Topic: Anyone Making Money With Contracts? (Read 3551 times)

If you trade hashrate, then CEX or Scrypt.cc could be profitable. You might also end up profiting if you do dollar cost averaging on Scrypt.cc and things don't get too weird in the market. But the fees on CEX will destroy any long term holding position.

PBMining...well...let's just say I don't really trust them. A 5 year contract is just plain stupid given the rate that hashing power and difficulty increases. You'll be lucky if you make back your principal, and in a year your hashing power won't mean jack. Plus, their numbers don't make sense. After you figure out the cost for maintaining a data center, buying hardware, electricity, etc. then look at what they're charging for contracts there seems to be something missing. A couple other things don't smell right either, but to each their own.

Basically, you're just better off buying BTC directly and holding than any mining contract.

I've been looking at several cloud mining operations recently and in terms of pure ROI none of them beat buying my own Scrypt ASICs, but that is because I can get a lower maintenance fee doing it myself. However I dont really want to invest the amount necessary to make it worthwhile for the DIY route. Its also hard to cash out by selling 2nd hand ASICs.

• CEX.io appears to be the most professional of the cloud hash trading sites, with the best liquidity, but with the current prices (0.0091/GH) you wont make money just investing and leaving your btc there. Their maintenance charges are a killer, if the USD/BTC rate goes up it improves, but their fee free hash trading distorts the market. CEX have recently introduced a futures market though which could be good value - 0.0041/GH which start mining 26th May. The good thing about CEX is the liquidity, you can always convert your GH back into BTC, and even make a profit on the trade if you time it right.
• For best returns Scrypt.cc seems to be winning currently, but it is a beta site still so I wouldnt recommend a major investment. They also allow you to trade your KHs so you have the option to trade out into BTC again if you want, but the liquidity isnt so good which is another reason again to not invest too much.
• If you have time on your hands then you will get the best cloud mining returns by hiring hash power from sites like leaserigs.net and using it to mine altcoins for yourself, but you have to do the research to get the returns. I've had a good week just now mining WhiteCoin and CINNI, averaged about 0.0075/MH/day profit after rig hire costs, but currently the amount of MH available to rent makes it a limited market. Good way to experiment if you are considering buying your own mining hardware tho. Have a look at https://bitcointalksearch.org/topic/discontinued-cryptoday-mining-revenue-stats-scrypt-scrypt-n-x11-x13-514242 for a good comparison of mining pool returns.
  

If any of that inspires you please feel free to use my referral links - https://cex.io/r/1/sensineCEX/0/ or http://scrypt.cc?ref=babAl

In general the answer is NO to your question about mining contracts/shares if you compare it to just hold the BTC you already own or buy BTC and hold for the period the contract would be for. So the general recomendaton would be just buy BTC and hold until there 10 000 usd / BTC or whatever price you think its ok to sell at...

That is if you talk about buying a contract on cex.io and simular and hold the investment until it no longer is returning anything or the contract period ends or if you buy shares in a mining company at to high price and just hold it passively after that.
There is better possibillitys to make profit in trading shares/contracts actively and so on and there may also be some investments like Asicminer shares bought at IPO that has been profitable investments, there has also been a number of companys/projects that has been popping up the last 6 months that has been returning 20-90% of the investments in the first 1-4 months time and you have in many cases been able to sell your shares for more than you bought it for to but you need to watch out for the obvious scams.
But like all investments you need to count on it and make educated guesses on a projects future dividends, chance the company will succeed and what you estimate the price of the stocks will be trading at in the future.

Sounds like a lot of money for little reward.

It seems to me that there are a lot of companies saying they have x number of TH/s on their sparkly ASICS farms. They do the mining (you don't do any) with their machines and power.

And all you have to do is buy a "contract" for a year or two to help cover the costs.  They will pay out daily or weekly a portion of the bitcoins they mine.

Sounds good in theory.

Here is my question.

ARE PEOPLE MAKING PROFIT? (besides the owners)

To get a few satoshi a day or week, can take a long time to get to the break even point.

IS THERE A such a MINING sharing company that you actually will MAKE MORE than you put in?

Which company is actually doing this (restrictively) so ALL members actually make a PROFIT?

or does that not even matter to the people spending money?



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of course you can make profit
you can buy and sell bitcoin like stock
that is how you making profit if you are smart enough

It doesn't matter because after the 1-2 years the difficulty will have increased so much that your ghs initially purchased will not generate enough bitcoins to keep you financially profitable;  just as if you were purchasing mining equipment you'd need to calculate if you'll generate back your bitcoins in the first 6-12 months, and if not then better to simply buy bitcoins and hope that the price will hike than investing in mining.

The thing about pb mining is that we don't know anything about them so if they'll decide to close their operation tomorrow we can't follow up, so better treat with caution, they're not running a ponzi scheme but they could run a scam in that they'll close their website and continue to mine for themselves so very very careful about investing too much with them.

No you can't trust that at all.

and even though their prices look appealing, i simply see no way of being profitable.

How about pbmining, i thinking of starting with them. Can i trust they will be running 4 5years

Of course.  The mining contract company has to account for rent, electricity, and other maintenance costs that you do to (like electricity) but people hardly count that into their calculations.

Yes, electricity might be "free" because you're renting, or living at school, or at home, but someone's gotta pay for it.  And rent may be "free" for your miners, but you are owning a building that has to run them, and technically a smaller percentage that you pay goes to that bit of floor (or shelf) space that the miner sits on.

Contracts throw all those costs at you up front, so it looks more expensive, but when you run it at home there are lots of "hidden" costs that people don't factor in.

While Investing in mining, understanding the difficulty is more important (given it raises every fortnight for BTC)...if u are looking for complete returns in short term then it's a strict no...even if ur buying contracts or mining on ur own... it may take long time...depending on ur hashing speed to break even ur investments...may b months to come.. since i have seen many people asking the same question...how many days it would take to earn my investment back...which doesn't happen unless u are trading ur mining power..

Let sites/forums not fool u...use ur wise judgement before doing it..ask as many people as u can...on different forums...

that by definition would be a scam (deceptive and misleading)

every time i have run the numbers on a mining contract i keep coming to the same exact conclusion.

it appears to be more profitable to purchase mining equipment on your own to mine than to buy mining contracts...

i just don't see the profit no matter how "attractive" the contract may look.

lost ~0.2 

mining contracts are a gamble, you could make money but they are a bad bet. Odds are you will lose money, just like a casino. You could win, but odds are stacked against you.

Yes, you're right. But they show you profitability, they make fake calculators which calculates thousands of dollars you will earn. But in fact it's all fake. 

yep scam is way overused here. If the mining contract does have a negative expected value its not a good investment, thats all.

Big difference there:
The word scam is way overused around here.

I dont know if they really are scamming you. Use that word wisely. You know exactly what you are buying, the fees you are paying and the risk involved. Thats not a scam, its just bad judgement on an investor.

I never saw profitable mining contracts. It's scam.

There does seem to be a lot of Ponzi going on in the BTC game.