Topic: Mining in the cloud vs simply buying bitcoin (Read 1653 times)
You're right, I agree with the calculation about making it half. In my opinion cloud mining is not profitable, but it depends on how we respond to this investment. If anyone is still confused about difficult adjusting of halving, maybe you should first try investing in mining to know this kind of calculation.
I think cloud mining in general is not profitable.
Here are my calculations for Mining Cloud vs Buying Bitcoin.
All following calculations are done on annual basis.
All following calculations are done WITHOUT halvings and adjustments counted until you read later down.
Hash rate (total hash power of the world) close to 49 Mil. Th/S as of today May 17, 2019.
Every hour gives the world 6 blocks, multiply that by x 24h x 365 days= 52,560 blocks produced in the world in 1 year.
Currently there are 12.5 bitcoin mined per each block x 52,560 blocks= 657,000 bitcoin can be mined per year in the world if no adjustments and halvings happened.
49 mil. Th : 657,000= about 75 TH/s to mine 1 bitcoin as it stands now, before counting adjustments and halvings.
Let’s assume I bought 1 bitcoin today and paid about $7,200 (as of May 17, 2019) in a hope to sell it in 1 year at a higher price.
Now let’s see what would happen if instead of buying 1 bitcoin I invested the same amount of money in cloud mining.
Typical contract from a firm like Genesis Mining offers 1TH at a rate of about $60 all-inclusive per year (May 17, 2019), and that's including maintenance and other fees.
For $7,200 I can buy about 120TH for 1 year term of cloud mining.
120Th : 75Th per 1 bitcoin= that should give us 1.6 bitcoin over 1 year period of contract for the price of $7,200.
1.6 bitcoin is obviously more then 1 bitcoin which I can buy today, so cloud mining is better, right?
I think NOT, because remember we have not counted difficulty adjustments and halvings yet.
Now let’s do that, let's include them in the picture.
The next halving is in about 1 year, so we don’t have to take it into our example as the contract will be over by the time of halving, so for now we just have to worry about difficulty adjustments.
But from historic data I never seen those adjustments less then 100% year over year and usually it’s even more.
So, in our example instead of 1.6 bitcoin, I am lucky if I get 0.8 bitcoin by the end of cloud mining contract.
Therefore, in my humble opinion, it’s safer to buy bitcoin rather then mine one in the cloud.
Would you disagree? And if I am wrong where the flaw in the logic and/or calculation?
I will explain simple way for you how mining can earn altcoin and bitcoin, you have ready buy mining tools and electric cost every month depend on what kind or your mining tools, other way you have ready good internet access for mining, if you buy altcoin you just buy and save your altcoin assets waiting when price and you can sell it. Here are my calculations for Mining Cloud vs Buying Bitcoin.
All following calculations are done on annual basis.
All following calculations are done WITHOUT halvings and adjustments counted until you read later down.
Hash rate (total hash power of the world) close to 49 Mil. Th/S as of today May 17, 2019.
Every hour gives the world 6 blocks, multiply that by x 24h x 365 days= 52,560 blocks produced in the world in 1 year.
Currently there are 12.5 bitcoin mined per each block x 52,560 blocks= 657,000 bitcoin can be mined per year in the world if no adjustments and halvings happened.
49 mil. Th : 657,000= about 75 TH/s to mine 1 bitcoin as it stands now, before counting adjustments and halvings.
Let’s assume I bought 1 bitcoin today and paid about $7,200 (as of May 17, 2019) in a hope to sell it in 1 year at a higher price.
Now let’s see what would happen if instead of buying 1 bitcoin I invested the same amount of money in cloud mining.
Typical contract from a firm like Genesis Mining offers 1TH at a rate of about $60 all-inclusive per year (May 17, 2019), and that's including maintenance and other fees.
For $7,200 I can buy about 120TH for 1 year term of cloud mining.
120Th : 75Th per 1 bitcoin= that should give us 1.6 bitcoin over 1 year period of contract for the price of $7,200.
1.6 bitcoin is obviously more then 1 bitcoin which I can buy today, so cloud mining is better, right?
I think NOT, because remember we have not counted difficulty adjustments and halvings yet.
Now let’s do that, let's include them in the picture.
The next halving is in about 1 year, so we don’t have to take it into our example as the contract will be over by the time of halving, so for now we just have to worry about difficulty adjustments.
But from historic data I never seen those adjustments less then 100% year over year and usually it’s even more.
So, in our example instead of 1.6 bitcoin, I am lucky if I get 0.8 bitcoin by the end of cloud mining contract.
Therefore, in my humble opinion, it’s safer to buy bitcoin rather then mine one in the cloud.
Would you disagree? And if I am wrong where the flaw in the logic and/or calculation?
Most of the cloud mining site that are available now are just pure scam. They are just HYIP or some other ponzie scam. If you ask them to show some proof that they are actually mining something or their mining rigs, they won't be able to do so or they might just show you some fake mining farm. Most of them are fake because cloud mining is no longer profitable and the just are running a ponzie scheme in the name of mining.
I would rather suggest you to buy bitcoin and just hold it.
I would rather suggest you to buy bitcoin and just hold it.
The funniest thing here is that they still have too many victims, people are easily get pranked when they start seeing the high mining rates, thought it was legit, after that they will invest their money out of their sanity on it hoping to mine even more per minute or per hour. You could instantly spot if a cloud mining site is legit is if their mining rates are not too good to be true, not like those over the chart mining rates that is so unbelievable true.
Trying to withdraw your funds in the first place and wait to receive it on your wallet could be also the other way to check if it was just some scam or not, if it is pending for days, then forget it, no doubt that is scam.
mining in the cloud - more like joining a ponzi schem in the internet.
Buying bitcoin is easier compared to the stress you are going to get if you join this cloud mining ponzis.
Buying bitcoin is easier compared to the stress you are going to get if you join this cloud mining ponzis.
in my opinion it's better to buy bitcoin than follow cloud mining. most cloud mining companies now are scams so it is very risky if we join a cloud mining company that is a scam and also the operational costs of mining is very large. so I think it's more efficient to buy than mine. if we already buy bitcoin we can immediately use it to trade.
You've done good research, I'm delighted. You are right, not only does cloud mining mean transferring your bitcoins to an unknown company that can be fraudulent, but also the profit turned out to be less than if you just bought Bitcoin and kept it in your cold storage wallet.
if you compare with cloud mining then I prefer to buy bitcoin because when i buy bitcoin assets i have a number of coins whereas if cloud mining then the funds are given to the cloud and when a scam occurs you will lose very much, whereas bitcoin will provide trading capital that can get a lot of net profit every day.
Buying bitcoin and altcoin more simple and easy than you have use your money for mining, buy investing with bitcoin or altcoin just waiting when price your assets is growing up and take just few weeks I think you get much profit and your money back, if you want to mining you have ready more than six months for get back your money if your mining tools running based on your plan.
Simply buying in bitcoin and cloud mining are having a hugely different, you can't purchase mining rigs at a small amount of your money.Well, I prefer the mining cloud because of it that way you can be able to earn a big profit without spending money on it. Maybe all you need to buy is the equipment or tools being used to mining but I think you can only buy once and it good for the long term.
Buying bitcoin and altcoin more simple and easy than you have use your money for mining, buy investing with bitcoin or altcoin just waiting when price your assets is growing up and take just few weeks I think you get much profit and your money back, if you want to mining you have ready more than six months for get back your money if your mining tools running based on your plan.
What advantage of mining based on your mind? you want to get earning with bitcoin or altcoin from your mining tools every day? look ahead if you buy or invest your money in altcoin or bitcoin you can get much profit with short term, but mining you have waiting until back your money.
So, in our example instead of 1.6 bitcoin, I am lucky if I get 0.8 bitcoin by the end of cloud mining contract.
Therefore, in my humble opinion, it’s safer to buy bitcoin rather then mine one in the cloud.
Would you disagree? And if I am wrong where the flaw in the logic and/or calculation?
Therefore, in my humble opinion, it’s safer to buy bitcoin rather then mine one in the cloud.
Would you disagree? And if I am wrong where the flaw in the logic and/or calculation?
You are right, luck is a huge factor in the equation.
The difficulty sometimes rise, sometimes drops; of course, overall it rises more than it drops. I didn't do the math, but I think that there's also a chance for profit. So instead of your max 0.8 BTC, there could be something like 0.5(?)-1.25(?) BTC range.
Your conclusion is, however, correct. It's not worth the risk. (And I'd not even insist on how many fake cloud mining companies are around, let's just keep the calculation on legit ones.)
I disagree with the luck part, no amount of luck will save you from cloud mining.
I don't know anyone who has ever made a decent profit from cloud mining. The problem is cloud mining contracts force you to buy coins at fixed rate without any protection at all. If you will have to count on difficulty and the promise of coin's value increasing then better to just buy the coin directly and wait for it's value to increase.
Cloud mining can be a great disappointment if you meet scammers (and there are too many of them on the market). This is the perfect decision to give your money to somebody and never get it back. It is the riskiest thing, although it seems to be attractive for the newbies, who are eager to get profits when investing almost nothing, just paying for cloud mining services. Better invest in crypto or use ASIC mining.
Cloud mining is very gaining more popularity now although not all the cloud mining apps out there are worth using. Some may eventually lead to waste of time which may last for a year or more without earning anything. The best and most simple to use cloudmining is the DIVI Desktop wallet masternode one-click cloud mining. Check out for more details on https://diviproject.org
Mining less risk than buying altcoin because altcoin can lower price without can't prediction suddenly, many investor with buying coin lost much money because they can't manage when price of altcoin investment have down and lower, for mining we have got how many percent coin every day and could sell day by day without waiting first.
you can compare it after trying both methods, there must be calculations when mining, whether it can cover the costs incurred
certainly for trading can't be considered something simple, we must pay attention to many factors and the possibility of things happening
certainly for trading can't be considered something simple, we must pay attention to many factors and the possibility of things happening
Mining less risk because very day you got payment from mining tools, but by buying bitcoin or altcoin just take one day to earn much profit depend which one altcoin we buy. With mining we have waiting more than one year for taking back our profit without have problem when our mining project tool. We have always pay many electric and internet access to get earn with mining.
both have risks and costs that must be considered first, of course if you make a decision to invest is good for next time
mining isn't bad but you must prepare the device to be used so that nothing unexpected happens
It is actually not worth it one single bit, at the end of it all you will realize that you have wasted considerable amount of time and money all for nothing, most people don't really factor in that they are going to pay for the electricity use when it comes to cloud mining because though they mine at a profit, the power usage takes a huge chunk of the profits in the end. mining isn't bad but you must prepare the device to be used so that nothing unexpected happens
I rather buy bitcoin than getting involve in cloud mining that has no contract guarantee, cancelling contract and stealing money when the odds are high. Cloud mining is filled with scammers. Even reputable cloud miners can scam still.
It is better or even best to just simply buy bitcoin straight. Don't believe to the passive income or consistent income that the cloud mining offers because at least 3/4 of the cloud mining companies are fake and they are just pretending that they got some equipment for mining cryptocurrency but they don't, they are just scamming people and they will run or make a story that they're screwed and they can't do anything about it but to shutdown.
So, in our example instead of 1.6 bitcoin, I am lucky if I get 0.8 bitcoin by the end of cloud mining contract.
Therefore, in my humble opinion, it’s safer to buy bitcoin rather then mine one in the cloud.
Would you disagree? And if I am wrong where the flaw in the logic and/or calculation?
Therefore, in my humble opinion, it’s safer to buy bitcoin rather then mine one in the cloud.
Would you disagree? And if I am wrong where the flaw in the logic and/or calculation?
You are right, luck is a huge factor in the equation.
The difficulty sometimes rise, sometimes drops; of course, overall it rises more than it drops. I didn't do the math, but I think that there's also a chance for profit. So instead of your max 0.8 BTC, there could be something like 0.5(?)-1.25(?) BTC range.
Your conclusion is, however, correct. It's not worth the risk. (And I'd not even insist on how many fake cloud mining companies are around, let's just keep the calculation on legit ones.)
I disagree with the luck part, no amount of luck will save you from cloud mining.
I don't know anyone who has ever made a decent profit from cloud mining. The problem is cloud mining contracts force you to buy coins at fixed rate without any protection at all. If you will have to count on difficulty and the promise of coin's value increasing then better to just buy the coin directly and wait for it's value to increase.
Mining in the Cloud Buying Bitcoin
Hard to find legitimate services. More Legitimate services available.
More scams in the name of cloud. Scams are easily identifiable.
Easy to invest than real way of mining. Easy to buy and invest with trust.
No maintenance required after capital. Need to be careful storing on wallets.
Highly complicated than real mining. Simple process
Hard to find legitimate services. More Legitimate services available.
More scams in the name of cloud. Scams are easily identifiable.
Easy to invest than real way of mining. Easy to buy and invest with trust.
No maintenance required after capital. Need to be careful storing on wallets.
Highly complicated than real mining. Simple process
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