Topic: Cloud hashing review - page 2. (Read 32457 times)

Very good review. I just wish I had seen it before I purchased a contract with them.
That being said, two days after I purchased the contract, I noticed the performance was not even close to what they had said. It took them 5 days to respond! Even then is was a sales pitch.
At the rate of return, it's a good 60% loss if not more.   I decided to watch it for awhile. Inquired about ways to improve performance etc. Since I saw no improvement, I asked to cancel. Again, days to respond and of course " I'm sorry, we can't do that".
We'll see how the credit card company views that.
Avoid Cloudhashing.com whatever you do. No performance, poor service. it's a losing proposition at best and most likely a scam.

Here's a new scrypt cloud hashing service similar to CEX.io that may be of interest: http://scrypt.cc?ref=baaaL (Referral link)
They seem to have just launched, so proceed with caution.

A few months? You are too optimistic lol. 

FYR: https://forums.butterflylabs.com/blogs/bfl_jody/314-friday-august-30-2013-shipping-update-posted-saturday.html


After sending your bitcoin in June 2012 for MiniRigs, you can finally get the products in Aug 30, 2013 lol.

Yeah,it's nowhere as profitable as it is the time you get your order. They may "test" it out for a few months before shipping it to you.

My suggestion: Stay away from BFL, especially for pre-orders

They delayed mine also by two weeks and just added another five days...

They delayed my contract a day, then again for two weeks. Clearly they dont take difficulty serious and have already breached the contract by missing the start date.  Im struggling to get refunded. Terrible business to deal with.

Buying the most efficient hardware available and getting it early will always return you profit. It's self-stabilizing and there is no alien technology. The only problem is the amount of people mining, but then again, it stabilizes.

People have been complaining about difficulty for a long time. If it was so bad, nobody would be mining. And if they werent mining, it would suddenly be profitable.

Hope this make sense to you guys

Avoid Cloud Hashing like the plague !!!
Cloudhashing is big FRAUD !!!!

In Dec of 2013 I purchased the Silver Mining Contract (10 GH/s) for 1.73 BTC, based on comments in this forum and elsewhere that the Cloudhashing silver contact would yield about 5 BTC/yr.   It was immediately clear that it wasn't hashing at the claimed 5 BTC/yr rate, so I immediately requested a refund, as offered in their offer for sale. Zac at Cloudhashing said they would issue the refund. After several weeks of excuses, they issued a partial refund of 1.25 BTC. They claimed the refund was in the dollar equivalent. This was after they delayed for several weeks and the BTC / USD rated changed significantly. They fleeced me for 0.46 BTC. Can you imagine if you purchased foreign on a FOREX exchange at the market, and the trader did the trade, then wouldn't credit your account for several weeks waits for the exchange rate to change, then pockets the difference? That's effectively what CloudHashing does.....

I pinged a message to the CEO, Emmnauel Abiodun, with documents about the problem and lack of full refund, and the problems I was having with the customer support, or lack thereof.  Emmnauel was totally flippant in his reply, effectively telling me off, that if I had a concern that I should talk to customer support.

 (You should ask your self why there is no phone number on the website, and they won't tell you the full name of the staff that work there). *** Look on the BitCoinTalk.org forum, many people who have been ripped off by CloudHashing are just now coming forward. *** - some comments on user CloudHasher - are showing the fraud there.

If you've been scammed by CloudHashing, please come forward about your situation on these Forums.  
Otherwise, their scam will go on, and they will make the BitCoin and Altcoin community look very bad to new users and new investors.
I can't think of a worse ambassador to the Bitcoin community than Cloudhashing (well, now that Silk Road is shut down).

People are just now learning about and coming forward about this Bernie Madoff level scam from CloudHashing.

I've contacted some of their advertisers.
A big reason I went with Cloudhashing was their ads on Info Wars with Alex Jones via the GCN.
Alex Jones says he personally uses the products he advertises.   That likely true with many of his product in the Infowarsstore, I doubt it's the case with

If this goes on, people also need to contact
centraltx.BBB.org
SEC.gov (Securities Fraud)
FTC.gov (False Advertising, Fraud, Refusal to give the requested refund they claim to offer)
FCC.com (False Ads, bait and switch)

Also call their ad network and discuss how you got burned by CloudHashing.
When I talked with Jason Worsley, ad rep, at GNC (Genesis Communication Network)
http://www.gcnlive.com/CMS/index.php
 877-996-4327  x118
Jason told me it was the first he'd heard the Cloudhashing is a scam.
So if you've been fleeced by Cloudhashing, it's important you call the leadership at GCN and Infowars to let them know of this fraud.
You may need to talk with Ted Anderson, the founder at CGN to get resolution.

at Infowars.com
the contact number is
888-253-3139
ask for the office support team for the radio show

Good luck on getting any positive ROI, let alone a lucrative return.  
Ditto in trying to get your refund they claim to offer in 7 days, when you find the hash rates aren't anywhere they need to be for the deal to pencil economically.

(If you're new to BitCoin/Altcoin, my best results so far have been:
LocalBitCoins.com  (just pay cash and meet in person at a local coffee shop with wifi to deal the deal to buy or sell some BTC)
run a mining program on your computer(s) and mine at home for DogeCoin, LiteCoin, or other Scrypt based coins, they can be traded to BTC on the exchanges if need be).

I spend few days doing a lot of calculation and spend time speaking with cloudhashing guys, since i was intentended to invest an important amount of money to buy power to mine.
And i realize that even with their best prices, and a difficult around 20% a step, u are gonna make a really small profit, and there are many risk to consider.

I guess that spending more than 12-13$ a GHS right now with all the risks and everything it's gonna me -EV (start mining around 14 gen).

I mean with all the risk u should have at least 80-90% profit 2:1 pretty much and the only way to go there is with those price.

Anyone doing those prices on the market ?

Your butterfly labs assessment is missing one particular detail.  The hashing does not begin immediately, it doesn't begin until Josh gets his personal mine setup and mines for 3 difficulty periods -then once the monarchs flood the network and it's impossibe to ROI...your mining begins.

With Cex.io at least you get your hashes right away.  My group buy is offering hashing at about half the price of any of these offerings, and it starts hashing right away.

message to OP!
Good morning Columbo!!!
seriously now, some dude couple of weeks a go made some calculation's with 10BTC investment to cloud hashing. and no matter what strategy he try, like buy GH and by more GH with earnings or buy GH and don't buy more, he will always end up loosing from 1.5BTC to 3BTC.

so yeah! cloud hashing is a really bad idea.  

Thanks for the great review and introduction to mining calculations!

As an FYI, your calculator (http://mining-profit.com/) has been returning 502s for the last little while.

http://imgur.com/gKrAR8a http://imgur.com/gKrAR8a

I got a look at this
dzminercoop.com what do u think about ?
Since your review seems pretty good i would like to have an idea by you.

About your calculation on Cloudhashing i had some idea.

Doing the calculation now with Current Difficult 1418, u are gonna get 0,61 bitcoin that at the actual price 820$ it's not profitable

But getting the most expensive packages of 35k$ for 2TH u can get 61BTC that mean 50K$ more or less so like 15k$ profit that's a
40% profit pretty much without including the possibility of price going up.

And i guess that if pre price goes down the Difficult will slow down and we will get more BTC with the same money.

I cecked http://www.butterflylabs.com/ to confirme the price u worte but i havent found them on the site

Totally agree with author.

And, btw my calc - http://mining-profit.com/
It calculates much more better than other ones. And it also shows daily statistics if you click on a row
I made it because cex.io calc shows absolutely wrong calculations. They didn't change anything there since it opened.

if you're looking into script, just buy a decent ATI card with some cheap computer parts and you're set to start mining. 

As for cloud mining - great review.  I have reviewed most cloud mining services and come to the conclusion Cex.io is the only one worth it.  It requires a lot of time to buy and sell.  Prices of GHS tend to be cheapest right before and after a diff change.  This gives you some room to predict and purchase your GHS accordingly.  Holding long term is a terrible idea as you will loose big.  So I trade every 5 or 6 days into a diff change cycle.

You can also buy into group buy.  That's another realistic option for you if you're looking to invest.  They tend to be cheaper and allow you to be a piece of the big machines. check out the subforum:

https://bitcointalk.org/index.php?board=137.0

Thanks been looking for good review unlike some who think the useless ghs becomes the higher it will cost

since you learned so much about cloud mining maybe you can help,
is there such thing cloud mining for scrypt?
some cloud mining service allow to point to other pool?
maybe its more profitable to mine other coin and trade

I bought a couple of contracts on cloudhashing.com and while they do work I believe there is something that most people are missing out when hiring those services, including myself, which is basically the speed of the difficulty increase.

I wrote my first blog post ever (not much of a writer) and it was about this, so wanted to share it here: http://arielbarreiro.com.ar/en/bitcoin-cloud-hashing-review


Over the last few weeks, and of course, because of the latest frenzy on bitcoins due to its price, I decided to try to get into it a bit. People will comment it's a bubble, other it's not, but the fact is that it has a very good momentum that's likely to continue for quite a while. Of course nobody knows what will happen, that's the only sure fact, but I rather have some and lose some money that not have any and missed a good opportunity to earn some more.

Of course, I kind of knew that although buying bitcoins at around $1000 might not be the best idea at that point (although it reached $1200 later on but it's now around $650), the first thing I started to look into was [bitcoin mining](http://en.wikipedia.org/wiki/Bitcoin_protocol#Bitcoin_mining). I won't go into details of what that is or how it works because that's not what I was planning on writing.

I looked for mining rigs, its setup, its configuration, etc. and because I am not based in the US, purchasing and bringing those equipments here to make it profitable was not an option. From there I resolved to look for people offering hosted solutions, and of course, I found one: [Cloudhashing.com](http://www.cloudhashing.com). They were offering, last November, a platinum contract of 20GH/s for two years for $950. Without thinking much about it I gave it a try. Of course bitcoin mining is not a sure deal but they point you to an [estimator](http://www.bitcoinx.com/profit/) that supposedly gives you a good estimate of what you might get. See below what it says now for 20GH/s:

http://arielbarreiro.com.ar/sites/default/files/blog/images/bitcoin-profit-new.png

So this says, that at **the current difficulty** you can get around 0.0085BTC per day. So in two years:

\\(0.0085 * 365 * 2 = 6.205\\)

After trying the first 20GH/s and seeing that I was getting to around that estimate (it was more back in November), I decided to purchase an additional one, so I am now with 40GH/s for two years.

[Cloudhashing.com](http://www.cloudhashing.com) also takes a 10% management fee and, depending on how you have it configured some more for a reinvestment program I am not currently using, so following that estimate I would get:

\\(6.205 * 0.9 = 5.5845\\)

So that's about 5.5BTC for $950 per contract, not so bad! **Although.... read below!**

**So what does "the current difficulty" means?**

In a nutshell, the difficulty is a parameter set by the bitcoin network that makes it more (or less) difficult to mine bitcoins. The bigger this value is, the less amount of bitcoins you will get for the same amount of GH/s

I [researched](http://bitcoindifficulty.com/) a bit on how the difficulty was increased in the past few months:

http://bitcoin.sipa.be/speed-lin.png

This image is a bit scary. It makes sense though, that as bitcoins reached an all extreme high of over $1000 a lot of people (like me) wanted to get a piece of it and started mining, increasing the bitcoin difficulty exponentially.

By looking at the past few months, you can see that on average you got an increase of roughly 50% monthly, that's a lot!

Now let's look at another [estimate, from cex.io](https://cex.io/calc), which takes into the estimate difficulty increases:

http://arielbarreiro.com.ar/sites/default/files/blog/images/cexio.png

This picture, shows your approximate earnings over one year assuming that the difficulty increases in average 50% per month. **Although this is a lot, is at least what's been happening the past few months**.

So with this estimate, it says that you will earn approximately 0.73BTC in 1 year, and although the estimate is for one year, you will see that the last months of the estimation you hardly gain any bitcoin, so it's likely that the rest of the two years contract the 20GH/s will be rendered useless.

My conclusions  
------------------

At the current prices of the contracts, with the current average monthly difficulty increase, purchasing any of the available contracts I found below is really a bad investment, and bear in mind, as I said, I have two contracts of 20GH/S for two years! You are better off just purchasing BTCs at the current price, simpler, easier and your only risk is its value, at least you don't have to worry on the difficulty.

Below is a small review of the services I checked and their current prices for cloud mining. Don't take my word for it, just do the math, I think mine are pretty accurate though, and also, again, these are all based on estimates.

[Cloudhashing.com](http://www.cloudhashing.com)

This was my first find and the one I purchased. One good thing about this one is that you are allowed to pay with credit card. They recently revamped their homepage and update their prices scheme, as the time of writing this a 50GH/s/year contract costs $3999. They also charge a 10% management fee taken out from your BTC payments. Running [the cex.io estimator](https://cex.io/calc) mentioned above with the 50% monthly increase of difficulty it gives an approximate earning of 1.8BTC over one year. The current USD/BTC price is around $650. **With $3999 you currently buy 6.15BTC.**

[bit-mining.co.com](http://bit-mining.co/bit-mining.co/)

I found this one recently, their prices schemes are in BTC, so it's even easier to do the maths. They are currently selling 10GH/s at 0.5 BTC for life, with 4 years guaranteed. Don't be too excited about the timeless contract, after 1 year and for sure after 2, with the current increases of difficulty, those GH/s will be close to having nothing. They charge 8% fee for the first year and 5% for the rest of the years. Running the cex.io estimator mentioned above with the 50% monthly it gives an approximate earning of 0.37 BTC over one year. So you are basically are probably going to get less than what you are paying to mine.

[cex.io](https://cex.io/)

This one is a bit different, is more of an exchange site. You can both buy and sell GH/s that you own, and while you are owning them, they work for you as they mine the same as above. The only difference is that if the price of the GH/s goes up, you might make a profit of it. If you think about it for a sec, although this will be more driven by offer and demand, the fact that the GH/s gets more useless as difficulty increases, it's likely that they will loose price as well. Now, without considering any profit of the price fluctuation of the GH/s you purchased and just taking into account the mining power of it, the current price for 1GH/s is 0.069BTC. Say you bought 10 for 0.69BTC. Their [current management fee](https://cex.io/maintenance) is around 3.95%, so running their own estimator mentioned above with these values for 10GH/s I will get 0.34BTC, again, not a great investment.

[butterfly labs](http://www.butterflylabs.com/)

This is probably the "Apple Inc." of bitcoin mining. They sell different equipments for running your own mining hardware and they are preparing a [hosted solution](https://products.butterflylabs.com/homepage-new-products/1-gh-cloud-hosted-bitcoin-hashing-power.html) at $10.83 per GH/s/year. I said preparing, so this is on pre-order. Their mentioned schedule is that this will launch towards the end of this year and they will take each order on a first ordered first serve basis, so you might have to wait until you get it if you buy it right now. Also, the price might change once they lunch it publicly. So for 10GH/s you will pay $108.30. They don't say anything of any management fee as of now, so I will assume 0%. I am going to estimate the values with the current price and as if you would start mining immediately. Running those values on the same [estimator](https://cex.io/calc) as the others you will approximately get 0.35BTC after one year. At todays price of $650BTC that's $227.50, so at least here we are able to see some profit from what would have been purchasing those BTC right now.

One final note, I am not saying mining bitcoins is not profitable, purchasing your own equimentment at a good price, running it properly with good maintenance, cheap bandwidth and OK electricity, it is probably profitable. But if you, like me, are unable to do that because of where you live, money or time, then you are better off purchasing BTC directly assuming you want to invest on it or wait until any of these services have a more reasonable price