Should I buy mining equipment for Etheruem or buy the currency and others with $15,000 USD?
Let’s do some basic math.
To start mining with $15,000, you would need the following:
Motherboard MSI Z170A GAMING PRO CARBON - that supports 6–7 mining rig would cost $130.
Processor LGA1150 motherboard the Intel Celeron G1840 Processor and costs $56.
Power Supply Your system is going to be running 24/7 and using close to 1000 Watts of power non-stop, so you’ll want to drop some coin on a good model. So, you would need 80 PLUS Platinum rated power supply that is 1200W or greater. Enermax Platimax 1350W, Cost $240.
Let’s ignore, memory, monitor, keyboard, OS, Case etc.
Cost so far per mining rig= $130+$56+$240= $426
Video Cards AMD Radeon RX 470/480 and Radeon RX 570/580 video cards are all the rage right now when it comes to Ethereum mining, but they are extremely tough to find since they are all being bought to mine ether. Cost range $219 - $359.
7 Card Rig= $359*7= $2513
Cost per Mining rig in total= $426+$2513= $2939
So, with $15,000 you can have approx 5 rigs consisting of AMD Radeon RX 580 8G GDDR5 cards.
One card would generate= 22.5 mh approx
Hashes per rig= 22.5*7= 157.5 mh
Total Hashes 7 rigs= 157.5 * 5 = 788 mh
Now if we use Cryptocompare calculator with standard power consumption rates, this is what you should be getting APPROXIMATELY.
Which means that you will recover your $15,000 in about 9 months.
Now let’s see what you can get with trading.
Jul 16: ETH traded for $136. Imagine you bought with $15,000. Now you would be holding 110.3 ETH.
July 22: Sold for $219 (current rate) * 110.3 = $24155.7
Profit= 24155.7 - 15000= $9,155.7
Conclusion: Do you need one?
NOTE: Of course trading entails HIGH RISK.
**This post is a month older please update figures as per your requirement.**
Mining is a lot of fun (and time consuming too), but at the end, all hardware is a passive asset, that will loose value with time. Even if you recover your initial investment, and have a profit, at the end you would end up with a lot of money invested in hardware that could not be easily recovered. Other thing is power cost, witch make sense only if you could use solar power.
Cryptocurrency is an asset, in the worst case scenario, you could end up with a fraction of your money, and not with a bunch of hardware to sell and power bills to pay. I've tried both, and right now my return of investment for mining is 18 months, and until then I'll have a profit. On the other side, I invested buying bitcoins, ethers and ripples and manage to have a profit of 50% of my initial investment in just 2 months. But just as you said, it's a big risk. Take your decisions in a bad moment and you would loose part of your investment, but if you are meticulous you could gain a lot.
In conclusion, I'll rather invest that money in trading, but only if you are debt-free, and all your basics are covered (in other words, money you could loose without financial consequences).
Exactly what I wanted to convey. Another point that you raised about Solar Power is also very much true. If you can manage solar power, it would be great. But this tend to be an issue in western countries. As it would require some extra place and sun out all time. I find Asian countries very attractive for this sort of adventure. Solar equipment are also very much cheap as compared to western countries.
I wish I had more money, I would have jumped.
In my experience and others, mining is not very profitable, a pain in the butt, and to really make a go at it, you need to spend well over the $15,000 and get in EARLY. Definitely better to buy and hold, or trade. Just my humble opinion of course. :) I know some who swear by Genesis Mining, have an ANTMINER and they also use Hashpower something or other pool. Just not my deal. This article is very well written, and thanks for sharing.
You are right. It is a pain in the butt. But if you can manage 1000+mh with Solar Power, that would be great. It should cost you approx 30k dollars. I would not go by Genesis. I mean they don't even let you know how long your contract will last. I too prefer trading.
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Yah, i like the idea of mining but so far prefer trading. It may be worth it if you can mine a coin early. So far im trading, if i make a few bucks i may start a small rig. Just my 2 cents.
Trading is good. You are on the right track. It's early and you can cash on volatility.
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