I simply don't understand why reinvesting 50% rather than 30% will suddenly make cloud mining profitable. Maybe I'm ignorant but following current and past cloud mining analytics appears to me to be an unprofitable venture. I know I personally would not deposit anymore BTC into major cloud mining websites for own BTC wallet, so I certainly wouldn't consider it a good idea for DMD.
im no lawyer so i didnt find the right words in contract that would make the reinvest part flexible and adapt to the state of cloudmining business
Yes, this is unfortunate. But that is why you're asking us to voice our opinions, which is a good idea. The only way to change the contract would be for both parties to decide on the change mutually.
We all have different opinions so discussion is good. My suggestion is to stick to the contract to avoid potential legal action by angry cloud share holders.
Let me try to clarify this, after all this was partially my suggestion, to preserve profitability of the cloud and ensure its sustainability. I do this on my private cloud mining investments and it has been working so far.
According to calculations based on current and expected difficulty growth, it takes minimum 50% reinvestment of monthly payouts to preserve our payouts level.
What does that mean?
For example, if you have 20 THs hash purchased from a specific cloud mining company and they generate 0.1 BTC per day. Mining difficulty adjusts twice a month, roughly 3.5% per adjustment, that is 7% in total on a monthly basis. This means we need to buy 7% of new hash every month only to be able to MAINTAIN the same payouts we ve been having so far. 7% on 20 THs is 1.4 THs. In order to purchase 1.4 THs new hash to maintain profitability we need to spend between 1.2 and 1.8 BTC, depending on efficiency of the miner, on average 1.5 BTC. Let us get back at the beginning, if our 20 THs makes 0.1 per day, that is 3 BTC per month and we need 1.5 BTC to keep the pace with the rising difficulty, so we need to reinvest 50% of our payments received.
Again, this is simplified example but I wanted to show that we are transparent here and the only reason why I have suggested this is to preserve profitability of the cloud. Mining difficulty is very hard to estimated but I feel 7% monthly adjustment is something we should go for ATM. Since we actually reinvest 50%, in case monthly difficulty is below 7%, we will have our hashing power ENLARGED and by doing so, we will all have slightly better payouts.
In case we do not do this, our payouts will decrease month after month due to the fact that we might be able to compensate difficulty increase only partially and it s going to eat into our initial investment until it devalues it completely.
Cloud mining business is extremely competitive and we must find a way to stay in the game. I suggest we support option 2 as a community. As you can see, DMD team has always been transparent and we have always made our decisions together. In case someone s got some alternative option, I would really like to discuss it.