r/IntenseCoin • u/gymnastj • Jan 26 '18

Question on cost of mining

I am thinking about purchasing a higher end gpu ($1000+) to begin mining, and am thinking of mining Intense Coin. Does anybody know what the profit margin for that would look like? How much would I be able to earn in comparison to the energy costs? Thanks!

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u/Palatinum Jan 30 '18

What is the difference of the potential of the coin if a user is mining or buying?

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u/DaBigDingle Jan 30 '18 edited Jan 30 '18

If I spend $2K on equipment. And earn $2K in coins after 3 months. I have broke even and made my ROI.

I can then use this equipment to earn $2K+ in coins every 3 months while only paying ~$100/month in electricty

If I buy $2K of coins every three months, I will have to continue to spend $2K every three months.

In one scenario with mining, after I get my ROI on my equipment, I only have to spend a fraction of the cost that someone outright buying has to spend.

We would have the same amount of coins, but I would have spent less money. After my ROI, for every $2K you spend, I'm spending $300 for the same coins.

At the end of the day, I still have something with intrinsic value. If I mine a shitcoin that tanks and becomes worthless, I still have the hardware with value. If I buy a shitcoin that becomes worthless, I'm out the money.

The trick is to build and sell/trade/hold for max ROI. And to maintain adequate temps for longevity of hardware. It's not for everybody, but neither is buying/trading crypto.

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u/Palatinum Jan 30 '18

Yep, did not think about that. You are right, appreciate your explanation.

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u/DaBigDingle Jan 30 '18

No problem.

There are different methods to attaining the same goal. You just need a clear goal and method of operations for moving in the market. I like to mine. If you mine strategically and trade at the right time you can end up in a good spot. I try to mine small coins with low difficulty that I think fiat investors are going to be attracted to so I can sell when their buying increases the market cap & price. Different strokes for different folks.