i have a basic question on asic miners and their life expectancy/mining algorithm
lets say i bought an Antminer L7, and litecoin stays the same price for the next 5 years…would it be fair to say that the antminer will make the same return for the next 5 years?
in other words, do asic miners diminish ROI over time or do they stay the same (given the hardware doesnt manlfunction)?
those 4 year old miners that arent making very much today, were they making the same amount when released or did the return diminish due to whatever factors (more users, halving, etc.)?
To answer your question no, they will not make the same, as the more it mines the harder the difficulty gets, so yes, asic miners diminish ROI over time.
That is why Ideally you buy asic miners in batch when they first come out at retail price, then sell them after mining with them for 2 years, then sell them and replace them with newer generation of asic miners with higher hashing power, and repeat the process.
The ideal thing to do is buy as much asic miners as you can during the bear market when they get cheap, and then sell the batch of old ones that you want to get ride of during the bull marker at a price higher than what you paid when you first got them.
At least that will be my strategy, start with one S19j Pro and 2 L7, then keep getting some more miners as I get more revenue, and then sell the old miners that I think can squeeze some more profits out of after done mining with them during the bull market.
You are never meant to keep ASIC Miners more than 2 years, usually after that its downhill if you keep them.
i appreciate the quick reply…disappointing though, i cant afford to buy a bunch at once, but what you said sounds like a good strategy if you can afford the upfront costs
1 more q - do GPU mining rigs experience the same diminishing ROI? it seems like they might be better long term (at least for smaller coins), am i right on that?
They kind of do in a way, but they are much easier to resell since you can repurpose GPU’s for something else.
The same cannot be said about ASIC miners, once they start burning more electricity than what they make they will just become a very expensive paper weight.