MS Through Bitcoin Mining

Old Oct 16, 14, 9:26 am
  #16  
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There are a few nuances. ZenHashlets mine their own pool that has seen constantly larger payouts than you can get anywhere else.

The other key for MS is to not keep the miner until it ROIs. For MS, you want as quick a turnaround as possible. Therefore the goal is to mine until you mine all the fees you expect to be charged and to a point where you can reliably list on the market and someone will buy it. My target has been $18. So difference between $21 and $18, you need to mine about $3 worth to cover. Then you sell it and convert the BTC you get from selling into fiat.

Just for comparison, the payout per MH on the zenpool is 0.00057012 BTC. Take that multiply it by your USD rate of 390 is ~0.22. Subtract the maint. fee of 0.08 you get $0.14. Then take that and divide $3 by 0.14 and you get about 22 days to mine $3. Expand that to 30 days in case of rate fluctuations and whatnot. That's a lot more than the calculator prediction. Not to mention zenpool is currently low and everyone expects it to go back up to 0.0006.

If you are considering this. Start slow. Get just 1MH. See how the system works and see if you like it.

Last edited by aegistar; Oct 16, 14 at 9:37 am
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Old Oct 16, 14, 10:53 pm
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aegistar,

How come the payout you say ZenHashlets return is different from the payout I get when running the numbers on a BitCoin calculator? That doesn't make sense to me. A machine running at 1 MH/s is slow with the current difficulty. I just don't get why you get paid many orders of magnitude higher mining BTC on that pool, than what you would get if you were running the 1 MH/s miner at home.
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Old Oct 17, 14, 2:20 am
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Kudos on the innovative thinking and bleeding edge approach to MS. But I think (as it's been pointed out), the transaction costs and risk makes it very challenging and unlikely to have long term repeatable success. At the very minimum one should break even (minus a small transaction cost), and in a perfect world, come out slightly ahead. But the fluctuation in Bitcoin price makes this hard to manage. It may be easier to just buy gold or silver bullion and resell it. Yes the price for those commodities fluctuates, but at least you can get a general sense of macroeconomic conditions. Bitcoin for the majority of people still have not been able to equate in economic terms as easily.
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Old Oct 21, 14, 6:44 am
  #19  
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Originally Posted by luv2ctheworld View Post
Kudos on the innovative thinking and bleeding edge approach to MS. But I think (as it's been pointed out), the transaction costs and risk makes it very challenging and unlikely to have long term repeatable success. At the very minimum one should break even (minus a small transaction cost), and in a perfect world, come out slightly ahead. But the fluctuation in Bitcoin price makes this hard to manage. It may be easier to just buy gold or silver bullion and resell it. Yes the price for those commodities fluctuates, but at least you can get a general sense of macroeconomic conditions. Bitcoin for the majority of people still have not been able to equate in economic terms as easily.
Yup, I completely agree. It was why I was very apprehensive about posting about this since the last thing I want to do is lock up people's money in a risky venture.

I think people who are into bitcoin will find this interesting and easier to handle.
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Old Oct 21, 14, 6:51 am
  #20  
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Originally Posted by andres17 View Post
aegistar,

How come the payout you say ZenHashlets return is different from the payout I get when running the numbers on a BitCoin calculator? That doesn't make sense to me. A machine running at 1 MH/s is slow with the current difficulty. I just don't get why you get paid many orders of magnitude higher mining BTC on that pool, than what you would get if you were running the 1 MH/s miner at home.
It's different due to to quite a few reasons. I believe when you ran your calculator, it was for a Scrypt coin, most likely Litecoin. The calculator calculates your return based solely on mining Litecoin. However, there are many other coins out there you can mine. Mining Altcoins can be risky (as payouts could be lower than Litecoin) but sometimes rewarding as well (usually mining a new coin can provide better payouts for a while). If not mining a different coin, one can also rent out their hashrate to other companies and generally these buyers of hashrate will pay more than the Litecoin payout. (checkout betarigs.com, see their renting prices normally higher than Litecoin payout) No one knows what the combination GAW employs on the ZenPool (hints have been dropped that it's a mixture of mining altcoins and renting out hashrate to bigger companies).
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Old Jan 1, 15, 8:10 pm
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it may be worthwhile for any members who live in a college dorm and don't pay their own electricity costs. i know individuals who did this 2 years back. But stopped long ago due to difficulty. but again, the biggest issue is the down time waiting for return and uncertainty. Not worth it in my opinion. I would't take out/float between a number of cards a loan (especially at cc interest rates) in such a volatile venture.
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Old Jan 2, 15, 2:05 am
  #22  
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Originally Posted by pstravels View Post
it may be worthwhile for any members who live in a college dorm and don't pay their own electricity costs. i know individuals who did this 2 years back. But stopped long ago due to difficulty. but again, the biggest issue is the down time waiting for return and uncertainty. Not worth it in my opinion. I would't take out/float between a number of cards a loan (especially at cc interest rates) in such a volatile venture.
The method that OP described doesn't involve any type of additional electricity cost, since it doesn't require actual equipment to mine bitcoin Instead, you pay a "share," if you will, that's hosted by someone else and the you get a % of the earning, by buying (with a credit card) and selling those "shares" (cloud miners).

But it looks like they are not selling miners anymore...at least not in stores where you could pay with a credit card, just Bitcoins.
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Old Feb 20, 15, 10:34 pm
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With great risks come great rewards.
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Old Feb 20, 15, 10:54 pm
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Originally Posted by TTnC4me View Post
With great risks come great rewards.
Who said that, Ghandi?
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Old Feb 21, 15, 9:21 am
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Originally Posted by tsz View Post
The method that OP described doesn't involve any type of additional electricity cost, since it doesn't require actual equipment to mine bitcoin Instead, you pay a "share," if you will, that's hosted by someone else and the you get a % of the earning, by buying (with a credit card) and selling those "shares" (cloud miners).

But it looks like they are not selling miners anymore...at least not in stores where you could pay with a credit card, just Bitcoins.
We've actually started Bitcoin mining over the winter, and plan to stop when summer rolls around. The extra heat from all the mining servers in the house is welcome!
I figure the money I'm saving on oil heat is an MS bonus. I don't have solid numbers yet, since we just started, but I suspect this will be a big money maker for us.
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Old Feb 21, 15, 1:56 pm
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MS Through Bitcoin Mining

What mining rig are you using?
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Old Feb 21, 15, 2:21 pm
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Bitcoin prices have been in a fairly steady decline since MtGOX went belly up.

For those that don't know, MtGOX was the main bitcoin exchange. MtGOX stands for Magic The Gathering Online Exchange; it started out as a place where Magic the Gathering players could buy/sell stuff.

Bitcoin's market is being undermined by similar product offerings out there - LiteCoin, Peercoin, Primecoin, Namecoin, etc. Besides, confidence in fiat currencies has returned for most out there.

There's an increasing supply and decreasing demand for bitcoin. I don't see any economic shock on the horizon that will cause bitcoin to spike in price again.
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Old Feb 21, 15, 3:19 pm
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Not to mention the demise of SilkRoad which was the best place to spend your BTC.
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Old Feb 21, 15, 4:06 pm
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Originally Posted by Father-of-3 View Post
Not to mention the demise of SilkRoad which was the best place to spend your BTC.

When Tim Draper won auctions on Silk Road's BTCs, the 'street' value of the BTCs was $566.67/BTC. http://www.forbes.com/sites/kashmirh...tcoin-auction/

Today, BTC is priced at $245.67. That's one heckuva haircut in less than 8 months. I wouldn't be surprised to see BTC at less than $100 by the end of 2015. It's just another fad, like Beanie Babies.
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Old Feb 21, 15, 6:03 pm
  #30  
 
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MS Through Bitcoin Mining

It seems difficult to find a legitimate vehicle to short it.
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