hello, I have just started to read about Bitcoin and I've come to the conclusion that I want to invest in Bitcoin mining. I've tried my best to find answers on the internet and on this forum, but with no great luck.
If any of my following questions has been answered before, please link me to the thread.

1. I am thinking of buying a machine that can mine around 1000 gh/s (or more) for the price around 1000$-2500$. What sites can I trust, and what machines do you guys recommend me to buy?

2. How do I know that it will be profitable? Can I trust the profit-calculators out there?

3. Can bitcoins machines also mine litecoin and other scryptscoins aswell? No?-> Why?

4. I've found a machine ( the sp30 yukon bitcoin miner) but I don't know if I can trust them. Any tips for finding out what firms/sites I can trust?

5. I don't understand how I can earn money from bitcoin mining, other than that a bitcoin is worth around 620$, and that you get bitcoins by mining. How can i get money in my bank by mining bitcoins?

I would greatly appreciate if you guys could answer these questions.
Thank you!

-Messia

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[byt411]

Hello, I have just started to read about Bitcoin and I've come to the conclusion that I want to invest in Bitcoin mining. I've tried my best to find answers on the internet and on this forum, but with no great luck.
If any of my following questions has been answered before, please link me to the thread.

1. I am thinking of buying a machine that can mine around 1000 gh/s (or more) for the price around 1000$-2500$. What sites can I trust, and what machines do you guys recommend me to buy?

2. How do I know that it will be profitable? Can I trust the profit-calculators out there?

3. Can bitcoins machines also mine litecoin and other scryptscoins aswell? No?-> Why?

4. I've found a machine ( the sp30 yukon bitcoin miner) but I don't know if I can trust them. Any tips for finding out what firms/sites I can trust?

5. I don't understand how I can earn money from bitcoin mining, other than that a bitcoin is worth around 620$, and that you get bitcoins by mining. How can i get money in my bank by mining bitcoins?

I would greatly appreciate if you guys could answer these questions.
Thank you!

-Messia

1. Don't get into mining. It isn't profitable unless you have cheap electricity.
2. Yes, calculate it yourself, taking into account electricity consumption and price.
3. No. Because Bitcoin is SHA-256, and other coins are other algorith,s.
4. Spoondolies-Tech haven't shipped yet, but they look promising. Use google.
5. Erm... You just answered that yourself. You mine bitcoins, you sell them for fiat, and you transfer it to your bank.

[The1AndOnlyMessia]

If I should not get into mining, what should i get into then instead? What's the most profitable?

Using this calculator http://www.bitcoinx.com/profit/ I have understood that with 1 th/s costing 1500$ i will earn about 1500$ every third month... Is that not correct?

[Chrithu]

Hello, I have just started to read about Bitcoin and I've come to the conclusion that I want to invest in Bitcoin mining. I've tried my best to find answers on the internet and on this forum, but with no great luck.
If any of my following questions has been answered before, please link me to the thread.

1. I am thinking of buying a machine that can mine around 1000 gh/s (or more) for the price around 1000$-2500$. What sites can I trust, and what machines do you guys recommend me to buy?

2. How do I know that it will be profitable? Can I trust the profit-calculators out there?

3. Can bitcoins machines also mine litecoin and other scryptscoins aswell? No?-> Why?

4. I've found a machine ( the sp30 yukon bitcoin miner) but I don't know if I can trust them. Any tips for finding out what firms/sites I can trust?

5. I don't understand how I can earn money from bitcoin mining, other than that a bitcoin is worth around 620$, and that you get bitcoins by mining. How can i get money in my bank by mining bitcoins?

I would greatly appreciate if you guys could answer these questions.
Thank you!

-Messia

Hi and welcome.

I can answer number 3 and 5:

3. In short: NO. Explanation: ASIC (Application Specific Integrated Circuits) are chips specifically made to solve ONE (and only that on) particular algorithm very fast. In case of Bitcoin this is the SHA 256 algorithm. SCRYPT is a different algorithm, which is based on SHA 256 but different enough so that SHA 256 ASIC machines cannot solve them. There exist a few (on or two I know of) hybrid miners that can mine SHA 256 and SCRYPT coins but in general a Bitcoin Mining machine can only mine Bitcoin and the other SHA 256 coins (Namecoin, Devcoin).


5. Earning "real" money with Bitcoin is done by selling the mined Bitcoins on an exchange site like bitstamp.net

[byt411]

If I should not get into mining, what should i get into then instead? What's the most profitable?

Look. Bitcoin isn't a get-rich-quick scheme. If you believe in bitcoin, simply buy some and wait for its value to rise.

[Chrithu]

If I should not get into mining, what should i get into then instead? What's the most profitable?

Other ways is either offer a service for Bitcoin, take part in signature campaigns in this forum (see "Services" subforum) and by traditional trading, which means buy Bitcoin directly when they are cheap and sell them when the price went up.

[The1AndOnlyMessia]

Using this calculator http://www.bitcoinx.com/profit/ I have understood that with 1 th/s costing 1500$ i will earn about 1500$ every third month... Is that not correct?

[byt411]

Using this calculator http://www.bitcoinx.com/profit/ I have understood that with 1 th/s costing 1500$ i will earn about 1500$ every third month... Is that not correct?

You need to take into account electricity consumption, electricity price, difficulty increase, so no.

[The1AndOnlyMessia]

Using this calculator http://www.bitcoinx.com/profit/ I have understood that with 1 th/s costing 1500$ i will earn about 1500$ every third month... Is that not correct?

You need to take into account electricity consumption, electricity price, difficulty increase, so no.

Well, in my area the power is very cheap.
Can the difficult increase really be so high that if I invest 1500$ in a mining machine I am doomed to lose money?

[byt411]

Using this calculator http://www.bitcoinx.com/profit/ I have understood that with 1 th/s costing 1500$ i will earn about 1500$ every third month... Is that not correct?

You need to take into account electricity consumption, electricity price, difficulty increase, so no.

Well, in my area the power is very cheap.
Can the difficult increase really be so high that if I invest 1500$ in a mining machine I am doomed to lose money?

First, what miner are you talking about, and what is your electricity price? If you don't even know that, I cannot help.

[The1AndOnlyMessia]

Using this calculator http://www.bitcoinx.com/profit/ I have understood that with 1 th/s costing 1500$ i will earn about 1500$ every third month... Is that not correct?

You need to take into account electricity consumption, electricity price, difficulty increase, so no.

Well, in my area the power is very cheap.
Can the difficult increase really be so high that if I invest 1500$ in a mining machine I am doomed to lose money?

First, what miner are you talking about, and what is your electricity price? If you don't even know that, I cannot help.

Electricity price: 0.20$ per kw/h

The miner: antminer s2 1000gh/s 1,1 watt/gh/s bitcoin miner

[Light]

Well, in my area the power is very cheap.
Can the difficult increase really be so high that if I invest 1500$ in a mining machine I am doomed to lose money?

The difficulty generally rises, but you'd need a working crystal ball to actually figure out by how much. The rule of thumb that is constantly suggested is that there is a ~20% increase every time, however this isn't exactly true given the amount of variance and the fact that technology will have decreased gains as time passes. We recently had a tiny difficult increase (roughly like 4% IIRC, google it for the exact) but you can't really predict off these numbers as they can change quite rapidly. The biggest difficulty changes will probably occur when mining companies ship out the next generation of ASICs as miners move away to more efficient miners.

[byt411]

Using this calculator http://www.bitcoinx.com/profit/ I have understood that with 1 th/s costing 1500$ i will earn about 1500$ every third month... Is that not correct?

You need to take into account electricity consumption, electricity price, difficulty increase, so no.

Well, in my area the power is very cheap.
Can the difficult increase really be so high that if I invest 1500$ in a mining machine I am doomed to lose money?

First, what miner are you talking about, and what is your electricity price? If you don't even know that, I cannot help.

Electricity price: 0.20$ per kw/h

The miner: antminer s2 1000gh/s 1,1 watt/gh/s bitcoin miner

Being optimistic and only assuming a 10% difficulty per month (Impossible), you would start profiting in February 2015.
https://tradeblock.com/mining/a/40e37c8348

Being realistic and asuuming a 30% difficulty per month, you wouldn't profit.
https://tradeblock.com/mining/a/af8c090e6e

[BitcoinTraders]

Using this calculator http://www.bitcoinx.com/profit/ I have understood that with 1 th/s costing 1500$ i will earn about 1500$ every third month... Is that not correct?

You need to take into account electricity consumption, electricity price, difficulty increase, so no.

Well, in my area the power is very cheap.
Can the difficult increase really be so high that if I invest 1500$ in a mining machine I am doomed to lose money?

First, what miner are you talking about, and what is your electricity price? If you don't even know that, I cannot help.

Electricity price: 0.20$ per kw/h

The miner: antminer s2 1000gh/s 1,1 watt/gh/s bitcoin miner

Being optimistic and only assuming a 10% difficulty per month (Impossible), you would start profiting in February 2015.
https://tradeblock.com/mining/a/40e37c8348

Being realistic and asuuming a 30% difficulty per month, you wouldn't profit.
https://tradeblock.com/mining/a/af8c090e6e

Yes it's true!
The difficulty increasing so fast so you shouldn't invest in mining because you'll lose money!

[Kprawn]

This whole thread is more geared towards "mining" - You should direct your questions, to the mining section https://bitcointalk.org/index.php?board=14.0 for more specific attention.

But I can see, why you posted it here, being a "newbie" - The mining section can sometimes become a bit daunting for "newbie" members.

For now most people would discourage "newbies" from getting into mining, and I agree with most of them. If you want to enter this area, mining for bitcoins, would not be the most profitable route to

follow at the moment. {Difficulty is too high, to see a ROI} But if you want to do this as a hobby or for self development, Alt coins would be the route to follow.

Good luck, it's going to be a bumpy ride.  

[The1AndOnlyMessia]

Using this calculator http://www.bitcoinx.com/profit/ I have understood that with 1 th/s costing 1500$ i will earn about 1500$ every third month... Is that not correct?

You need to take into account electricity consumption, electricity price, difficulty increase, so no.

Well, in my area the power is very cheap.
Can the difficult increase really be so high that if I invest 1500$ in a mining machine I am doomed to lose money?

First, what miner are you talking about, and what is your electricity price? If you don't even know that, I cannot help.

Electricity price: 0.20$ per kw/h

The miner: antminer s2 1000gh/s 1,1 watt/gh/s bitcoin miner

Being optimistic and only assuming a 10% difficulty per month (Impossible), you would start profiting in February 2015.
https://tradeblock.com/mining/a/40e37c8348

Being realistic and asuuming a 30% difficulty per month, you wouldn't profit.
https://tradeblock.com/mining/a/af8c090e6e

Well, if that'd true, why do people even mine bitcoins?

[byt411]

Using this calculator http://www.bitcoinx.com/profit/ I have understood that with 1 th/s costing 1500$ i will earn about 1500$ every third month... Is that not correct?

You need to take into account electricity consumption, electricity price, difficulty increase, so no.

Well, in my area the power is very cheap.
Can the difficult increase really be so high that if I invest 1500$ in a mining machine I am doomed to lose money?

First, what miner are you talking about, and what is your electricity price? If you don't even know that, I cannot help.

Electricity price: 0.20$ per kw/h

The miner: antminer s2 1000gh/s 1,1 watt/gh/s bitcoin miner

Being optimistic and only assuming a 10% difficulty per month (Impossible), you would start profiting in February 2015.
https://tradeblock.com/mining/a/40e37c8348

Being realistic and asuuming a 30% difficulty per month, you wouldn't profit.
https://tradeblock.com/mining/a/af8c090e6e

Well, if that'd true, why do people even mine bitcoins?

Because they have even cheaper electricity, like $0.05/kwH?
And that IS true.

[The1AndOnlyMessia]

Using this calculator http://www.bitcoinx.com/profit/ I have understood that with 1 th/s costing 1500$ i will earn about 1500$ every third month... Is that not correct?

You need to take into account electricity consumption, electricity price, difficulty increase, so no.

Well, in my area the power is very cheap.
Can the difficult increase really be so high that if I invest 1500$ in a mining machine I am doomed to lose money?

First, what miner are you talking about, and what is your electricity price? If you don't even know that, I cannot help.

Electricity price: 0.20$ per kw/h

The miner: antminer s2 1000gh/s 1,1 watt/gh/s bitcoin miner

Being optimistic and only assuming a 10% difficulty per month (Impossible), you would start profiting in February 2015.
https://tradeblock.com/mining/a/40e37c8348

Being realistic and asuuming a 30% difficulty per month, you wouldn't profit.
https://tradeblock.com/mining/a/af8c090e6e

Well, if that'd true, why do people even mine bitcoins?

Because they have even cheaper electricity, like $0.05/kwH?
And that IS true.

But if it's the electricity price it depends on, they can't earn any money that matters, can they? A dollar or 2 a week isnt eaxactly alot...

[byt411]

Using this calculator http://www.bitcoinx.com/profit/ I have understood that with 1 th/s costing 1500$ i will earn about 1500$ every third month... Is that not correct?

You need to take into account electricity consumption, electricity price, difficulty increase, so no.

Well, in my area the power is very cheap.
Can the difficult increase really be so high that if I invest 1500$ in a mining machine I am doomed to lose money?

First, what miner are you talking about, and what is your electricity price? If you don't even know that, I cannot help.

Electricity price: 0.20$ per kw/h

The miner: antminer s2 1000gh/s 1,1 watt/gh/s bitcoin miner

Being optimistic and only assuming a 10% difficulty per month (Impossible), you would start profiting in February 2015.
https://tradeblock.com/mining/a/40e37c8348

Being realistic and asuuming a 30% difficulty per month, you wouldn't profit.
https://tradeblock.com/mining/a/af8c090e6e

Well, if that'd true, why do people even mine bitcoins?

Because they have even cheaper electricity, like $0.05/kwH?
And that IS true.

But if it's the electricity price it depends on, they can't earn any money that matters, can they? A dollar or 2 a week isnt eaxactly alot...

Incorrect. A dollar or 2 a week? Of course not. People have huge farms, and scammers like Butterfly Labs don't even have to ROI.

[enhu]

I thought of mining as well and even asked people if they could import some mininghardware for me but then after figuring I can't compete with companies dedicating their existince in mining bitcoins I thought of Just investing cloud mining.  This way I never have time worry electricity.