No, cryptocurrency mining is not a get-rich-quick scheme… well, not anymore.
It takes effort, a lot of research, trial-n-error, and whole lot of patience.
The following example is based on mining profitability on 19 Nov 2017.
Cost : $4400
Hashrate (Ether) : 185mh/s
Power Consumption : 730 watts (optimized)
Gross Profit : $398.35 sgd / month
Electricity Cost ($0.2072/kwh) : $110.47 sgd / month
Rig Management ($0.1036/kwh) : $55.24 sgd / month
Nett Profit : $232.64 sgd / month
payback period : 18.9 months
Assumed equipment depreciation : 15% per annum
*Estimation base of Nov 2017 market rate.
i.e. Eric mines for 2 years and sells his mining rig.
Based on current mining profitability (Nov 2017),
he would have received $5583.36 sgd value of coins,
after electricity & management costs.
He then sold his mining rig for $3080 sgd (30% depreciation).
(P.S. CryptoSG management handles everything*, including selling of rig.
You don’t have to be technical to profit from Crypto-Mining!)
His total return for the investment of $4400 sgd is $8663.36 sgd.
His total ROI for 2 years is 196.9%.
(P.S. local banks fixed deposit rate is 2% for 2 years).
And if you wanna dive deeper into finance…
Eric receives coins approximately every 2 weeks (let’s just compound monthly),
instead of receiving a lump-sum at the end of 2 years.
Thus the effective annual interest rate is 157.59% (315.18% for 2 years).
This scenario is based on the event where the mined coins did not raise in price & difficulty for the next 2 years (which is highly unlikely).