Quote from: libitum on February 23, 2014, 08:22:38 PM

Quote from: Puppet on February 23, 2014, 12:02:57 AM

Your logic is completely flawed, but thats only because you are not attempting logic, but just trying to spam your affiliate link.

In reality, if mining is profitable with typical consumer electricity prices, then it will be far more profitable for large mining enterprises that only pay a fraction of our electricity cost, as low as $0.01 per KwH. The logical conclusion from that is that such entities will continue piling on the hashrate until its no longer lucrative for them, and as a result completely pointless for anyone paying "normal" electricity rates.

I do mine myself, and my logic above is sound enough so that I have bought few Neptunes for mining this 2014 (Although I expect my Jupiters to still being marginally profitable this year, I wanted to step up my mining gear). The reseller's thing is just an extra hobby to make mining more fun, however it is more of a joke than a real income.

US electricity costs for businesses: "The national average was 10.19 cents per kwh."
US electricity costs for households: "The national average was 12.20 cents per kwh."

Datacenters electricity costs are only marginally lower than what households pay. Households have cheap electricity because it is meant for warming up the house, etc. Businesses are, on the other hand, an income for the government.

Mining farms require the exactly same infrastructure than current datacenters. Therefore their running costs are much alike.
There are tens of datacenters in every city, competing in prices to host your miners (or any server).

While running a miner at your own home (Finland) costs you about 0.08 KWH, running it in a datacenter (the cheapest I found in Helsinki) costs you $0.3 KWH + fixed monthly fees ($200 - $1000 for renting the space in the datacenter's rack).
That is because overall datacenter costs are higher than you running a miner at home. Then even though datacenters compete among themselves to try to offer cheaper prices to gain customers, the final price they offer for collocating a miner at their datacenter is still several times higher the costs of running that miner at home. Even though those marginal savings in electricity costs that datacenters achieve due to their volume.

So in summary, mining is still profitable in 2014. You are not going to make 50x electricity costs as last year, but from 10x(right now) to a stable 2x-3x at the end of the year. (with x being the electricity cost).

Mining will be almost impossible by the end of the year when difficulty is 100 billion. Companies are having trouble making newer hardware to offset the fast increase in difficulty.

Lets look what a 10TH unit pulling 5000 watts by then will make $300 a month. As we know machines will make in lifetime about 2x lifetime of the first month mining. KNC Neptunes Q2 2014 for 13,ooo. LOL