Quote from: AriesIV10 on July 07, 2016, 05:23:49 PM

Quote from: GrumpyBear2 on July 07, 2016, 04:25:38 PM

Let's look at some numbers here. Please let me know if you calculate them with different results.

1.) Electrical cost going forward: $80 per miner * 30 miners = $2400 per month
2.) Rental cost of power supplies: $5 per miner * 16 miners = $80 per month

Total monthly cost: $2480
Total monthly Btc: $4160 (from your previous post)
--------------------------------
Total monthly income: $1680 (difference from above)

Six months income: $1680 * 6 = $10,080

Six months (July 10th to January 10th), I'm assuming the difficulty would have increased significantly by then.

1.) That's also assuming all miners are up and running at 100% all the time. With the heat coming this summer in eastern Washington I would expect some downtime and possibly lose some miners to overheating.
2.) Again you would need to calculate the difficulty increase. 5%...10%....20% over six month? 10% would knock approximately $1000 off the six months total income.
3.) What will be the resale value of the S7's and power supplies when the contract is over (~2017)?

Let me know what ya think?
Are you open to offers?

Thanks much
--TW

Very good Analysis.

1) I have already been with this collocation company and have avoided loss of equipment due to running (1 was a DOA). I did have some under clocking from the temps over 100 degrees, but have been compensated for that time.
2) Yes there will be difficulty increases, but to compensate and possibly full negate this would be the increase in bitcoin over the next six months and longer. Last year August bitcoin was setting at $228...
3) PSUs don't really loose their value. They can be used again and again. If you take a look at the S5s on eBay they are still selling for 1/4 of their original cost. People still buy S4s, S5s, S7s...Resale will still be there, especially under $500.

I believe that if I hold these miners for the next six months or a year, They can still turn a profit either with their Hashing or their asset value. I am always open to business opportunities.

Thanks!

I agree that the btc price 'could' (and probably will) increase in the coming months. Depends mostly on the Chinese currency controls and Yuan devaluation, but everything points in that direction.

But:
1.) I just looked up the difficulty increases on https://bitcoinwisdom.com/bitcoin/difficulty for the last nine months and it has more than doubled (over 100% increase) from 1.0e+11 to 2.0e+11. That was a huge under estimate on my part.
So first approximation (50% increase in difficulty) of the six month return should be: $10,080 / 2 = $5,040 (just a guesstimate).

2.) Resale value of the miners will drop quickly. I've been selling my S5's and SP20's for $50 each on eBay and lucky to get it. I did get $144 for an S4 though. I'm assuming I'll be selling S7's for the same $50 in six months.
Once the S11's come out, both the S9's and S7's will drop quickly in resale value.

Thirty S7's * $50 = $1,500
With no increase in difficulty $10,080 + $1,500 = $11,580
With 50% increase in difficulty $5,040 + $1,500 = $6,540

Not sure what a reasonable offer is at this point?

Thanks much
--TW

GrumpyBear2

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