Topic: Mining in the cloud vs simply buying bitcoin - page 3. (Read 1586 times)

Mining needs an extra power source and you need to invest in it so I also think it would no be that profitable at all. Meanwhile, buying Bitcoin does not need any extra source and just buying and holding alone makes profit for a long term.

They always said that if the miner had cheap energy sources, then Bitcoin mining was really cheap.  But if we consider that the cost of Bitcoin is only $ 5,000, then today Bitcoin mining is more than profitable.

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?

Actually, both of them are beneficial. Cloud mining is profitable since every mine of bitcoin increasing when it is growing up.

Buying bitcoin is so good also. I guess those who buy it are too lucky when it is low value. As of now, bitcoin is almost 12k dollars.

As I said its not about buying and selling the bitcoin only with cloud mining or mine by yourself.

Cloud mining are like pyramid so possibly we are not going to anything in return when we deeply analysis.

what about buying/investing bitcoin ? this act can also be done on different terms ( short , mid , or long term ) same as on mining as you can also decide  on how long you will mine a coin .

 there are legit cloud mining out there but its still better to mine on your own for more secure profits but if i were to decide i think i will still go on buying bitcoin and will use them for investment because i dont have access to large capital in order for me to get started on a mining business .

We can consider mining as long term passive income which continue to do mine as long as we wish but when holding anything might happes and at the end the profits will be based on mining difficulty and how losg the mined coins can be hold.

Expensive but not an assurance or worthy thing as you speak because there are lots of considerations before you

would decide to continue with mining on your own yet you would might end up on not to be profitable and just make you regret in the end.

For the question about choices then I would simply buying bitcoin and hold.Its stress free but if you do like to explore then have the passion
to mine then you can choose whatever you want as long you do know the risk behind.

This thread is about cloud mining vs mining on your own so keep the concept of buying bitcoins away.

Cloud mining are scams so don't get cheated so if you has the ability to build your own mining rig which might be expensive but worth to do.

Let me assume that the market is in a very good condition and there is every chance that I'm going to make huge profit within a year or just few months just like in the past few years when there was bull then, then I'm opting for buying Bitcoin direct and storing in it in my wallet. That would be more quick to earn my profit than making use of cloud mining. I haven't made use of cloud mining before but based on what people have told me, it takes long to make any profit from cloud mining and the profit is not much.

agree with what you think. for now it's better to buy in the market than cloud mining. I have joined cloud mining several times, and ended a scam. I think buying directly will reduce the risk we get. I would rather agree to buy it directly.

Let me assume that the market is in a very good condition and there is every chance that I'm going to make huge profit within a year or just few months just like in the past few years when there was bull then, then I'm opting for buying Bitcoin direct and storing in it in my wallet. That would be more quick to earn my profit than making use of cloud mining. I haven't made use of cloud mining before but based on what people have told me, it takes long to make any profit from cloud mining and the profit is not much.

Very soon,   that era will come when scammers will no longer see anyone to fall into their trap, not even newbies.