Investing in crytocurrencies

[Thor]

Solo mining is actually the way to go if you have a powerful enough rig(s). Pool mining will become the norm if it becomes too difficult. What matters most is the GPU power as Eth seems heavily locked to GPU memory. I was planning Sempron rigs but have reverted back to my original Ryzen idea as that'll have better resale value. Still trying to source some cheap 8GB RX480's as these seem to have become as scarce as hen's teeth.

Not part of the topic but I would like to see what's going to happen if Eth ever becomes too difficult to mine as there is nothing to level up to unlike with Bitcoin.

What do you mean level up?

 

[Gtx Gaming]

Solo mining is actually the way to go if you have a powerful enough rig(s). Pool mining will become the norm if it becomes too difficult. What matters most is the GPU power as Eth seems heavily locked to GPU memory. I was planning Sempron rigs but have reverted back to my original Ryzen idea as that'll have better resale value. Still trying to source some cheap 8GB RX480's as these seem to have become as scarce as hen's teeth.

Not part of the topic but I would like to see what's going to happen if Eth ever becomes too difficult to mine as there is nothing to level up to unlike with Bitcoin.

You won't find any in SA, even rare overseas now.

Any stock coming in SA is all-ready on back order from the big miners.

I manage to get some rx 470s and 480s from the USA, hopefully have 3 rigs going by the end of the month.

 

[saturnz]

Kinda derailing my own thread here but what do you think of REITs?

Most things in finance look good on paper.

In my view however, in the last few years as hedge funds disappear and the money moves to these large pools of "algorithm" funds and faux collections where the money follows a leader (such as Blackrock), I've become very nervous about the systemic issues which may arise from large pools of money just flowing around. So if a crash happens, I am unsure whether these collections will amplify the shock or act as an automatic stabiliser- most experts are leaning towards the former.


Property is unique in the finance world since you can get relatively low risk debt to finance it, this finance is not available for any other asset. You should also know the benefits of leveraging which is why I keep harping on about property- with the proviso that location is extremely important.

So with that in mind I would rather leverage a property than put my residual wealth into a pool of money to be managed by someone or something.

That's my general comments, but given the current environment, I am more focused on risk management than actual returns, and will re-evaluate once the market corrects.

 

[Swa]

What do you mean level up?

ASICs and such.

You won't find any in SA, even rare overseas now.

Any stock coming in SA is all-ready on back order from the big miners.

I manage to get some rx 470s and 480s from the USA, hopefully have 3 rigs going by the end of the month.

The white Asus 8GB's are still available. It's the Sapphires that have a shortage.

 

[Thor]

ASICs and such.


The white Asus 8GB's are still available. It's the Sapphires that have a shortage.

Ethereum's difficulty is very different than that of bitcoin I'm not so sure I'll be jumping on the mining train in 2017.

 

[Swa]

Ethereum's difficulty is very different than that of bitcoin I'm not so sure I'll be jumping on the mining train in 2017.

What do you mean? At current levels a rig pays for itself in 4 months. Bitcoin actually has negative GPU mining returns.

 

[Mr Scratch]

Ethereum's difficulty is very different than that of bitcoin I'm not so sure I'll be jumping on the mining train in 2017.

View attachment 433654

It TRIPLED in the past 3 months.

 

[Mr Scratch]

What do you mean? At current levels a rig pays for itself in 4 months. Bitcoin actually has negative GPU mining returns.

What about in 4 months?

 

[Swa]

View attachment 433654

It TRIPLED in the past 3 months.

Well these are the same arguments people were saying 6 months ago and even a year ago. Will find plenty of comments in the last year that it's not worth starting to mine any more. Doom prophets will persist.

What about in 4 months?

Don't know what you're saying. In 4 months it pays for itself then you also have the hardware to sell later.

 

[Alton Turner Blackwood]

Ethereum's difficulty is very different than that of bitcoin I'm not so sure I'll be jumping on the mining train in 2017.

They're capping the number of ether at 400mil or something like that at the end of the year. So ud you're going to mine, start yesterday.

Use a cheap CPU, there an As rock board made specifically for mining, I can take 5 or 6 RX470's (the best bang for buck card) . Total power draw from the wall is around 1100w(overclocked), so you better get a juicy PSU.

I was going this route, but the initial capital outlay is a bit much.

I'm selling all my shares in local companies, screw it. Over the last few weeks ethereum went up like 1000%

 

[Thor]

View attachment 433654

It TRIPLED in the past 3 months.

Exactly my point

 

[Thor]

They're capping the number of ether at 400mil or something like that at the end of the year. So ud you're going to mine, start yesterday.

Use a cheap CPU, there an As rock board made specifically for mining, I can take 5 or 6 RX470's (the best bang for buck card) . Total power draw from the wall is around 1100w(overclocked), so you better get a juicy PSU.

I was going this route, but the initial capital outlay is a bit much.

I'm selling all my shares in local companies, screw it. Over the last few weeks ethereum went up like 1000%

PM me. Let's talk.

 

[Swa]

Exactly my point

The value more than tripled in the past 3 months.

 

[Idiosyncratic]

The value more than tripled in the past 3 months.

Swa, do you mind outlining for us exactly what you're up to in terms of mining (well, your plans)? I pm'ed Thor earlier today and I'm inclined to agree with his view on the potential profitability. Your forecasted ROI seems almost too good to be true - I'm all ears though, and very keen on this myself. I just don't see the point in mining (in terms of effort on my part and what not) and then only breaking even 10 months from now, and from then on only make a little bit.

 

[Swa]

Swa, do you mind outlining for us exactly what you're up to in terms of mining (well, your plans)? I pm'ed Thor earlier today and I'm inclined to agree with his view on the potential profitability. Your forecasted ROI seems almost too good to be true - I'm all ears though, and very keen on this myself. I just don't see the point in mining (in terms of effort on my part and what not) and then only breaking even 10 months from now, and from then on only make a little bit.

You're looking at it from the wrong perspective. Mining brings in profit from day one and if it doesn't pan out you can just sell to get back what you paid. Investing it can either go up or down and if it does there's nothing to hedge against. Mining isn't as heavily linked to the price.

Where people are making the mistake is in looking only at the difficulty. The reality is that the difficulty has followed the price. Not really a surprise as more value makes it more attractive but it does mean the payouts have remained rather constant. Actually the price graph has led so the ROI has gotten a bit shorter over time. The difficulty has tripled the last 3 months but the value has double the last 3 weeks so something weird is happening in fact.

I can only give you the figures others have stated atm, ROI is usually in the region of 6 months at past rates. It varies greatly with hardware used and how finely it's tuned but that is the general consensus. That's also without a value increase. If you happened to have mined last year and kept then the current rate would have halved your ROI period.

I wish I could give more info but I'd only be able to do that once I have everything up and running.

PS: And btw I'd be using my planned new Ryzen rig initially so if it doesn't work it wouldn't be a waste.

 

[Idiosyncratic]

You're looking at it from the wrong perspective. Mining brings in profit from day one and if it doesn't pan out you can just sell to get back what you paid. Investing it can either go up or down and if it does there's nothing to hedge against. Mining isn't as heavily linked to the price.

Where people are making the mistake is in looking only at the difficulty. The reality is that the difficulty has followed the price. Not really a surprise as more value makes it more attractive but it does mean the payouts have remained rather constant. Actually the price graph has led so the ROI has gotten a bit shorter over time. The difficulty has tripled the last 3 months but the value has double the last 3 weeks so something weird is happening in fact.

I can only give you the figures others have stated atm, ROI is usually in the region of 6 months at past rates. It varies greatly with hardware used and how finely it's tuned but that is the general consensus. That's also without a value increase. If you happened to have mined last year and kept then the current rate would have halved your ROI period.

I wish I could give more info but I'd only be able to do that once I have everything up and running.

PS: And btw I'd be using my planned new Ryzen rig initially so if it doesn't work it wouldn't be a waste.

Mm, I agree with the hedging aspect. And yes, it's indisputable that it's has been profitable until now and will remain so for a while to come - at least.
So your new daily machine will be used for this, or will you be using the Ryzen exclusively for mining?

 

[Thor]

You're looking at it from the wrong perspective. Mining brings in profit from day one and if it doesn't pan out you can just sell to get back what you paid. Investing it can either go up or down and if it does there's nothing to hedge against. Mining isn't as heavily linked to the price.

Where people are making the mistake is in looking only at the difficulty. The reality is that the difficulty has followed the price. Not really a surprise as more value makes it more attractive but it does mean the payouts have remained rather constant. Actually the price graph has led so the ROI has gotten a bit shorter over time. The difficulty has tripled the last 3 months but the value has double the last 3 weeks so something weird is happening in fact.

I can only give you the figures others have stated atm, ROI is usually in the region of 6 months at past rates. It varies greatly with hardware used and how finely it's tuned but that is the general consensus. That's also without a value increase. If you happened to have mined last year and kept then the current rate would have halved your ROI period.

I wish I could give more info but I'd only be able to do that once I have everything up and running.

PS: And btw I'd be using my planned new Ryzen rig initially so if it doesn't work it wouldn't be a waste.

If are going the rig way, fkc the ryzen cpu's get a cheap celeron instead, you won't be using the cpu at all. So rather use the money saved to buy another gpu or better 1000watt psu.

 

[Swa]

Mm, I agree with the hedging aspect. And yes, it's indisputable that it's has been profitable until now and will remain so for a while to come - at least.
So your new daily machine will be used for this, or will you be using the Ryzen exclusively for mining?

Exclusively for mining. If I make enough to get replacement machines then so be it but otherwise if it becomes unprofitable it will become my daily machine.

If are going the rig way, fkc the ryzen cpu's get a cheap celeron instead, you won't be using the cpu at all. So rather use the money saved to buy another gpu or better 1000watt psu.

That was my second plan but celeron systems are going to be worth next to nothing when the mining craze is over. A new AM4+Ryzen will still have most of its value after a year and I would have been buying one in any case.

 

[AchmatK]

Interested in joining as well.

@Swa I'm not all to clued up in hardware terminology. Can you PM specifications of your rig you planning, hardware, software and OS and any other links to getting started on Eth. I have some cash available, about R18k, to get me started on a decent rig. Could probably increase it by a few K.

 

[Thor]

Exclusively for mining. If I make enough to get replacement machines then so be it but otherwise if it becomes unprofitable it will become my daily machine.


That was my second plan but celeron systems are going to be worth next to nothing when the mining craze is over. A new AM4+Ryzen will still have most of its value after a year and I would have been buying one in any case.

Resell value will be in the GPUs primarily, but I get what your saying.

Interested in joining as well.

@Swa I'm not all to clued up in hardware terminology. Can you PM specifications of your rig you planning, hardware, software and OS and any other links to getting started on Eth. I have some cash available, about R18k, to get me started on a decent rig. Could probably increase it by a few K.

Celeron cpu
4gb ram
Small SSD 64gb should do
Motherboard with 6 pci slots (does not have to be pci express 3)
2 - 6 Nvidia 1070s as you won't be able to get any AMD 470/480 cards anymore unless you are very lucky.
1000 watt psu (assuming you go 6 cards.)