Quote from: Korbman on February 01, 2015, 05:08:09 AM

Quote from: CptTripps on February 01, 2015, 12:21:06 AM

Korbman: What an incredibly informative and thoughtful post. I appreciate it! I'd already started factoring quite a bit of that, so another "set of eyes" on this is appreciated.

I'm always happy to help where I can, and I'm glad you found my post informative. Mining on a larger scale tends to be vastly more complex than most people realize, and while I'm sure you know that, I still try to point out some "things to think about" for anyone else reading the forums.

Quote from: CptTripps on February 01, 2015, 12:21:06 AM

I'd come up with similar numbers built using an excel sheet that I've been hobbling together over the last week. I'm used to dealing with headcounts, salaries, project scopes and timelines....getting down and dirty with the most basic of economics is a refreshing change.

Not sure if you've started doing this yet, but what I've always tried to do is to simplify *everything* down to what it costs per kWh (employee hourly rates, space rental, cooling...really any reoccurring expense) and add it to your electricity costs. The idea being to create an all encompassing expense, an example being $0.08 per kWh ($0.03 to cover monthly rent, monitoring, and maintenance + $0.05 for the raw electrical rate). I've found this usually helps when making difficulty and revenue predictions (among other things).

Other than that, my biggest question comes down to depreciation...and this is something I'm also asking the other experienced miners / veterans (both to help with my models and with CptTripps' setup). Is there a standard depreciation method you use for your hardware, or do you typically just run the equipment until it's no longer valued at anything (ending its useful life)?

it's very difficult to figure out depreciation because it depends on the BTC price in $$, euro, etc..
Example: even the smallest piece of gear increased in price 3-10 fold in December of 2013 because BTC priced moved from $130 to $1200 in a space of 2-3 months.