Originally Posted by racer86
Does anyone have an thoughts on the profitability of mining or purchasing hardware to mine, with USD through the 2014 year?
Obviously ASIC devices for BTC are worthless based on difficulty's projected increases unless they are off but what about investing in alt coins? Will we continue to see the steady stream of coins come in to be mined / dumped or will we level out with a few standard alt coins that continue to have a large increase in difficulty as they level out as main coins.
Will purchasing large mining farms or spending say $3500 on a good mining rig still remain profitable or will they begin to taper off like mining bitcoins. Current ROI for hardware for mining alt coins seems to be between 30 an 90 days depending on what you mine.
In my opinion it is not as easy as everyone is making it out to be for becoming profitable. The 30-90 day hardware payoff usually assumes a static difficulty which can be achieved, you just have to take your chances mining new coins all of the time. It is a pretty big risk if you are thinking about spending 3-4k on equipment, and I would expect it to take much longer then 90 days to pay off.
Also there are rumors of ASICS for script coming out Feb 2014, that will be a game changer. How it will change it? I don't know, it could rise the prices and make everyone loads of profit who have coins stored, it could also make script coins worthless because some of peoples perceived value comes form the fact that script is not currently being mined with ASICS.
Edit: Also I think a lot of the profitability will come down to policy in the US and Overseas. There was word that the IRS is threatening companies who are accepting crypto that they are violating some laws, it seems pretty unclear if they are or not, but some companies have stopped taking crypto until it gets sorted out. I think it can take a huge swing in either direction if the US decides they want to embrace it, or policy could force it down the drain.Edited by blkdoutgsxr - 12/22/13 at 2:52pm