Bitcoin Forum

What do you think about this business model? Would you give somebody a bitcoin loan for mining? Or take a loan?

I read that https://bitlendingclub.com/ offers a combined loan and mining service.

Most mining rental websites will charge you a price above what you can expect to earn by using the hashpower

It's never a good idea to borrow money for gambling.

Yes, at least it currently seems so.. The person who borrows money does not only have to take the loss by renting hashpower but also has to pay the interest rate..
Maybe times will change concerning cloud hashing services..

hashpower rental sites will have no reason to charge less then wheat it would be expected they would earn by mining themselves.

It really only makes sense to rent hashpower if you are trying to test something/do some kind of research or if you are trying to attack a pool/altcoin

Yes. People who rent it usually rent them to hash new coin.

This is a double lose.  Borrowing money for gambling at least has the possibility of an ROI and possible profit.  Cloudhash rentals are a guaranteed loss at this point.

I would say it would be more accurate to say that they manipulate a new coin. 

This is true. The EV of hashpower that is available for rent is almost always less then the price of the hashpower on rental sites.

I believe in Bitcoin but I wouldn't recommend taking out a loan for a mining rig rental.  Unless you or your friend have done your due diligence and know how much risk you taking on before hand.  Bitcoins difficulty is high and most likely won't be worth the time and effort if you don't know alot about what your getting into.  Probably best to just buy and hold.

I think it would be more important to simply run the number to check if what you are doing makes sense financially assuming that no one you are dealing with turns out to be a scammer.

Cloud Hashing is a giant black box into which for every $100 worth of fiat or btc you put into, your likely to only get back 63-75% in a 6 month period of time (if your lucky).  After time elapses you can then sell off said cloud hash for roughly 1/25th of it's original value.  What a deal!  Where do I sign up? lol

I think thats too easy. It is also a question of collecting enough money to be able to run rigs. As a provider you can use new revenue to buy new rigs and scale it up this way..

Besides that I don't think it is clever (from the view of the provider) to put all money on one bet. It also about risk diversification to rent hashpower to others. Especially because the development of prices and exchange rates is NOT predictable as you can see on the last two days upturn..

if you not very rich or clever, never try it.