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Fuzzy



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Hero MemberActivity: 560Merit: 500 Re: If you had $5000 to invest right now: Coins or Hardware? Whats your rationale? May 12, 2012, 12:31:02 PM

Last edit: May 12, 2012, 12:55:18 PM by Fuzzy #13 Quote from: mufa23 on May 12, 2012, 06:12:18 AM Hardware by far! It would pay itself off after 5-7 months (that's including the electric bill)

By my Calculations, even at a measly 5% difficulty increase per re-target, the hardware wouldn't have paid off even after a year.

And that's assuming you could get $5000 worth of Mini-rig Value hashing power delivered today.



From my calcs, you'd only have 821 BTC after a year, whereas you could buy 1000 BTC now and save yourself the electricity/heat/hassle of dealing with the hardware.



This calculation is assuming:



$5000 worth of "MiniRig Value" hardware

No Delivery Wait Time

No Electricity cost

Difficulty increase of 5% every 13 days

Block split in 210 days

1000 BTC bought today at $5 ea

"Growth factor" should read "Daily reward multiplier"





EDIT: This is not an attack on people buying/making hardware or bitcoins. I'm looking for a logical discussion.

I am fully aware that a 5% difficulty increase cannot be/is impossible to guarantee/foresee, but it's the best estimate I can come up with. By my Calculations, even at a measly 5% difficulty increase per re-target, the hardware wouldn't have paid off even after a year.And that's assuming you could get $5000 worth of Mini-rig Value hashing power delivered today.From my calcs, you'd only have 821 BTC after a year, whereas you could buy 1000 BTC now and save yourself the electricity/heat/hassle of dealing with the hardware.This calculation is assuming:"Growth factor" should read "Daily reward multiplier"EDIT: This is not an attack on people buying/making hardware or bitcoins. I'm looking for a logical discussion.I am fully aware that a 5% difficulty increase cannot be/is impossible to guarantee/foresee, but it's the best estimate I can come up with.

mufa23



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I'd fight Gandhi.







LegendaryActivity: 1022Merit: 1001I'd fight Gandhi. Re: If you had $5000 to invest right now: Coins or Hardware? Whats your rationale? May 12, 2012, 04:09:07 PM #17 I am roughly paying $2.5MH/s. I spent $800 for 2GH/s. Which brings in about 1.2BTC/day (Mining at EMC). At $5/Bitcoin, I will have paid itself off in around 160 days (5.3 months). With the remaining 205 days left in the year, I would make 246BTC at current difficulty. Multiple those coins by 5 (dollars), and you come up with $1,230 of pure profit.



So now knowing this, I would spend $5k for roughly 12.5GH/s (7.5BTC/day). Which would pay itself off after 160 days, bringing in a total profit of 1,537.5BTC ($7,687.5 USD). Now if at the end of the year I could sell off the hardware for half of what I bought it for, I would have turned 5k into 10k within the year.



Sounds worth it to me. Positive rep with: pekv2, AzN1337c0d3r, Vince Torres, underworld07, Chimsley, omegaaf, Bogart, Gleason, SuperTramp, John K. and guitarplinker