Topic: Cloud mining, profitable or not? - page 3. (Read 7930 times)

Either you did not read my post in entirety or you did not understand it.  Trust me when I say my stake in BTC is far larger than yours and I hope it succeeds.  I have seen all kinds of scams and problems arise and these have been overcome.

I'm not saying only experts should mine.  if that were the case only Satoshi and the devs would be mining right now as nobody would have started.  I don't even have a job related to computers - I'm a physician.  What I am saying is people should not be getting into mining without knowing the slightest bit about mining.  Throwing money at cloud mining promotes the very centralization that you say would be the demise.  You think the cloud mining companies have their hash spread over 46 pools?

Mining is just one aspect of BTC.  There is no trust needed unlike banks and the current fiat system.  The due diligence remains on the community.  If we the community can't ask a minimal level of reading before jumping on mining then this effort is doomed.  If you're mining you have internet access.  Every bit of knowledge on this board is offered for free.  All it costs is people's time.  People who can't spend 1 hour to do some basic reading and understand that even a 10 year would understand should not be mining IMO.

I think that anybody that thinks that he can be rich by having its computer running is naive to say the least. Nowadays with all the scam coins and also with several non-reliable providers you have to be extra cautious. You have to think very carefully before you decide which coin to mine, you have to make your own research and bear the risk that is involved in your decisions. There is no magic wand that can turn a miner into an endless cash machine. Mining is prediction and luck. We have seen coins starting with the best intentions dying within weeks (market manipulation, whale attacks, etc.). It is a risky region with no standard revenue, but if you play your cards right you may make some hefty profit. But most of all I think that you should enjoy mining, enjoy guessing which will become the next coin of the day.

I do not think that we should leave mining only to the hands of "experts". If we want cryptocurrencies to be really decentralized we should try and get more people involved. How on earth are we promoting cryptocurrencies if we tell people who want to learn more and get involved but do not have the required skills (at the moment), e.g. older people lacking even the basic computer skills to  stay away. This elitist approach will not help spread the word and promote decentralization. The lesser people involved the higher the centralization. I think this is the equation.

Please also note that there are other issues which make physical mining more difficult. To name but a few, high electricity costs in some countries, import taxes, lack of space in an apartment, etc. All these issues are resolved with cloud mining. But the most important thing is to find a respectable vendor and as it is always the case in crypto world only spend what you can handle to lose.

The part I bolded is exactly the case the majority of the time.  People think, "I can just leave my computer running and it will make me lots of money!" Because there is indeed money involved, people will find creative ways to sucker you out of yours.  It truly amazes me the sheer number of people unwilling to do the slightest bit of research, yet willing to toss money at a thing.  It's no wonder scams like Lunamine are so prevalent... people keep lining up to throw away their money.

These kind of people should not be involved with mining.  If you don't have the time or the energy to get involved with physical mining then you don't need to contribute to the demise of a currency by helping to centralize it.  If you promote cloud mining are you promoting centralization, particularly if you are supporting large mining entities like cex.io.  That would be like people wanting to get involved in helping put out a fire by standing with a garden hose while blocking the path of a firefighter with a 3" line.

There are many ways to get involved with crypto and make money.  Mining is but one aspect.  People are looking for easy money and they think they can throw some cash at a website and have more cash come back.

I think that gambling with cryptocoins and mining cryptocoins is a pretty different task. Mining has its own magic. Also when you decide to become a miner you have to follow all new altcoins and be alert for any new and interesting coins. In case I knew (and anyone of us knew) that BTC would sky-rocket on Jan 13 I would have definitely bought some BTC back then. But this is a retrospective approach and nobody knows what the future of any coin will be. We, as miners keep all coins going. Without mining all minable coins would be dead.

The decision to use cloudmining services depends on your needs.

There are some people who want to get involved personally (hands-on). Cloud-mining is not for them.

There are numerous other people (many of them almost without any basic knowledge or experience in altcoins) who would be willing to learn but think that this is a difficult task for them (e.g. setting the miners themselves etc.) and/or people lacking the space to have their own miner.

As far as profitability is concerned it all comes to lucky guesses as it always is the case in the crypto world. Can you find a good coin to mine before it becomes a main-stream hit, then you will have profits. Did you put all your money to mine a scam coin you will lose.

Nothing in cryptoworld is straight forward!

Just my 5 cents!

First off cloud mining has more inherent risk than owning hardware.  With owning hardware you can stop mining at any time and sell the hardware - recouping usually at least 1/2 your initial capitol.  Very few cloud mining contracts let you exit at any time.

I can't really understand what you meant by the part I bolded.  But if you bough a cloud contract back then you would have had a few BTC trickling in everyday as opposed to the 1000BTC sitting in your wallet.  Assuming no slippage on an exchange you will ALWAYS come out ahead versus cloud mining.

Not 1 person has come out yet stating they made their ROI.

I suggest you read this:
https://bitcointalksearch.org/topic/advice-for-new-users-regarding-cloud-mining-739510

Scrypt or Sha

how much hash power and what were you mining or where?

Both KnC and the maker of antminers (bitmantech) opened separate cloud mining services today. I did "back of the napkin" calculations and it looks like that if you assume a 10% increase in difficulty levels in the near future (much lower then difficulty has been increasing in the recent past) then you will lose 50% of your investment. You will lose much more (IDR how much) if difficulty were to increase by a more realistic 20% every two weeks.

I personally suggest hosting in most cases if you are long term.  Cloud and renting are best normally for short term in my opinion.

i earned 14 euro in 2 weeks from mining

Inflated platform prices are on the trading platforms themselves. Most Coins people bother to mine are inflated or pumped. Not all cloud mining operations could have been profitable but surley not all have been duds. Infact Cloud mining is becoming the most popular way to own a share of the mining power. Most people dont realize that you cant actualy determine profitablilty of a coin especialy when looking long term.

IMO A combination of things make profitability and in the end USER ERROR is were most people go wrong and loose money. Play your cards right and you can make skipping rocks profitable. Even Lottery winners end up poor beacuse well people who are stupid with currency are just stupid with currency.

Cloud mining companys offer a product, stupid people buy the product when its not profitable, people who research or intellegent people buy the product when its profitable or just before it becomes profitable. The Could Mining company doesent Care if your Stupid or intellegent  their offering a service not free money.

Cant complain about that, services are good for crypto community. Scam Companys that steal pre order money are things that can bruise the community. I do suppose if BTC/LTC doubled in price tomorrow all cloud companys would suddently have a profitable product if purchased today. So Dont hate on the Cloud its As good as Gambeling by buying coins outright and selling when you seen a bump.



Buy 1000 BTC in Jan 2013 for about $13K on BTCe
Move coins to cold wallet


Sell 1000 BTC in Dec 2013 for $1.2Million on BTCe  -- You see if the Man who purchased the 1000 BTC in DEC had instead  Purchased Cloud Mining power a month Earlier he would have had a very profitable month Cloud Mining... Making your Statement = to mine buying coin = Great Investing in cloud = Great

I thought Cloud mining was dictated by supply and demand ... surely at some point it becomes profitable?

With more cloud centres popping up would you expect the competition to be good for cloud mining profitability?

I'm interested to see what ZeusHash beta prices launch at.

I kind of like the 'idea' of cloud mining, and would definitely prefer not dealing with the electric bills.  I'd like to just set and forget I guess.

I agree with what the person above said though.  Those figures, in hindsight, cex.io was a terrible investment compared to buying crypto.

Presumably when someone loses, someone somewhere wins right?

It can't go down forever can it?  

And that is why Cex.io was "smart" and the buyers of their hash were "stupid".

Buy 1000 BTC in Jan 2013 for about $13K on BTCe
Move coins to cold wallet
Sell 1000 BTC in Dec 2013 for $1.2Million on BTCe

Total time invested, about 20 minutes and daily checking of prices.

Mining on cloud mining or selling on cex.io to try to break even - endless nights of work to gain 1BTC.

Comedy of errors.

I think you smoked too much weed and "brokjen" your head.  Cloud mining will, in almost 99.999% of the cases return less coins then you could have just purchased.  You're also then at risk of losing out on a price spike to sell because you'll be sitting there with your thumb up your but waiting to earn your coins back hoping the spike doesnt deflate beflre you get your chedder back.

You've got an interestingly convoluted view on things.  If your sole intention of cloud mining is to obtain coins and sell once profitable, why would you even bother with the cloud mining at all?  Just buy some coin outright and hold it.  Also, if you think you're not paying inflated platform prices by cloud mining you're delusional.

The Reason we Cloud Mine is To Obtain Coin w/o inflated Platform Prices, and to sell coin once its become profitable.

Want an example of a cloud mining that is profitable, the person that buys Cloud Share right before the price of coin goes up.

Those who wish to buy something like a cloud contract and then sell the coins immediately are well Near sighted and of course 99% time Loose any return on their investment.

Just ask the Guy with 1000 Bitcoins he bought at 20$ uSD a piece and sold at 90$ woot profit huh

20 * 1000 20,000 invested
1000 * 90  90,000   Cashed out
1000 * 1200  1,200,000 Max profit....
                  1,110,000 Profit Missed


There were days when CLoud Mining BTC was not profitable wat so ever yet had those Cloud miners held for 6 months they would have profited 1000%'s of percent.

Simple,

Many discussions on this topic.  DrG has a great post about cloud mining here: https://bitcointalksearch.org/topic/advice-for-new-users-regarding-cloud-mining-739510.

The short of it is that cloud mining companies are businesses, and the goal of any business is to make a profit.  As such, they have designed their services in such a way as to minimize the risk on themselves and transfer it to you.  You, as the consumer, have little to no chance to ever profit.

None of the cloud mining is profitable, if there is one please share..