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Thinking of jumping back in

Discussion in 'Crypto Currency & Mining' started by SiDeards73, 2 Sep 2020.

  1. SiDeards73

    Soldato

    Joined: 19 Feb 2011

    Posts: 5,843

    Got out of mining at the end of the first big crash back when we was all using 290's and 270's etc, recently been thinking about running a 6 x 5700xt setup mining Ethereum.... is this totally not worth it anymore? ive heard rumours of Ethereum prices going up? resale on the stuff would rake back a bit of dosh, whats the ROI like? about 4-5months?

    Looking around the £3k mark i guess as initial outlay for all GPUs, mobo, CPU, Ram, 1200w PSU, Riser cables, Mining Frame etc...

    Is this just wasting money nowadays? or is there enough return to be had? was looking at something like Betterhash, but im pretty sure its more viable doing it directly rather than through something like that?

    any thoughts?
     
  2. Telecaster

    Soldato

    Joined: 17 Jun 2012

    Posts: 5,169

    Here you go, plug in 6x 5700XT and see what you get, not a fool proof way to figure out an accurate ROI but it might give you an idea

    What to Mine
     
  3. KentMan

    Hitman

    Joined: 14 Dec 2016

    Posts: 949

    So roughly £20 a day return it seems, about £600 a month at current rates, obviously if the rate goes up ROI us paid back sooner, equally if it drops you may never get initial investment back outside if what you can recoup for selling the gpus.

    Might keep an eye on Ethereum for a week or two and watch what it does
     
  4. SiDeards73

    Soldato

    Joined: 19 Feb 2011

    Posts: 5,843

    Yeah im thinking the same to be fair, not sure if its worth the hassle for roughly 20 quid a day though, especially if it dips below where it is now
     
  5. Telecaster

    Soldato

    Joined: 17 Jun 2012

    Posts: 5,169

    Bearing in mind the current rate has only happened very recently and up until then mining was pretty much at a loss, so I wouldn't base it on earning current rates for the next 6 months solid.
     
  6. illuz

    Mobster

    Joined: 27 Apr 2012

    Posts: 3,434

    Better off putting the money in directly, just my opinion :)
     
  7. MrWhippy

    Wise Guy

    Joined: 15 Sep 2005

    Posts: 1,550

    Suppose if you aren't cashing it out as you go and can just hoard it long term, doesn't much matter what the current price is, just needs to be high enough at some point in the future so you can take your winnings then.

    Oh, and of course, you need to notice and act on that day and not miss it as it peaks and then bombs to spite you.

    :p
     
  8. Shilz

    Hitman

    Joined: 16 Jan 2006

    Posts: 551

  9. dowie

    Caporegime

    Joined: 29 Jan 2008

    Posts: 49,639

    That makes no sense - of course it matters what the current price is, if you're mining at a loss then that's just utterly pointless.
     
  10. Th0nt

    Capodecina

    Joined: 21 Jul 2005

    Posts: 10,502

    Location: N.Ireland

    Two things that may affect short term value of ETH.

    1) People anticipating the 2.0 release and to stake need what 20? so they are buying it up
    2) DEFI and giveaways mean that transactions on the network shot up a lot so miners got rewarded much more than normal.

    Yes its all been a bit meh mining the past months but if you have a fantastic electricity rate you can still make a profit. If it does dip it isnt going to be huge. If there is a moon burst you will only kick yourself you didn't buy some or accumulate some via mining.
     
  11. ubersonic

    Capodecina

    Joined: 26 May 2009

    Posts: 21,031

    Now probably isn't a good time to be jumping in as returns are falling while the price is holding which means there's currently a surge on in hashing power being added (probably from all the RTX 3xxx series cards entering Chinese farms) so you will never achieve the potential returns currently being indicated on Nicehash/etc.


    Try telling that to everybody who ever made decent money mining crypto lol.
     
  12. dowie

    Caporegime

    Joined: 29 Jan 2008

    Posts: 49,639

    That they left a load of cash on the table/were a bit dumb?
     
  13. 200sols

    Soldato

    Joined: 14 Jan 2018

    Posts: 5,789

    Location: Hampshire

    Only if you need to cover the electricity, I started mining litecoin in 2012 I think it was, they were worth peanuts but you mined so many it was enough to cover the electricity if you needed to. I can tell you I am glad I held on to these coins, if I had sold at the current price in 2012 to cover the electric I would be crying myself to sleep every night.
     
    Last edited: 19 Oct 2020
  14. dowie

    Caporegime

    Joined: 29 Jan 2008

    Posts: 49,639

    No it isn’t conditional on anything - mining at a loss is pointless.

    What do you mean by covering electricity? Do you mean not making a loss?
     
  15. 200sols

    Soldato

    Joined: 14 Jan 2018

    Posts: 5,789

    Location: Hampshire

    I chose to pay the electric cost myself rather than selling coins to cover that cost. So you could say I was mining at a loss at the time, however I sold my coins at closer to £100 each rather than 5p. Small scale mining is more of a hobby now anyway, there is no money in it. Better to just buy coins if you dont enjoy setting up and fiddling with a rig.
     
  16. dowie

    Caporegime

    Joined: 29 Jan 2008

    Posts: 49,639

    Whether you sold at a profit at a later date or not is irrelevant. If you're able to sell coins to cover the cost of electricity then you're probably not mining at a loss (aside from possible depreciation re: and GPUs you've bought), whether or not you actually do so is irrelevant too.
     
  17. MrWhippy

    Wise Guy

    Joined: 15 Sep 2005

    Posts: 1,550

    It's not pointless at all. Holding any form of crypto currency is a gamble. Or a calculated risk if you'd prefer to kid yourself that you actually know what everyone else is going to do.
    If you mine a coin today, and have to cover the electric out of your own pocket, but next year that coin goes to the moon, you win.
    Is it risky, yes.
    Is it gambling, yes.
    Are some people doing this, yes.
    Will some of them get rich, possibly.

    Just to be clear, nothing is lost - not even the electric cost - until the coin is sold.

    Maybe you just don't understand it.
     
  18. dowie

    Caporegime

    Joined: 29 Jan 2008

    Posts: 49,639

    No, it's pretty clear you don't understand it.

    Mining at a loss is pointless, you're actively accepting a mark to market loss on something. At the time you do it you're basically just throwing money away.

    What is the logic behind doing that as opposed to just buying the coin you wish to hold?
     
  19. EssexBoy

    Wise Guy

    Joined: 13 Jun 2013

    Posts: 1,318

    Location: Essex/East London

    100%

    The only time i would say Whippy is right is when the coin is new and not on any exchanges yet.
     
  20. Th0nt

    Capodecina

    Joined: 21 Jul 2005

    Posts: 10,502

    Location: N.Ireland

    Two points to wade in on.

    1) Whippy isnt wrong, if your token/coin goes up in value and you have been holding till it does so, its only when you cash in does the electric cost become measurable. If you have been mining 'at a loss' because its value is lower than consumption costs it doesnt matter until you exchange or worse case the coin goes to zero/forks/dies.
    2) You can get benefits when setting up rigs to heat the home. I did this back in 2012 and we temporarily lived in a really small rent abode, I only needed an oil filled radiator for another room and the rig I had kept the place warm. In this instance I was by proxy - passively heating and still mining and it worked in my favour.

    Yes when the market is weak or crashed your better off buying the tokens direct if you want straight up investment value, but there are times mining pays off, we are currently on a bull run not far off the 2017 ATH so profitable mining has returned for some, its just not the gravy train it was years ago.