

Show HN: Coinwell - the easiest way to mine litecoins - theanirudh
https://coinwell.net

======
onion2k
Logically, this must generate less income than it costs to run, otherwise the
people running it would make more money mining Litecoins themselves rather
than selling the service to mine them.

~~~
theanirudh
We are also mining ourselves and now we want to grow more. In order to mine
more and reduce our costs, we need users. It becomes cheaper to buy more
hardware etc., hence we are providing this as a service.

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Caketh
Lets quickly do the math on this.

At the time of writing, Litecoin is at $23.50 and Bitstamp is showing Bitcoin
at $821.

The cost of the lowest service is 0.75BTC pa, which works out to be $615.75
per year.

615.75/23.50 = 26.2021276596

At a rate of 0.5 MH/s, we're looking at 0.12406948 LTC a day[1] at the current
network difficulty.

So, to mine 26.2021276596 LTC, it would take us 211.1891470779115 days. That
came out a lot quicker than I thought it would, but still an exorbitant amount
of time.

LTC is not my interest or strong point, so if there are any errors, please let
me know so I can correct them.

[1]
[https://www.litecoinpool.org/calc?hashrate=500&difficulty=38...](https://www.litecoinpool.org/calc?hashrate=500&difficulty=3891.34232183&power=&energycost=0.10&currency=USD)

~~~
mrud
Don't forget that the difficulty [1] will increase over time. By using the
calculator [2] with only a 5% increase, zero electricity costs etc. we don't
see any return at all.

[1]
[http://bitcoinwisdom.com/litecoin/difficulty](http://bitcoinwisdom.com/litecoin/difficulty)

[2]
[http://bitcoinwisdom.com/litecoin/calculator](http://bitcoinwisdom.com/litecoin/calculator)

~~~
Caketh
Ouch. Thanks for the information.

In addition, that second link helps us work out what equivalent hardware at
home we could use to accomplish a similar (non)return. Purchasing an AMD
HD7970 graphics card, with a hash rate of 0.7MH/s, and mining with that could
arguably be cheaper in the long run

~~~
faizanaziz
The problem comes when you start factoring electricity and so on. In my
calculation the difference is just too little. Plus you have the advantage of
not investing time into it.

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rglullis
The interesting thing is that India has one of lowest costs for electricity.

~~~
theanirudh
Exactly, thats why we are able to be so cheap

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chandrew
Maybe a referral program like CEX will help Coinwell out

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disposableme
"We are a company registered in India." \-- No, thank you. Economic and
political stability required.

~~~
faizanaziz
India is not as economically and politically unstable as you think -
[http://en.wikipedia.org/wiki/Economy_of_India](http://en.wikipedia.org/wiki/Economy_of_India)

Think about it, all the largest companies like IBM, Microsoft, Google, NetApp
have huge campuses in India if it was unstable why would they be there?

~~~
pliny
A large company can absorb a lot more risk than an individual, or really any
entity smaller than itself.

In fact, that attribute - the ability to absorb risk (and failure) is the
reason why a corporation is a useful structure in the first place - nobody
wants to take on a billion dollars in credit personally.

~~~
faizanaziz
True, however large corporations take large risks also. When you invest in
services like this its around 1000 USD. Imagine when companies are willing to
take upward of 2 billion USD risk they won't do that unless they are sure.

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verroq
1.5mh/s is tiny.

~~~
theanirudh
1.5 MH/s is pretty fast in Litecoin mining, and we are working towards getting
more capacity. From our initial estimate we found that you can earn upwards of
$50 a week

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chandrew
are you running any promos? :P

~~~
theanirudh
Thanks for the suggestions, we will consider adding a referral program. Also
what do you mean by promos? like a discount on contracts?

~~~
chandrew
promos for early users, to get the word out, etc. so yes, discounts.

