Topic: How does cloud mining work? - page 2. (Read 364 times)

thanks for your opinion

thanks for your opinion

In the main cloud mining works by fooling fresh meat into paying the alleged profits they hand over to previous signups. Then they go bust. My vibrator probably mines more actual coins than most of these places.

Ask yourself with ever spiralling difficulty and ever more well capitalised operations run by professionals, how does some setup advertising at noobs claiming to keep up with that stay on top of that relentless increase in expense? They're now up against miners with billions of dollars to play with.

Answer - They do not.

That's partly the reason. Another reason is that most of these schemes in their initial days offered these 'lucrative' contracts as a way to obtain capital to purchase actual mining equipment.

It basically means that they didn't mine anything back in the days, but do so right now. Till what extent is impossible to find out without them releasing any information, but definitely not on a 1:1 ratio.

Till this day GM has refused to publicly share their main addresses they receive their mint subsidies on. If you don't consider that a shady practice, I don't know what is needed to convince people.

Its always on the negative side and those lifetime contracts is already  gone and it wont really be possible to be offered.Just remember the days on whale hashflare and genesis did make such offer on where you do able to have a lifetime contract and now they are limiting already.Why? They cant sustain their business if they would decide to continue to offer such payouts or returns to their investors. As the years goes by mining difficulty would always be the reason or factor why cloud mining isnt profitable in most cases.

yes iam also workign with GM since many years now and they allways payed me and got my ROI there
I hope there will be soon more bitcoin contracts available !


regards

Good work mate, since you are newbie you have picked up the all negative side of cloud mining to do not loose the money. I see still you want to know whether there is a legit cloud mining websites or not.
Answer is yes there, but still if you want to ROI soon. This is not at all your option mate.

Please find the websites below mate.
https://www.genesis-mining.com/
https://www.hashnest.com/
https://hashflare.io/

Check the cheap contract rate on invest on that one.

That's something people are responsible for themselves, because that's what they sign up for. It's pretty silly to invest in cloud mining, which directly means that you agree to all their terms, and then later complain about something that you could have figured out before investing already. Mining in general involves so many variables, that it isn't interesting to jump in, unless you are accepting all its negative aspects. Even if they increase their fees with 50%, you have to swallow it. Obviously, they won't just rush in and set these level of fees instantly, but they slowly distribute it in a manner you will still be paying it, but feel less angry about it because it doesn't look like much of a change. It's a solid scheme structure that always favors the house.

Most of them charge a lot of fees because bitcoin price is down, and it will not profitable for now  .

Miners tend to operate on pretty low profits (as a percentage), even if they have cheap electricity.  The idea that they can just give away profits to so meone who invests online is pretty insane.

That's why the cloud miners which aren't straight-up scammers (a very small amount of them) tend to exploit their customers for all they're worth.  Genesis Mining, for example, has a strategy in which they display gains in fiat value, so during a bull market people believe they're in profit, when in fact they're losing part of their original Bitcoin investment.

Eventually, the difficulty tends to rise, which results in the hashrate/mining equipment which they're using losing money eventually.  When your account is losing money, Genesis Mining would cancel the contract.  In some cases this can happen after just a few months.

It's very unusual for people to profit from cloud mining.

I appreciate the effort for writing this post, but whatever with a good suggestion of cloud mining negative side will still carry the whole lot. Its not even profitable to those who want to invest in this kind of scheme. Though there are some who profit but still I will not recommend it.

Cloud mining would be useful for those who don’t  have mining techniques or want to invest in bitcoin mining without the hassle of managing your own hardware. If your local electricity price is high - for example in Germany - you should hire miners whose local electricity price is much lower than that in America. 

First, you should make a decision on what providers you want to cooperate with.

Then, clarify the transactions you want to make - whether it’s a 500GH or 1000GH contract- and the contract conditions. Most Bitcoin contracts last for 1 year; however, some might last forever (This might sound great if the Moore’s law is true. Then the processing power for computers will double for every 18 months. It means Bitcoin mining companies will face up with great loss in the near future if the hash rate keeps increasing.) Some providers might offer short or medium-term contracts which last for 6-24 months.

All you need to do is to pay in advance for the transaction or pay in dollars on PB mining. They make sure everything will be well done. Then you will receive a constant amount of BTC in your personal wallet.

Some mining contract providers will charge fees during the contract, and sometimes, it might be a scammer. That’s why we are here to provide you with short-listed prestigious providers for cloud mining.

Good luck!