The culture of technology in Australia.

I’m Done Mining Litecoin

Falling value & rising difficulty officially killed this experiment

I'm done with Litecoin

Image: Physical Silver Litecoins by Smoothie

In my previous Reckoner feature about Litecoin, I came to the conclusion that I had three options on the table at that stage of my experiment mining the crypto-currency:

Option 1 – sell up and cut my losses.

Option 2 – keep mining at my current rate.

Option 3 – buy more rigs and mine even more Litecoin with the hope that the price rises.

Option 1, the path of least resistance. That’s the choice I ultimately ended up at.

My Litecoin mining adventure wasn’t profitable and —if I’m honest—a waste of time. To redeem something out of the experience, I can at least share with you what I did wrong. If you are thinking about mining Litecoin or some other sort of crypto-currency, you can learn from my mistakes.

The main thing everyone wants to know is “how much money did you lose, man?!”

Let’s cut to the chase.

My costs were:

  • $16,056.10 on set up (hardware, equipment, shelving)
  • $5,075.00 on electricity, rent & internet access
  • $454.92 on credit card interest (approx)

Which is a total spend of $21,586.02.

My income was:

  • $10,709.78 on selling the gear (post ebay fees, postage, etc.)
  • $2,693.00 selling LTC previously

That puts me at a total loss of $8,183.24. However, I do have 894LTC in my wallet.

The current price of LTC right now is hovering around $2.50 (ugh), which means if I was to sell my entire LTC stash, I will have lost $5,948.24 all up.

A good scenario is the price of LTC maybe hitting $5 once it’s announced on Mt. Gox (see their blog post which addresses this further). Which means, realistically, I will have lost $3,713.24 in total.

Ideal circumstances? If I was to sell that LTC for $9.15 per coin, I could break even on the whole thing. If I sell for $10, I’d make $756. If I sell my stash for $72.50 per coin, I’d be able to buy a sweeeeeett Mercedes Benz A250 Sport.

Yeah, that isn’t going to happen.

What went wrong? What could I have done better?

I was naive enough to think that the price of LTC would grow so quickly, that it could meet the minimum repayment on my card and cover the costs of electricity, rent & an internet connection. Unfortunately, this did not happen. I see now—with the benefit of hindsight—that this goal was unrealistic.

I totally underestimated the sharp rise in mining difficulty too. I knew it would rise, but not at the rocketing rate it has. Between April and August, LTC mining difficulty grew by 437% – that’s insane!

Litecoin rig

Image: Litecoin rig by Snootch

Setup Efficiencies

My setup could have been more refined. I could have been running rigs with 5 cards per motherboard, resulting in a slightly lower initial setup cost and slightly lower power consumption. I could have also flashed the graphics cards’ BIOS (and hence, underclocked the GPUs) for a good balance of power consumption and performance, ultimately saving more power.

With 7×5 card rigs, I would have spent $12,502.23 on gear and $1,910.67 on miscellaneous setup equipment. This would have saved me a total of $1,644, which at the end of the day would have been a noticeable difference.

There would have been a small decrease in power consumption by having less rigs with more cards, but not by a lot and it’s hard to work out the exact power usage in the real world, especially after system tweaks. Let’s say I achieved a 10% reduction in my power consumption — a generous estimate based on the result of GPU tweaking and rig consolidation. That would have made my power bill $3,796, instead of $4,218, decreasing my loss by $422.

Tweaking the system and consolidating my rigs would have made a difference (to the tune of almost $2000), but not that much of a difference in the overall scheme of things. I still would have lost over $1,000.

You Need Cheap Power

The key to crypto-currency mining (in Australia at least) is cheap power. Ideally, free power. Many of the people who purchased my gear are mining Litecoin and other coins, and when I asked them how they’re justifying the low profitability, they all said said they’re able to snag free electricity from somewhere. Normally stashing a few rigs at work, hoping nobody notices (hah). Good luck to them I say!

If you can find free power, here’s how it breaks down:

Spend $14,500 to set up a farm that should generate around 600LTC month. If you don’t have to pay for power—and assuming the LTC rate of difficulty increases at the same rate—you should have accumulated around 7200LTC. If you end up selling that LTC for say, $6 a coin, how much would you make?

$28,000 in profit.

Turn around and sell the gear for at least half of its original value, and that number rises to around $35,000.

Assuming your source of free power doesn’t disappear, or find out and call the police for stealing…

An example solar panel rig. This would be a similar size to one needed to power a Litecoin rig

Image: Solar panels by Canadian Dirtbags

Solar? Wind? Exploring Alternative Power Solutions

But what about solar power? The sun gives us free electricity! Let’s use it to power our Litecoin farms!

Over the course of a year, our 30x GPU Litecoin farm will use 73,634kWh of electricity. Charged at 18.225c/kWh (still the cheapest power I can find in Australia), the annual power bill will be $13,419.

A solar system with enough average peak output to supply 8400W of electricity would cost about $10,000 (you can get 10kW systems installed for $10k these days, cool!). Solar panels that output 10kW will be able to supply all the power we need! Spend $10k to save $13.5k and the panels will last for 20 years giving out free electricity! Let’s go buy solar panels now!!!

Don’t get too excited, though. There’s a few harsh realities of solar power we need to step through.

First of all, the sun doesn’t shine 24/7. At night, we’d need an alternative power source. Normally that’s the grid, but you could also install batteries. If you do, you’ll need enough of them to power 8400W for the time when the sun doesn’t shine, and then enough solar panels to charge the batteries and power the farm itself.

You’d be looking at just $25,000 for the panels, let alone the insane amount of batteries you’d need (probably 40 of the biggest deep cycle batteries you can find, which will set you back another $35k). Spending $50,000 doesn’t make sense.

There’s wind power, which if you’re in a windy enough area, can supply power at night, but a 10kW turbine is huge and will set you back $20k easily. Good luck getting a permit to put one up anywhere in Victoria too. Thanks anti-wind farm nutjobs.

So the only real alternative is to get a discount on our electricity use by using solar when it shines brightly to give 8.4kW of power, then supplementing it with grid power when there’s not enough light. Solar panel output varies greatly depending on the amount of sunlight. Take these PVOutput stats from a 10kW system out in suburban Melbourne.

Output chart from a 10kW system out in suburban Melbourne

The 10kW solar panels only generated 11,350kW of power over 12 months (there’s a few days missing, so I rounded the number up). Our farm needs 73,634kWh of power per year, so there’s still a shortfall of 62,284kWh – leaving us with a power bill of $11,352.

All we will save is about $2,000/year.

In other words, it would take 5 years of mining to pay back the cost of the panels and even once the panels are paid off, you’re still only saving $2,000/year.

Solar panels are great and every home should have them, but as far as Litecoin mining goes, unless you’re in for the super long haul, I wouldn’t bother.

What could I have spent my money on instead?

There’s always an opportunity cost involved with this sort of thing. What else could I have done with the same resources and what would have been the result of that? I can’t go back in time to change what I’ve done, but it’s interesting to see what could have been. I whipped up a few spreadsheets to either justify my actions or remonstrate myself for wasting money.

  • $16,000 worth of shares on my credit card, investing in CBA, TLS, BHP and WES would have gained me a $1030 profit, probably less once it’s taxed.
  • $16,000 of sports betting on the AFL, based on my footy tips results would have left me over $12,000 in debt.
  • $16,000 worth of LTC on the 3rd of April 2013, those 3655 coins would have been worth $9,913 on the 3rd of August.

So I guess losing approximately $3,800 overall isn’t so bad. Investing in shares like banks and mining seems like a good idea to be honest, especially since how they’re so protected by the government in Australia at least. Would I have done it instead of LTC? Probably not :)

What next?

It’s pretty obvious that if you can score free electricity, get mining Litecoin NOW. You’d be dumb not to. If you are a bit less risk averse with your investments and an interest in crypto-currency, take a look at these Australian guys making a Bitcoin mining ASIC device. It sounds really good, and particularly if you’re also in Australia, as you can catch up and talk to the people making it – they seem to be much more transparent than the other ASIC hardware vendors out there. There’s also the bonus of Bitcoin being a bit more legit and more ecosystem and culture around it than Litecoin, which is nice.

That’s pretty much it for me in regards to crypto-currency. I don’t really intend to write any further regarding Litecoin or Bitcoin in the near future. There’s so many other interesting things in technology going on out there!

I’ll find something else to suck myself into pretty quick.

If you found this article interesting or helpful, a little donation of some crypto-currency would be appreciated.
BTC: 19KL2gv2BY8sMXbRjHqmcnYWYuDsePbLiN
LTC: LLiagULyQbDVNT2B4trFHFBkLBZux71sDN

  • http://www.inanegeekery.com/ Alec Fraser

    It’s been an incredibly interesting ride from the outside mate, wish it had ended up better for you!

    • Justin

      Litecoin mining is a long term commitment (minimum 1 year). I echo Alec’s sentiment and wish this had turned out better for you. I usually recommend people go in small; one or two rigs like the ones featured at http://www.coinminingrigs.com does the trick. The key is diversify, diversify, diversify. Buy a few Bitcoins, a few Litecoins and maybe build a rig or two. Come back in a year, and you’ll almost certainly have made a profit. Just don’t quit your job to do this. It’s just a diversification of your income producing assets.

      • qwertybo

        There we go. If he had stuck with this and continued mining to this current week he could have easily made a $10,000+ profit by selling as of now. Too bad, some people just don’t have the patience. The same with bitcoin, those that invested so much lost it all and there are those that spent just as much, waited longer, and got 10000% return.

        • Feralscale

          Well said! If very short term returns is the goal, then you’re better off using the capital on a day to day trading. I’m rather sure this was just another one of those projects based on a calculator projected goal.

  • reckonerau

    Aw, I was really hoping this would turn out to be a brilliant little money spinner for you. :(

    I think there will be some people in Australia who make money out of it, but seems like free or cheap power is a must. No doubt there’s a bunch of IT admins piggy-backing smaller rigs in the midst of their pre-existing work infrastructure as we speak.

    • decryption

      Oh yeah, most of the blokes who bought my gear told me they’re “borrowing” electricity from their workplace. Nobody in AU making money out of Litecoin is paying for power. You need to have some sort of edge (free hardware, or free electricity) to beat the difficulty.

  • Uwonder

    The reason it became worthless is there were millions of chumps like you all jumping on the bandwagon at the same time thinking you’re going to get rich quick. You’ve heard the expression: “If it sounds too good to be true it probably is”? Well, there you have it. Nothing is free…. especially money. Now, take that same drive and determination that you sunk into Litecoin and go make millions doing something real.

  • Scar68

    Had really hoped you were going to make a packet. Has been fascinating watching the progress, reading your tweets and these posts. I look forward to your next endeavours and congrats on giving it a go.

  • DR3AMR2

    Just letting you know, with all of your rigs. If you would had diverted the all the idle CPUs to mine Primecoins when it first released about a month ago. You would have mined over 3K worth in less than one week. Gotta stay well informed on what’s new and profitable to mine here.

    While you were mining exclusively with LTC, it would have been better if you mined other alt coins and trade up for BTC/LTC. I’ve setup my mining rig after you and it already paid for itself and I don’t have any free power here either.

    Best of luck to you, I enjoyed reading your articles. Keep your current LTCs that you still have and come back in a couple years to see if it multiple in price. No need to take a total lost yet. :)

    • decryption

      I thought about moving around between the alt-coins and whatnot, but couldn’t be bothered keeping up. I know a few people mining alt-coins on commodity hardware and are making a bit more profit on it than if they mined LTC directly.

  • Haroun Kola

    Thanks for a great article. I’ve just started speculating on the cryptocurrency markets and your article is a great resource.

  • Jake Hofmann

    Hey dude, can you please contact me? geheimdienst333@gmail.com
    Having Server and Workstation Hardware here worth 50-100K eur. Not in use and no costs for energy. Will share and appreceate any help on the setup.
    thanks

  • Steve Goyens

    Can i buy some of your gear?

    • decryption

      all sold already mate

  • jayisk82

    Very insightful story.

    I just wanted to know if it would have been any benefit to have started mining another crypto coin that had a lower difficulty? You could have piled up a large some of PPC, TRC or FTC with your setup and then converted them to LTC or BTC.

    All the best with getting the cc bill down.

    • decryption

      Yep – if I played the alt-coin game, I probably would have made more money.

  • Bet WithCoins

    I think you’re getting out too early. Hang onto those coins for another 2 years at least

  • tomosaigon

    Wonder if you could’ve spent 1/10th on the kit, folded electricity costs into what you were already using to have a personal computer, and mined a variety of altcoins instead of just LTC?

  • Vasudev Masur

    Hello everyone, I’m planning to build my first LTC mining rig. Could someone point me in the right direction w.r.t hardware setup. Thanks!

    • decryption

      You want a computer that uses the least amount of electricity, running as many AMD 7950 GPUs as you can afford. That’s about it really.

  • LOL

    You failed by having a bad strategy. You failed by selling your hardware. And you failed by not doing your research.

    You needed to mine *alt-coins* and then sell them for LTC. Profitability mining Scrypt alt-coins has been consistently significantly higher than mining LTC. For months straight there’s been coins at 150% – 250% profitability of Litecoin mining. Obviously you mine the most profitable coins and switch to other coins as they become more profitable. Or you use an auto-switching pool. Recently I spent a few weeks mining ADT at an average of 200% profitability of LTC. I’ve also kept track of which coins were going to be added to Cryptsy, and mined them at low difficulty before they were added, coming to 1000% profitability of LTC for some.

    I used a rig similar to yours, and with expensive power costs. And I’m way in the green – tripled my investment. I use the auto-sale feature on Cryptsy which sells the coins for BTC or LTC automatically as they’re mined.

    Your plan to “only mine Litecoins” makes you simply stupid. This whole article can be disregarded as stupidity because you missed out on such a basic requirement.

    You spent $16,000 on hardware and then couldn’t be fussed to switch the coin you were mining.

    Fools are easily parted with their money.

    • hesse

      do you think it is a good strategy to mine and sit on the coins for years hoping the value rockets ?

  • MacOnyango

    Pal, you did not fail. The only thing you did wrong was to leave too early, and to have sold your hardware. At least you have learnt something – we still spend thousands of dollars to have university education. As we stand right now, there are thousands of people just about to start in mining the coins and some will make immense profits within the next two years or so. Start again but first on a small scale using only one GPU rig. If one card rig will make a profit for you, then two will, and then four, and so on and so forth. Initially, do not go in the direction of using solar panels; otherwise electricity generating firms would already have been using the same to run factories. All in all, this is a very good article you have here.

  • wesley Poon

    then i think you do need the self-generating power equipment~@@

  • SmegmaSmuggler

    I live in a beautiful condo in Ontario Canada with unlimited use of electricity, water, and air conditioning all included in my monthly condo maintenance fee of $600. My condo wasn’t relatively expensive either, it cost less than $200k.

    Aren’t there any condos in Australia that have something similar?
    I should’ve bought all your rigs! dang

    As of today (nov 5 2013) there’s almost 1 million USD in buy orders of LTC on
    https://btc-e.com/exchange/ltc_usd

    Right now I’m only mining with two 7970’s… maybe I should buy a few 280X @ $300 each…

    LTC to da moon!

  • Marko Domanovic

    keep that coins man, 1 year will pass and they will be at 20$ at least!

    • austin

      I would really like to get into this wagon.. but no idea where to start..anyone care to give me a lessson? i live in melbourne, australia. I can meet you up in person.

    • Hyrule

      It already happened.

      • Thatcher Donovan

        Passed it by far. Went to $40USD some days ago. Now hovering around the $30USD point.

  • disqus_X5jAiTUxdc

    Too bad he didn’t keep it going as now they have gone up to $4.50 (not a lot) but if it follows tht trend you could make money, also all you need to do is find out what coin is more profitable, at the moment it is world coin, an hour or 2 ago it was feather coin so he could have just changed what coin he mined every say 10-12hours so he could have made more money

    • Lucas Cullen

      Don’t sell too early. Crypto isn’t going anywhere. Look at it in 4-5years time, then tell us if you have made a profit.

  • realdealwill

    Just keep mining ltc n amass an arsenal.if they ever hit 100 youll get your money back, look at btc.

  • Robert Isoski

    Litecoin coversion rate is $8.9.
    If you sell right now, you’ll be only at $227 loss altogether.

    But don’t sell, just keep them for a while.

  • Leonardo Duljic

    it’s 8$ atm so you could break even in a matter of a day or two :)

  • jake

    happy day for you my friend

  • austin

    I Can buy your LTC, above the market rate, with a profit to you, please contact.

  • Richard Jelinek

    How does it feel to have lost faith 3 months too early?

  • mikeyhill

    One thing your article (which is very interesting btw) doesn’t take into account is the appreciation of the currency. You seemed to have forgotten the reason you got into this only accounting for the value of LTC based on your idea of what it is worth. At any rate, I hope you still have those LTC left and hopefully this trend up will continue.

  • http://www.fulhamreport.co.uk/ Miles

    I hope you held onto those LTC… $10 now

  • Victor Chong

    Hang on to those coins! Worth $8.15 today, you’re on your way to breakeven and then some…

  • No_LTC_4_U

    Sucks to Suck. Could have broke even already. LTC to 100 by next summer. Maybe next time around. G’day Mate.

  • m3nda

    Wow, a lot of money :S

    “”Normally stashing a few rigs at work, hoping nobody notices”” Unveliable!

    Maybe the right thing is mining with solar only when is shining, and dont waste money on paid electricity. Also, you forgot the magnetic power generators. They will run 24/7 for you ;)

    If you live near to electricity wires, you can install an electro-static generator and get redundant power for free and also creep hair.

    If you want to make profit with Litecoins, be the pool not the miner. Is a good analogy to “be the boss not the worker.”

    Good luck.

  • Martin Jansen

    Perhaps time for à chapter 5?

    • Rob Bradshaw

      LTC now double that O.O

  • Jonathan Bailey

    Sell it now.. make your money back and more..

  • Jens Vossnack

    Jeez man, its at $15 now. Hope you still got ‘em.

    • Dario Alvarez

      Just came to say the same thing. Those 894 are worth USD 13k now ;-)

  • Christian Buchner

    You should have stayed in the game for a little longer. Look at the LTC price bubble that is going on.

  • Kinitex

    For all you beginners now getting into the game because of the soaring prices, don’t make the same mistake. Do your research, and alternate your mining from time to time.

    Check Check http://coinpolice.com/coin-comparison/ to see which are the most profitable coins to mine.

  • Andrew Galati

    Do you feel stupid litecoins are at 22$ Now? It’s crazy I still have 100 or so.. Going to get back in and stay on till $100LTC

  • Andrew Galati

    I made this same mistake 4 times so far.. Cannot do so again I’m getting free power so it’s a great idea for me

  • Bitcoin Robot

    I’m pretty sure You must be pissed off by now LMAO – LTC price 21.500 USD and Going up my friend. One thing that they should told you is that mining any crypto-currency isn’t an In and Out business this is a long time profitability … if you will be making 3655 coins @ 21.50 USD that is 78,582.50 and you investment was around 20k the only thing I got to say is “OOOOUCH” it must hurt … lol
    And Wait it’s more I’ve project it that by the end of the year 2013 LTC price will be 29.00 USD so buckle up my friend,

    • PY

      Hooo damn fail ! :)

      Good luck buddy !

      PY

      • some dude

        AHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHHAHAHAHAHAHHAHAHAHAhahahahahahah hahha HAHAHAH hAH AHA H

        • some dude

          wait sorry i forgot to mention … HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA

    • http://angloblaxon.com/ Justin

      LOL. try 48 dollars atm. I read this article when i first started mining and its the first thing i wanted to visit once i saw those prices! 175,000 dollars :-/ guess we answered the question

    • Lucas Cullen

      Or when it peaked at $49. My earlier post 21days ago when I said hold.

  • Tle9

    you must be a happy man today

    • Rob Bradshaw

      Indeed

  • Jaro

    Man, LTC now costs ~20$, if you still have that coins, you can make profit :)

    Thanks for article.

  • Conspiracy Einstein

    I’m really hoping you held onto your LTC. It’s around $28 a coin right now.

  • Hyrule

    Litecoins are at 28 usd right now, unless I’m missing something.. Seems like this was profitable just by selling the 894 ltc he had when he threw in the towel…. Jumped ship too early?

  • Blau

    LOOK AT HIM. LOOK AT HIM AND LAUGH.

  • Robert Fontanini

    Timing is everything….. those 894 coins @ $30 each isn’t a bad haul at all.

  • DMaquinon

    this is hilarious. At current prices you will make 7K profit on the litecoin in your wallet alone.
    cryptocurrencies are a long game. you don’t do this as a get rich quick scheme.

  • enter full name here

    Are you mad now? $30 and rising…

    • Flamso

      60 dollars!

  • Andrew Pfund

    Today was pretty crazy, did you sell all your ltc a few months ago?

    • Andrew Pfund

      would’ve made a nice $ if you waited it out.

  • Andrew Jones

    Fuck me I hope you held on to them litecoins, if so you can buy a mansion now :P

  • Mike

    LTC 37$…

  • Killhipsters

    I hope for your sakes you kept those coins man, Litecoin just broke $30… Based on the number of coins you said you have, that’s roughly $26,000 in Litecoin’s you have in your wallet, the price seems to be rising a lot faster than Bitcoin as well. If it were to hit $40+ (which by the looks of it, it will) you have already broken even.

  • Christian Laney

    Boy oh boy, I hope you held on to that sweet stash…you could cash out right now and buy a pretty nice car ;)

  • ocsibrm

    Hey bud, if you haven’t sold those 894 LTC yet, the price is around 40 bucks now, which means you’ve got around 36 grand there.

  • Ahmad Adelgary

    LTC just hit $50
    I wonder how you feel now :)

  • cookie monster

    You are going to be kicking yourself for the rest of your life if you got rid of the 894 LTC you had.

  • Roberto

    What about now? 40.00 a coin….

  • David W

    First of all, hard luck … but you’re a muppet. You bought – with money you didn’t actually have – equipment that depreciates in order to make money that has zero value until you actually have a buyer for it … amusing!

    First rule of not falling on your ass. Don’t buy speculation with a credit card. Second rule, the more money you invest, the longer you need to hedge your bets for. Of course it’s risky, but you knew that going in, right? Third rule, never expect anything fueled by speculation to follow set trends.

    I started mining with my piffly little Radeon 6970 about a week ago. So far, I’ve spent a grand total of USD$18 on electricity. However, the profit margin I am now making as the LTC price soars to USD$48 is ridiculous because I didn’t spend any real money on this, let alone money I didn’t have in the first place.

    I will keep doing this because that electricity cost is a fixed-rate expense, and I can rely on it remaining fixed rate.

  • http://angloblaxon.com/ Justin

    Please update us! You have a fortune sitting in your wallet if you havent sold yet.

  • John Dowson

    48$ for a Litecoin, eh? I guess, you did not do it in vain and soon you will get rich, if you haven’t sold them.

  • FaqUrNwoBS

    the guy probably chopped his balls off after he realised LTC was going up crazy!

  • Richard Joseph

    LTC is $52 dollars a pop today, that’s $44k on your 894LTC, nice! If you’ve still got them, you could sell some now to get your initial investment back, then keep the other coins.

    It might be a punt but, it doesn’t seem too wild to believe that LTC might hold at least 1/5 the value of BTC at sometime in the future, at present that would be $200usd. if BTC tails back, maybe LTC could reach $100 a pop, no?

  • unity100

    Now you ended up quite rich that litecoin hit $40 havent you you bastard.

  • Dingus

    Litecoins are now worth about 35 dollars each. Shoulda kept mining brotha!

  • Dude

    Ouch man, have you seen ltc prices today?

  • the_puppy

    November 28, 2013 3655LTC now worth US$156,616.75 (US$42.85 x 3655) – I hope you didn’t sell them back in August.

  • clienthax

    you should prob check your ltc worth again, its at 40usd atm and rising

  • William Hamilton

    Hey I appreciate your article very much! From what I read I will keep track of alt coins. From the price of LTC I have calulated return on spending after 70 days! The strategy of LTC seems to be keep track of alt coins and keep going! I see by your LTC balance that you should have made profit. Hold on to them as I suspect their value should be 10% of btc! Thanks again for the advice!

  • mikile173

    I hope you didn’t sell any LTC yet. :) (LTC at time of this comment is at above $40 USD/LTC)

  • pwnt

    OWNED ahahah

    That’s what you get for not being patient!

  • http://unorthodoxempire.tumblr.com Unorthodox Empire

    Lol I bet you feel dumb now, you coulda just sold off after the 400% increase when Bitcoin got tons of press for hitting $1000. I would kill to have the setup you were using…

  • smewpy

    Quit a few weeks too soon? Rough timing.

  • davemcl

    What exchange did you use to offload – any of them let you wire to Australian banks?

  • retropcdos

    Litecoin is trading at $37 and was as high as $42 at this current time and more likely will trade higher in the next few days. The problem is most people get greedy, or ether expect it to replace there income and expect to get a quick return and blow money they don’t have, “hence buy rigs on credit”. Rule number one, never spent, loan, or donate money, you don’t have, or going to need to pay bills. When ever you deal with a project like this, you have to be very patient, it can some times take years to get a return. Plus mining isn’t the best way to make quick cash, actually buying the coins and trading it is and is pretty much what I did, plus had a couple mining rigs. I actually made over 20k profit and still held onto a huge amount of coins, plus the rigs.

    Just hope you at very least you held onto the 894LTC you had, or have?

  • Christopher Joseph Deming

    lightcoins are tradeing at $35 now if he would have kept mineing at that rate and saved his coinage for a little wile longer he would have definatly made a hefty profit

  • Matthew J Spada

    You sir do suck, should have saved it all and kept mining..

  • J J Campuzano

    you’re such a crying bitch, with Litecoin at $36 today (Nov 30th, 2013), those 894LTC are now worth $32,184 (THIRTY TWO THOUSAND DOLLARS), so I hope you still have’em!

  • ian hickey

    Have you sold your coins now that litecoin is up to $30? At this point you would be way up.

  • Lawrence Ip

    Mate… Hope you still got that litecoin as it’s round about $30 bucks a coin…Go figure!

  • Dave Wu

    your 900 LTC x 30 now would have netted you a nice profit! 27,000 bucks! Should have hung in there.

  • Clay

    LMFAO If you held it for 2 months you would of been so far into the profits you would of been having the best christmas of your life my friend.

  • David Wallace

    With LTC at 30 USD each now I hope you saved them to profit 26,000$ USD

  • crainbf

    I think the noteworthy thing is not that he quit three months too early, but that simply buying litecoins in the first place would have been way more profitable than mining litecoins. I’m currently looking into building a litecoin mining rig and I have difficulties finding any scenario where the mining rig is more profitable than buying coins outright…

  • Steve

    Did you sell those remaining Litecoin before the Thanksgiving Pump?!?! Cuz now I’m pretty sure you would be back in the black with your remaining coins lol

  • JL

    If you guys want a good litecoin mining pool, head over here https://www.ltcrabbit.com/#afpm23

  • Peter Lim

    hi may i know where to get this awsome casing ?
    please email me at peterlimyy@gmail.com thanks

  • David Vander Elst

    I hope for you that you have not sold your litecoin yet… LTC = 30$ now…

    30 * 894… nice amount… keep it and maybe the LTC will be like the BTC ~1000$ -> jackpot ;)

  • litecoin enthusisit

    lite coin is up to $48… meaning he now has almost 50k if he held the litecoins he mined.

  • Wayne D. Neely

    If you’re not doing anything with your 894LTC, my address is La8WtrHJEXMrY461wMd5Hx6G4AAKfBCy5K
    It would make for a merry Christmas for my kids, Thanks!

  • ben prentice

    @Anthony Agius

    I surely hope you held onto those 900 litecoins mate, current sell price is $35 USD so you would have doubled your money ; hmmmmmm.

    If you didn’t better luck with your next adventure mate.

  • mr feng

    Dear friends, who credits the hands of a Wright sold it, I sincerely than the acquisition of Wright, interested, please contact: 251715819@qq.com Tel: + 8618623193219, thanks!

  • Eric

    sell SOME of the litecoins you have, reinvest in solar power to continue generating litcoin. That is if you think there is still more upside. But before anything, DIVERSIFY! If you really consider mining litecoin an investment, you have to stick with it for longer than a few months -treat it like a business. If you still have the resources (or still have some capital), your start up costs are already paid for.

  • Michael Womack

    I wonder if he sold all of his 894 LTC? Because if he did; ouch – especially since they have been hovering around $35-40 USD. yeah, that is over $35k right there. ltc as with btc is a long term investment – especially for mining. LTC is going to keep going up because btc is going to get harder and people are going to jump ship. ltc is the easier alternative to mining. Once people jump ship – ltc will skyrocket as the difficulty will rise with the more people mining it.

  • don77701

    If you still have them it is like 20/litecoin. So you would make a profit now if you should them now.

  • Michael Verhaaf

    The look on your face when you see what LTC’s price is right now… *Priceless

  • Hung Mai

    Hi, do you still have those litecoins? They are hitting 40-35 $ USD recently.

  • lostpackets

    I really hope you keep those coins in your wallet.

  • Wade

    hope you still have that 894! its worth something now. 30k at current ltc worth

  • Flow

    Jap, this would have been the Mecedes… hope you’ve got back in ;)

  • Aes

    Question: on a typical desktop (8 core, 32 gigs ram, radeon gd graphics card) how much LTC can one expect to mine per month? I know this is dinky when compared to the rigs Im hearing about but is it worth messing with? Not trying to make money per se …. more like is it even worth the cpu cycles and wear on my box? Please HELP THIS NOOB!

  • keep_mining_fool

    Litecoin went up to 40 and is about 30 right now. Hopefully this fool held out, jeez… he could have made so much! I wish I knew about this when he did, I wouldn’t have been as dumb with the info.

  • Frank

    Dude – I came across this post. LMAO @ your comment about it being doubtful LTC hits $10+. PLEASE tell me you actually held those 850LTC and sold at $40?!?

  • Nitro Charged

    Profit would have been over 130,000 dollars if you had held and sold them at 40 dollars last week. You really didn’t commit hard or long enough to call this a failure. It would have been a dream venture that richly rewarded you had you been a little more dedicated and patient.

  • Nathan Scheer

    Damn dude Litecoin just spiked hard. Bad attraction bro. Start using Joe Vitales Zero Point work – and stick that shit out.

  • a.d.AM

    Its around $30 right now!! I hope you didnt sell out and I bet you wished you kept plugging away!

  • Padre-D ┌∩┐(◣_◢)┌∩┐

    Sooo many thing WRONG with this post. First you include your rent, internet, and most likey your entire power bill costs. Like you wouldn’t be paying for all that regardless of mining. Why not throw in your water bill too. Second, LTC IS AT $30 AND GOING UPPP! Your almost half way to that Benz you were talking about. Anyone that mines should have faith in the rise of cryptocurrency. If not you weren’t in it to make money to begin with.

  • algrfw

    so how does it feel to give up 3 months early…

  • Chris

    Funny how he would have made ~30 thousand dollars as it went up to 50$ for 1 LTC… Guts bo. Guess you got too pessimistic and quit before it got fun.

  • oliversl

    You have 26k US$ now, congrats!

  • Andrew Curtin

    lol. You quite too soon bro. You would be rich now.

  • Hamiltank

    I bet you’re kicking yourself in the ass when LTC hit $47

  • christian carlsson

    Hey did you keep your coins? You must be happy now with the value around 30 buxx
    ??

  • Democracy101

    Turns out the guy exchanged his 894LTC for 13BTC. At today’s exchange rate 894LTC is worth ~ 32BTC. He made a loss either way and can’t help but feel empathy towards the guy. If he had just held on a few more months or days even he would be raking in a healthy profit from gradually selling LTC whilst continuing to mine.

  • Jerry Mancini

    I should sell my 7950 lol

  • MichaelSteve

    Anthony – Was both a fun story and a sad one. Either way it was not as bad as this one http://www.ereviewguide.com/news/2013/12/27/bitcoins-fortunes-and-the-case-of-the-six-million-dollar-pizzas/

    I still don’t know if you have your 3655 coins saved up but if you do this was not a sad story at all just fun and entertaining reading about your mining project and possible options.

    Thinking myself to buy one of those asic models (cheapest) and get 1 bitcoin and be happy with that because it seems the train has already left the station for me.

  • Ika Bik Diggitle Diggitle

    That’s what you get for trying to get rich quick.

  • Rosss

    Now at $25 per/LTC lol

  • Sam Shaw

    This is a great post, a lot of useful information for people starting out in this new crazy-but-fun trend. I guess the days for BitCoin mining with easily available hardware has become close to impossible unless you literally own a mining farm. In my opinion, LiteCoin is the way to go now! I’ve been building some of my own mining rigs since a year now and I’m willing to build them for other people too. What’s in it for me? Of course, the more people joining the race, the more those coins will climb. Result: The early bird wins. Anyone wanting to buy their own ready-made, turnkey mining rigs can email me: dreamworld.technologies@gmail.com

  • Maggie Fok

    A really great read! Thank you for sharing your experience :)

  • Derek

    cryptocurrency mining is an ecological disaster of stupid proportions ( http://www.bloomberg.com/news/2013-04-12/virtual-bitcoin-mining-is-a-real-world-environmental-disaster.html ) that literally produces nothing of real value to the world and the only tangible thing being waste heat that is only going to get worse. Funnily enough i found this because of the guy pseudo-explaining bitcoin on the 7:30 report. Reading the responses is always amusing, in typical crypto-community fashion, they’re all “the nature of the currency isn’t shit, you just failed the currency, everythings up uP UP, GET ON THE HYPE TRAIN, CHOO CHOO”. It’s refreshing to see that you cut your losses. The fact that the people you talked to were all using ‘free power’, externalising all the costs onto other people is a typical ‘fuck you, got mine’ attitude that shows that people can’t think outside of their own little world about the real costs of their actions.

    The effort you put into this article is pretty good and I’m glad to see that you actually EVALUATED trying to use alternative power, and in the process actually showed why a typical setup is an eco-disaster.

    I really can’t wait untill this bullshit bubble bursts.

    • reckonerau

      Well, that all depends on if you see ‘real value’ in maintaining a global, decentralised payment system for digital currency. A network that’s built around making currency very very difficult to counterfeit.

      How much power goes into the current financial transaction systems that have those problems inherent in their design & always will? It’s probably a lot.

      Which system is more wasteful overall? I don’t know the answer, but it’s not quite as cut-and-dried as the idea that ‘mining Bitcoins is a waste of power’.

  • Oleg Vyazhevich

    Ouch. Litecoins are about 25 usd right now. A few weeks back they were 29 usd

  • Raj Thimmiah

    Ha if you had onky waited you would’ve had so much money right now

  • Melvyn Tan

    Looking back, Option 2 would have been the choice. Everything has been set up and basically let the market forces decide. If you can accumulate 7200LTC with ‘free’ electricty, at today’s value [ Feb 2014]. it is about $151,200. Nothing to laugh about and it repeats itself again for 2014 and so forth. Imagine LTC hitting $50?

  • dra6o0n

    Maybe it would be more profitable to sell energy than to consume it?
    How long would a $10k solar investment take until it pays off?
    Also, making money is NOT just about making more money, its about budgeting and accountability to know your losses and expenses ahead of time.

    You could mine 12 hours a day over 24… Take no energy cost while its offline, its not like NOT mining would cost you money.

    So the least resistance in making money while having little to no expenses, is selling to consumers something renewable in itself.

    There’s a technology idea going around that you can create solar farms via special paint instead, which could be considerably cheaper in starting costs.

  • FutureFox

    Not one mention of pooling. You could have made maybe half what of you you ended up with at a fraction of the setup cost. There is power in banding together.

  • Jason Shifflett

    bet you’re kicking yourself in the ass now……. right now you 874 ltc would be worth 12k$ usd; but i’d convert it over to btc; and get almost 13k$ usd for it.. :)

  • JohnDoe

    Now just start Folding@Home! — you’ll see a return on investment when there’s a cure for cancer — I think there’s already a cure for cancer: certain things we do give us cancer, one of those is BRIGHT LIGHTS at night, that’s proven to make cancer worse, so all we REALLY need to do is find out WHAT gives us cancer and DON’T DO IT, issue solved.

    But as for the other diseases, yeah we need cures, so help out!

  • Kai A. Stensson

    I got electricity included in my rent. So… in other words, I got Free power.

    Perhaps I should consider upgrading my mining a bit…

  • Campbell Solomon

    Should’ve put 7 GPU’s on each motherboard and undervolted them. Would’ve saved space, power and money.

  • The Architect

    hope you held onto those litecoins and sold them when they spiked back up during the time that the blackfriday washouts brought all their money to the table, *you know the type, they go to a sale teeth bared and ready to shed blood to get the good deal on something they want, and end up staring at empty shelves because they were to late?” Yeah those guys, they still had money in their pocket ready to burn after the sales were over and wanted some consolation prize so investing in something was their gig, and it drove up the price to infinity lol there are spikes and dips every year, so holding and selling when you are comfortable is always the best choice on this. Hope you do something similar too with any donations you are getting, never sell out, always sell up :)

  • SGM

    This post is somewhat inactive (last post being
    a month ago) so I hope my post gets read. Firstly I would like to say that Mr
    Agius’ report is commendable as it is a form of intellectual capital given
    without any expectation of reward except to educate/inform individuals such as
    myself. Secondly, I don’t even know what a GPU is but I find the whole
    crypto-currency form of exchange incredibly fascinating. Historians
    will no doubt look back on this period of time as a defining point in the way
    individuals and countries engaged in trade and commerce. To be part of that
    -for me at least-is exciting. Thirdly, and most importantly I want to make the
    following point. Once you have your litecoins, bitcoins etc forget the cost of
    acquisition. Cost of acquisition is only relevant when you decide whether or
    not to invest (i.e. mine) once you have your coins your mindset has to change
    because at this point in time you are holding an asset e.g. a stock. The 2 most
    important rules when selling a stock are as follows: 1) No emotion! Thinking
    about concepts such as ‘breaking even’ is a type of emotion; i.e. ‘I don’t want
    to lose money’ 2) only sell when there is a downward trend in the market.
    Pre-determine what constitutes a downward trend (this can be difficult with
    cyber-currency as price fluctuations are greater than traditional currencies).
    An example may be 3 consecutive days of declining value of >3% or a 10 %
    loss in a 7 day period or some other form of measurement. Once this measurement
    has been satisfied, regardless of whether you’ve made a profit or loss, SELL,
    SELL, SELL. No one picks the bottom of a market nor does anyone pick its peak
    (other than by chance). I have no idea as to whether mining of coins is
    profitable. But I do know about trading. Mr Agius stated that his 894 LTC were
    hovering around $2.50, he went through some scenarios, ‘sell at $9.15
    break even’, ‘sell at $10 make $756’ etc. Never, in advance, decide what price
    a share/coin should be sold at, or speculate about scenario’s out of your
    control e.g. mt Gox doing this or that. Let your profits run. That is how
    traders make money (successful traders generally have more losses than gains,
    however those gains, although fewer in number are greater in size). Let your
    profits run, like in sport momentum is everything. Once you’ve identified a
    downward trend SELL, SELL, SELL. Most of all, don’t expect to get rich only
    invest what you’re prepared to lose. I’m not qualified to give financial advice
    nor am giving financial advice. I would simply like to see entrepreneurs like
    Mr Agius, get some reward for being brave enough to have a good-old-fashioned
    crack at it.

  • Mauro

    What do you think about http://www.chabatmining.com/ ??