A mining contract for 5 years is too long unless there is some kind of way to gradually increase GH/s during that time.
As difficulty doubles about every two months or so, and will likely continue to do so for the next few years (at least until we run 14nm chips) in just 12 months 1GH/s would make about 1.5% of what it made before.
Any mining contract for over 6 months is not a very good idea unless there are some ways to re-invest GH/s. Also the mining host should have either 'free' electricity or continually update their mining hardware to keep on top in efficiency.
Running a cloud mining company could be very profitable but you'll have to stay on top of the industry.
As difficulty doubles about every two months or so, and will likely continue to do so for the next few years (at least until we run 14nm chips) in just 12 months 1GH/s would make about 1.5% of what it made before.
Any mining contract for over 6 months is not a very good idea unless there are some ways to re-invest GH/s. Also the mining host should have either 'free' electricity or continually update their mining hardware to keep on top in efficiency.
Running a cloud mining company could be very profitable but you'll have to stay on top of the industry.
You make no sense at all.
PBMining is not an exchange like CEX.io. You pay for your product (hashrate) and you earn BTC. That's it. You're money isn't tied up in an investment since you don't get it back at the end of 5 years.
It's the same as buying a miner except you don't have to pay for electricity and you have nothing to sell when you're done with the product. No big loss though. Secondhand ASICs sell for pennies on the dollar these days. I have 70 USB Block Erupter, an ASICMiner Blade rig and 3 BFL Singles I'll give to you for free if you want to come pick them up, lol.
And since it's similar to buying a miner, the vast majority of your profits will come at the beginning. After 6 months, yes, you will be earning very little because of difficulty adjustments. I spent 9.4 BTC with PBMining less than 3 months ago. I'm now at 6.4 earned BTC. It may take me another 3 or 4 months before I have a positive ROI. But it's no worse an investment as my hardware ASIC purchases.
