Ninjastic
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Board Mining speculation
Re: Spondoolies Question
by
youngwallst
on 04/10/2014, 20:30:06 UTC
Quote from: dogjunior on October 03, 2014, 10:00:39 PM
Quote from: youngwallst on October 03, 2014, 09:02:10 PM
Quote from: dropt on October 03, 2014, 08:45:50 PM
Coins are at $360, tell me, why on earth are you considering buying more hardware when it'd be a better use of your funds to just purchase BTC instead of mining?

That said, AM's prisma devices.  They aren't really rack friendly, but you're not going to beat their pricing anywhere.

Well, currently just getting some feedback so if I did want to expand, I had a vetted review of this firm from community members (or at least an alternative to this firm if the reviews came in bad). Trust me, I see your point and may sound crazy for wanting to expand with price oscillating sub 500 for a while now & been thinking of just dumping whatever I would have spent into buying coin, but I don't know if I really want to do that.. Worked pretty hard to get near 100 TH thus far, so its not like we are starting from scratch or anything and I do believe in doing my part to secure the network. I have a data center that I already house miners at so it wouldn't be much of a hassle (except the added electric cost) to get them somewhere secure and temp controlled.  I will def look into the miners you have recommended and appreciate your feedback!

Unless you are getting free hosting and electricity then buying new equipment is going to be really stressful right now and probably in the future. BTC prices going down, sub $350.  Any more and you are looking at negative income. Your only hope is for the difficulty to go down and BTC prices to start going back up. If the opposite happens then you are in a deep trouble. That new SP 35 that now costs $3800 won't mine enough coin to pay the electric bill.  6Th now gets you 2.6 BTC. If BTC falls to sub $100 then your SP 35 won't cover the $260 dollar electric bill at .10 a Kw.

yeah completely understand what youre saying, again just getting a general idea, see if the company is reliable and how their equipment performs. I know theres only been two difficulty decreases ever, wonder what the chance of that happening again is.. Doubt it would unless blocks being mined per day went down quite a bit. As far as price, seeing this kind of decrease peak to trough is perfectly healthy, granted these levels need to hold in order to put in a longer term bottom. The way I see it, the turnover from billion dollar industries coupled with increasing mining costs & regulatory uncertainty is a reason for price to go down, especially after a 4000%+ year. There will be catalysts for price expansion in the coming years. I wouldnt waste my money on miners if I didnt feel confident I could at bare minimum cover my costs of operation. With that said, the uncertainty right now makes me not want to actually purchase coins outright. I guess I will just wait and see what happens. I again greatly appreciate your feedback and breaking it down to brass tax for me.