Post
Topic
Board Mining
Re: LargeCoin Pricing Announced; Taking Pre-Orders
by
coblee
on 06/03/2012, 00:52:07 UTC
Does this clear up everyone's concerns about DRM?
Understood. Thank you

Ok, let's assume data center costs and power costs are $0. Mining this at 20ghash/s nets you about $2000 a month. Let's assume both bitcoin price and difficulty either don't increase or cancel each other out. So you get 5 months at $2000 a month, and when the mining rewards halves in December of this year, you start making only $1000/month. It will take 25 months to make back your initial investment.

You guys really need to rethink your strategy. Maybe leasing makes sense. But purchasing your device doesn't make any sense if it doesn't break even for 2 years (which doesn't even include the data center and power costs!)

For comparison, The BitForce Single takes 8.8 months to break even and the BitForce Rig takes 6.5 months to break even. And these 2 numbers assumes power costs $0.30 per kwh.

You also assume that the reward halving has no impact in price.

Anyway, this is a choice I don't need to worry about because I don't have the money to buy it.

If you are going to assume that price doubles due to reward halving or if your calculations assume that btc price goes up a lot to reduce the break even time, then it makes more sense for you to buy BTC today and wait for the price to go up. You will make more money that way. So as far as I'm concerned, I need to assume btc price stays constant or that it only increases enough to cancel out the increase in difficulty.