Bitcoin Mining?

[Guidex]

So I've calculated if I rent a machine that mines 600GH/S for $6490 for a year, on average I will earn $41,980 over the 12 months, calculating the difficulty and profitability decline per year.

Why isn't everyone jumping on it while it's hot? Soon enough this will be useless.

Is there something I'm not taking into consideration?

 

[Ashman]

What type of machine and system are you talking about? $6500 sounds cheap for the tech required to mine Bitcoins.

 

[Guidex]

https://products.butterflylabs.com/.../1-gh-cloud-hosted-bitcoin-hashing-power.html

600GH/S, $6500~ for 12 months

Expected return $42000~

 

[Ashman]

https://products.butterflylabs.com/.../1-gh-cloud-hosted-bitcoin-hashing-power.html

600GH/S, $6500~ for 12 months

Expected return $42000~

Why would that company hire out those resources for $6500 when they could use it themselves and potentially make 7 times more money?

Doesn't sound right to me but I'm just learning about Bit Mining.

 

[Guidex]

For capital, which means they have instant cash to re-invest/use for more profit etc

 

[Rhythm]

Is there something I'm not taking into consideration?

Electricity bills?

 

[sirrobin]

1. Most butterfly labs products have to be ordered months in advance. The price is locked when you order, but by the time you get delivery the difficulty level will have gone up many times

2. The hosted mining thing is a 12 mo contract. Its very hard to predict the difficulty level 12 months in advance. Some very powerful machines are scheduled to hit the market in next 4 months

 

[Guidex]

Hi Sirrobin,

That's the answer I was looking for, I thought the product would be back ordered for months.

+

I would understand the difficulty level might increase considerably but it would remain profitable would it not?

What's the quickest way to jump on this? Any alternatives that I can set up that would be in stock?

 

[sirrobin]

its a gamble on the value of the cryptocurrency you choose to mine, but imho bitcoin mining is not profitable anymore

look into scrypt based currencies such as litecoin or dodgecoin

get a couple of radeon r9 290x and turn up the cooling

 

[snoopy]

What's the quickest way to jump on this? Any alternatives that I can set up that would be in stock?

This stuff is on Today Tonight weekly and people signing up for "turnkey solutions" are lambs to the slaughter. Keep your money in your pocket.

 

[Mick]

This stuff is on Today Tonight

I'd do my own research before trusting that show.

 

[Guidex]

Today Tonight is the worst reference possible.

Utter bs spat through that show.

I've just finished building a simple website that people can earn BTC by completing surveys etc, just finishing the account system.

Edit: I've made a similar site before so I'm copying the design

 

[Chris.C]

Is there something I'm not taking into consideration?

I think you have forgotten to take into consideration, that if this is indeed profitable currently, that talking about it on forums will only hasten the number of new entrants into the BTC mining market.

Also if it is profitable, yet it is still a competitive market with no barriers to entry you have an IMMEDIATE incentive to scale to the profit maximizing point (ie the point where you have bought so many BTC miners that you have driven the price of BTCs back down to your costs).

So you truly do believe you can turn $6490/year into $42,000 - I say don't stuff around hiring 1, hire 100...

But of course I have my doubts it is wildly profitable, if it is though, don't post here again.



Best of luck.

 

[Guidex]

Hi Chris,

I think the difficulty increase that I calculated is based on current miners and machines. As the market is about to increase with a lot more of them, the difficulty increase rate will in-turn increase.

I think it may be profitable but not nearly as much as it would be if I entered 6 months ago. The machine or rent-able machine would take a while to get and there's probably some faults with the calculator I have used.

I'm going to look into other online currencies or even head back to using Forex to make a quick buck