Topic: Can anyone show me calculation how cloud mining can be profitable? (Read 2339 times)
Still waiting for some profitable cloud mining suggestion, not possible there is nothing online. Anyone?
April 16, 2014, 08:22:50 AM
Still have not seen any answer convincing me a profit can be made by using cloud mining.....
+1 Wondering who is the clientele buying all the contracts then? There seems to be a lot of places selling them.
Yes, EXACTLY. This is why I am so surprised. With a bit of 2nd grade math you can figure out this is NOT profitable. Still, bunch of people buy these services every day and there are tons of these websites around. WTF?
Its that they're only less slightly cost effective than antminers (pbmining is at least) and you don't have to put up with hosting, electricity, heat, noise, then liquidating when it has gone by its effective life span.
April 16, 2014, 04:02:21 AM
Still have not seen any answer convincing me a profit can be made by using cloud mining.....
+1 Wondering who is the clientele buying all the contracts then? There seems to be a lot of places selling them.
Yes, EXACTLY. This is why I am so surprised. With a bit of 2nd grade math you can figure out this is NOT profitable. Still, bunch of people buy these services every day and there are tons of these websites around. WTF?
April 13, 2014, 10:52:12 PM
i think you have your answer.. there's no cloud mining at a price that shows a reasonable likelyhood of profit.
Correction: No mining at a price that shows a reasonable likely hood of profitability
April 13, 2014, 05:16:18 PM
i think you have your answer.. there's no cloud mining at a price that shows a reasonable likelyhood of profit.
April 13, 2014, 05:10:00 PM
Still have not seen any answer convincing me a profit can be made by using cloud mining.....
April 10, 2014, 03:23:03 PM
Ok, have been following these cloud mining threads advertising different cloud mining services. Could anyone pls show me some kind of calculation how this can be profitable and how can I get my ROI back?
Whenever I use available calculators I end up paying 7 BTC for 1 TB which gets me back 6 BTC in a year assuming 40% difficulty increase per month, which is an overage over the last few months. I am prepared only to pay for the service in BTC, any kind of fiat payments are not acceptable ATM.
So, what am I missing here, why is math faulty?
Whenever I use available calculators I end up paying 7 BTC for 1 TB which gets me back 6 BTC in a year assuming 40% difficulty increase per month, which is an overage over the last few months. I am prepared only to pay for the service in BTC, any kind of fiat payments are not acceptable ATM.
So, what am I missing here, why is math faulty?
Your calculation is right.
Why would they sell the hashrate if they can get more by mining themselves?
Maybe they could sell it for a higher profit?
April 10, 2014, 03:20:31 PM
Ok, have been following these cloud mining threads advertising different cloud mining services. Could anyone pls show me some kind of calculation how this can be profitable and how can I get my ROI back?
Whenever I use available calculators I end up paying 7 BTC for 1 TB which gets me back 6 BTC in a year assuming 40% difficulty increase per month, which is an overage over the last few months. I am prepared only to pay for the service in BTC, any kind of fiat payments are not acceptable ATM.
So, what am I missing here, why is math faulty?
Whenever I use available calculators I end up paying 7 BTC for 1 TB which gets me back 6 BTC in a year assuming 40% difficulty increase per month, which is an overage over the last few months. I am prepared only to pay for the service in BTC, any kind of fiat payments are not acceptable ATM.
So, what am I missing here, why is math faulty?
Your calculation is right.
Why would they sell the hashrate if they can get more by mining themselves?
April 10, 2014, 11:07:28 AM
Noise? Heat?...
the air conditioner drowns out the miners...
the air conditioner drowns out the miners...
April 10, 2014, 10:44:44 AM
There's up to 5 year contracts. And after time is over, I assume you can either renew contract or just walk away.
What 5 years??? If you get 1TB, in 1 year time it will be worthless with this difficulty increase, not to mention years 2-5.
Im assuming you meant TH/s, and I'm also assuming you can buy/sell extra gh/s
April 10, 2014, 09:01:51 AM
There's up to 5 year contracts. And after time is over, I assume you can either renew contract or just walk away.
What 5 years??? If you get 1TH, in 1 year time it will be worthless with this difficulty increase, not to mention years 2-5.
April 10, 2014, 07:16:32 AM
There's up to 5 year contracts. And after time is over, I assume you can either renew contract or just walk away.
April 10, 2014, 03:03:30 AM
You can't sell your PBmining contract after a couple months though.
That's where the Antminer wins by a large margin. Boom, profit!
That's where the Antminer wins by a large margin. Boom, profit!
And some say PBMining only have 1 year contract for their web hosting, what happen after 1 year ? Can anyone confirm ?
April 09, 2014, 02:42:24 PM
You can't sell your PBmining contract after a couple months though.
That's where the Antminer wins by a large margin. Boom, profit!
That's where the Antminer wins by a large margin. Boom, profit!
April 09, 2014, 02:29:56 PM
There is no realistic chance of recouping your investment with ANY cloud mining service. Youve got that much right.
I can show you calculation, but it shows a probable loss.
As to why people go for it? Go figure... wishful thinking is the commonest investors pitfall. A lot of cloud hash service thrives on it.
I can show you calculation, but it shows a probable loss.
As to why people go for it? Go figure... wishful thinking is the commonest investors pitfall. A lot of cloud hash service thrives on it.
The same could be said for buying your own miner, as a lot of them have an equally high chance of never making a positive profit.
Cloud mining trades the liabilities of a farm for a higher price, because you are paying for someone else's time and energy to mine for you.
Self mining trades the higher price for all the liabilities of running your own rigs. One blown up rig can throw your profitability right out the window.
PBMining is actually cheaper than hardware right now. So that argument has become irrelevant.
pb mining: 1.152 btc per 180 ghs
bitmain s1 ant 0.893 btc per 180 ghs
And you need a PSU and pay for electricity.
We've already had this discussion mate in another thread
Its very close, and with electricity, I believe that the advantage goes to the s1 by a VERY TINY margin, which its worth to buy from PB mining. No noise, no heat, etc. April 09, 2014, 07:57:22 AM
wondering right now if i am going to get return enough to pay for the psus i had to get.. 
April 09, 2014, 04:12:30 AM
There is no realistic chance of recouping your investment with ANY cloud mining service. Youve got that much right.
I can show you calculation, but it shows a probable loss.
As to why people go for it? Go figure... wishful thinking is the commonest investors pitfall. A lot of cloud hash service thrives on it.
I can show you calculation, but it shows a probable loss.
As to why people go for it? Go figure... wishful thinking is the commonest investors pitfall. A lot of cloud hash service thrives on it.
The same could be said for buying your own miner, as a lot of them have an equally high chance of never making a positive profit.
Cloud mining trades the liabilities of a farm for a higher price, because you are paying for someone else's time and energy to mine for you.
Self mining trades the higher price for all the liabilities of running your own rigs. One blown up rig can throw your profitability right out the window.
PBMining is actually cheaper than hardware right now. So that argument has become irrelevant.
pb mining: 1.152 btc per 180 ghs
bitmain s1 ant 0.893 btc per 180 ghs
And you need a PSU and pay for electricity.
April 09, 2014, 02:31:39 AM
There is no realistic chance of recouping your investment with ANY cloud mining service. Youve got that much right.
I can show you calculation, but it shows a probable loss.
As to why people go for it? Go figure... wishful thinking is the commonest investors pitfall. A lot of cloud hash service thrives on it.
I can show you calculation, but it shows a probable loss.
As to why people go for it? Go figure... wishful thinking is the commonest investors pitfall. A lot of cloud hash service thrives on it.
The same could be said for buying your own miner, as a lot of them have an equally high chance of never making a positive profit.
Cloud mining trades the liabilities of a farm for a higher price, because you are paying for someone else's time and energy to mine for you.
Self mining trades the higher price for all the liabilities of running your own rigs. One blown up rig can throw your profitability right out the window.
PBMining is actually cheaper than hardware right now. So that argument has become irrelevant.
pb mining: 1.152 btc per 180 ghs
bitmain s1 ant 0.893 btc per 180 ghs
April 09, 2014, 12:48:59 AM
There is no realistic chance of recouping your investment with ANY cloud mining service. Youve got that much right.
I can show you calculation, but it shows a probable loss.
As to why people go for it? Go figure... wishful thinking is the commonest investors pitfall. A lot of cloud hash service thrives on it.
I can show you calculation, but it shows a probable loss.
As to why people go for it? Go figure... wishful thinking is the commonest investors pitfall. A lot of cloud hash service thrives on it.
The same could be said for buying your own miner, as a lot of them have an equally high chance of never making a positive profit.
Cloud mining trades the liabilities of a farm for a higher price, because you are paying for someone else's time and energy to mine for you.
Self mining trades the higher price for all the liabilities of running your own rigs. One blown up rig can throw your profitability right out the window.
PBMining is actually cheaper than hardware right now. So that argument has become irrelevant.
April 08, 2014, 02:51:01 PM
it just irked me to see people mention the idea of selling an oil well after all the oil has been pumped out..
oh yeah, not to forget your question..
here's the formula ive been using. its close to the equivalent of 22% diff increase per period
1+.82+.82^2+.82^3+.82^4+.82^5+.82^6+.82^7+.82^8+.82^9+.82^10
times 14 days of coin generation. at whatever the present rate is.. i use the output of the miners i have running for this..
"489.08 Gh/s is 0.04019213 BTC per day" or .04019213÷489.08 =... 0.000082179 btc per gh per day.. so..
0.000082179*(1+.82+.82^2+.82^3+.82^4+.82^5+.82^6+.82^7+.82^8+.82^9+.82^10)=0.000405093*14 btc per gh over a 22 week period..
or 0.005671308 btc for 1 gh..
so an antminer at 180 gh would output 1.020835477 btc ... just barely paying for itself plus some pocket change, if i can run it on free electricity.
when you assume a difficulty cange, say, optimisticly 17.6470588%, take the reciprocal of 1.176470588 to get,.. .85..
then:..
1+.85+.85^2+.85^3+.85^4+.85^5+.85^6+.85^7+.85^8+.85^9+.85^10 = 5.551045042
so.. 5.551045042 * 14 * 0.000082179 = 0.006386511 btc per gh or about 1.14 btc for an antminer s1 at 180 ghs.
thse two values assume overall (mean) diff inc of 17.64% and 22%, maybe a realistic range...
so prices per ghs higer, are probably hopeless..
some are so high that they are just blatent rip offs.
oh yeah, not to forget your question..
here's the formula ive been using. its close to the equivalent of 22% diff increase per period
1+.82+.82^2+.82^3+.82^4+.82^5+.82^6+.82^7+.82^8+.82^9+.82^10
times 14 days of coin generation. at whatever the present rate is.. i use the output of the miners i have running for this..
"489.08 Gh/s is 0.04019213 BTC per day" or .04019213÷489.08 =... 0.000082179 btc per gh per day.. so..
0.000082179*(1+.82+.82^2+.82^3+.82^4+.82^5+.82^6+.82^7+.82^8+.82^9+.82^10)=0.000405093*14 btc per gh over a 22 week period..
or 0.005671308 btc for 1 gh..
so an antminer at 180 gh would output 1.020835477 btc ... just barely paying for itself plus some pocket change, if i can run it on free electricity.
when you assume a difficulty cange, say, optimisticly 17.6470588%, take the reciprocal of 1.176470588 to get,.. .85..
then:..
1+.85+.85^2+.85^3+.85^4+.85^5+.85^6+.85^7+.85^8+.85^9+.85^10 = 5.551045042
so.. 5.551045042 * 14 * 0.000082179 = 0.006386511 btc per gh or about 1.14 btc for an antminer s1 at 180 ghs.
thse two values assume overall (mean) diff inc of 17.64% and 22%, maybe a realistic range...
so prices per ghs higer, are probably hopeless..
some are so high that they are just blatent rip offs.
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