what do people think about this miner currently sitting around 3200$ in yearly profit at current pricing. do you guys think this miner has seen it day or with a good market they could have a come back ? found a few of them for about 8500$ each
They’re currently producing $7.70/day net of electricity at assumed $0.12/kWh. At $8500, it’s about 3 years before you’d break even on your investment, i.e. ~$2800 net per year
Even if you believe in the future price trajectory of LTC and DOGE, the new LT6’s will start ramping up the global hashrate as will the (mythical?) L7’s once those ship and are fired up. When these new gen rigs start hashing, mining difficulty will almost certain rise significantly.
So even if the prices of LTC and DOGE double, by later this year, the LT5 Pro might still only be producing <$10/day. While I realize that hashrate vs difficulty vs coin price isn’t necessarily a set of linear relationships, there is significant correlation. But perhaps there’s some dynamic that I don’t fully appreciate. So please, dyor and don’t go by my take.
And in the interest of full disclosure, I have a LT5 Pro. But it’s been hashing in my garage since early August. So I’ve recovered a significant % of my initial cost (and I’ve relatively cheap residential power).
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I know the difficulty is shooting up big time to the tune of 9.16% in the next 25 hours to 14.33m so I’m guessing the L7 are going online. The price of the coins need to go up bad.
thank you lot of good point I didn’t think about ! I completely spaced the new miner were out !
Isn’t all of this true for every single miner you can buy for under 8000 right now? Unless you are in it for long term … NONE of these miners even make sense with the prices of the coin and miners right now.
@sc360mine Right now, yes I believe you’re right - across the board. Throughout Q3 and Q4 of 2021, ASIC rig prices rose disproportionally faster than the revenue that they produce - and have remained impractically high due to demand and an unusually tight supply of semiconductors. Too many people FOMO’ing into mining without running the math created such artificially high demand. The unsurprising result is that manufacturers and resellers are pricing their rigs accordingly at levels that would’ve seemed nuts just a year ago.
The poster boy for this pricing insanity is the KD5. Up until recently, resellers were asking $60k+ for these rigs due to their scarcity and high $/day return. Now if all the variables are held constant, i.e. coin price and difficulty, perhaps one could’ve justified a $60k price tag as breakeven was still <1 year. But KDA didn’t remain in the $20’s and difficulty didn’t flatten out but actually increased rapidly as an increasing number of new KD5’s and iBelLink BM series rigs started hashing.
As I type this, net revenue from a KD5 is ~$77/day. This is a fantastic passive income . . . if your KD5 already has recouped its initial cost. But if one bought a KD5 recently at $60k+, it represents at least a 2.1 year breakeven period - assuming difficulty doesn’t continue to go up as KD6’s start hashing (and Goldshell doesn’t announce an even faster KD7 late in 2022) and if KDA struggles to approach former highs.
IMO, mining is already going industrial and there will be little room for the individual in a few years. As margins compress, it’ll be the companies that can buy rigs in large volumes at prices unavailable to the little guy and who can locate next to cheap electricity sources that survive and earn worthwhile returns. Crypto mining basically is an arms race. Guys with a few ASIC rigs in their garage or basement are going to find it increasingly hard to economically justify replacing their older rigs with expensive (overpriced?) newer rigs that might still only earn $9-$12/day (I’m looking at you S19j Pros). There currently are much better passive returns available in crypto, e.g. yield farming, staking, bot trading etc. - unless rig prices drop dramatically due to lower demand (and not a sudden increase in ASIC chip supplies).
Of course, this is just one little guy’s opinion. What do I know? I hope that I’m wrong.
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I agree with you, I started mining in the first week of November and bought an antminer s9se and a goldshell x5, and two Rak goldspots. Everything is about 1/3 as profitable now. I’m looking at it as a learning experience and now I have some space heaters to heat my garage and make me a couple bucks a day lol. I think going forward I’ll be doing a lot more staking and yield farming, yeah the returns aren’t quite as good but you still have your original investment amount in your possession.
Buy the coin instead the miner, I dont see the point in miner which offers more than 1 year ROI