Mining & ROI

Hi Everyone!

So I’m new to this whole mining thing but so far, really enjoying it! While determining it’s “value” I’m a little concerned with ROI however. I created a calculator because the current ones that I could find online weren’t instilling a lot of confidence in the coin. Turns out mine isn’t either!

For instance, if I’m mining with 2 8TB hard drives with a total cost around $325USD, I would expect to see something like $0.39/day solo mining with a network difficulty around the 350,000 mark. But that’s just to start. With the 5% reduction per month, I won’t ever see a return on my hard drives before BURST is totally mined out in 2029? (The actual amount mined is actually past this estimate)

Is that about what I should expect? Is my math way off? (Could be)

Which leads me to my second question. When all 2,158,812,800 BURST is mined out, what then? What’s the incentive to keep these hard drives online?

Either way, I think the PoC model beats PoW any day, especially if we can get some distributed storage online for cloud services. Middle Out??

Cheers!

Is your assumption in your calculations that BURST will stay the the price it is at today until 2029? While no one can predict how much it will climb that unknown is the one number that needs to be guesstimated.

Hypothetically what does your calculator say if BURST were to jump to $1.00 which does not seem so unreasonable.

Also SOLO mining with 16TB will not get you very far. Numbers quoted on the forum say that you should solo mine when you have at least 75TB or above. Stick to pool mining until then.

I am mining with 180TB and my probability of hitting a block is around 4.9% given the network capacity about one month ago. I hit a block around every 10-15 days and I pool mine.

Hope that helps

Hi Digidigm,

Thanks for the reply!

The solo mining is just and average. It would take on average (over a year?) 2 months for me to even mine a block… which would be ridiculous. I added in a pool calculation as well, but my Effective Capacity is pretty low still, so I haven’t even seen 10 burst yet in the last week between 0-100 burst-team and 0-100 cryptoguru.

I would absolutely LOVE to see BURST hit $1. I’m sure many others would as well. Since that’s a bit of an unknown, I have an appreciation calculation in there as well for monthly gains. If it appreciates 10%/mo, I’d recoup around October, 2019. Having the price jump 4000% or something per month doesn’t help us noobs too much at this point. If it did that today, I’d still only have $10.

I hear you and your right on all counts. But setting up a 16tb rig should not be all that hard to get up an running. I would reconsider the pool your planning on. Take a look at their deadline numbers. If it is a low number like days or a couple of weeks then that is too aggressive for a beginner miner like yourself.

Look for a pool with longer deadlines that caters to beginner miners. I am on http://ninja.burstcoin.ml/
I have been on it since Oct of last year. They are experimenting with a one year deadline Yiiiikkkessss

I have not moved off only from a loyalty perspective but I am sure I could maybe do better on another pool with shorter deadlines with the amount of TB I have. But getting to the top of the list for the most shares is sometimes better than being at the bottom of an aggressive pool with a ton of other whales in the same room is no fun or room for upward growth.

Sounds like you moved into a pool that might be somewhere in between hence.

I mean no disrespect and encourage new miners but if your that concerned about $325 and when you will see them back then maybe you should reconsider BURST mining. Truth be told if your personal hourly rate is say $15.00 could be hire or lower but using that as a base then you would of blown the $325 in 21 hours anyway. Hope that makes sense.

Someone once told me "You cannot Win if you are not In" That works only if there is some semblance of a profit in there somewhere. I started with 1TB and got hooked. The only thing I can hope for now is that it reaches $0.05 and would have doubled my investment.

Your mileage may vary.

I see crypto currencies more of a gamble than an investment. That being said I do it because I find it interesting and not as an ROI.

Thanks for the responses!

My goal is to keep adding in TB as I go. I had hoped that the mining would at least pay for itself after 6 months or so in BURST value. Lots of exciting news for 2018, so who knows? Maybe the BURST to USD will climb high! Just looking through the introductions thread here, it does seem like there’s a lot of interest.

So what’s the goal after all of the blocks are mined? It looks like there will be transaction fees, but will those be high enough to cover hardware & electricity cost?

Let me clarify that I’m asking these questions out of curiosity, not to be a Debby (sorry if you’re reading this and your name is Debby.) I want to see the whole platform take off and make practical sense for everyone involved, from clients using smart contracts, or decentralized storage to the current miners who provide the service. I’ve been fairly obsessed the last couple of weeks with it. Just trying to wrap my head around it.

The assumption is that after all of the coins are mined and profits drop, less people will mine. This would drive profits up. We should reach a balancing point where it is profitable enough for a smaller group of miners to stay on the network.

There is an unknown in the future when the block rewards run out. Of course, most people are assuming that Burst will increase in adoption and use, so then the transaction fees will also increase, along with price.

As the capabilities of Burst grows, I’m expecting the number of transactions to keep increasing.

There’s a lot up in the air, but if you have faith in the project, everything will work out :wink:

Just my opinion, and obviously many disagree given how fast the network size is growing.[1] :disappointed: I'm not allowed to post links :angry: so will use the wikiish footnotes

IMHO at this point the only reason to spend money on mining is for fun. (And I do, but not much.) Financially it only makes sense if using excess capacity or free equipment from/at work or recycle stations, etc. That’s part of the design of Burst concept – roughly same return per TB plotted so network is more decentralized.

Huge capacity miners are more & more every day, and rewards drop regularly on a schedule. Hopefully transaction fees and burst values rise, but no guarantees. So, yeah I figure buying equipment has ROI of more than 2 - 4 years depending on electricity, how fanatical you are for expensive gear, power costs . . . . Maybe shorter or a lot shorter. But maybe not. So if finance is the goal, and you anticipate rising Burst value, spend the money to buy and spend Burst instead of on hard drives. But do mine with whatever spare capacity you already have; it’s no less useful to the Burst network vs mining more. You won’t pay off your gear any faster if you buy 800TB than if you buy 16TB, so no reason to spend anything just to get Burst.

To support Burst, running a node and keeping it up and available is and will become more and more of value than mining. The wallet current version does it pretty transparently, and will get better. Also putting effort into however your particular skills and contacts could integrate Burst. Like these people setting up Burst commerce in a brick & mortar shop. [2]

Those go to answering your second question – the future is to go beyond just being a coin and becoming much more flexible in transaction, fees, incentive to exchange, utility of the plots. See “The Dymaxion explained in layman’s terms” Finally, check out the burstcoin discussions on Discord, but I can’t post an invite, sorry.

Google these:
[1] cryptoguru burst explorer charts
[2] daniel jones real world burst purchase
[3] burstcoinist dymaxion explained layman

1 Like

Hi kernel.of.rust, thanks for the response!

The Daniel Jones macaroon purchase is pretty awesome. I just installed the Burstcoin wallet app from the Google Play Store on my Pixel 2 and it works great just for checking out my balance. I doubt I’ll find anyone nearby to use it with, but if you’re reading this and you’re from Maine, let me know! … and I guess it would have to be pretty cheap since I only have 6 BURST. Ha!

I’m still really just getting into this whole thing, but I may look into creating a payment module for WHMCS at some point so that I can accept payments for website hosting in BURST.

Cheers!

1 Like

Yah thanks, oh, and I forgot, once all the coins are mined, there are still transaction fees, which by then should be worth at least as much as rewards have been.

1 Like

A bit of an amendment to my earlier response: I still feel like mining isn’t for everybody, but there is much more reason than fun to mine and spend money on mining. I was not analyzing value of options correctly. ROI in the simple sense was not looking at risks and several ways mining equipment would be valuable even without Burst. Here is a quote from the venerable Haitch. that says it very well:

And if I’m wrong and the Burst economy collapses, those that have just bought Burst will basically lose everything, whereas miners will have the infrastructure to participate in the next PoC coin, and you know there are going to be more, getting in at the beginning with significant mining capacity. So, basically I see investing in hard drives as a better investment than directly buying Burst.

And unlike GPU’s, HDDs do resell well - you can provide the SMART data from the drives and show that they have had a single drive capacity write, and a lot of reads. Reading doesn’t hurt the drives. A drive mined for 3 years is pretty much in the same condition it came out of the factory.

1 Like