Stop Building New Rigs! It is not worth it! Please Read before you start mining!

verjicverjic Member Posts: 143
edited March 2017 in Mining
My English knowledge is average so please sorry for grammatical mistakes. Thank you

Proof that if you buy RIG just to mine ETH is not a good idea: https://www.ethnews.com/ethereum-community-vote-on-miner-rewards

Hello,

There are a lot of threads where people are saying that the moment to start mining is lost...But people are still begin mining! :( That' sad.

First of all you do not understand what means difficulty and what means return of investment.
I begin mining one year ago... And it was already to late for me to get in. Why? Because the amount of Ether produced in all this time by me is lower, than if with the same amount of money I invested in production, I would buy directly Ether's! Yes! And I started 1 year ago. Difficulty grew up very fast and amount produced every day become lower and lower! I don't tell you problems with heat in the summer and freezing Rig's ... So if I would buy Ethers at 10$ (at this price I can buy exactly amount of Ether I produced in one Year) one year ago I would sell now at 4 times profit! But there was moments when Ether fall down to 6-7$ (At this price I would buy much more Ethers than I produced in 1 year) which I would sell at 7-8 times profit! Or I would sell now just an amount to recover investment and wait for Ether to go to the moon!

Big Idea is that now is the same. Just make a calculation. With a computer with 5 rx480's you will produce about 0.27 per day, that's 8 Ether's/month (if your computer will work 100% of time). But this you will produce in first month, in next months amount will be lower and lower! In just couple of months amount of Ether produced can be 4 Ether's/month. For Example as evidence of that in November-December 2016 you would produce 150-200 % more than know.... You can check the difficulty graph for evidence... Also there is POS coming...which can happen this year! So you will never return your investment and will end up with less ether than you thought you will have.

If your investment is 1500$, for 1 Rig, you can produce approximately 35-36 Ether's in next 6 months and less than that in next 6 months ( if POS will not come ). Lets say 60-65 for first year (PLEASE NOTE THAT YOU WILL MAKE THIS IF YOUR COMPUTER WILL NEVER SHUTDOWN). You will pay electricity about 80-110 $/month depend of the prices... which is about 1000$ per Year. So your investment is 2500$ for POSSIBLY 60-65 Ether's! And don't dream that something will happen and you will have more :) That's the maximum, you could end up with less than that. If you divide 2500$ to 60 ETH = 41$/ETH.

So at the today prices you can buy directly the same amount of Ether and wait 1 Year for the price to go up! Or you can wait for the price to go down to 20-30$ and buy more Ether's and when the price is high enough for you to sell. And if you think you can sell the Rig after a year, maximum you will get for you Rig is 50 % of 1500$ and it will take time to sell.

Other problems are that if you have working Rig at home that means a lot of heat in the summer, noise and safety problem ( when you go in a vacation or somewhere for the weekend you need to ask somebody to be close to your house, in the event your Rig Freeze and you don't know if there is a fire or what is the problem..)

Conclusion make for yourself, i just posted something which is real world calculations...

Happy Ether's!

Post edited by verjic on
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Comments

  • kekekekekekekeke Member Posts: 61
    Thanks for the warning. But you have to take into consideration a lot of people like myself are hopping into this as a hobby. I don't really care if I make my money back, it's just cool to get into something completely new that I've never done before. Also, I think GPU mining works for other cryptocurrencies too and as long as there's something to mine, people can just switch over.
  • jsanzspjsanzsp Member Posts: 195 ✭✭
    kekekeke said:

    Thanks for the warning. But you have to take into consideration a lot of people like myself are hopping into this as a hobby. I don't really care if I make my money back, it's just cool to get into something completely new that I've never done before. Also, I think GPU mining works for other cryptocurrencies too and as long as there's something to mine, people can just switch over.

    good hobby for Losing money, the difficulty is too high to start now
  • listmanlistman Member Posts: 51
    It may not seem profitable based on todays numbers but what you forget is that value could increase 10 fold and what you mined would in turn be profitable. Yes if you invested the money instead you could be further ahead but Like KeKe says, it's fun :-P I convert to bitcoin or cash out half of my mining and if I look back at some of the ETH i converted and cashed out when BTC was at its peak I guarantee I made money. Based off my trading history on polo my equipment has already been paid for.
  • ethfanethfan Member Posts: 458 ✭✭✭
    edited March 2017
    RX470 costs $150, produces 25Mhps, using 150W, costing $0.10 per kWh.

    In one month that mines 0.7 ETH worth $28 using electricity of $11 with net
    gain of $17.

    Still profitable...
  • charliebridge82charliebridge82 Member Posts: 34
    My experience: Bought 2 Sapphire RX470 4gb reference (eth price was 8$)... started mining January 4th (55$ per month). Still mining with higher difficulty but my mini-rig is giving now 120$ per month (In my country I pay LEGALLY like 3$ each month). I borrowed some usd from friends to buy a Nitro Rx480 4gb (like new) in 145$ and one MSI Armor 470 4gb in 155$. If BTC goes to H*ll because of the hard-fork I'm sure ETH will rise even higher than last week (you'll make money even with the rising difficulty)
  • mbdmbnmbdmbn Member Posts: 21
    There are so many coins out now, Some of them have to be profitable at some stage of their existence, Oh look there's "23" that are profitable today, Lets shut down our miners lol, Even if a coin is just below the profit margin, It's more than likely still worth mining, Because you'd pay more in fees buying the coin, Than the cost of mining it.
  • oberober Member Posts: 18
    Diff rising, POS incoming ..... same old FUD ;)
  • verjicverjic Member Posts: 143
    What I said is that if you buy and sell later you will make at least the same amount of money in 1 Year or even more, than if you start mining! All other coins are profitable now because prices rise!. But few months ago revenue was like 5$/RIG x RX480/Day minus Electrity for the best coin!. So are you ready to keep your RIG working for 150$ a month??? Do what you think is correct for you, I just showed you that buying is simple, fast and will give you bigger revenue in 1 Year for Ether, than mining.
  • yodiyodi Member Posts: 265 ✭✭
    edited March 2017
    no matter what you mine , at the time your invest is back in 6 month around , and i am on 0.135 kw/h cost.
    pos will not come before 1 year minimum and has say some other there is other crypto .. and if you keep all Eth you get , you probably get more profit later or could stack with them with PoS

    i just see again frustration (to see more miner and more miner) from you and all person have those words , if we had dedicated asic for ethreum it could be legit to read your words , but not with computer parts
  • rmhrmh Member Posts: 410 ✭✭✭
    There was a long topic here with the same content almost one year ago. I started then, and made ROI, have a big stack of ether and many euros from selling. here's the topic: https://forum.ethereum.org/discussion/6407/why-you-should-not-mine-ethereum-now-with-more-rigs/p1 hehe @syaoran99
    You can't predict the future, the difficulty is rising yes, but nowadays it's more profitable than 2 months ago with half of this difficulty.
    And there are and will be many other pow coins, where you could later use your hashpower. Another use case will be the Golem network, and you can also crack passwords with the equipment.
  • verjicverjic Member Posts: 143
    I did not say you will not ROI, I said there is a big probability, but I said that with the same money you invested in your RIG's, you can buy the same amount of Ether that you will produce in 1 year. rmh, make your own calculations, if you would buy Ether at 6$, how much would you have now! And how much you produced??? I am saying that to buy now is much better option, than start mining...Mining will end soon, so I don't care at this moment about difficulty. Difficulty already is high...So it's your choice...

  • toothalicioustoothalicious Member Posts: 37
    @verjic a mining computer isn't supposed to freeze, or shutdown... I just rdp into my miner to fix any problems and have automatic startup scripts in case of power outage.. and I started mining 3 months ago and I've already covered the cost of my mining rig.. plus I have the mining rig itself to resell when I'm done with it! I feel way better mining the ETH instead of buying ETH directly, since my investment went towards my actual mining hardware, not into ETH which has the ability to crash at any time, my mining rig on the other hand can be resold (granted for a lot less than what I bought it) and also used to mine other cryptocurrencies...
  • verjicverjic Member Posts: 143
    @toothalicious How much Ethers you could buy 3 months ago with the money you invested in your RIG + Electricity? Make your calculations and tell me how much money you would have now!
  • yodiyodi Member Posts: 265 ✭✭
    edited March 2017
    verjic said:

    @toothalicious How much Ethers you could buy 3 months ago with the money you invested in your RIG + Electricity? Make your calculations and tell me how much money you would have now!

    and this is random fact not risky for sure , but random instead of rig , get computer part is a choice of investissement and it s interesting to get up , for myself i sold a part of my eth only when it was high ...
    if intel , jpmorgan and microsoft... didn't take interest of ethereum recently , Eth won't be so high at the time ...

    i understand what you mean with your topic, and you are not wrong but not right to , but it s your thought , don't try to tell other what they have to think , if i give some other clue , it s because when you (other) are thinking about it , you need all elements to choose what to do, cause long long time then , MY think , will be more interesting to have mining capacity ...
  • kekekekekekekeke Member Posts: 61
    jsanzsp said:


    good hobby for Losing money, the difficulty is too high to start now

    Well to be fair, most hobbies cost money. At least this one has a chance of ROI. Gaming, snowboarding, dirt biking, whatever are all hobbies that cost significantly more than building a mining rig. Plus having a mining rig at home is a good conversation starter for when friends come over, pretty sure some girls get turned on by it too.
  • ethfanethfan Member Posts: 458 ✭✭✭
    edited March 2017
    I have 5 rigs in my guest bedroom. 20+ GPUs whirring away. Everytime I enter the room I get this warm feeling (figuratively, AND literally)... Some of the GPUs have been mining since LTC days.
    Post edited by ethfan on
  • workwork Member Posts: 2,084 ✭✭✭✭
    edited March 2017
    People have been saying this for years and years about GPU minings. It's apparently always too late. Yet somehow, litecoin wasn't the last profitable coin for GPUs to mine ... nor will it be ethereum or zcash or whatevercoin
  • wonderfullifewonderfullife Member Posts: 103
    edited March 2017
    Nice community we have here, new people come and we tell them to F*ck off because our ROI might go down...



  • casablancacasablanca Member Posts: 9
    verjic said:

    @toothalicious How much Ethers you could buy 3 months ago with the money you invested in your RIG + Electricity? Make your calculations and tell me how much money you would have now!

    When it comes to investing the rear view mirror is always clearer than the front. It is easy to state now that buying ETH 3 months ago would have been the better option but 3 months ago nobody (aside from the time travelers) knew that ETH would cross $40. Mining is a different business from speculating. ETH could easily fall to $1 in the next 6 months and someone who owns a a miner can just easily switch to a new coin with better prospects. You on the other hand who owns ETH will be stuck with your loss.
  • theneogeo1982theneogeo1982 Member Posts: 530 ✭✭✭
    People said not to get into it last year.. Look now, super profitable.. Don'

    Nice community we have here, new people come and we tell them to F*ck off because our ROI might go down...



    It isnt like that but it is LOL.. But seriously, this member comes on and tells people it isn't worth it to mine... Like who is he to make statments like this when eth AND diff is at an all time high?!?! It's very profitable really anyway you slice it ( unless your electricity is stupid high ) get lost and leave people make up their own minds! If you don't think people should then sell your gear and get out of the game or just call a spade a spade and say the diff is too high and you want more money for yourself but you cant get ROI
  • toothalicioustoothalicious Member Posts: 37
    verjic said:

    @toothalicious How much Ethers you could buy 3 months ago with the money you invested in your RIG + Electricity? Make your calculations and tell me how much money you would have now!

    I'd have like $5,000.. but the point is I'd rather invest in hardware that I can actually resell (a more stable investment) than to just invest in ethereum. That way if ETH crashes to $1 tomorrow I haven't lost any of my investment! I just switch to another crypto currency to mine or resell my rig!
  • cryptorexcryptorex Member Posts: 46
    but but.....It's fun! :#
  • verjicverjic Member Posts: 143
    edited March 2017
    So, you did not read what I said!

    If 1 year ago I would buy Ethers with money I invested in equipment and electricity, now I would have more Ethers than I mined! This is what I am saying! You do your own calculations!

    Point is that I was the same as you. I was a beginner and did not know how it works. That's why I invested in Equipment. I did not know where the price will be... But Ether at this moment proofed that it is a big Crypto and very popular. So the price will go high. I don't care what you will do... The difficulty is high already, So if there will come 1000's of new computers, it will not make big difference in income. But for you guys it will make difference, you can make big money easy and fast ( couple of years or months, depends of ETH price ), or you can make some money in very long term.....

    I did not came and say only DON'T MINE. I came with real example (my example) and calculations. If you don't want to accept it, no problem....
  • mbdmbnmbdmbn Member Posts: 21
    Everyone knows this, you only have to look at the history of the price of any coin and do the maths of how much more richer or poorer you would be if you invested in coins. The thing is though you came to this part of the forum "The mining forum", and made a post titled "stop building new rigs, ect ect", so tell me this, what's the point of it all? Why would you come to the mining forum and tell potential miners to not build rigs? It's no loss to you if more people start mining, and it's no loss to you if they stop mining.
  • VertigoVertigo Member Posts: 8
    This post seems comical given the value these days.
  • KainzoKainzo Member Posts: 12
    This was posted in march. It was profitable long after march.

    Build rigs if you have a back up plan. If you are in it for the long haul and you know there will be thick and thin.

    I am a newcomer to crypto but I am not a new comer to business.
    If I can get ROI on my current hardware then its mission accomplished.
  • kekekekekekekeke Member Posts: 61
    Hehe, as the second person to respond to this post all I can say is I'm glad I built a rig back in March when rx470s were still plentiful. Already made ROI and so much more. Ops concept is right though, and holds even more true now. If you can't get your hands on a rig, at least do yourself a favor and buy some ETH. Still...I don't regret building a rig at all...I've learned so much throughout the process.
  • verjicverjic Member Posts: 143
    edited June 2017
    Now I'm laughing on you guys!!! When I posted this thread with stop building Rigs, price of ETH was 40 Euro!!! If you would invest in buy ETH, now you would have a ROI of 900%%%%. Please tell me how much eth you have now??? Even if you did not sell any ETH and paid electricity from you pocket, you still don't have the same amount of ETH as if you would bought!!!! And let's not count heating and technical problem which someone of you had :( I'm sorry that you made the wrong decision... :(

    I tried to advice you from my mistake, but people usually learn only from their mistakes :(
  • cidmocidmo Member Posts: 446 ✭✭✭
    edited June 2017
    gotta love the ppl with the trading advice on mining forums tho
    so many different types of investors when it comes to something like this
    risk assessment is an individual type issue

    the whole reason i got into mining is im a gamer and i wanted a better pc
    well now i got a lot of them haha
  • narba88narba88 Member Posts: 85
    verjic said:

    Now I'm laughing on you guys!!! When I posted this thread with stop building Rigs, price of ETH was 40 Euro!!! If you would invest in buy ETH, now you would have a ROI of 900%%%%. Please tell me how much eth you have now??? Even if you did not sell any ETH and paid electricity from you pocket, you still don't have the same amount of ETH as if you would bought!!!! And let's not count heating and technical problem which someone of you had :( I'm sorry that you made the wrong decision... :(

    I tried to advice you from my mistake, but people usually learn only from their mistakes :(

    Pardon my language but fuck off man. You came on here to feed your opinion with no one asking as you started the thread. Trying to have people stop mining so the difficulty wouldn't increase was probably more of your logic for posting in the first place.

    Go to a speakeasy or somewhere your input is wanted. I'm a Miner and I'll do it till it's done despite your opinion correct or not. YOU CAME TO THE WRONG FORUM TO TELL US TO STOP MINING.


    I believe in blockchain and it's for better finisncial scenarios worldwide. It is still profitable. Surely I would of make an extra 10k if I invested with your advice. Some people are wolves and then some are sheep. We are the wolves of this new technology. We make the decentralized concept work, so don't you bring down something that could be life changing for everyone.

    Some of us rather make our coin than give someone money in exchange for it.

    Go DDoS yourself to infinity and beyond.
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