Post
Topic
Board Group buys
Re: [OPEN] NinjaGRP#7 800GH Rackmount Avalon3 Miner $2700 Hosting as low as $199/mo
by
MWNinja
on 30/03/2014, 02:56:45 UTC
With the current price of bitcoin there isn't going to be ANY miner that will show a good ROI prediction ~ you're probably better off just buying bitcoin.  A few hundred dollars higher and it's a different ball game.  It's not the first time the mining forecast was all doom and gloom, but somehow most of the miners have managed to stay in the game.  Last time around it was the move from ~$100 average price up to ~1000 that saved the day for miners; how it will play out from here is anyones guess.  I can tell you that even 10% sustained growth at this point without an increase in BTC/USD rate will be toxic for most miners.

There can be some interesting tax advantages to mining at a small loss, particularly if you have other gains to offset. You can write off the mining losses, but still acquire bitcoin for future appreciation.  The mining hardware really can't even be considered a capital investment as it becomes so quickly obsolete.  It's cost is more akin to a drill bit for an oil rig, a straight expense.  There are similar tax strategies using oil/gas ventures.

Also you never know what exclusive offers we will find for our owners only group buys. We're making all sorts of interesting contacts in the bitcoin industry and are still excited about building out a big mine.


I urge anyone considering this group buy to do your homework before investing:

https://bitcoinwisdom.com/bitcoin/calculator

Using the values:
- 800 ghs hash power
- 2700 USD for hardware cost
- Monthly charge of 250USD

This hardware will NOT break even.  Not at 20% increment in difficulty, not at 10% difficulty increment... Only at 8% difficulty increase.

Please correct me if I am wrong, but I simply feel bad for people investing in such a group buy without understanding the hole they put themselves in.