1

At first, I should add I am not looking at mining for income. I just want to do it for fun but I don't want to waste money either.

In spite of difficulty increases there are a lot of people and companies which are starting to mine Bitcoin and I am one of them who want to start it for fun. So, I want to know whether it is a good time to buy an ASIC (Bitmain S7)?

The electricity cost is very low in my country, so what do you recommend?

closed as off-topic by Nate Eldredge, Highly Irregular, Jannes, cdecker, Murch Jan 2 '16 at 16:33

This question appears to be off-topic. The users who voted to close gave this specific reason:

  • "Questions on current market values, energy costs or service provider availability are off-topic as the answers are changing too frequently to be useful to others." – Nate Eldredge, cdecker, Murch
If this question can be reworded to fit the rules in the help center, please edit the question.

2

It depends on the electricity cost, the block-reward, the exchange rate, the difficulty, and the quality "Q" of the machine (number of hashes per joule). One interesting event that will occur in 2016 is the block-reward halving, which is discussed below. The upshot is that I don't think the block-reward halving should discourage you from mining as long as your electricity costs are less than about 9 cents per kW-hour.

(In the following, I'm assuming the exchange rate is $440 per bitcoin and the difficulty is fixed at 93448670796.3238.)

A simple (perhaps naive?) calculation implies that a good miner with "Q" ~ 2GH/Joule should be profitable in the long run at current exchange rates as long as your electricity cost is less than about 19 cents per kiloWatt hour.

With all the same parameters, but at half the block reward, you will still be profitable in the long run as long as electricity cost is less than about 9 or 10 cents per kiloWatt hour.

If you believe the advertised "Q" value of ~4Gh/joule for the S7 then even with the block reward halving you may still be profitable even at higher electricity cost... however once the S7 is available to you it is available to everyone and the difficulty will increase as a result. In general the difficulty always tends to increase, so be careful...

All the calculations presented above were performed at fixed difficulty and exchange rate.

2

Although the miner you're considering is a great entry level unit, 2016 will bring in the "halving" of the reward on bitcoins mined. This means, once a solution is found, the reward will be half the number of bitcoin. (http://www.bitcoinblockhalf.com/) You may want to join a pool, which you can help mine bitcoin and the reward is split up depending on the rules of the pool. It's a good way to be a part of the community and possibly earn bitcoin.

  • Will my profit halves when block reward halves to 12.5 – user29589 Jan 4 '16 at 15:18
  • yes compared to what you would be earning before the block reward halves your reward would halve, this would affect your profit significantly – Mark S. Jan 15 '16 at 3:26