Post
Topic
Board Beginners & Help
Re: why price so low
by
1905
on 02/09/2011, 21:12:16 UTC
Don't worry BTC is still over TWICE  as profitable than every other mainstream investment.

1gh/sec
 $8 per BTC
1000KW
 .15 KW/hr
 30 days

Coins per 24h at these conditions: 0.5658 BTC

Power cost per 24h: 3.60 USD
Revenue per day: 4.53 USD
      ... less power costs: 0.93 USD

Power cost per time frame: 109.57 USD
Revenue per time frame: 133.86 USD
      ... less power costs: 24.29 USD


Net profit first time frame: 24.29 USD

Profit Margin = 18%



Let's compare to other endevours....


Historical US corporate profit margin is 5.5% to 7.5%.
Historical US Equities yield is 9% to 11%



OK, but in order to complete your analysis which compares the gross operating margin of bitcoin mining to other investment instruments, consideration needs to go to 1) the capital cost of the mining rigs and 2) the volatility of the underlying commodity and the associated risk premium. Even if you just take the volatility of the BTC as your cost of capital, the math changes significantly.


k well regardless what your math skillz include anything relating to US investments or stock markets are garbage. people want to get on here and talk about how bitcoin is overapreciated and really worth less. wait til the real estate market starts adjusting to what it should be again. fucking flames. there is no guarantees. let people do their math all they want. like the guys who are so smart and say silver and gold are bad investments. yes they might be in a bubble right now... but in the long run they are going to make you the most... second to bitcoins of course.