To buy or not to buy : BitCoin Miner

[akashk]

I am tempted to buy this : http://www.amazon.com/Bitmain-Antmi...d=1400672594&sr=1-2-catcorr&keywords=antminer


The present day price/return seems tempting to me based on profitability calculators. I just started reading about dedicated bitcoin mining few days ago, so maybe someone with more expertise and knowledge could help me decide ! I am very much an amateur and I want to do this more as a side hobby rather than a side income, as long as I break even before the machine breaks down.

 

[Crazy_Eddy]

Here's a funny thought : Why aren't the manufacturers keeping the machines and mining for themselves?

 

[vivek.krishnan]

Here's a funny thought : Why aren't the manufacturers keeping the machines and mining for themselves?

They do - AFAIK, they 'test' the machines till they earn something.

 

[akashk]

Here's a funny thought : Why aren't the manufacturers keeping the machines and mining for themselves?

I did some research on this. They practically run an alternate operation where they rent out processing power. The manufacturers already utilise as many machines as their power, space and manpower limits allow them to. These machines are incredibly cheap to mass produce per unit, so it makes more sense to make a 400-500% instant profit (on input cost) than wait 3-4 months for the same (with a risk factor). When mining profitability was higher they must have made a killing just 'testing' machines before making their first deliveries. I think the same cycle is gonna repeat itself with scrypt based coins.

 

[Sasuke_Itachi]

Copied from http://www.amazon.com/Bitmain-Antminer-S1-Blade-Bitcoin/dp/B00HL4MEG6/ref=sr_1_cc_2?s=aps&ie=UTF8&qid=1400672594&sr=1-2-catcorr&keywords=antminer
From my 1 week experience (in terms of profits), here is my calculation

1 week worth of mining = 0.21 BTC = $640/BTC * 0.21 = $134
1.5 days lost profit (due to me playing tag with FedEx) = 0.045BTC = $640/BTC * 0.045 = $28.8
Luckiness factor = 125% at Slush's pool for the past 7days
Electricity = $1/day * 7 = $7
Miner Depreciation = $999 / $949 = $150
Net Potential profit (assuming 100% luck and you started mining as soon as Fedex delivered the device)
= ($134 + $28.8) / 125% - $7 = $123.24 - $150 = -$26.76
My actual profit = $0.21BTC * $640/BTC - $150 - $7 = -$22.6

** In conclusion, it is highly unlikely that you will make money out of this device. The potential worth of BTC that can be mined (along with the profit margins/shipping overhead) is priced into the price of the miner **

 

[DigitalDude]

too late to the game... the low hanging fruits are all plucked


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Here's a funny thought : Why aren't the manufacturers keeping the machines and mining for themselves?

a bird in the hand is worth two in the bush



_

 

[rukmini]

Its better to get a Core i3 CPU with a 270x GPU and go bitcoin mining.

 

[psyph3r]

Its better to get a Core i3 CPU with a 270x GPU and go bitcoin mining.

Pure waste of electricity, you won't be able to mine anything plus you'll get a hefty bill.