Quote from: Meizirkki on September 25, 2013, 05:08:34 PM

Quote from: DeathAndTaxes on September 25, 2013, 05:06:59 PM

Quote from: Meizirkki on September 25, 2013, 05:04:27 PM

Quote from: frankenmint on September 25, 2013, 04:59:16 PM

what econ class did you take? that's not ROI that's simply getting your money, back, breaking even.

Breaking even means 100% ROI, no? Enlighten me.

In Bitcoin land yes for some reason people started using it that way and it stuck. For the entire rest of the planet ... no.

ROI is return ON investment. breaking even is 0% ROI. Losing money (like buying a 100 BTC rig which only produces 60 BTC before it goes into the trash heap) would be a negative ROI.

wikipedia disagrees with you, sir.

No it doesn't. I mean if you are going to take the time to "correct" me, at least correct me correctly.

From YOUR cite

Quote

return on investment (%) = (Net profit / Investment) × 100
or
return on investment = gain from investment/ cost of investment[1]

GROSS REVENUE =/= PROFIT.

If you miner costs 100 BTC and you produce 100 BTC in GROSS REVENUE, then your profit would be 100 BTC - 100 BTC = 0 BTC.
ROI% = 0 BTC / 100 BTC
ROI% = 0%

If your miner costs 100 BTC and you produce 150 BTC in GROSS REVENUE, then your profit would be 150 BTC - 100 BTC = 50 BTC.
ROI% = 50 BTC / 100 BTC
ROI% = 50%.

If your miner costs 100 BTC and you produce 20 BTC in GROSS REVENUE. Then your profit would be -80 BTC.
ROI% = -80 BTC / 100 BTC
ROI% = -80%.

Note to simplify I didn't include electrical costs. Electrical cost should also be subtracted from gross revenue.

It is the same concept in stocks. If you bought shares of xyz mining corp for 1 BTC and you received 0.1 BTC in dividends and then later sold the shares at a loss for 0.8 BTC, your gain would be -0.1 BTC (0.8 sale price +0.1 dividend -1.0 purchase price). A loss is a negative gain. Your investment was 1 BTC and your gain -0.1 BTC. Your ROI% = -0.1 / 1.0 = -10%. You have a negative 10% return on your capital ("you lost 10%").