Do I mine or not?

When considering if you should buy mining equipment or not, here  is a simple formula to use.

How many BTC will you have if you buy Bitcoins today with the same amount of money?

How many Bitcoins can you earn with the miner?

If equal buy Bitcoins .

If fewer by mining buy Bitcoins .

If more with mining and you are confident in the values you used when estimating, then consider buying the mining equipment.

In order to get the most accurate information you need to learn how the system works and where to get accurate data.  I review the formulas in my book Bitcoin Mining Step by Step.  The one key piece of data is what will the difficulty be?  to answer that you will need to understand why we are where we are in the total network hash rate.  then understand that as the price of BTC goes up so will the mining equipment purchases.  If it drops then so might the mining equipment purchases.

There is a point of saturation or equilibrium when there is just the right amount of mining versus value.   When the value is too low, you’ll here all the new miner who haven’t hit their ROI griping about it, if the value is high, you’ll see increasing back orders.

When considering where to buy consider this:

• Past performance and ability to deliver (This rules Butterfly Labs out)
• Cost per GH
• Cost in energy to run
• Geographical Location

There are mining manufactures around the world.  Why would you want to have to wait an extra week or two for delivery, when every day is money?  Why would you want to pay custom charges?

If you are in the US and are unsure where to buy? CoinTerra, is the place to buy. (http://cointerra.com).

If you are in Europe consider KNCMiner.

If you are in China, there are a few to pick from.