Crypto-currency (bitcoin/litecoin) mining investment.

lego101

Hi , I've been running private mining rigs for a while and looking to expand.

If you are unfamiliar with "mining" , it is basically confirming transactions for other users on the network, and you get paid in the currency's coins for this. Lots to be found online explaining everything.

Now I'm looking to substantially expand, I'd like to see if anyone on boards would be interested in investing in mining rigs. I'd split the coins generated about 20/80 to you and I'd be in charge of making sure everything is ran smoothly and the most profitable coin is always mined. No effort on your side.

ROI is usually about 8 months - 1 year, if prices stay stable and difficulty rises at the estimated rate. After your investment is returned, the rigs will continue to mine until it becomes un-economical to mine, at that point the rigs can be sold for about 40% of what they were bought for. If the price of coins increase then the ROI will decrease also.

If enough interest was there, a small warehouse could be rented to run these. The bigger the investment the better as more buying power puts down the initial cost. There is even potential for multiple investors here.

If anyone is interested I'd like to know! I'm based in Galway by the way. But There is no need for the investor to be based here too.

lego101

lego101 wrote: »

ROI is usually about 8 months - 1 year, if prices stay stable and difficulty rises at the estimated rate.

What initial investment are you basing that on? Also, based on what Bitcoin price? Versus what price per KWH of mining?

Just wondering...

lego101

Rojomcdojo wrote: »

What initial investment are you basing that on? Also, based on what Bitcoin price? Versus what price per KWH of mining?

Just wondering...

I wont be mining Bitcoin as it is no longer profitable.
At the moment I'm mining Litecoin / Dogecoin and then exchanging it for Bitcoin, or leaving it as Litecoin as I see Litecoin prices rising in the near future. Each rig would cost about €2,000 and mine at 4.5 M/hash. Probably using about 2KW each.

That would leave a 280 day return, and making 265$ a month after power costs ( 0.2$/KW ). Hopefully if there is enough rigs going I could get the electricity for cheaper. Without power costs they make 533 $ a month.

Stingerbar

what would be the specs on the rigs? which cards and how many of each?

lego101

I'm looking at 6 x R9 290 TRI-X OC on each board, capable of 900 M/hash each easily. AS-Rock BTC Motherboard and 3 x 750W PSU.
That is the most economical rig at this time, it may change if a better solution arises.

12 element

Seems like you'll be making a loss of about $300 a month using your figures here:

http://minercharts.com/?curr=0.20&prod=4500&cons=2000&investment=2730&currency=USD&investstart=2014-02-26&datefrom=2013-08-29&dateto=2014-08-26&diff_perc=10&bc_perc=

Seems pretty similar if you change to LTC.

The Dagda

Have you looked at Maxcoin?

I would have some confidence in Max Kaiser's ability to create a stable trading environment, which could make it the standard crypto-currency in the future...

lego101

12 element wrote: »

Seems like you'll be making a loss of about $300 a month using your figures here:

http://minercharts.com/?curr=0.20&prod=4500&cons=2000&investment=2730&currency=USD&investstart=2014-02-26&datefrom=2013-08-29&dateto=2014-08-26&diff_perc=10&bc_perc=

Seems pretty similar if you change to LTC.

http://www.coinwarz.com/calculators/litecoin-mining-calculator please use this , of course I am not mining bitcoin with GPU's .

lego101

The Dagda wrote: »

Have you looked at Maxcoin?

I would have some confidence in Max Kaiser's ability to create a stable trading environment, which could make it the standard crypto-currency in the future...

Thanks for the info! I will read about maxcoin tonight as I'm not too familiar with it yet.

The Dagda

lego101 wrote: »

Thanks for the info! I will read about maxcoin tonight as I'm not too familiar with it yet.

Please contact me when you have a view on it. I'd be interested in getting your view and may be interested in investing.

Stingerbar

Lots of potential and flexibility

Mine one coin only
Mine new coins only (24/48 hour period)
Mine the most profitable coin only from a multipool and convert to BTC (many can auto-convert)
Stick to the main coins (litecoin, peercoin, dogecoin)

I'd go for mining a main profitable coin (perhaps from a basket of 5 to 10 good coins)

then have a one miner pointed at perhaps newly announced coins (so you can pull a huge amount in at very beginning) or at a multi-pool in case one coin really takes off (although most seem to be temporary fads and market getting more and more diluted)

As they say, diversify your portfolio - and you'll never get done if one stock tanks

Unfortunately with crypto's most seemed tied to the fortunes of Bitcoin, if that goes up, they all go up, just with greater or lesser degrees of variance

lego101

Stingerbar wrote: »

Lots of potential and flexibility

Mine one coin only
Mine new coins only (24/48 hour period)
Mine the most profitable coin only from a multipool and convert to BTC (many can auto-convert)
Stick to the main coins (litecoin, peercoin, dogecoin)

I'd go for mining a main profitable coin (perhaps from a basket of 5 to 10 good coins)

then have a one miner pointed at perhaps newly announced coins (so you can pull a huge amount in at very beginning) or at a multi-pool in case one coin really takes off (although most seem to be temporary fads and market getting more and more diluted)

As they say, diversify your portfolio - and you'll never get done if one stock tanks

Unfortunately with crypto's most seemed tied to the fortunes of Bitcoin, if that goes up, they all go up, just with greater or lesser degrees of variance

Thanks for the tips Stinger!! Greatly appreciated, so much knowledge here on boards.

Yes I hope to be mining the most profitable coins, and then converting to one of the bigger coins. I rather not go through a multi-pool as difficulty rises faster with the bigger power, but I'll be testing soon to see if makes much of a difference.

Yes Bitcoin seems to lead the pack, but I have good belief that its price will rise slowly without great falls.

lego101

The Dagda wrote: »

Please contact me when you have a view on it. I'd be interested in getting your view and may be interested in investing.

Hi Dagda,

I don't see the potential in Maxcoins, maybe I'm missing something but they don't seem to have great profitability compared to other coins out there.
I can see that buying them and expecting the value to rise may work but I think its a risky investment with a lower guaranteed return compared to mining. Mined coins could be exchanged to Maxcoins and held if thats where your interest lies.