Topic: Mining in the cloud vs simply buying bitcoin - page 7. (Read 1638 times)

I just heard from the news that cloud mining is less profitable, so I ignored it, and chose to trade to buy potential coins. and it turns out that until now, many are disappointed with cloud minning

2 years ago that was the first time I heard and read some of the articles about in cloud mining site.
And according to what saw for the majority of the community in crypto world, most investors who invested in
cloudmining site they never receive their ROI completely. In short, cloud mining is not profitable.

Cloud mining has always been something very risky, these companies who do cloud mining do take advantage of you and make profit, if there is a way to make profit with mining why wouldn't they do it, they simply get the old rigs from people and then make it work and rent it to you while making money themselves and making you lose money simply from the cost.

They advertise it like it is profitable but when you calculate all the overhead and maintenance costs they are charging you are in debt even before you start. That is why buying bitcoin right away is simply the best method, if you want to do mining yourself then there is always a chance to make profit, sometimes it is great profits sometimes its not but in the end its yours to decide, cloud mining is out of your control.

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've invested in cloud mining in the early days but they all end up as scam.
Buying bitcoin if we have bough it early, it would already make us rich after the bull run last 2017.
I would buying shitcoins than investing in cloud mining as I have proven I can make money with shit coins, don't know this time around if bull run is strong.

Stay away from cloud mining, easy as that. If you're looking into mining Bitcoin, just invest for your own rig or simply choose the other option which is buying Bitcoin. At least you'll just sit there and relax with a cup of coffee while you wait for any opportunity to sell.

single coin in cloud mining, nor I do have any plans to do it in the future. You don't know how many people got scammed from those already. You'll play a bit of luck just to get a legitimate luck (if you're really willing to go for cloud mining).

Cloud mining is a myth. In fact, you are taking more risk investing in such endeavor than just buying and selling Bitcoin even as a noob trader. There is no metric you can extract on how much your contribution helps because everything is opaque.

Mining is generally not particularly beneficial. But if you whant to say that mining is definitely less profitable than buying cryptocurrency will not be true. It all depends on when you go into mining and when you buy a cryptocurrency. It is very important. If you, for example, bought cryptocurrency at $ 10,000 that year and it began to fall and fell all year, then until today you are still in the red. But if you are mining, by investing in equipment, you get cryptocurrency at the price of electricity and you can afford to accumulate it to the next bull market and then sell it more profitably. I made calculations that confirmed my guess that mining could be more profitable.

Mining is another form of investment, in terms of buying equipments and consuming energy I think it is far more expensive. I haven't heard any good news about cloud mining, all I can see here in the community and even on various searches, the majority of cloud mining are scam so that's another risk. For now, buying btc or any well stablished crypto is far better especially how bearish the market as of these past few months

It's profitable if you are going to mine new coins but not Bitcoin, it's one of the reasons why they are still new mineable coins in the market, because the top coins had a very high difficulty and they want to point their rigs to a new one, that's all they do mine new coins until the difficulty gets high, then look for a new coin again to mine.

I think you have a lot of problems regarding cloud mining.
well, maybe now it's natural if we think like that. besides that cloud mining is also at risk with scams, or other things. we cannot half-heartedly run it, and must really be serious. in this case, I also prefer to buy bitcoin directly if I want it.

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?

Cloud mining sucks and you won't get your investment back unless you are fine with waiting a year just to get your investment back without earning anything, I'd go to latter choice considering how good Bitcoin's price this week and it might become better later on.