Quote from: crumbs on August 31, 2013, 05:03:47 PM

Quote from: Mota on August 31, 2013, 03:36:56 PM

Quote from: crumbs on August 31, 2013, 01:32:56 PM

Quote from: Biomech on August 31, 2013, 01:03:41 PM

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That's not merely ROI, which is in fact ANY income generated, it's a profit ABOVE breakeven, even given the cost of electricity. That time frame of breakeven and positive ROI is an accountant's wet dream, not a pessimistic outlook. Three months to see a profit above breakeven on expensive equipment is stupendous. You aren't merely spreading FUD here, you are showing a complete lack of any sort of business sense. ...

First, a simple ROI formula: ROI = (Gains Cost)/Cost. That's the definition. The term is otherwise defined by context. When ROI is given in dollars instead of percentage or fraction, assume ROI = Gains - Cost.

Breakeven in three month is great for investments which do not depreciate over time, or depreciate slowly.
Mining gear depreciates quickly.
Its profitability over time also drops at an exponential rate. If its costs are not completely recouped within three months, it is unlikely that the costs will ever be recouped.

Example for the math-challenged:

If you slaughter a cow, and take the beef to the market, most of your profits will happen in the first few hours. At the end of the day, the meat will be suitable only for dogs, and profits will be insignificant. Do not expect any more profits the following day, the day after that, or the day after that day -- your meat is rotten, no moar monyz 4 U.

If you do not make ROI on your slaughtered cow in the first day, you don't make ROI in a month, two months, or even a year.

Math.

And for the meat-challanged: If you slaughter a cow, the meat gains in worth over time, since beef gains worth if it is well hung. Some even say it is best if it is hung over a longer period. Like with bitcoins Wink

Eww?
The best way to make beef tender? Beat your meat.

Actually, part of the grading process is how long it was aged. Fresh slaughtered beef is much less tender and more bland tasting than aged beef. The longer it's aged, the higher the grade. I actually liked your analogy, though, just because I have worked with cattle (the bovine sort as opposed to the the two legged sort) and quickly came to realize that most of a cow's value is after it's dead

That being said, it's unlikely that these devices will stop working that quickly. If they make breakeven, then the diff would have to continue to skyrocket for well over a year even by that ridiculous 66 percent per month increase before the electrical cost outstripped the income to a detrimental degree. And that also assumes that bitcoiin remains stable or declines in value. Over the term we have been able to observe, neither condition seems likely.