Question regarding mining rigs and profitability.

[Nesiss]

A bunch of my friends and I pulled our money together to purchase a Bitcoin miner. We are all putting in about 600$ but I myself am only putting in about 275$. Electricity isn't an issue for me because one of my friends agreed to host the rig at his home for no extra charge.

So my question to you all is do you honestly think I will be able to make my money back/turn a tiny profit. I know there are thousands of variables that no one can predict but I just thought this was a good idea to snag a high powered miner with little risk on our parts. Also we have been looking at the Rockminer R3 and the AntMiner S3, not really sure which one to go for. If all goes well, we will just re-invest our money to purchase more miners. Any thoughts on the best strategy to go about this?

Thank you in advance for your help.

-Nesiss

[Nesiss]

Or should I purchase a few AntMiner S1's since electricity isn't an issue?

[cloverme]

A bunch of my friends and I pulled our money together to purchase a Bitcoin miner. We are all putting in about 600$ but I myself am only putting in about 275$. Electricity isn't an issue for me because one of my friends agreed to host the rig at his home for no extra charge.

So my question to you all is do you honestly think I will be able to make my money back/turn a tiny profit. I know there are thousands of variables that no one can predict but I just thought this was a good idea to snag a high powered miner with little risk on our parts. Also we have been looking at the Rockminer R3 and the AntMiner S3, not really sure which one to go for. If all goes well, we will just re-invest our money to purchase more miners. Any thoughts on the best strategy to go about this?

Thank you in advance for your help.

-Nesiss

The s1 and the s3 miners use about the same amount of of power. Let's say you buy an s3 for 600, considering power at 0.15kw, you would get your money back in about 165 to 200 days at the current value of bitcoin. To make $100 a day you need about 6.4th/s.

If you want to learn about mining and have a bit of fun, buy the miner and go for it. If you want to try to profit, just buy $600 worth of bitcoin and sit on it. An alternative strategy would be to mine an alternate sha256 coin and try to profit that way using a multipool.

[jonnybravo0311]

A bunch of my friends and I pulled our money together to purchase a Bitcoin miner. We are all putting in about 600$ but I myself am only putting in about 275$. Electricity isn't an issue for me because one of my friends agreed to host the rig at his home for no extra charge.

So my question to you all is do you honestly think I will be able to make my money back/turn a tiny profit. I know there are thousands of variables that no one can predict but I just thought this was a good idea to snag a high powered miner with little risk on our parts. Also we have been looking at the Rockminer R3 and the AntMiner S3, not really sure which one to go for. If all goes well, we will just re-invest our money to purchase more miners. Any thoughts on the best strategy to go about this?

Thank you in advance for your help.

-Nesiss

The s1 and the s3 miners use about the same amount of of power. Let's say you buy an s3 for 600, considering power at 0.15kw, you would get your money back in about 165 to 200 days at the current value of bitcoin. To make $100 a day you need about 6.4th/s.

If you want to learn about mining and have a bit of fun, buy the miner and go for it. If you want to try to profit, just buy $600 worth of bitcoin and sit on it. An alternative strategy would be to mine an alternate sha256 coin and try to profit that way using a multipool.

The S3 uses considerably less power than the S1 - 340W for 441GH/s in the S3 vs 360W for 180GH/s in the S1.  In any case, the OP stated power wasn't a concern because he isn't actually hosting the device.

To the OP - if you have a combined $600, you can probably purchase a single S3 from a reseller.  However, do not forget that you also need a PSU, which can add anywhere between $65 for a Dell server PSU with breakout board, to over $200 for a platinum-rated ATX PSU.  Will you profit?  Perhaps.  As you noted, there are a ton of variables that are involved.  At the current difficulty level, the expected daily earnings of an S3 is about 0.01184BTC a day.

[Gumbork]

A bunch of my friends and I pulled our money together to purchase a Bitcoin miner. We are all putting in about 600$ but I myself am only putting in about 275$. Electricity isn't an issue for me because one of my friends agreed to host the rig at his home for no extra charge.

So my question to you all is do you honestly think I will be able to make my money back/turn a tiny profit. I know there are thousands of variables that no one can predict but I just thought this was a good idea to snag a high powered miner with little risk on our parts. Also we have been looking at the Rockminer R3 and the AntMiner S3, not really sure which one to go for. If all goes well, we will just re-invest our money to purchase more miners. Any thoughts on the best strategy to go about this?

Thank you in advance for your help.

-Nesiss

I believe your friend would mine if the electricity bills went up $500, but anyway S3 is the best...

[xstr8guy]

How much are you investing as a group? If you're buying 10 S3s (for example), your friend who is hosting them is going to get a huge surprise when the first electric bill arrives. And not mention the noise and heat these things generate! He will certainly demand to be compensated for his expenses and trouble.

[DrG]

A bunch of my friends and I pulled our money together to purchase a Bitcoin miner. We are all putting in about 600$ but I myself am only putting in about 275$. Electricity isn't an issue for me because one of my friends agreed to host the rig at his home for no extra charge.

So my question to you all is do you honestly think I will be able to make my money back/turn a tiny profit. I know there are thousands of variables that no one can predict but I just thought this was a good idea to snag a high powered miner with little risk on our parts. Also we have been looking at the Rockminer R3 and the AntMiner S3, not really sure which one to go for. If all goes well, we will just re-invest our money to purchase more miners. Any thoughts on the best strategy to go about this?

Thank you in advance for your help.

-Nesiss

It's possible you guys might profit.  It looks like the growth rate might be slowing down as people have figured that they were losing money buying every single miner on preorder.

Your friend is going to be in for a little shock if as noted above you have 10 S3s running.  They will draw around 100KWH every day, 3000KWH in a month.  In my area where electricity is $0.35/KWH that is about $1000 per month in electricity - I hope he has cheap power.

[FeodoroAndy]

If the difficulty keeps on this level, you guys can go in the profit zone, especially those, who do not pay for electricity.

[xstr8guy]

If the difficulty keeps on this level, you guys can go in the profit zone, especially those, who do not pay for electricity.

Difficulty will most definitely NOT stay at this level! Quit giving such terrible advice, please.

We had 2 small difficulty adjustments but that is not a trend you can bank on. Seriously massive PHs are coming online as I type this. We are all in for a very rude awakening.

[jjc326]

Funny, does your friend really know what he's doing?  I can imagine it now, being a lawyer...the dude thinks it's cool to host the rigs but then he gets the bill, and takes the electricity costs out of the BTC you guys mined and then everyone gets pissed off.  Or he'll just say hey guys I'm not doing this anymore after 1 month, if he's a nice guy, and suck up the costs for the one month.  Then you're stuck with the rigs.

Just warning you!