Cryptocoin Mining?

[J Macker]

Just checking in with you guys.
I'm still mining, holding the LTC, though I did trade for 8.5 BTC before the LTC/btc ratio jumped.

Oh well, it's been a grand (well, $20 grand) summer on the LTC mining. I just wish I'd bought in more at $2. I knew it was going to increase in value.

hey guys....

 

[J Macker]

oh, does anybody here know how many kH/sec you can get with an R9 290?
I might buy one or two just for kicks since they can mine too.

*edit*
Here we go: about 850-900 kH/s
https://forum.litecoin.net/index.php/topic,6842.0.html

 

[chihlidog]

http://www.coindesk.com/asic-miners-litecoin-soon/

Looks like those of us still mining LTC on our GPUs are scrooed.

 

[24601]

http://www.coindesk.com/asic-miners-litecoin-soon/

Looks like those of us still mining LTC on our GPUs are scrooed.

People love scams.

 

[J Macker]

http://www.coindesk.com/asic-miners-litecoin-soon/

Looks like those of us still mining LTC on our GPUs are scrooed.

Not really. They're "starting development". Which means, 1 year out, best case scenario. Plus, 500kH/sec is not impressive. They will need to compete with the home-built rigs on price/performance.

We can easily get 2100-2800 kH/sec with 3-4 280x or 7970 cards, at a pretty reasonable price. They won't be able to charge the same prices at asics for BTC rigs until the performance dwarfs the video cards or they consume much less (5-10x less) electricity.

I bet that we're still at least 15-18 months away from a viable "asic" for mining scrypt. The first generation will be underwhelming and overdue, buggy and overpriced.

If they can do 500kH/sec on <100w, then they have a product. Power is the limiting factor for large LTC setups; most people mining are restricted to the 200A breaker box, and you really could only tap 100A if you're living in the house. That's only equivalent to about 25000 kH/sec. The major problem is the heat and ducting; it's necessary to create ductwork and have significant airflow to outside once you're using 50A or more.

The electricity cost is miniscule compared to the profit; especially as of the last week. I don't care that my electric bill is $200 higher each month because my investment has produced 4x its initial cost in just 6 months.

 

[philipma1957]

It's my understanding that the US government hasn't figured out how to tax them.
https://en.bitcoin.it/wiki/Tax_compliance

So that makes it interesting because it could be worth cashing out now where you could pick the most tax advantageous system (hobby income, intangible personal property, investment income, or currency) and then in the event of an audit, just explain your thinking and your answer should be justifiable since the tax code doesn't cover "mining" a virtual currency.

It's entirely possible that the tax code will revised next year to cover Bitcoins and the new statutes will be worse than the current "pick the best one and then justify it" approach.

In any rate, when in doubt, I always listen to the wise words of Warren Buffet who said at the Berkshire Hathaway shareholder's meeting this year (paraphrased) "Never consider taxes when you are making an investment decision. If you think it's a good investment, then invest. If you think it's bad, then sell. Figure out the taxes later because with Congress as going as they are, it's hard to know what the tax laws will look like in the future anyway".

yeah pretty much spot on. I cashed out as they came in.

holding on to btc tax wise may be a real problem or not.

I have about 265gh working for me now. So taxes are a real issue. since that is earning about 1400 usd a week as of today.

http://bitcoinwisdom.com/bitcoin/difficulty

Last year I wrote off all the equipment purchased and it was a wash. 2013 will not be a wash!

 

[OCGuy]

yeah pretty much spot on. I cashed out as they came in.

holding on to btc tax wise may be a real problem or not.

I have about 265gh working for me now. So taxes are a real issue. since that is earning about 1400 usd a week as of today.

http://bitcoinwisdom.com/bitcoin/difficulty

Last year I wrote off all the equipment purchased and it was a wash. 2013 will not be a wash!

Ehh....a tax "problem" is different than having to pay capital gains....which usually means you made money.

 

[J Macker]

Ehh....a tax "problem" is different than having to pay capital gains....which usually means you made money.

I agree. I'd rather pay taxes on a cashing in 500 BTC now, than having sold them off as I mined for <$100 each.

Same thing with LTC, I'd rather pay the taxes on a million in a year or two than cashing in a $100 each day now.

 

[njdevilsfan87]

I guess if there's a bright side I haven't really made enough to worry about capital gains?

:'(

 

[24601]

I guess if there's a bright side I haven't really made enough to worry about capital gains?

:'(

Remember to carry over every expense when calculating capital gains. Most people here would probably not qualify for it anyways when that is factored in.

 

[IEC]

Are you classifying profits as hobby income or what?

 

[24601]

http://www.ebay.com/sch/i.html?_odk...heatsink+-spreader+-swiftech+-liquid&_sacat=0

The effect on the recent spike in LTC price on the used 7950 market.

I feel bad for the average gamer looking for a 7950, lol.

The only ones not sold are ~300 USD (The same as the MSRP for a 280x).
[The one that is 270 USD is literally from newegg, lol]
http://www.ebay.com/itm/PowerColor-...231?pt=PCC_Video_TV_Cards&hash=item46158db927

Are you classifying profits as hobby income or what?

Lol, I'm too poor to even bother filing taxes.

A trip to jail would be free food, room, and board.

https://en.wikipedia.org/wiki/Hobby_loss

Don't file as hobby income if you don't make a profit.

When in doubt, use Capital Gains, as they are always lower than your marginal tax rate.

https://en.wikipedia.org/wiki/Capital_gains_tax_in_the_United_States

Remember what this country was built on, screwing the slaves .

 

[ultimatebob]

Remember to carry over every expense when calculating capital gains. Most people here would probably not qualify for it anyways when that is factored in.

Good point. If I included the cost of the video card that I used to mine this crypto, I wouldn't have even broken even at this point.

Of course, I didn't really buy it for mining, but that's what it spent most of it's life doing so far.

 

[24601]

I'm wondering if you can claim depreciation on your mining gear? Or is this just purely for land/house.

https://en.wikipedia.org/wiki/Depreciation#Tax_depreciation

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/A-Brief-Overview-of-Depreciation

http://www.irs.gov/pub/irs-pdf/p946.pdf

Looks like it applies for just about everything.

 

[cliftonite]

Is it too late to start mining?

 

[24601]

Is it too late to start mining?

Not if you already have the cards.

If you don't, you're going to have to calculate that for your own situation.

 

[cliftonite]

Not if you already have the cards.

If you don't, you're going to have to calculate that for your own situation.

Is there a site that has benchmarks for each card? To show which was is most efficent @ mining?

 

[nwo]

Is there a site that has benchmarks for each card? To show which was is most efficent @ mining?

https://en.bitcoin.it/wiki/Mining_hardware_comparison

Lists CPUs and GPUs.

 

[Silverforce11]

I havent read much into LTC, but what exactly determines the ratio of BTC:LTC?

Its price is inherently linked to BTC I know that much. Now its $30 per LTC, a massive jump. A single 7950 pulls in over 300 USD a month, which is higher than during the peak of BTC in March.

Edit: A single R290 pulls in over 850 kHa/s, at the current rate, it earns nearly $600 a month.

 

[thilanliyan]

^Yep, I'm probably going to add 3 290s to the arsenal

 

[nwo]

A single 7950 pulls in over 300 USD a month, which is higher than during the peak of BTC in March.

In power consumption or revenue?

Because using the BTC calculator, you would get less than 10 bucks/month of revenue with a 7950 (@500MH/s) http://www.bitcoinx.com/profit/.

Is LTC the way to go? Or, is there something I'm missing here...

 

[AnonymouseUser]

In power consumption or revenue?

Because using the BTC calculator, you would get less than 10 bucks/month of revenue with a 7950 (@500MH/s) http://www.bitcoinx.com/profit/.

Is LTC the way to go? Or, is there something I'm missing here...

LTC is definitely the way to go: http://dustcoin.com

 

[Silverforce11]

In power consumption or revenue?

Because using the BTC calculator, you would get less than 10 bucks/month of revenue with a 7950 (@500MH/s) http://www.bitcoinx.com/profit/.

Is LTC the way to go? Or, is there something I'm missing here...

BTC mining with GPU is DEAD. We're talking about LTC mining. A single 7950 is now pulling in nearly $400 a month in revenue, minus electricity costs of 30-40.

A R290 pays for itself in ~2 weeks. If you have a radeon and you're not mining LTC NOW you are missing out majorly.

 

[nwo]

A R290 pays for itself in ~2 weeks. If you have a radeon and you're not mining LTC NOW you are missing out majorly.

O sweet Jeebus!

Thanks for filling me in.

I will put my two 7870s to work ASAP. Is there are LTC guide?

 

[IEC]

O sweet Jeebus!

Thanks for filling me in.

I will put my two 7870s to work ASAP. Is there are LTC guide?

This is a decent guide:
https://forum.litecoin.net/index.php/topic,7722.0.html

You can avoid the pain of downloading and setting up a litecoin wallet if you use BTC-e as your exchange and send your litecoins directly there, though I don't really recommend it.