Imaginary money until he sells the Ethereum. The Ethereum is worth what you pay to get it. So his electrical costs should be what is used because it’s his actual cost to obtain the asset. If he isn’t selling it as he gets it, it’s value to others is effectively imaginary.
If you must bring it to that, all calculations for whether something is profitable or not is arbitrary tripe.
If you’d continued reading, I mention that. Using his chart showing each deposit of 1 Eth, it averages out to a wash where he paid above and below current market price about the same.
This was written assuming we assess his value right now. Imaginary lost value VS actual lost value is different in that he actually paid $300 per month in electricity and effectively lost what Ethereum has dropped in that same time frame assuming he sold it when he got it.
But when you say “he lost the value the Ethereum he had dropped”, you’re saying “he lost this much money assuming he sold the Ethereum when he obtained it.”
That doesn’t make any sense for someone who’s intention is to hold it long term and sell it later, as he stated he intended to because he believes, or hopes, it will rise in price beyond what it currently is or was when he obtained it.
Because he already owned it. It’s doesn’t make sense to count it as a cost when you buy it for something else before even considering mining.
No, I actually was considering that alongside the two alternatives: Mining and buying Eth slowly in the same way he’d receive it mining.
The point was to see which of the 3 possibilities would get him more in the end, and the answer was mining using what historical data we have and assuming he sold it now.
Seems to be an ignorant correction because he already owned his rig for a different purpose.
For people who already own their systems, do you think the better choice is to sell that system and use the money to buy Ethereum? Because if you’re considering the cost of the hardware they already own, then saying mining isn’t worth it, that’s the only option.
Now they don’t have an asset if they sell said computer, which they could have used for whatever they originally intended it for.
On a personal basis, that is more costly. On a monetary basis, that is more costly because you almost certainly won’t get the same money back you paid for the system, and you won’t have the system either.
In every way I can find, if you already own the system, mining is the better choice for the short term, both in obtaining Ethereum at cheaper prices and giving you the utility of the machine aside from mining (depending on what you’re needs are for it). I use my computer while it’s mining all the time for web browsing, watching videos, simpler games, and the like.
Not only that, you are turning something that was once just a cost into something that generates income by keeping the hardware and mining.
Rick had two choices. Mine or Boinc. Mining basically gave him about $1200 at the cost of about $450. He already bought the hardware. He was already gonna use it for something that didn’t make him money. He profited whatever he profits once he sells and imo saying he wasn’t profitable is tantamount to lying if you want to say you have to consider the current value as what he has now for Ethereum.
I find the whole “you must count your hardware cost to consider if you are profitable” concept inane, especially when you aren’t counting the other side of selling it later, and entirely if the person already owns the hardware.
It’s fine if you want to build that box for a business or anyone who seriously intends to mine for the long term, but isn’t this thread about hobbiests?