Topic: Cloud mining does not make any financial sense? (Read 2189 times)

You've bumped an old thread and now suggesting to invest on your own cloud mining? I dont see anything new offerings with these kind of investment schemes and i dont know how can you differentiate yourselves into those cloud mining companies that do operating for years now like genesis.If they arent profitable then it would really be just the same outcome on where you would go.

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You're close but not quite onto the point- cloudmining is NEVER a good option and you should never consider it to ever be a remotely good option. It's always a better option to consider alternatives like getting miners hosted when you want to consider mining outside of your own home- risks increase as you go from home mining to hosting to finally cloud mining.

Depends what your daily needs are- the situation with mining profitability is absolutely shit right now, and you need a large setup for the (potential) profit to even be worth your time IMHO. A few rigs won't sustain my personal daily needs. There is a whole lot of risk with not a whole lot of reward in mining right now, especially when the break even time of most GPUs and ASICs that aren't risky first-batch new-algo machines are below or around a year and the situation with profitability has been dropping or stagnating recently.

That's just basically it. Cloud does make sense back when Bitcoin  was still not that great but now the wage or profit that the average person can get in even a legit company is still not enough. I prefer mining with an antminer and any other mining rigs though the profit is not that great but could sustain your daily needs or maybe months.

Hahaha that what they call false strategy, people may say they can earn something from it, if they are not careful enough and don't know how to analyze things properly then you will loss, but if you things carefully you'll leave them alone and look for better opportunity.

Its always been part of the human nature on being a stubborn one.We do know already the risk but still we do decide to continue or risk it up.
If we can just mind up the possible things or in future that can possibly happen we would able to avoid it on the very first place if we are wise enough but of us do failed up.

Its being mentioned for a hundred times that cloud mining wont really be profitable on longer runs but still people decide to invest and now they are shocked on what happened?

i dont  think  it currently  make  economic  sense for  someone  to  practice  small  scale  mining. someone  can  barely break even by  doing  so.   

It doesnt matter even if they are based on a weekly or daily interest , most of them are still scam that is why i would not recomend anyone to try these so called cloud mining sites . Instead youd better go on to something thats real profitable like investing or trading. But if you really wanted to do mining as a long term hobby then much better if you can just buy a real mining hardware in order to see the best possible results.

You perfectly describe the structure of a scheme, which means that people shouldn't be very careful, but completely avoid it. It makes no sense to use something from which you know that it is a scheme, and that it will likely stop paying out at some point in the future. People won't face challenges and losses if they don't mess around with this garbage, how difficult is that to understand?

And what is that critical point? They will just make you lose out and they are all fine.

People know that cloud mining sites will stop paying at some point, and yet they complain afterwards when everything happens they beforehand know it would happen.

In the last two days, Hashflare's maintenance fee was larger than the payout, so they have reached a critical point in their business.

Yes, most of the cloud mining are based on the daily interest and weekly interest. As long as they are getting investment from people we are in safe hands and once the interest is stopped we have to face many challenges and there is no guarantee whether we are receiving our investment back. So we have to be very careful when dealing with this cloud mining websites.

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All the cloud mining websites are fake in the market whether you get the promo code or anything we should not invest on these kind of scheme at all. There are wide range of people getting scammed because of cloud mining everyday.
And then finally they have opened a thread to ask whether it is legit or not.

If you want to invest on the any cloud platform please check about the project in the below website.
http://badbitcoin.org/thebadlist/

Just asking here about the certain servise is good enough, even tho the concept of btc cloud mining is not viable since 2013/2014. The only service I've made ROI with was cex.io and even they've stopped selling gh/s due to it not being profitable. Don't know why people even bother anymore.

Also, the best way to tell it the cloud klmining service is legit, is to see if they're bitcoin (sha-256) focused or not butcoin focused.

No need for you to re-bumped this thread just to tell us about those promocodes on such cloud mining contract. Talking about on the topic cloud mining is never been profitable this is why its really a dumbed decision for you to make investment if you do saw or picture out on the possible earning or negatives you would able to get.Instead on making money you would eventually lose.Didnt have awareness about that 24 hour contract though.

The thing with Nicehash is that it's actually a hash RENTING service. SO while it's made and marketed to look like a hash on demand service, what it helps facilitate is p2p transactions to rent someone's hash more securely rather than having to fully trust them. Renters ofc put prices that are slightly higher than if they'd be mining directly.

Most people think that cloud mining is a way to make money easily. And that's all not true because cloud mining can not make sure we get a profit. We are required to deposit capital to buy some virtual hardware and the results will be sent to the account we have. But that is a very long time and the problem is usually the owner of cloud mining is blurred when it has not completed the contract cloud. This is the problem and the concern of many people is that they will fail. So before we decide to try this investment, then I suggest to search for various information on the internet. Personally I would say that cloud mining is not the right choice in investing !!

Well that's the basic logic behind the bitcoin cloud mining today. If people are just to think a little about how much of an investment you need for btc mining and the difficulty of mining, they'd ask themselves why aren't those people mining for themselves but are offering power. Makes no sense.

Bitcoin cloud mining, no. Alt-coin focused, maybe.

There's plenty of stupid people in this world. These companies take advantage of people who are blinded by greed and want fast and easy profit. People who don't know basic math and can't read terms and conditions. It's just how it is. Some people have to lose money for others to profit.

I don't understand why people would rent power from for example nicehash.com to mine ETC.
The cheapest renting I can see cost about 60.29$/ per GH / day
If mined with current difficulty about yields about 3.31ETC/day(58.88$/ day)  aka profit = -1.41$
Buying 3.31ETC from exchanges cost about 59.18$(excluding fee).

Why the hell would someone consider renting power to mine, rather then buying directly from exchanges.

Well you see many new coins get released and when you rent you don’t have to mine bitcoins or some other coin you can mine coins different in the same time and save it for future you invested 77$ and after a year all the coins go up you can get 700$ so that’s sometimes it works.

This thing should really be done when we do tend to rent hash power on which we always find the best coin that to be mined into that particular time and situation because profitability would be still there but would need the right timing and selection.Its really dumb to see that we are just paying up more than on the amount we can possibly earn which do always happen when we do invest on this cloud mining. They never turn out to be profitable if it does then it would be on some cases only.

How does it work? More miners = less profit and less miners = more profit on the day? How to know when it's the right time?

I have seen this kind of offer on Cloud mining sites like Eobot and never understood too...

And it is the same case with any kind of cloud mining. It takes long time to reach your ROI or may be you never reach that pint in your contract terms. This is also case with genesis and hash flare websites. They have contracts which are limited for one year, once you reached out that period you have to pay again to extend contract so you spend more money into it. Lolz. This cycle keeps going on and people think that they make big money during the course of contract but they aren’t really. So may be cloud mining doesn’t work really or there needs very very big investment to work on that thing. So it could be game of rich people or may be it simply not paying us.

Very few cloud mining that has the real mining farm where they can support their investors for selling real contracts.

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But for the new ones they only see cloud mining as a way to scam people letting them invest and think that they have actual photo's and proofs that they are being supported by a big mining farm. All is delusion and they have intention of scamming.

Not really. Most of the cloud mining sites are just pure scams. They are just ponzie schemes disguised as a cloud mining sites. You give them money, they pay someone else with your money. When they attract huge amount of users, they end up running away with all your investment. So it makes no sense to invest on cloud mining sites. Better to gamble then invest on those shit scams.

You are right, when you decide to invest in cloud minings, you are not paying to earn profits, just remember you are paying to loose 30-50% of your base investment.
Cloud minings really don't make any sense of financial assistance as far as you are aware of these fake schemes.
It is more better to invest in bitcoin cash, this currency is still young, can give you good profits in return.

There are some cases in which you'd be able to mine more than what you paid for, you just have to have keen eyes for this to be achieved. Also, there are a wide range of algorithms that you can use for mining coins for a bit, just need to select the right one at the right moment and you're in profit.

It's not even a loan. It's just them using people's greed and stupidity to obtain free money, because the cloud miners already know that they will likely never have to pay back the full amount. It's a smart calculation of an increasing difficulty, their own limitations, and various other variables that all miners have to take seriously, but since most of these cloud miners aren't even mining, it's not actually a problem for them at all. You pay a cloud miner a certain amount, and that service treats you as their slave the entire time, damn, fantastic investment! 

All the people who already spend a lot of time in bitcoin knows that cloud mining is a shit and scamming project, most of the time it offered something that doaesnt make any sense, I dont believe in any cloumining anymore since I was being scammed

Those coins that will be mined through nicehash after buying it can be used in the future when the time of pumping has come. Others here doesn't get to understand what the OP wants to ask about cloud mining by buying hash power through nicehash. Those people that want to invest in cloud mining sees it as an opportunity but you are risking your bet in there. I would prefer to trade it with alt coins rather than investing to them.

It doesn't because you aren't really mining with cloud mining operators. You are loaning them money but with this loan the responsibility and risk falls on you.
If they were to take a loan from a bank they'd need to have a collateral and if they failed at payments they'd lose it. This system gives them a lot of freedom. They can fail at payments or lower them for a while blaming it on rising difficulty, maintenance cost, or lack of profitability, and there's no collateral to be lost.

Yeah that is how it works, they don’t really profit us at all. They profit for themselves man. This is the reason most of the people fall for the cloud mining stuff and they invest a lot of money to buy big contracts and then they end up in the loss without knowing what they are actually doing.


Also, you are seeing just temporary calculation from that calculator because everyday the prices and difficulty is changing for mining which alters the calculation mostly towards loss for us and more profit to the company.


May be these are the way to grab more investors into the firm and profit like that. This is what cloud mining is and don’t even know if they do really mine or not.

Actually it make sense to generate profits by investing on cloud mining.
Mining will be profitable if bitcoin price increase over time, as the difficulty increase as well due to more and more mining hardware get into business.
But, consider the risk; you can't control the profits as "cloud mining owners" will decide how much you get, based on their income every hour or every day. Look at genesis mining; many people claim it's not profitable anymore due to some reasons and hashflare seems turn into "shady" business recently.
So, if you want to mining, just buy ASICs hardware and do the real mining in your place instead of buying unknown hash rate from cloud mining which you don't know whether you get fair payment or not.

I think about:

let suppose I can mine and i have time to mine and I have cheap electricity and I have place to mine.
BUT I HAVE NO CASH TO BUY MINER HARDWARE.
You have cash but not the possibilities to mine with profit.
Why should the principle of cloudmining not be possible and fair?

I did this with my antminer U2.
it was fiasco because it was nor profitable to mine with profit.
It is why I have resold it in time.

But the cloudmining system is a good system if it is managed by honest webmaster.

You're not missing anything.

The sellers have to make a profit - if they don't make a profit then there is obviously no point for them to list their miners up for sale. Now you as the buyer can take a risk with buying one of these contracts, and potentially profit more than you invest in it.

I would do this only for fun, as in the long run you're likely not going to be making anything in the positives. Just think about it again - if miners can make more mining themselves, why would they rent out their mining power to someone else?

I agree that Bitcoin was a better investment than cloud mining during 2017. But I think there was almost no investment that was better than Bitcoin during 2017.

If you bought cloud mining contracts for USD in the beginning of 2017 you would have been profitable but not if you bought them for BTC.

I think cloud mining is as best when the coin price is stable and new miners don´t have enough attraction to start mining the coin since the start capital is too big.

At Allcloudminers we publish the results from our own cloud mining contracts continuously. We also try as good as we can to sort out the legit cloud mining companies from the Ponzi Schemes.

www.allcloudminers.com

Renting hashrate doesn't really make sense unless you're trying to get into an altcoin big time without disrupting the markets too much. Or perhaps you're just taking a gamble on how many blocks your pool will mine with a pretty ridiculous house edge.

Would also work if the coin isn't currently listed on any exchanges but you want to get into it.

But other than that, i don't know why someone would go with renting hashrate or even cloud mining rather than just buying the actual coin with BTC.

You could buy contracts with the major miners farms and they could eventually become profitable. But most companies that sell mining Hpower for a short period of time and didn't provide any real information about the blocks they mine are Ponzi schemes.

You could put a lite information on every block that you mine, ViaBTC provides this information[1], but I doubt that this cloud mining schemes where you can buy for just one week or month could put their name there. Or the name of their users. They only exist because BTC always go up and most of the people decide to reinvest.

And the companies that try to sell real Hpowers can't provide a great profit for the users. But in the long run, you could make some profit. But it is not a thing for less than one month.

[1]https://twitter.com/ViaBTC/status/931005733952356358

However these are not the Cloud mining platform right then why op makes the post like this. If he really needs to look into the cloud mining platofrm he should check in the Genesis and cloud mining sites which is completely works on the platform alone. Even you take minergate as a partial cloud site.

Nicehash or miningrigrentals like platform are only for those miners who want to rent mining rigs temporarily to mine few new altcoins to hold for longer time so that they can sell it for profit when it will be listed.

Their price is not good for mining regular alts or bitcoin as most of the seller there are renting their rigs to make profit.

You are of course right...I have been lucky with cloudmining.
I have traded with profit and did go out in time.
About mining...I have been lucky as well when I mined with my PC.
I had fun to experince it and made few dollars with.
About my U2 mining...It cost me 42€ or so and I have resold it 20€
The fun to mine with was worth the lost of 22€
At least I have tried and I know about.
About the cloudmining I proposed...I can affirme that all my investors have made profit, even if it has cost me 16 redtrust points.

You might get enough satisfaction out of the 'fun' aspect of cloudmining, but that's not the case when it comes to the majority of the people here. They actually think that it will be a good long term investment, but as delusional and greedy that they are, they don't realize that it's nothing more than a waste of precious time and money. People having bought themselves contracts last year are still just hoping to get their initial investment amount back, while people smart enough to buy Bitcoin or the other crypto coins directly, are now enjoying profits ranging from 100 to +1000%. It's all common sense stuff that we're talking about - there is no need to be an 'expert' or whatever to understand the difference.

Build a decent rig and mine yourself or get into DMD Diamond cloud. These re basically your options. The rest is simply not profitable.

That's what I calculated myself  In the best case scenario it is only slightly unprofitable.

But I'm puzzled by the fact, that there apparently are people, who are willing to invest 0.1 BTC to get =0.09 BTC 

Its quite obvious that cloud mining isn't worth it. May be it was introduced in the early stages of crypto currencies when the difficulty level was not so high. It would have been "slight" profitable then. These days nobody gives a shit to cloud mining sites since everyone in the crypto world knows that it is pure crap. Apart from the scam sites(there are thousands of them), the legit ones would be able to give only as much as you invest. So don't even consider to invest in such sites.

It does for some but would not reccomend it please dont do it if you dong have the patience to wait for to proccess all that transactions. And even some are totally legit your gonna think it is a scam because youll be unpatient to that matter.

Everyone can experience this cloud mining but before we proceed this  kind of mining  is to think first and observe or research if it is bad or good to us.I am new here in the world of bitcoin  thats why i want more knowledge in this kind of business.

This has nothing to do with Hardware so why post it here? Learn to use the right areas...
Reported to mods for moving.

I mined and cloudmined in the past...it was worth the fun to do it...

Most of the cloud mining is scam pyramid. You pay money but not get the profit at all.

Cloud mining is bull shit.

Hash rate rental is a real thing, but you really have to think about your strategy is it worth it.

Nicehash and Mining Rig Rentals are legit places to rent hash rate.

I wouldn't consider NiceHash a cloud mining service.
People use Nicehash to rent power for short periods of time, for say New coin launches or mining a coin that's highly profitable at the moment.
Look at Genesis mining, Hashnest, Hashflaire etc for Cloud mining, although I don't think they are very profitable either.
Regards,

I don't understand, why would someone cloudmine. I looked at nicehash prices

https://www.nicehash.com/buy

with 77 usd you can buy 0.05 PH for 24hrs.

According to profitability calculator, with that power you would get 60 dollars in 24 hrs. So you would pay 77 dollars to get 60 dollars. What am I missing?