Topic: How does cloud mining work? (Read 367 times)

Be very careful with your plagiarism unless you want banning.

If you want to keep a 1 mb file on your computer’s hard disk, you will have to have that available space on your local computer’s hard disk. However there are few advantages which were noticed eventually. example: limited storage space, hardware crash (data loss), data can only be accessed on local computer.

Now when cloud storage took place, this risk vanished and better ways to access data were discovered. Example: No hardware crash risk (cloud servers do replica backup to other servers, no data loss), unlimited storage, data can be accessed anywhere in the world even from your smart phone.
Now cloud mining is just that concept, you dont have to deploy your own miners, you dont have to configure your own networking system, no internet maintenance, no worries of downtime. Hence, great mining output.

So when you calculate, these cloud mining centers earn from subscriptions and the percentage saving on Bitcoins.
Advantage:

• No added electricity costs
• No equipment to sell when mining ceases to be profitable
• No ventilation problems with hot equipment
• Reduced chance of being let down by mining equipment suppliers.

Disadvantage:
    

• Risk of fraud
• Opaque mining operations
• Lower profits
• Lack of control and flexibility

Only people who are prustation will choose cloud mining. The thing you mentioned is wrong because whatever the condition then investing in cloud mining is a mistake. I've known cloud mine for quite a while and I've also invested in a lot of cloud mining and the results are very bad. So I strongly recommend that you never get to know cloud mining because it will only make your money and time wasted with no results whatsoever we can get.

maybe for now. But if you buy a cloud mining contract now, when the price is so low, and after this crypto winter is over, and the price starts to go up again (in this case i mean BTC), then it will be profitable. but that can only be if my theory will come true. At least I hope so!

I have no idea what you wanted to say, that's just one long, long sentence. I've read it 3 times and still can't figure it out.



In theory. But how much would you need to invest to get ROI? There's a reason why companies are giving up on cloud mining, even CEX.IO has stopped with their gh/s sale due to cloud mining being unprofitable.

Self mining bitcoin can be profitable, yes, but how much do you need to invest again? I'd rather invest in some cloud mining service that focuses on some alt-coin (non sha-256). it's just isn't profitable anymore when you compare the amount of invested money and earned money.

Duration and contracts would be the main thing why it would mainly affect our profitability when it comes to cloud mining which we do indeed shared up funds to buy out hashes but we do know that profitability would be still on questioned on this thing unlike if we do have our own physical miners which we do mining operation with our very own eyes then it might convince me that this would be possible profitable than into those cloud mining.

Yes it can.
If self mining Bitcoin is profitable, which it is, then cloud mining can be also, as its essence is profit sharing in exchange for capital investment. There are reasons that generally it isn't, but that's down to the nature of the contractual terms rather than the concept per se.

Easy, cloud mining means using the processing power shared from the data center remotely. You Just need a home computer or laptop to communicate, local or outside bitcoin wallet and so on. But better if you use local wallet. eg Mining hosted by hiring a mining machine guided by the provider.

I'm starting to get annoyed at the fact that people still discuss BTC cloud mining as a legit thing and cloud mining services at all... Please, the time of bitcoin cloud mining has passed a couple of years back, it just can't work anymore.

There's no need to read detailed posts and articles on why btc cloud mining isn't viable anymore, you just have to think about it a little and you'll see for yourself.

Don't invest anything in cloud mining that you can afford to lose and don't invest into ones that are strictly "mining" bitcoin.

The problem with these scam "cloud miners" is, that contracts seem to be allowed to be sold on popular auction platforms. Many crypto newcomers are trapped into these "services", because they simply don't see another way to buy Bitcoin, at least in countries, where no Bitcoin ATMs are offered.

Many people said that cloud mining is not advisable if someone want to mine bitcoin is like  someone mention in the thread below.
https://bitcointalksearch.org/topic/mining-3268826

If you want to know more information about mining visit the mining section of this forum because there are a lot of information on what is the best and advisable way if someone want to engage in the mining world.

Well in theory or on paper, the thing that happens it that you rent a companies, miners (be it their asics or their gpu's) and then you're going to get the profits that come from the mining -- minus some  fees that the company charges. You'd be able to rent for a certain amount of time or sometimes even unlimited.

Make sure you notice how I said this is how it works on paper -- in most companies they're going to scam you, in some of the reputable companies they're just going to stop paying you when it's not profitable for them anymore, so then you're going to be shit out of luck. Plus the fact that it literally makes no sense for a company to do this, they could just reap their OWN rewards.

OP tries to tell everyone how cloud mining works but he has no idea. All he does is repeat what cloud mining companies want us to think. That you're getting a physical miner at their facility and it's going to be working for you and they will provide all the help and troubleshooting for a small fee.
In reality it's a ripoff! Stay away!

In my very very honest opinion based from my experience and knoweldge about something that is not appropriate at all but works and being applied up even until now. It only works for the company they are just using you to work for them with a low salary that could have been bigger if they are honest. I've seen this image on the web many times of a man was having a catch of his life while businessmen was using him and after the catch they manipulate the catch and paying the ordinary man lower than he deserve i hope many will realize this and break out of the cancerous system.

Long time you are mining in GM means you may have the decent amount with you right! why cannot you go wth investing on mining GPU cards and start the mining work. You may have your investment with you itself right.
Even ROI would be faster than you can get from the cloud miing contracts mate.

Hope you know about it more and I do not need to explain it more.

Look how funny it is opinions on Cloud mining always end up in the negative side. I think OP didn't know how bad the reputation of cloud mining in this forum. I know some factors that even legit cloud mining end up as bad investment for others because they want instant or fast success that even mining equipments find it hard to profit unless you have tons of rigs in the first place.

How does it works? Well, it's aim is to profit owner, not new and sometimes silly investors if we can even call them word investor. You pay for contracts or hashrates, they sell it very pricey + take fees of electricity, insurance and some additional fees. In this way it's like they got money of equipment + this equipment stays with them. Once contract isn't profitable, they close it with you. So they can still mine and get some profit without fees (they can't fee themselves ) and also sell equipments.

What a surprise 


Bad choice of name.

Actually, it is a totally valueless crock of shit post altogether..

Actually I don't know any legit cloudminer anymore, but theoretically people "rent" hashpower of a mining farm and get mined cryptocurrencies minus maintance fees and other costs. There are also individuals and companies, which offer their hash on platforms (miningrigrental and nicehash). But I don't see profits as costs are higher than mining results.

Finally found out your motive to create this thread, LOL
Looks like you are here to only get some referrals under you in some of the cloud mining sites which offer high ref commission.

There is no need to praise any cloud mining contract because almost all of them are not profitable at current difficulty and price per bitcoin. The only profitable mining will be mining with your own device in places where electricity is very cheap to free.

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!