Quote from: jomay on January 06, 2014, 11:30:01 PM

Quote from: DarkMiningBTC on January 05, 2014, 05:29:08 AM

Are altcoins dying? Is mining dying in general? Like a week or 2 before any altcoin mined at 1500 KH/s (scrypt) would get you around 40 dollars a day, now its like $15, also SHA 256 coins like emark and tigercoin and all the others seemed too. What's going on ? Is it dying or will it get back up?? Also should I start investing in coins instead of mining? Like dogecoins?

Just read a bit into this thread; all I can read in your posts is:
1) you bought some graphics cards, hoping to make a quick buck
2) now you are scared/upset that it doesn't work out

Part of me wants to be really tough with you. Because your expectation is to make a quick profit. And you apparently did not do any research before jumping into mining. You just thought of the free 900-1200$/month you'd make. No risk, no skills needed, no work involved. And as it doesn't work out you suddenly talk about coins dying. What now? If it was that simple to make money, I'd rent out a warehouse and run 100's of 7950's.

The story repeats itself every 6-12 months. We've already been there in June 2013. Many new coins had crazy high profitability for some time - but then suddenly they lost value and Litecoin was the most profitable altcoin to mine. And eventually a rig like yours would make 2-6$/day after energy costs. Which sounds like a fair price to me.

Read this about a guy who made a loss mining litecoin in 2013; learn from his mistakes:
http://reckoner.com.au/2013/08/im-done-mining-litecoin/

Now regarding the economics of altcoins. Let me ask you:

Why would anyone pay you $30-40 a day for running 2x7970 or 3x7950? There is almost no special skill involved, no market entrance barrier and if you thought you could make a quick buck, so did 10.000's others!.

Profit maximising by all miners (and switching coins/pools) is going to equalize the profitability of all listed coins. Soon LTC will be as profitable as most other altcoins. Because people like you learn how to pick the most profitable one and increase the difficulty to be on par to its market price.

The other effect is that more people jump onto the mining bandwaggon and drive up the difficulty overall until it is barely profitable to mine any coin. We are talking $2-5/day after energy costs for your 1500kH/s - which sounds about fair.

This is a free market and YOU have to find a niche where you can compete in mining, for example:
a) low energy costs? (as low as 0.10$/KWh in the US)
b) well informed regarding new altcoin releases?
c) can take a lot of risk/have money => invest in ASICs?

There is tons of other ways to add value to the community and hence to make money. You could start trading, develop better coins, run a mining pool, create a website for spending coins, lottery, poker etc.

And eventually all coins may die with you holding a bag full of BTC. Wink

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