Should I invest in an ASIC Miner

[5tephenm1o5]

So I collected all of my thoughts on these things and I have decided to not invest in the cryptocurrency market. I think it will become too competitive and I also think that taxes will be the final killing blow for them. I spent some of the money I was going to invest on ASIC Miners on normal investments and I am making a healthy return already,

ya my friend ordered his 1 year and 8 months ago and he hasn't received anything so ya. my advice is invest everything you own in nortel.

 

if u didn't relize im kidding DO NOT INVEST IN NORTEL

[5tephenm1o5]

Just to ask how did you get that kind of speed on your internet. How is your internet connected top your computer. 

well my 2 gbit are split between 2 or 3 computers and a few ipads but i have a fiber business line to my house and i also have a differant back up line from a different company that is 500 down 250 up and my lan card has 4 ethernet slots so i can ad some times do get 2500 mbit when my family is out of the house

[SteepGnomeKing]

No I do not think this is a smart investment. The miner from butterfly labs has no power usage information last time I checked. It might cost you a little to buy but to power it could cost you more than you even make.

 

Here's the way I see it. Here you are wanting to get into something like this so you buy one of these machines. The power draw is a bit higher than expected but you still make a 50-100 Pretty good. $170 more to go to break even and start making money. Next month, well the difficulty just got harder because you and hundreds others with this machine and even more powerful ones are chugging along throwing massive hash rates into the equation. So you only make $50 still a profit could be worse you could be losing money, like you will be in a matter of time. 

 

These systems haven't even been shipped yet. They have been in production or almost 2 years. They do promise the hash rate they said they will get but at what cost. You get a 4.5ghash for 275 and get it months later while someone else with a bit more money than you decided to bite buy the 500ghash machines. Now just that one person has increased the difficulty up so much you are being watered out. You might as well start mining bitcoins with your cpu at this point now and expect the same results.

 

With that machine at this current time you would be getting over 2 bitcoins a month. But that # will be going down and down as the difficulty rises

[ProGearUk]

well my 2 gbit are split between 2 or 3 computers and a few ipads but i have a fiber business line to my house and i also have a differant back up line from a different company that is 500 down 250 up and my lan card has 4 ethernet slots so i can ad some times do get 2500 mbit when my family is out of the house

I am confused because speedtest.net uploads and downloads from your computer not the modem that brings the internet to your house so I am confused on how you can hvae that kind of speed for one computer. What kind of connection are you running for the computer in terms of a network connection.

[BenDreadful]

The miner from butterfly labs has no power usage information last time I checked. It might cost you a little to buy but to power it could cost you more than you even make.

 

I don't think the power usage is huge, don't these miners run off of your USB port?

[albino_enchilada]

I belevie the (+/- %10) on their weebsite means the hashrate will fluctuate around 10% not it runs at 10% of 5gh/s.

[albino_enchilada]

And here's why you shouldn't get one.

[tyler555g]

Everyone Listen to Me. Please. This is important.

 

You should NOT buy an ASIC Miner. Here's why:

 

The problem Butterfly Labs is having is they priced these units too low. They had requests for way more than they anticipated. They are going to release these in stages for this reason: When all of these units come into the market at 5GH/s the mining difficulty will sky rocket. Therefore, by the time the people who are in the last stage of the release of these units get their's it will be practically useless and a wasted investment. The stages of the releases are first come first serve, so if you buy one now guess what stage you will be in? Basically, Butterfly Labs screwed themselves and the rest of the bitcoin industry.

 

Now you might say I'm wrong and this will never happen/ I will always be able to make money with bitcoin. Think for a second. What is the purpose of bitcoin? It's a currency. Can you just endlessly print money and have a stable currency? What is a currency? A store of value. What is something of value? An item or service that can be exchanged for other item's or services. So a currency must be backed up by something of value. In the United States that was gold. It isn't anymore, but it used to be. Why isn't it now because we trust it. Why because it remains to be a store of value. My point is that currency needs to be backed up by something of value in the case of bitcoin it is investors and miners. Miners are providing a service, albeit useless one, and investors are well investing in it. So eventually the investing and mining will stop and bitcoin will turn into a stable trustworthy currency. There are more factors than that, but that's as I see it in a nutshell.

 

Now how does that whole above paragraph effect you?

You can't endlessly mine bitcoin for profit it's like printing money endlessly. Eventually the mining difficulty will become so great that only huge companies will make any sort of profit, a very small one at that.

 

That ladies and gents is why you should not Invest in an ASIC miner. Instead buy something with much much more power than the 5gh/s that uses the latest gen technology because that will be the only way you will make money until the difficulty overpowers the advancement of technology.

 

Or you could you know, Invest in your local stock market and help out your finances in your own country. :P You could even invest in dot.coms or your favorite web based business. It's risky business though. Good Luck. Thank You a lot if you actually read this and please share with others.