Litecoin Forum

Litecoin => Litecoin discussion => Topic started by: Stubby5000 on July 08, 2017, 03:05:03 AM

Title: Mining litecoin seems to be obscenely profitable. What am I missing????
Post by: Stubby5000 on July 08, 2017, 03:05:03 AM
I'm just beginning to learn about cryptocurrency, so forgive my ignorance. When I plug the stats for the Antminer L3+ (504 MH/s, 800W power usage) into a profitability calculator using my local electricity cost ($0.09/kWh), I get a monthly profit of $1200-1400. The L3+ can currently be purchased on Bitmain's website for about $2200 (ships the end of Sept). So, after only two months you will already have more than made your initial investment back. The miner doesn't stop being profitable until Difficulty reaches about 6,500,000 (which is 26 times the current Difficulty). Of course, that calculation assumes that the Difficulty skyrockets while the price of Litecoin stays exactly the same, which would never happen (my understanding is increasing price generally is what drives the Difficulty up). So here we seem to have a miner that will remain profitable for the foreseeable future. Why isn't everyone buying as many of these miners as they possibly can? Why is Bitmain even selling them, when it would be more profitable to mine with them themselves? Basically, what am I missing??? There has to be something. This seems too good to be true.
Thanks.
Title: Re: Mining litecoin seems to be obscenely profitable. What am I missing????
Post by: zabercoin on November 23, 2017, 03:47:50 PM
Not everyone likes to deal with mining and prefer the usual purchase and resale at a higher rate.