Topic: Mining in the cloud vs simply buying bitcoin - page 8. (Read 1638 times)

I agree, mining like having a mining farm is profitable for some but not for all as I have friends who stopped mining already due to high electricity expenses compared to what they earned. Mining is only good for places where electricity is cheap.

But cloud mining?,.... 100%, it will just end as scam.

mining is indeed more profitable but not for cloud mining, ...

Mining is more profitable ?  You sure about that   ? If it is then all miners should be rich now  and alll people should switch to mining now  .

 what about cloud mining ?  Cloud mining dont differ much on mining  but are risky and hard   . they take a long time to profit but its good to do them if you like to earn passive income for a lifetime  but if you like quick and easy profits then buying bitcoins or trading is the way to go  .

Mining is more profitable ?  You sure about that   ? If it is then all miners should be rich now  and alll people should switch to mining now  .

 what about cloud mining ?  Cloud mining dont differ much on mining  but are risky and hard   . they take a long time to profit but its good to do them if you like to earn passive income for a lifetime  but if you like quick and easy profits then buying bitcoins or trading is the way to go  .

mining is indeed more profitable but not for cloud mining, because what you invest in cloud mining is never good for you and will only continue to wait longer without any good results you can get, don't be tempted by anything about their promotion because it's just a ways to get more consumers. so it's better to buy bitcoin and hold it because with you holding it or trading it, it will be far more profitable

mining is indeed more profitable but not for cloud mining, because what you invest in cloud mining is never good for you and will only continue to wait longer without any good results you can get, don't be tempted by anything about their promotion because it's just a ways to get more consumers. so it's better to buy bitcoin and hold it because with you holding it or trading it, it will be far more profitable

Bitcoin cloud mining was only popular only back in 2014 and 2015 and that was back when the mining difficulty was low, and even back than it was not that profitable, the popularity of it had completely died out when one of the sites that was to be legit just completely shuts off without a trace and with millions of dollars of people's money, and that was when people had enough and lost all trust, so any existing could mining site right now is just a scam and if it is not than it is not profitable so don't try to invest in them and just buy and hold bitcoin for profit.

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?