Topic: Mining in the cloud vs simply buying bitcoin - page 4. (Read 1653 times)

Already we have seen many scams in the Cloud mining websites, everything seems to be a higher percentage of income but it will take very long to get our investment. Most of the cloud mining websites are completely based on the profit-sharing method basis of the number of investments they got.

Personally, I say that Cloud mining has a very long profit level, because we have to wait for the return of funds before getting a profit, so for me it is very boring to wait for profit on the Cloud Mining.

just agree with that , but my simple calculation is you need much capital to really get profit of mining rightnow , less than half bitcoin can be mined so it will harder time by time

Personally, I say that Cloud mining has a very long profit level, because we have to wait for the return of funds before getting a profit, so for me it is very boring to wait for profit on the Cloud Mining.

I thought cloud mining is a scam, I read a lot of bad feedback about it, I consider it as a ponzi scheme.

People who believe in crypto and understand it, would rather buy bitcoin and hold that invest in a certain business called cloud mining that gives too good to be true returns, that's one of the big factor to consider, anything like that is surely a scam.

Better vhy coins you wish to have, download wallet and keep your private keys safe. It's safe investment for the future, investing in cloud mining services is like trowing away your money. I don't believe that some people still fall on this kind of scams, probably newbies that don't knowuch about cryptocurrencies.

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 tried to do cloud mining and invest the satoshis I got from faucet sites to get some GHS but that was the time that I'm starting to know cryptocurrency. Nowadays, many are saying that cloud mining isn't profitable anymore and most of the sites are purely scams and I agree with them. I'm lucky I think that I didn't invest any penny on cloud mining instead I just bought Bitcoin and hold it.

I think cloud mining is profitable in this situation because the value of Bitcoin is in the middle of the situation so cloud mining giving the profit without any investment but normal mining needs the electricity lot more that's why I am saying this.

I think cloud mining is profitable in this situation because the value of Bitcoin is in the middle of the situation so cloud mining giving the profit without any investment but normal mining needs the electricity lot more that's why I am saying this.