Altcoin Mining for a beginner... Worth investing in? How to calculate?

[swarley]

Hey all,

So I am looking to get in to mining...
A little late to the party...

One of my buddies started. Invested a little over 2 grand and racked up 1 BTC in about a month.
This is going to decline steadily and quickly from what I have read. That's for SHA256

I understand difficulty goes up over time, and that seems to make it very difficult to actually calculate a ROI.

I was looking at Scrypt on CoinWarz.

Oh, a preface... My rent includes electricity. So no matter how high, my rent doesn't change. Grin

So I was looking at the GawMiner Falcon, for example.
It's a Scrypt ASIC running around 27 MH/s.
According to CoinWarz, mining 42s, with a $630 total equipment cost (for ASIC, Raspberry Pi, and PSU), and a 2% pool fee:
I'd break even in 54.42 days, and churn 1 BTC worth in 38.85 days.
As for Litecoins, same parameters, I'd break even in 154 days, 1 BTC worth in 109.77 days.
I am looking at a Hashra 200 MH/s ASIC for $2500 on eBay right now.
If I purchased that and mined 42s, it says I'd break even in 59.72 days and get 1 BTC every 10 days. ($15,279.85 Annually)
Mining Litecoin: I'd break even in 82.8 days and get 1 BTC every 14.8 days. ( Annual $11,014.49)

Getting a 200MH/s Scrypt ASIC seems to be too good to be true...
What am I missing here? What am I not considering/do I not know about?
Is it difficulty that this calc lacks?
I feel like there is a logical flaw in all of this that I do not have the knowledge to know, but there is one present.
I am looking for a ROI. Not necessarily a HUGE one, but nice money on the side.

Thanks! Sorry if this is confusing/makes no sense...
It makes sense to my novice mind.

[1715327891]

1715327891

[Minerjoe]

If I were you, I would go for cloud mining. You get the same benefits without issues like heat, loud noise, power expenditures, breakdowns etc. Basically, you rent your miner from a hosting company, you do pay a little extra but it is well worth it. This comes from somebody who used to have several mining rigs and know all troubles which come with physical mining units. There are several companies offering this, let me know if you need more info. Good luck.

[swarley]

If I were you, I would go for cloud mining. You get the same benefits without issues like heat, loud noise, power expenditures, breakdowns etc. Basically, you rent your miner from a hosting company, you do pay a little extra but it is well worth it. This comes from somebody who used to have several mining rigs and know all troubles which come with physical mining units. There are several companies offering this, let me know if you need more info. Good luck.

Thank you for the response.
However, I hope you can understand my hesitance to believe that when there is an advertisement for cloud mining in your sig...
I get a real-- not necessarily scammy vibe from them-- but a feeling like it's being pushed so much that the companies are making a lot more off cloud mining services than anything else.

Is there proof of ROI documented?
I've seen the GAW HashletSolo ($400 for 25 MH/s)

[IanFoxley]

If I were you, I would go for cloud mining. You get the same benefits without issues like heat, loud noise, power expenditures, breakdowns etc. Basically, you rent your miner from a hosting company, you do pay a little extra but it is well worth it. This comes from somebody who used to have several mining rigs and know all troubles which come with physical mining units. There are several companies offering this, let me know if you need more info. Good luck.

Thank you for the response.
However, I hope you can understand my hesitance to believe that when there is an advertisement for cloud mining in your sig...
I get a real-- not necessarily scammy vibe from them-- but a feeling like it's being pushed so much that the companies are making a lot more off cloud mining services than anything else.

Is there proof of ROI documented?
I've seen the GAW HashletSolo ($400 for 25 MH/s)

Take a look at Genesis Mining as well.

I use both Gaw Miners and Genesis Mining, both have good and bad points.

Am doing a series of daily comparison videos at the moment regarding payouts with both providers.

Here is my channel if interested.

https://www.youtube.com/channel/UCjuA5pMUn38CNcPmmxTE1Aw

[110110101]

....
Getting a 200MH/s Scrypt ASIC seems to be too good to be true...
What am I missing here? What am I not considering/do I not know about?
Is it difficulty that this calc lacks?
I feel like there is a logical flaw in all of this that I do not have the knowledge to know, but there is one present.
I am looking for a ROI. Not necessarily a HUGE one, but nice money on the side.

Thanks! Sorry if this is confusing/makes no sense...
It makes sense to my novice mind.

Hi there swarley,

I believe that you are not factoring in the difficulty changes. 42-coin is at 75-85% profitability of BTC as I am writing this post. All coins change profitability depending on how many people are mining, how fast the blocks are found, prices on exchanges etc. My point is why go for 42-coin when mining BTC directly would be more profitable...

I recently stopped my small rigs at home, 10x R9 290, because I did not find them to be profitable at the moment. I was also fed up with the high electrical bills, noise and heat problems. Basically I got back what I was paying for electricity, so that was a no go for me. Next I looked into cloud mining, and bought some MH from GAW, see sig, and they are well on their way for paying back themselves.

Something to consider is that the hashlets can be sold back, currently for 80% of the price, so if you have a cloud contract that gets you 20% or more of your initial investment, the hashlet can be sold back and you make a profit. I have not done this, instead I have been reinvesting my payouts into more hashing power. The hashlets that I have today make about 1 BTC in roughly 3 weeks.

In terms of difficulty, the diff for scrypt coins is likely to skyrocket when more and more asics get out. The calculations that you saw on coinwarz do not take this into account as far as I know. That said, the payouts that I have been receiving from the zenpool (exclusive for zenhashlets/hashlet primes) have been consistent for the past 3 weeks that I have been using the service, so no deduction due to higher diff.

All in all, if you go with your own asic you will have a great learning experience, but you have to maintain your equipment. When the asic gets older the profits will decline and it will be hard to sell. With a cloudmining contract you can start mining and at least in terms of GAW/Zenpool, you can sell back your hashlet and get back most of your money.

[OrientA]

Use this website https://bitcoinwisdom.com/litecoin/calculator

Put in a difficulty rise of 3% every adjustment, you will find out. I believe you will not ROI.

[Minerjoe]

If I were you, I would go for cloud mining. You get the same benefits without issues like heat, loud noise, power expenditures, breakdowns etc. Basically, you rent your miner from a hosting company, you do pay a little extra but it is well worth it. This comes from somebody who used to have several mining rigs and know all troubles which come with physical mining units. There are several companies offering this, let me know if you need more info. Good luck.

Thank you for the response.
However, I hope you can understand my hesitance to believe that when there is an advertisement for cloud mining in your sig...
I get a real-- not necessarily scammy vibe from them-- but a feeling like it's being pushed so much that the companies are making a lot more off cloud mining services than anything else.

Is there proof of ROI documented?
I've seen the GAW HashletSolo ($400 for 25 MH/s)

You misunderstood me. I was not suggesting you use the company from my sig if you do not like them. I was suggesting that you should select cloud mining over buying your own miner, as a general comment. If you want documented ROI, go with Genesis Mining, there re a lot of photos of their farms around, I have some as well. Will gladly share them with you if you are interested. Also, you can check out IanFoxley videos about them.