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validium

sr. member

Activity: 350

Merit: 250

Decentralized thinking

I'd rather invest in a HYIP (very risky, but don't gamble more than what your willing to lose) at the of the day i will get my share. Cloud mining is not profitable and most professional bitcoiners know this.

Quote from: Ron~Popeil on June 09, 2014, 02:39:19 AM

Quote from: AceWallen on June 09, 2014, 01:17:53 AM

it's true. it's a terrible investment. i can see why people get duped into it, since they don't want to buy/build/operate their own rigs. but they must not do the math....

New people to the bit coin world are particularly susceptible. I know I made the same mistake when I got in. Luckily my math inclined wife helped me break down the numbers and realize they were not a good deal.

I also fell for it

odolvlobo

legendary

Activity: 4354

Merit: 3260

Quote from: Harley997 on June 13, 2014, 07:40:00 PM

Quote from: odolvlobo on June 13, 2014, 12:11:10 PM

Quote from: ejinte on June 13, 2014, 03:01:30 AM

Quote from: bigbeninlondon on June 12, 2014, 05:23:04 PM

The way I see it, if a cloud mining service can make more money mining then what they're charging, then they'd just mine. Having me pay them to mine for me seems like I'm losing out.

If they can sell their GH for BTC and buy more GH for those BTC they might make more money than if they just mine them self.

Please provide an example of how that might work. I think you will discover that it only works if the customer loses money.

If it cost them .01 BTC to make/buy 10 GH/s worth of mining equipment but can sell that equipment on cex.io for .07 BTC then they just made .06 BTC, they then use that .07 BTC to build/buy 70 GH/s and sell that for .49 BTC, and so on and so forth. The only difference is that the amounts are much greater (I am not sure about the profit margins though).

Suppose they can use the equipment to mine 0.08 BTC instead. Then why sell it 0.07 BTC? They make less money. And if they sell it for 0.07 BTC because it can only mine 0.06 BTC, then the customer loses.

Harley997

sr. member

Activity: 266

Merit: 250

Quote from: odolvlobo on June 13, 2014, 12:11:10 PM

Quote from: ejinte on June 13, 2014, 03:01:30 AM

Quote from: bigbeninlondon on June 12, 2014, 05:23:04 PM

The way I see it, if a cloud mining service can make more money mining then what they're charging, then they'd just mine. Having me pay them to mine for me seems like I'm losing out.

If they can sell their GH for BTC and buy more GH for those BTC they might make more money than if they just mine them self.

Please provide an example of how that might work. I think you will discover that it only works if the customer loses money.

If it cost them .01 BTC to make/buy 10 GH/s worth of mining equipment but can sell that equipment on cex.io for .07 BTC then they just made .06 BTC, they then use that .07 BTC to build/buy 70 GH/s and sell that for .49 BTC, and so on and so forth. The only difference is that the amounts are much greater (I am not sure about the profit margins though).

Este Nuno

legendary

Activity: 826

Merit: 1000

amarha

If you buy Cex.io shares on a big dip and then sell them on a big up shot, could you make money that way? It seems like it's just another way to gamble with your btc, no?

odolvlobo

legendary

Activity: 4354

Merit: 3260

Quote from: ejinte on June 13, 2014, 03:01:30 AM

Quote from: bigbeninlondon on June 12, 2014, 05:23:04 PM

The way I see it, if a cloud mining service can make more money mining then what they're charging, then they'd just mine. Having me pay them to mine for me seems like I'm losing out.

If they can sell their GH for BTC and buy more GH for those BTC they might make more money than if they just mine them self.

Please provide an example of how that might work. I think you will discover that it only works if the customer loses money.

ljudotina

legendary

Activity: 1260

Merit: 1029

Quote from: FlyForFun on June 13, 2014, 06:32:43 AM

The main point of them providing cloud mining service is for them to profit not the customer

It goes like this:
First they buy hardware and mine for temselves while its profitable. Once it gets to barely profitable they offer it to market on ridiculous price. They sell their hardware for GOOD money so they earn twice. For that money they buy mor hardware and cicrle starts again.
In adiditon to that, they dont need to care about hardware economics asthey take BTC for electirc bill, and they will keep it going on as long as you are willing to pay the bill. They take some extra too so they profit on that too.
It's win / win / win situation for them.

FlyForFun

sr. member

Activity: 243

Merit: 250

The main point of them providing cloud mining service is for them to profit not the customer

ejinte

hero member

Activity: 644

Merit: 500

Quote from: bigbeninlondon on June 12, 2014, 05:23:04 PM

The way I see it, if a cloud mining service can make more money mining then what they're charging, then they'd just mine. Having me pay them to mine for me seems like I'm losing out.

If they can sell their GH for BTC and buy more GH for those BTC they might make more money than if they just mine them self.

bigbeninlondon

hero member

Activity: 742

Merit: 500

The way I see it, if a cloud mining service can make more money mining then what they're charging, then they'd just mine. Having me pay them to mine for me seems like I'm losing out.

ShakyhandsBTCer

sr. member

Activity: 448

Merit: 250

It's Money 2.0| It’s gold for nerds | It's Bitcoin

Quote from: sukamasoto on June 12, 2014, 12:41:25 PM

you are right
I've tried mining cloud over there and I felt no benefit at all because too many fees

It is not just the fees, it is that the price that most cloud mining companies sell their contracts are at a level where the rate of difficulty increases would need to slow substantially.

sukamasoto

legendary

Activity: 1148

Merit: 1006

Black Panther

you are right
I've tried mining cloud over there and I felt no benefit at all because too many fees

Harley997

sr. member

Activity: 266

Merit: 250

Quote from: jeffersonairplane on June 09, 2014, 04:03:06 PM

Quote from: Ron~Popeil on June 09, 2014, 03:38:20 PM

Quote from: ejinte on June 09, 2014, 01:48:09 PM

Quote from: AceWallen on June 09, 2014, 01:17:53 AM

it's true. it's a terrible investment. i can see why people get duped into it, since they don't want to buy/build/operate their own rigs. but they must not do the math....

Yes this is so true. Everyone most me smart and do their own calculations when they choose to invest in something like mining.

Quote from: leezay on June 09, 2014, 03:30:15 AM

Some people just want to try it out before committing larger capital for ASIC miner.

That's the stupidest thing I've heard.

Avoiding cloud mining altogether works for me. I don't have to trust anyone but myself.

That's so stupid. There are plenty of trustworthy cloud mining operations going.

Even if a cloud mining operation is trustworthy, you would not have control over your mining power.

Cex is probably the most trustworthy (and biggest) cloud mining operation however you can not do anything but sell your GH/s when they start to get close to 51% of the hashpower.

Ron~Popeil

sr. member

Activity: 406

Merit: 250

Quote from: makebitcoin on June 09, 2014, 04:45:10 PM

I recently fell into the trap of investing there. I got eaten up in maintenance fees. Stuff like this is really working against Bitcoin. There have been a ton of big scams. I'm thinking pirate, Gox, BFL etc.

Yeah. You are better off finding some investment opportunities or just holding.

Ron~Popeil

sr. member

Activity: 406

Merit: 250

Quote from: jeffersonairplane on June 09, 2014, 04:03:06 PM

Quote from: Ron~Popeil on June 09, 2014, 03:38:20 PM

Quote from: ejinte on June 09, 2014, 01:48:09 PM

Quote from: AceWallen on June 09, 2014, 01:17:53 AM

it's true. it's a terrible investment. i can see why people get duped into it, since they don't want to buy/build/operate their own rigs. but they must not do the math....

Yes this is so true. Everyone most me smart and do their own calculations when they choose to invest in something like mining.

Quote from: leezay on June 09, 2014, 03:30:15 AM

Some people just want to try it out before committing larger capital for ASIC miner.

That's the stupidest thing I've heard.

Avoiding cloud mining altogether works for me. I don't have to trust anyone but myself.

That's so stupid. There are plenty of trustworthy cloud mining operations going.

Throwing good money after bad is even more stupid. Basic math tells you that cloud mining is a very poor investment.

makebitcoin

sr. member

Activity: 308

Merit: 250

I recently fell into the trap of investing there. I got eaten up in maintenance fees. Stuff like this is really working against Bitcoin. There have been a ton of big scams. I'm thinking pirate, Gox, BFL etc.

jeffersonairplane

legendary

Activity: 1522

Merit: 1000

www.bitkong.com

Quote from: Ron~Popeil on June 09, 2014, 03:38:20 PM

Quote from: ejinte on June 09, 2014, 01:48:09 PM

Quote from: AceWallen on June 09, 2014, 01:17:53 AM

it's true. it's a terrible investment. i can see why people get duped into it, since they don't want to buy/build/operate their own rigs. but they must not do the math....

Yes this is so true. Everyone most me smart and do their own calculations when they choose to invest in something like mining.

Quote from: leezay on June 09, 2014, 03:30:15 AM

Some people just want to try it out before committing larger capital for ASIC miner.

That's the stupidest thing I've heard.

Avoiding cloud mining altogether works for me. I don't have to trust anyone but myself.

That's so stupid. There are plenty of trustworthy cloud mining operations going.

Ron~Popeil

sr. member

Activity: 406

Merit: 250

Quote from: ejinte on June 09, 2014, 01:48:09 PM

Quote from: AceWallen on June 09, 2014, 01:17:53 AM

it's true. it's a terrible investment. i can see why people get duped into it, since they don't want to buy/build/operate their own rigs. but they must not do the math....

Yes this is so true. Everyone most me smart and do their own calculations when they choose to invest in something like mining.

Quote from: leezay on June 09, 2014, 03:30:15 AM

Some people just want to try it out before committing larger capital for ASIC miner.

That's the stupidest thing I've heard.

Avoiding cloud mining altogether works for me. I don't have to trust anyone but myself.

ejinte

hero member

Activity: 644

Merit: 500

Quote from: AceWallen on June 09, 2014, 01:17:53 AM

it's true. it's a terrible investment. i can see why people get duped into it, since they don't want to buy/build/operate their own rigs. but they must not do the math....

Yes this is so true. Everyone most me smart and do their own calculations when they choose to invest in something like mining.

Quote from: leezay on June 09, 2014, 03:30:15 AM

Some people just want to try it out before committing larger capital for ASIC miner.

That's the stupidest thing I've heard.

leezay

full member

Activity: 363

Merit: 100

SWISSREALCOIN - FIRST REAL ESTATE CRYPTO TOKEN

Some people just want to try it out before committing larger capital for ASIC miner.

Ron~Popeil

sr. member

Activity: 406

Merit: 250

Quote from: AceWallen on June 09, 2014, 01:17:53 AM

it's true. it's a terrible investment. i can see why people get duped into it, since they don't want to buy/build/operate their own rigs. but they must not do the math....

New people to the bit coin world are particularly susceptible. I know I made the same mistake when I got in. Luckily my math inclined wife helped me break down the numbers and realize they were not a good deal.

Topic: ... - page 4. (Read 9651 times)