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Is Mining worth it?

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bobjohnson12321

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Interested in everyone's opinion on this. Is mining worth it in the long run now?

I was wondering if setting up a Mining Business will be profitable with the right amount of investment, currently i did some research about Coin mining but i don't have full understanding of it.

So here is what i knew:

ZeusMiner THUNDER X3 28-30Mh/s. PSU included http://zoomhash.com/collections/asics/products/zeusminer-thunder-x3-28-30mh-s-psu-included

And this machine cost about 789.99$, which is capable of generating 30Mh/s at 920w of power usage

30Mh/s = 30000Kh/s

If we look at this Dogecoin calculator here:

Is it really possible to break even in about 90 days? and with income of about 200usd each month. If i had 10 of this machine then i will be able to generate 2kusd+ each month? :huh:

Posted on July 27, 2014 at 10:41 AM

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• monbux

  

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  Did you consider the increase of difficulty, the electricity costs, possible need for repairs, and other stuff? I am a newb when it comes to scrypt mining, but I would stay away from all types of physical mining hardware because I'm lazy and hate the hassle. I would stick with cloud mining.

  Take note that this unit is "noisy"... so you should have an extra room or something to place it in.

  Good Luck!

  Posted on July 27, 2014 at 10:53 AM
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• irnhnve

  

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  Simply put, no it is not worth it. Unless you have a guarentee that the miner will arrive on time and access to basically free electricity, you will end up not even breaking even. If you are interest you can plug some numbers into a mining profitability calculator to get an idea of how you'll do

  Posted on July 27, 2014 at 11:26 AM
  Last Edited: July 27, 2014 at 11:27 AM
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• jamesmm

  

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  Be sure to use a calculator that figures in the difficulty increase over time. The one at bitcoinwisdom accounts for difficulty and shows over time what your profits (or losses) will be.

  Most calculators just use today's difficulty, which yes is profitable. But over the course of around 60 days they become unprofitable as the difficulty increases.

  All the hardware I've looked at will never even make the cost of the hardware back. They get close, but then they start costing more in electricity than they make each day.

  So IMO it's not worth it. Unless you have free electricity or gamble that the coins you do mine will be worth a lot more in a year or so.

  But this all does puzzle me..... if there's no reason to get into mining, how is it we have so many miners and such a large hash rate?

  Posted on July 27, 2014 at 11:37 AM
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• Halo

  

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  @jamesmm Be sure to use a calculator that figures in the difficulty increase over time. The one at bitcoinwisdom accounts for difficulty and shows over time what your profits (or losses) will be.

  Most calculators just use today's difficulty, which yes is profitable. But over the course of around 60 days they become unprofitable as the difficulty increases.

  All the hardware I've looked at will never even make the cost of the hardware back. They get close, but then they start costing more in electricity than they make each day.

  So IMO it's not worth it. Unless you have free electricity or gamble that the coins you do mine will be worth a lot more in a year or so.

  But this all does puzzle me..... if there's no reason to get into mining, how is it we have so many miners and such a large hash rate?

  Nicely stated. I think the larger players who can afford to make bulk purchases get better deals from suppliers so they have a slightly larger window in which they can mine profitably. The only problems is that once that window closes, they have buy more equipment or they will be mining for a loss in the present with the hope that the price of bitcoin goes up so it end up being profitable over. It's a risky business.

  Posted on July 27, 2014 at 11:43 AM
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• CrimsonRoze

  

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  @jamesmm Be sure to use a calculator that figures in the difficulty increase over time. The one at bitcoinwisdom accounts for difficulty and shows over time what your profits (or losses) will be.

  Most calculators just use today's difficulty, which yes is profitable. But over the course of around 60 days they become unprofitable as the difficulty increases.

  All the hardware I've looked at will never even make the cost of the hardware back. They get close, but then they start costing more in electricity than they make each day.

  So IMO it's not worth it. Unless you have free electricity or gamble that the coins you do mine will be worth a lot more in a year or so.

  But this all does puzzle me..... if there's no reason to get into mining, how is it we have so many miners and such a large hash rate?

  The answer is simple: because your math does not take real life into equation.

  I'm a miner, and I've broken even and made profit on one generation of miners, and I'm working on my second generation now. The key is to understand that if you sell the BTC right away when you get them then you will sell at unprofitable prices (at times). Hold, believe, then cash out slowly when the value rises.

  Posted on July 27, 2014 at 11:46 AM
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• bobjohnson12321

  

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  That is pretty much what I've been doing. I haven't cashed out so to speak my BTC. I have been trading it into alt currencies I think hold value in the long term and keeping a stash of BTC at my disposal in case the price skyrockets again for some strange reason.

  Posted on July 27, 2014 at 12:08 PM
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• bobjohnson12321

  

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  Also on that same note, do you think 1 - 2 GPU rigs are capable of ROI? Honestly I think it would take forever ,especially because a rig like this is generally not specifically for mining it is made for gaming. I currently have a 4 r9 270x and it's reached ROI but with power costs staying the same and profits decreasing IDK how long I can run it for.

  Posted on July 27, 2014 at 12:11 PM
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• irnhnve

  

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  @bobjohnson12321 Also on that same note, do you think 1 - 2 GPU rigs are capable of ROI? Honestly I think it would take forever ,especially because a rig like this is generally not specifically for mining it is made for gaming. I currently have a 4 r9 270x and it's reached ROI but with power costs staying the same and profits decreasing IDK how long I can run it for.

  GPU rigs are only useful for scrypt mining such as litecoin and dogecoin. With scrypt asics being developed even those will not have a ROI soon. I'm not sure how they would fair in the short term or if scrypt asics are in use yet.

  Posted on July 27, 2014 at 2:38 PM
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• headswim

  

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  To echo what @CrimsonRoze wrote, I have mined successfully/profitably for 2 generations of mining (GPU and ASIC 1) and am on my third round of mining. My second round 'broke even' in 17 days. But I wasn't really selling out at that point.

  But the curve is steep for when profitability drops off based on the increases we're seeing to the size of the network. It makes calculators a complete waste of time - depending on the combination of increases to the network, change in price, and selling immediately vs holding, what you expect and what actually happens can be way off. Getting the hardware is another issue many people have had to deal with.

  While I've made a nice return, supporting the network and making even a fractional passive income have made it even more worthwhile. Just don't expect it to pay for your yearly salary unless you have tens of thousands of dollars or more to spend on hardware, and are able to continually reinvest.

  Posted on July 27, 2014 at 2:39 PM
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• Mike

  

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  I agree with @crimsonroze above. There are many things to take into consideration. Especially your time horizon for selling the coins that you mine.

  First and foremost is your electricity costs. More and more industrial miners are moving to areas of the globe that have essentially free internet. They pay below $0.02 USD per kilowatt hour. So they will gladly mine with revenue generation at $0.021 USD per kilowatt hour because they make a profit and it drives out other miners, thus lowering the increase in difficulty.

  They also know what their time horizon is for selling out. Most miners have very distinct levels that they are waiting to sell at because they have their own ways of figuring out likely price points. In fact, many people that I've spoken to mine for a loss or breakeven today because they are waiting for the right time to sell which will lock in profits.

  If you're in an electric haven, you have a good shot. If you've got "balls of steel" and are quite confident in your price floors for bitcoin in the coming months, you've got a decent shot.

  All of this information comes with the following disclaimer: Never risk more than you can afford to lose.

  Posted on July 27, 2014 at 4:44 PM
  Last Edited: July 27, 2014 at 4:45 PM
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