Hello fellow enthusiasts.
I need a lot advice and prediction comparison.
I am investing at minimum $10,000 in hardware to mine Zcash and renting out storage from a local data center in Fort Myers. (http://www.t3com.com/index.php/services/colocation-disaster-recovery/)
I am also considering a similar setup as Zeropond and renting out hash power. The setup will be simple, since that's my profession, but I'm at a loss on best hardware.
Here are my questions:
1) CPU or GPU mining?
I assumed GPU, and purchased 5 R9 295x2s already, as they are the proven best GPU for almost every GPU mined currency.
2) If GPU, how much value does the processor in these rigs matter?
3) Is any other crypto's hashrate comparable for GPU or CPU analysis?
4) Assuming everyone's hashrate per dollar is equivalent, does anyone have any projections of what the initial hashrate will be?
Mining Prediction (assumption/hope really)
$10,000 will be 2% of total mining on D-day, (Total $500,000 in mining equipment running)
0.2% of total mining by end of month 1, and (Total $5,000,000 in mining equipment running)
0.02% by end of year 1. (Total $50,000,000 in mining equipment running)
Obviously people will be using different algorithms and have different hash per dollar amounts... This is just a guess on averages to theorize possible returns. My numbers assume linear increases/decreases....
1.1% total hashing month 1 (mean of 2 & 0.2)
0.11% total hashing months 2-12 (mean of 0.2 & 0.02)
172,800 ZEC total per month (after "tax")
Using the numbers above:
Month 1 yields 1900.8 ZEC
Months 2-12 yield 190.08 ZEC each
Thus, Year 1 = 3991.68 ZEC
ZEC will come out of the gates strong due to hype, so within the first week or few weeks, I'll be selling what I mine as long as it's over $40.
Assuming I can squeeze 7 rigs out of $10,000 and each rig costs ~$1 per day to run - about what my BTC miners are costing me. Let's be generous and call the end of life of a rig 2 years.
Our 10k setup costs $417/month hardware + $210/month electric = $627.
Mining and exchanges always have a tendency to reach a certain equilibrium where the miners make a small profit. Again, using the numbers above(5m end of month 1 and 50m end of month 12), the mining cost should be:
Our setup is 0.2% of the total mining. $627 gets us 345 ZEC.
Break even miner value $1.82, so market may balance around $2...
Our setup is 0.02% of the total mining. $627 gets us 34.5 ZEC.
Break even miner value $18.17, so market may balance around $20.
This all assumes that the adoption of the coin will not be as crazy as I think the founders and investors are expecting and they do have a good amount of power players.... The investor value at $15.24 scares me. I think they'll have a lot more miners(and maybe even better algorithm's) running than I'm hoping...
Mining may start at 10x my prediction... I'm hoping to get my hands on at least 10k of these before it goes bananas.
Advise and critique.