Never invested due to low earnings / ROI.
It is better to avoid cloud mining, as there is good options available also. But risky.
I love risky game, so that I can make risky big profit.
So far I'm success.
Topic: Here is why Cloudmining failed (Read 749 times)
When you buy hash power with your USD, you bet against the miners market. That means by buying hashpower shares, you predict that number of miners will decrease in the future and your hashpower shares will gain value.
If you are a fan of bitcoin, and if you think bitcoin will succeed, then you shouldn't have invested in cloudmining at all.
If you are a fan of bitcoin, and if you think bitcoin will succeed, then you shouldn't have invested in cloudmining at all.
No you are wrong man.
Cloudmining failed because
1) There is a middle man, which means your margin which was already low after 2014 became even slimmer
2) The mining business wasn't profitable for home miners, cloud mining never had a chance
3) Cloud mining from legit parties are meant to get capital and buy more hashpower, leaving you with the unused inefficient miners
4) Cloud mining form not legit parties were to scam and to scam alone.
That means by buying hashpower shares, you predict that number of miners will decrease in the future and your hashpower shares will gain value.
That doesnt make sense at all... buying hashpower it's almost the same as mining in your home with a ASIC, but, been hosted by someone else.
No one has ever recover their cost
I did... 
It is obvious that these are scams, and there was never a time when it wasn't obvious.
It's very simple. The machinery's owners, even if they're honest, are losing money unless they charge you more than the machines make. Any money you're able to make on a cloud mining contract comes out of the machine owners' pocket, because the machine owner could make that money mining himself.
QED. If it were in an honest owner's interest to lease the machines to you, then it would not in your interests to lease them. Your expectation of profit is less than zero. Therefore people making this offer are not being honest.
QED. If they are not honest, then you should have even less expectation of profit than if they were.
Sorry if I'm insulting anybody, but my initial reaction to the very idea of leasing mining power was "How stupid do these clowns think I am? This isn't even a plausible scam."
And although some people took them up on it, I've never understood why, nor seen any reason to form any other opinion.
It's very simple. The machinery's owners, even if they're honest, are losing money unless they charge you more than the machines make. Any money you're able to make on a cloud mining contract comes out of the machine owners' pocket, because the machine owner could make that money mining himself.
QED. If it were in an honest owner's interest to lease the machines to you, then it would not in your interests to lease them. Your expectation of profit is less than zero. Therefore people making this offer are not being honest.
QED. If they are not honest, then you should have even less expectation of profit than if they were.
Sorry if I'm insulting anybody, but my initial reaction to the very idea of leasing mining power was "How stupid do these clowns think I am? This isn't even a plausible scam."
And although some people took them up on it, I've never understood why, nor seen any reason to form any other opinion.
To be honest, self-mining isn't really profitable anymore unless if you have dirt cheap electricity and internet fees. That's when cloudmining comes into play. Cloudmining is good because the difficulty is really high but it's really hard to find a legit cloudmining because most of them are just scam.
Not most of them, all of them are. Never saw a person got his/her ROI without promoting his ref link. At best, they will give you back what you invested and then they will stop paying. They usually do it before that stage. And you will lose %15-%20.
You are not investing, you basically give your coins away under the name of investing
When you buy hash power with your USD, you bet against the miners market. That means by buying hashpower shares, you predict that number of miners will decrease in the future and your hashpower shares will gain value.
If you are a fan of bitcoin, and if you think bitcoin will succeed, then you shouldn't have invested in cloudmining at all.
why don't?i think not all people understand and capabl to operate or use bitcoin miner,even they have so much money to invest on that devices,and its why cloud mining still good option for invest your bitcoin. If you are a fan of bitcoin, and if you think bitcoin will succeed, then you shouldn't have invested in cloudmining at all.
To be honest, self-mining isn't really profitable anymore unless if you have dirt cheap electricity and internet fees. That's when cloudmining comes into play. Cloudmining is good because the difficulty is really high but it's really hard to find a legit cloudmining because most of them are just scam.
So the cloud mining hashing packages are overpriced x5 at minimum? Then how can they advertise such big possible profits to their customers? The admin fee is to cover their electricity cost per day right? I have used cloudmining before and I managed to break even and make a slight profit but that was almost 2 years ago. It looks like the situation has changed a lot and it's very hard for new users to make any money. Maybe the cloudmining companies are catering to Bitcoiners who can't maintain mining hardware themselves at home and are basically ripping them off on the spot.
Well to be honest it makes sense, to be honest. Hashing power would just get cheaper and cheaper since more miners buy more hardware and start mining more Bitcoin, hashing power is made less and less valuable and GH/s become worth constantly less and less because of this. The larger the supply, the less valuable the resource becomes.
It was a good gig for some websites while they could do it, but I think cloud mining is quickly becoming a thing of the past in the community.
It was a good gig for some websites while they could do it, but I think cloud mining is quickly becoming a thing of the past in the community.
cloud mining is fail for these reasons..
1. the rental price is not based on the real production price of the unit.. but the retail price (upto 5x larger)
2. the rental price also includes admin fee's for the cloud service (their profit)
so when mining farms(new age solo mining... not cloud mining for customers) have a cost of $200 for an asic that has a life span of 6 months ($1.10/day)
BUT the cloud service is charging well over $6 a day.. so you are already 5-6 times worse off than.
here is an example
i googled cloud mining...(grabbed first in list)
hashflare $1.60/10ghash =$752 for 4.7T/hash + $3.76 a day maintenance(0.008x470) = $684 + $752 =$1436 for 6 months($7.89 a day)
however
bitmain manufacture 4.7Thash rigs at $200. and at 5cent a kwh = $218.40 for 6 months electric = $418.40 for 6 months($2.30 a day)
so hashflare cloud mining is 3.4x less profitable than antpool mining farm
1. the rental price is not based on the real production price of the unit.. but the retail price (upto 5x larger)
2. the rental price also includes admin fee's for the cloud service (their profit)
so when mining farms(new age solo mining... not cloud mining for customers) have a cost of $200 for an asic that has a life span of 6 months ($1.10/day)
BUT the cloud service is charging well over $6 a day.. so you are already 5-6 times worse off than.
here is an example
i googled cloud mining...(grabbed first in list)
hashflare $1.60/10ghash =$752 for 4.7T/hash + $3.76 a day maintenance(0.008x470) = $684 + $752 =$1436 for 6 months($7.89 a day)
however
bitmain manufacture 4.7Thash rigs at $200. and at 5cent a kwh = $218.40 for 6 months electric = $418.40 for 6 months($2.30 a day)
so hashflare cloud mining is 3.4x less profitable than antpool mining farm
When you buy a miner yourself, you are going to incur some expenses (eg the miner itself, PSU, electricity, cooling). If a cloud mining company were to buy a miner, they would have these same expenses, however they would also need to pay their employees to setup/maintain the miners, would need to compensate employees for selling the cloud mining "units" and would want to make a profit of their own.
As a result of the above, if you ever "invest" in cloud mining, then a best case scenario is that you will make less money (or lose more money) investing in a cloud miner verses buying a physical miner yourself.
There is also the issue that a cloud mining company will need to be trusted with your money, and that even if the cloud mining company has physical miners to backup the cloud mining "units" they sell, it would be trivial for them to simply stop paying out the mining rewards.
As a result of the above, if you ever "invest" in cloud mining, then a best case scenario is that you will make less money (or lose more money) investing in a cloud miner verses buying a physical miner yourself.
There is also the issue that a cloud mining company will need to be trusted with your money, and that even if the cloud mining company has physical miners to backup the cloud mining "units" they sell, it would be trivial for them to simply stop paying out the mining rewards.
When you buy hash power with your USD, you bet against the miners market. That means by buying hashpower shares, you predict that number of miners will decrease in the future and your hashpower shares will gain value.
If you are a fan of bitcoin, and if you think bitcoin will succeed, then you shouldn't have invested in cloudmining at all.
There is pure logic for cloudmining being just a fake mining platform. As if they can get 30% return on their investment per month than why they just don't mine for themeselves but they don't do so. They show some fake mining rigs and work on principle of HYIP. It is very risky to invest in any cloudmining sites. If you are a fan of bitcoin, and if you think bitcoin will succeed, then you shouldn't have invested in cloudmining at all.
I think this is because of increasing and decreasing rate of Bitcoin. In future i might be profitable
To be honestly i dont think this ever will be profitable.
I think this is because of increasing and decreasing rate of Bitcoin. In future i might be profitable
Yes you are right, so today i learn more about trading alt coin than cloud mining.
When you buy hash power with your USD, you bet against the miners market. That means by buying hashpower shares, you predict that number of miners will decrease in the future and your hashpower shares will gain value.
If you are a fan of bitcoin, and if you think bitcoin will succeed, then you shouldn't have invested in cloudmining at all.
If you are a fan of bitcoin, and if you think bitcoin will succeed, then you shouldn't have invested in cloudmining at all.
Well that and the obvious... A lot of cloud mining companies are just Ponzis. It's really difficult to get any sort of ROI out of a cloud mining operation.
When you buy hash power with your USD, you bet against the miners market. That means by buying hashpower shares, you predict that number of miners will decrease in the future and your hashpower shares will gain value.
Nah. In theory, by buying hashpower, you *become* a miner or, as you put it "the mining market."
Of course, reality is usually different, and you become a sucker, not a miner. That's a whole other story tho.
I tried Cloud mining and all of them are scams, they sell you low hash power with high prices. Cloud mining is a big If, it's a waste of time and money.
Almost all Cloudminings are scam. No one has ever recover their cost. When the price of bitcoin increases, they will come out with all the excuses to charge you extra due to this or that and force you to pay or lose what you have invested.
They do not mine bitcoin at all, just collecting money and give a little bit back to you slowly in bitcoin.
They do not mine bitcoin at all, just collecting money and give a little bit back to you slowly in bitcoin.
When you buy hash power with your USD, you bet against the miners market. That means by buying hashpower shares, you predict that number of miners will decrease in the future and your hashpower shares will gain value.
If you are a fan of bitcoin, and if you think bitcoin will succeed, then you shouldn't have invested in cloudmining at all.
If you are a fan of bitcoin, and if you think bitcoin will succeed, then you shouldn't have invested in cloudmining at all.
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