At difficulty 120 - a 1000 Mh/s will mine about 2500 MAL a day. Renting a rig costs about 0,25 BTC/1000 Mh/s . Added up = mining cost on diff 120 for MAL i 10 000 satoshi. Miners want to make a profit, so 10 000 is not really a high number right now.
That works if all around rent hash. Lots of miners still using own rigs and/or buckshee electricity etc.
IMO this works always - even if Your mining cost is lower (lets say You have free electricity), You always want to maximize Your profit from mining.
If You can have Your rig rented for 0,25 - why mine something that gives You less? There are two options:
1) You anticipate that the price is going to rise and mine in advance (smart thing to do), but You will not sell at a loss, since You don't need to
2) You cannot calculate the costs and margins on minig and You sell coins mined at a high difficulty for less then the actual mining price, thus allowing the investors that bought the coins make the profit instead of You.
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