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This is just wrong. The analysis he links to on the profitability of mining is based on litecoin, he claims it's the same, but it's simply not. Quick calculati

This is just wrong. The analysis he links to on the profitability of mining is based on litecoin, he claims it's the same, but it's simply not. Quick calculations on bare avalon chips with a 100k investment gives a current ROI of 4 days, this does not account for risk, does not account for setting up the chips, etc etc etc. However, it is indicative of the idea that the pursuit would be "unprofitable" is pretty insane. The 90+ bitcoin mining accounts giving you the ability to game the system is even worse, it's like he doesn't have the faintest idea of how bitcoin mining even works. I should go hook up 1000 fake SETI@home accounts and reap the massive kudos for my epic performance this will surely provoke. What the hell? In 3, he goes back to cheerlead for litecoin, even though in 1 he proved the mining of litecoin wasn't even profitable. Simultaneously acknowledging that any state attempts to ban bitcoin in a given jurisdiction won't actually be effective at any rate. And 4 basically says "Because I'm a keynesian". Well, that's nice, go buy freicoins or some other cryptocurrency that supports your pet economic theory, there are likely dozens by now. Nobody else wants to be forced onto an inflationary store of value and will not accept your McBucks? You don't say, maybe there's something to be learned from that.

ars 13y ago
> Quick calculations on bare avalon chips with a 100k investment Does that include the electricity?
- nwh 13y ago
  Which with avalon gear is a huge cost; something like 8W/GH.
- etherael 13y ago
  Nope, it was very quick test on the mining profitability calculator, but those results were so good that I was instead looking into this; http://mining.thegenesisblock.com/ http://mining.thegenesisblock.com/ Which gives much more realistic / complete analysis of the actual profitability levels available from the various ASIC vendors. And the end result is yes; it is clearly quite possible to be profitable, and there are a multitude of ways to be so, and ROI under half a year is almost par for the course.
exo762 13y ago
You are also missing the point. The point is: it is irrelevant if mining is profitable or not at any given moment. Author of the article states that it is, when it is not. If it is unprofitable - some of the competition will crumble, thus making mining more profitable for the rest of miners. We need miners because they RUN the network. We don't need them to make huge bucks out of it. Existing mechanism (difficulty adjustment plus bitcoin market price plus mining costs) will guarantee that in the long term (after current artificial bubble stabilizes) mining will be just as profitable as any other business investment.

ars 13y ago

> Quick calculations on bare avalon chips with a 100k investment Does that include the electricity?

nwh 13y ago
Which with avalon gear is a huge cost; something like 8W/GH.
etherael 13y ago
Nope, it was very quick test on the mining profitability calculator, but those results were so good that I was instead looking into this; http://mining.thegenesisblock.com/ http://mining.thegenesisblock.com/ Which gives much more realistic / complete analysis of the actual profitability levels available from the various ASIC vendors. And the end result is yes; it is clearly quite possible to be profitable, and there are a multitude of ways to be so, and ROI under half a year is almost par for the course.

exo762 13y ago

You are also missing the point. The point is: it is irrelevant if mining is profitable or not at any given moment. Author of the article states that it is, when it is not. If it is unprofitable - some of the competition will crumble, thus making mining more profitable for the rest of miners. We need miners because they RUN the network. We don't need them to make huge bucks out of it. Existing mechanism (difficulty adjustment plus bitcoin market price plus mining costs) will guarantee that in the long term (after current artificial bubble stabilizes) mining will be just as profitable as any other business investment.