Calculate ROI of Asic Miner


#1

Hello guys,

I am trying to understand how to calculate the Earnings over a year for an ASIC Miner.

As an example I picked the Innosilicon A9 ZMaster. It has the following specifications:

Hash rate: 50,000,000 H/s
Power: 620 W

These specifications where taken from Cryptocompare - Innosilicon A9 ZMaster. (see link below for coincompare)

I tried to calculate the ASICs miners ROI like the following:

Find below the spreadsheet where my calculations are laid out in detail:

ASIC Miner ROI Calculations

Compared to the Return per year that is calculated on coincompare my calculations are not as near there as on coincompare it is stated that the miner makes around 31.5k per year.

See the page of coincompare for proof.

Any suggestions what I am doing wrong?

I highly appreciate your replies!


#2

Just some friendly advice. This is a futile endeavour. Calculating earnings per year is as volatile as the market itself. You can get off at calculating for the day and week at best. But anything longer than a week can be inaccurate. Those calculators highly depend on hashrate and market price: two variables that change radically.

Your hashrate could be one way now, but by the end of the week someone receives a batch of antminers and the whole calculation goes out the window. Or a new asic is created with insane hashrates and batches are ordered. All of a sudden your rig/farm becomes useless. Calculators only show results based on the PRESENT state of things. And these things change DAILY.

So don’t waste your time with calculators. Just set goals and targets for specific coins you want to mine and HODL towards a timeline you have set. Notice how everything I said there has to do with setting goals and timelines rather than calculations? B90x bro. Check it out. :pdealwithit::exploding_head:


#3

And welcome to the Pub btw! Get started with the FREE 90 day course I mentioned above. :rocket:


#4

@MoneyMan - Did a good job covering the major points.

I am just going to add a bit more detail to some of this.

First calculating ROI isn’t just a matter of calculating how many coins you bring in and what the market states they are worth. There are also the fact of electric usage and costs are you on constant billing or does it vary if you use during peak and non-peak times. What is your depreciation schedule for your equipment as mining is a business.

Lets leave those two out for now and answer this one question then we can move forward from there.

What is your goal?

Are you mining to support a coins network and HODL those coins. If this is the case then doing all this ROI stuff is irrelevent because you have no idea what the price will be when you decide to sell.

If your goal is cash flow then @MoneyMan’s explanation is spot on minus one detail. If you choose to look at ROI daily or weekly then you need to actually sell your coins on those schedules in order to realize gains. Even if you do this your profit daily or weekly is going to vary greatly depending on network hashrate. If you look at Raven the Network hashrate has been fluctuating 2x lately going from like 1.6Tera hash all the way down to 800GH. This is an unknown variable that will throw off your ROI even on a daily basis let along weekly monthly or yearly.

Block operations on youtube did a good video on this. You need to set goals and say when the coin reaches this value I am going to sell 25% of my mined coins then at this level I will sell 50% of my remaining coins. This of course is just one strategy. Here is the video that I think discusses it but it is somewhere on this guys site. https://www.youtube.com/watch?v=RwoXDeoiOjg

I know this isn’t exactly covering your topic here of ROI on an Asic Miner but my thread on why I do not chase coins can be applied to ASICs as I run a D3 in my strategy.


#5

@val, Welcome to the pub!!

I had a quick look at your calculation and one thing jumped out at me immediately.

That miner you selected mines the Equihash algorithm, e.g. coins like ZCash, Bitcoin Private, ZClassic, ZenCash and Komodo. Your calculation in profitability uses Ethereum, so is wrong even for a daily profitability calc.

I’ve re-run the calculation based on ZCash for you using the CryptoCompare website:

As @nekko and @MoneyMan above mentioned, these profitability forecasts are not accurate beyond daily or weekly. However, with the Innosilicon A9 ZMaster, assuming it does what Innosilicon says it does a rough ROI can be estimated based on the following:

  • cost of the A9 miner = ~$10,000;
  • weekly revenue = ~$620; and
  • ROI = 10,000/620 = ~16.12 weeks, or ~4 months (to be conservative allow an ROI of 6 months)

The above calculation doesn’t take into account the changes in coin price, or network difficult (which is why I threw in a conservative skew). If the coin price increases the ROI can decrease and profitability increase. Of course it can go the other way too.


#6

@seikin - I would highly suggest changing your “weekly profit” to weekly revenue. I think this is where most miners get confused is that they use the wrong terminology. In your above scenario you wouldn’t see profit off the machine until after the 16.12 weeks if that snap shot held true for that long of a time period. Up until it is paid off it is revenue if cashed out daily or weekly.


#7

Thanks, good point - changed.