You better lower your prices and give back at least some chance of recovery of investment or you'll find me here wasting your efforts every time I'll find a minute.
That type of threat is illegal in most countries, I believe. We will continue selling our hash power for what it's worth on the market. The buyers set the price in the end, not us. Supply and Demand.
Threat? I am threating you that I will make your possible users aware of your "product", that's all.
I will warn users that when they buy XX GH/s at YY price they won't almost surely get back their investment.
And if you think you can scare me with words you are far by a long long long shot, kiddy
I will point out the failure in your scenario. The one you cannot control for. Electicity cost. RIGHT NOW, as I understand it from my European friends, any exisiting 1st gen ASIC device is unprofitable due to power consumption. Yet here, in Idaho, that same machine would still be fine. That in itself militates against cloud mining being a scam. Some, yes, but pb has always been about on par with an Antminer running for a month. Except that
the contract runs for 5 years...
I stop you right here.
Re-read the bold.
After 6 months, your profit is 10% of what it was in the first 12 days.
After 1 year your profit is 1% of what it was in the first 12 days.
To say it more clearly: it doesn't matter how many years the contract is, because the real earning is in the first year.
After that, you earn practically nothing. You keep getting nearer to your initial investment by smaller and smaller dust grains, but never reach it.
This is because you lose around 18% of income each 12 days, no matter what.
So if your initial investment is over a certain price, you will never make it back.
Keep in mind
50 PHs will be put into the flow soon.
About electricity: you barely make it by buying hardware, basically after 6 months/1 year that hardware becomes useless.
If you don't pay electricity, you can essentially cut down the price of the hardware by a measure, but it doesn't get much better.
The difference between your own hardware and cloud mining is that with your hardware you can get back your investment in the first few months or in the year, and cut something over it, and then you can trash it, but the cost per GHs offered by cloud mining will never allow that.
This could have been different in the past, but now it's like this.