Topic: Cloud mining VS Home mining Part 1. Disadvantages of home mining (Read 276 times)

Hello!
You are right, of course there is a risk, but it should be borne in mind that risk is always present when it comes to money and capital increase. And there are always a lot of scammers in any market. NiceHash, the service NiceHash is an intermediary between mining farms, private miners with significant capacity and those who rent power remotely. NiceHash also has already established itself, and has a fairly high confidence score among the miners.
I want to draw your attention to the fact that our company does not advertise any services.
We wanted to argue our point of view and why our robot is currently working with this service. The robot Germes-mining of our development can be configured to any service you wish.

You ask a question about the functionality of our robot. I advise you to watch our videos on YouTube channel.
If after viewing them you have questions, write to us here, or to our email: [email protected]

One thing's for certain: mining is absolutely not for everyone, be it solo mining/pool mining or cloud mining. True that in cloud mining, you get to have some feeling of hashing because you're getting satoshis on your wallet, but you still don't own the rigs and are not getting what you fully paid for, whereas in solo mining, not everyone has the capital to start with or does not have the necessary planning strategy to start their own farm. There are other ways to earn bitcoin and other ways to help the network, and it's not confined to mining alone.

Even if they don't end up straight-off scam you by bailing à la HashOcean[1], it's still not worth it because you're not going to profit from it. Those cloud mining sites are just affiliate farms for people/websites that has huge followings.

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[1] https://bitcointalksearch.org/topic/hashocean-disapeared-and-scammed-700000-users-1527550

You're right in the sense that setting up mining rigs and all that within your home is a very intensive process, that not a lot of people are able to have the professional know-how to carry out. You're also right in terms of the investments in hardware that you need to make.

But I don't think that these issues can be resolved simply by switiching to using a cloud mining service - if you do go down that route, you are simply adding way too many risks onto your investment, that you would not encounter if you mined yourself.

For one, you don't know if the company that you have put your money in has actually passed it onto spending it on actual mining equipment. You also don't know whether they are running a pyramid. Furthermore, most contracts that are sold in the marketplace are structured in a way which benefits the mining company, not you, in the long run due to all the maintenance fees and all that.

On your site you mention these benefits:


Why is "automated capacity rent" repeated twice, and what do the others even mean?

How about hosting your miners in professional facility ?
Instead doing it at home. Just place your miners at some well maintained facility.

Honestly people shouldn't even compare other ways of mining with cloud mining in the first place. Cloud mining is going to be your worst investment ever. With home mining or creating your own mining warehouse, you can at least probably use the GPU for other purposes or you can also re-sell the ASICS. With cloud mining? You lose money regardless what you do.

Lets make this straight yet i do easily bored with long text and reading it up all yet its clear that his is already some sort of advertisement.

Cloud mining vs Home mining? Disadvantage is much greater with Cloud mining and you can read it up all above posted.If you can comprehend those negative points then its your choice.

ye ye, there are risks, possible disadvantages, and whatnot but it's far lesser than cloud mining as you barely have any control there. It is based on trust which is pretty easy to break-- history is the proof. End of story.

also, nice advertisement, that's pretty much what this is for

A lot of services that allow you to cloudmine out there are also potentially scammy, and there's examples over the years that cloudmining has been popular in the crypto community where sites have simply run off with users' funds and never returned. If you don't physically have the miners, there's a high risk that you could be getting scammed.

Even more reputable sites like Hashnest, the fees per TH or GH are often so high that it takes months to break even, and there's no guarantee that far out that you'll ever break even in a reasonable amount of time. Hosting miners could be a viable alternative, where you send your miners off to a colocation and you pay for electrical fees and other fees if applicable, but you need to be careful you're using a reputable hosting service if you go down this route as people have had their miners stolen from shadier hosting services in the past.

Can't understand one thing: If you don't have place and mining isn't your "job", why to stick with it? Let's forget it and do things that you can do. If you don't have place, can get cooling system for your devices, have no technical knowledge and etc, just let it go.
Why to cloud mine? To make others rich? I think it doesn't worth for a lot of reasons: Others own mining equipment, you just pay a lot of money to rent rigs, finally you end up without ROI and lose invested money. While if you can and mine at home, you own equipment and make some profit, even if you gain 30% of invested money and then decide to get out of business, you end up without losing any significant amount of money. In any way, it's profitable, at least you can stop anytime and in cloud mining, you can't stop, you only stop once mining gets unprofitable and this time comes very soon from cloud mining companies.
I repeat again, if mining isn't your business, just don't stick with it, forget clouds and fairy tales.

Cloud mining VS Home mining
Part 1. Disadvantages of home mining

It is not only technically difficult but requires significant investments to assemble your own farm. You may rent capacity from large mining companies instead to avoid risks and work input. Nevertheless, disadvantages of this method are up for discussion since long time ago. People say that the whole cloud mining industry is too full of risk and deception, and we’ll try to sort it out.

Typical home farm: low rate of capacity, high number of different wires and devices


There is an alternative choice between “own” and “rent” in different scopes of our activities. For example, house and transport - because public transport is some kind of rent too.

Everyone makes its own decision. By owning a car you take responsibilities connected with payments and it’s not worth buying for people who rarely drive, it’s more convenient for them to use a taxi. But for those who have driving as a part of their job it’s important to have a car.

The same with farms, not many people are able to owe them because of complexity and high value.

First issue. Assembly difficulty

To set up your own farm you have to buy required devices and also assemble is from pieces. Even a ready-made miner needs much technical and physical effort in its installation and setting from you. There will also be too much noise and heat even from a single device to put it in the room where you live. You may place it on your balcony but there is a possibility of overheating in summer. You have to change your wires to work with high capacity. 

In addition to assembling you have to set up a software which is special for each sort of coins and besides for some of them it’s still too volatile. To solve this problem you may install specialized software that will help you mine different types of coins. There is, for example, Coinswitcher from Trident-Hermes that shifts from one coin to another in order to make your mining the most profitable.

Second issue. High risk rates of investments.

There is not only a significant investment of money in assembling your own farm but also high rates of risk.

Firstly, cryptocurrency exchange rates are unpredictable and you may lose your money instead of gaining it because of high value of electricity. For example, in Russia 2018-2019 even the most profitable currency Etherium(ETH) from http://whattomine.com didn’t allow you to multiply your investments significantly but today it does because of a sensitivity of exchange rates. Autonomous miners who had started setting up their farms in 2017 came up with a crisis by the end of the year.

Secondly, there are risks of overestimation of your qualification. There are cases of people who wasn’t able to realize the difficulty of setting up their farm but who had already bought a video card and other component. For example, it turned up that they don’t have a right place to locate it. Of course, you can sell the component of your farm but it won’t bring all your money back.

Thirdly, there is a risk of emergency. Mining farm is a new technological system and reliability and safety standards of it are still processing. This is an extreme condition in which modern information devices work. Farms consume capacity from 2 kW and even higher and work day and night. It produces risks with which a standard laptop user is not familiar. That’s why those risks are often undervalued.

Third issue. Scaling problems

Even if the farm were set up, it wouldn’t always be possible to expand it. A small farm of 8 video cards produces too much noise and heat for a living room. The solution may be to place it on the balcony.
 
Typical 8 video cards mining-rig


But the balcony is not suitable for systems with 16-32 video cards because of overheating in the summer and high electricity consumption. Capacity of such farm is estimated as kW’s and is comparable with peak power of a kettle. The difference is a kettle has a short period of its work and a farm is on round-the-clock. Does or doesn’t your power cable allow such load, it might be overheated, shut down by emergency or even put on fire by incorrect contact with the farm. And to avoid summer overheating you will have to equip your balcony with refrigerating system or keep your farm off during hot periods of the day but disadvantages of those solutions are obvious.

In case you want to expand your farm to 40-56 video cards with electricity consumption up to 10 kW you have to change the wiring and electricity panel component in your apartment and this may draw the attention of your neighbors and electricity company. In spite of ambiguous position of mining in the law of Russian Federation citizens have prejudges about it. In case of amendment of the law your farm will become an easy target for tax and other authorities. That may be followed by an obligation to set a refrigerating system on your balcony.

An industrial farm indoors


A larger expand of your farm at home is hardly reliable and takes huge investment and professional equipment. But such condition still doesn’t give a guaranty of climate safety and good terms with your neighbors and other people. You need a garage or the whole industrial building to assemble a farm but this leads to problems with risk of diversion and necessity in constant protection.

Shortly speaking, even an accurate set up of a farm from 10 kW and higher requires increasingly disproportionate investments and labor input.

Cloud mining. Is it worth?

Taking into consideration disadvantages of home mining specified before many people will refuse to set up(or expand) their own farm but retain their willing to take part in cryptocurrency business. Well, there is still an opportunity to rent capacity from mining companies(so-called cloud mining). But it often becomes a target of criticism.

Many have luck of understanding in economy, so they don’t know why miners lease their farms if it yields an income?

The rent lower than exchange rates is unprofitable for lessor while the rent higher than exchange rates is unprofitable for lessee, the same currencies are more accessible for him on the market. So the price should be to the limit of recoupment.

Is it true? What benefits it gives to be a lessee? Is it possible to gain large sum of money doing cloud mining? We’ll tell you in the second part of this article.

Analytical department, Trident Germes company, Victor Argonov, Candidate of Physical and Mathematical Sciences.
Source:
http://trident-germes.com/category/article/

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