Cloudmining and hosted mining are just not profitable anymore, here’s why

[Phu Juck]

Cloudmining and hosted mining are really famous because you don’t need coder skillz to set up your miners. Setting up miners is simply done by someone else.

Cloudmining and hosted mining have High Operational and Service Costs. Providers charge fees not just for hardware, but also for maintenance, electricity, infrastructure, and profit margin. Such costs are often baked into long-term contracts, which are priced to ensure they profit — not you. You're still paying for machines, hosting space, electricity, cooling, and support. Such costs are often made up and can be higher what large-scale miners pay in bulk.

Mining Difficulty and Diminishing Returns are a big problem. Mining difficulty typically increases over time, which reduces rewards unless you're constantly upgrading hardware. Hosted or cloud mining contracts often lock in performance levels, meaning your hash rate remains constant while the network becomes more competitive.
Depreciation of Hardware is a big problem as well.  By hosted mining, you're usually responsible for buying your own equipment. ASIC miners become outdated quickly. If your miner becomes unprofitable, you still own the hardware, but it might be worth little to nothing.

Low Bitcoin Price Volatility Risk is due, if the price of Bitcoin drops significantly during your mining term, you might be mining at a loss, especially if your contract fees are fixed. You are still paying operational fees, regardless of whether your mining rewards cover such costs.

Lack of Transparency and Trust might affect your provider if no research was done beforehand. Many cloud mining companies have been scams (e.g., BitClub Network, BitConnect). Even legitimate providers may not be transparent about actual hardware uptime, efficiency, or how they calculate payouts.

You don’t have Control over operations.  By cloudmining, you don't control the hardware. If the company decides to shut down your contract (e.g., due to market conditions), you're stuck. Hosted mining gives you more control, but you're still reliant on a third party for physical access and management.

All in all we can say cloudmining and hosted mining is just not profitable because we have so many middlemen costs occurring. You will be charged to have operations funded by a maintainer who will always charge a cost to stay in profit for himself.

[Mia Chloe]

~snip

The fact is cloud mining these days is just an obvious scam but as for regular mining especially for solo miners it's not actually profitable to a certain extent because of the competition for hash rate based on the current difficulty of the network. The same hash rate most solo miners generate now that isn't even enough to catch and validate transactions is the same hash rate that was capable of mining hundreds of Bitcoin back in 2009.

From my experience so far I have come to understand that most miners are just decentralization enthusiasts trying to support the network by running nodes and hoping to be lucky to catch a block reward one day. We've seen a couple of cases where solo miner luckily hit the block reward even in recent times. The probability is very thin but for a decentralization enthusiasts it's worth trying.

[cryptoaddictchie]

All in all we can say cloudmining and hosted mining is just not profitable because we have so many middlemen costs occurring. You will be charged to have operations funded by a maintainer who will always charge a cost to stay in profit for himself.

Not just that. Majority ot cloudmining doesnt reallt operated with the specs or gadgets shown on the website.. What does it mean? They are just simply using the website and the image crafted for the newbie to get on with the site and invest money on that. After a while they can do like the users earning showing it and let them withdraw at first but when its famous already they will start planning to exit and scam the money. Tsk

[rdluffy]

I've never seen a cloud mining service that was profitable for the customer

When I was mining ETH from 2017 until the end in 2022, this question always came up and almost every time it was the same scenario:

1 - high chances that the service wouldn't even exist, it would just be numbers on the screen
2 - all the calculations you make will only be profitable if BTC rises considerably in price, and that brings us to the main point:
If you depend on the price of BTC rising to make a profit, why not buy BTC directly, have it in your custody and with BTC rising you'll make a profit?

If you look at all the rules of these services, you'll come to the same conclusion, so save your time and don't get involved with dubious services

[Callido]

Cryptocurrency mining still profitable ? Very similar discussion, extra lessons can be picked from both sides, the topic covers all types of mining.

If i was OP with the amount to start mining, i better listen to rdluffy in [2] of his reply, all miners holds their Bitcoin after mining when the price is low so they can sell high during bullish seasons, same thing goes with investing at an early stage and selling at the peak.

[Russlenat]

Lack of Transparency and Trust might affect your provider if no research was done beforehand.

This is the main reason,  they already lost their credibility. That’s why people don’t invest in them anymore. And as we all see, there have been a lot of cloud mining scams out there, so why would we still take the risk?

Besides, the returns aren’t even that big. And if you do see one promising high returns, it’s most likely a scam -  you know, the classic “too good to be true” kind. So instead of cloud mining, it’s better to keep it simple: just HODL. Or if you want steady earnings, consider lending your Bitcoin instead.

[Phu Juck]

Lack of Transparency and Trust might affect your provider if no research was done beforehand.

This is the main reason,  they already lost their credibility. That’s why people don’t invest in them anymore. And as we all see, there have been a lot of cloud mining scams out there, so why would we still take the risk?

Of course, cloud miners need to show proof of operations, where real devices of mining are shown, how and where it is set up and similar statistics like from Genesis Mining, a true and trusted cloud miner. If is is still profitable to be cloud mining is a big question because it is currently not profitable to be cloud mining.

So instead of cloud mining, it’s better to keep it simple: just HODL. Or if you want steady earnings, consider lending your Bitcoin instead.

Very true, just HODL is better compared to cloud mining. Our Bitcoins are stored safely in our wallet and it is only about price speculation.

[Hari6]

Another aspect is the complete lack of optimization flexibility for the user. When you mine on your own, you can tweak various settings in real time - like overclocking, adjusting power limits, switching pools, or optimizing firmware - to adapt to changing network conditions or market dynamics. With cloud mining, you're locked into a rigid system with no control or ability to respond strategically. So not only are you hit with all the fees and risks others have already mentioned, but you also lose out on any chance to actively improve your profitability, which is still possible in traditional self-managed mining if you know what you’re doing.

[CryptoYar]

Cloud mining for Bitcoin is usually scam where companies do not deliver on their promises. For individual miners it is almost impossible to make profit these days because so many powerful miners are competing making process incredibly difficult compared to how easy it was years ago.

Most solo miners are not in it for money but other to support Bitcoin network decentralization hoping for very rare chance to earn reward much like winning lottery. Realistically profitable Bitcoin mining now requires huge investments in special equipment and cheap electricity making it industrial operation with individuals mostly participating more for philosophical reasons or slim thrill of long shot.

[Taskford]

Cloud mining for Bitcoin is usually scam where companies do not deliver on their promises. For individual miners it is almost impossible to make profit these days because so many powerful miners are competing making process incredibly difficult compared to how easy it was years ago.

Most solo miners are not in it for money but other to support Bitcoin network decentralization hoping for very rare chance to earn reward much like winning lottery. Realistically profitable Bitcoin mining now requires huge investments in special equipment and cheap electricity making it industrial operation with individuals mostly participating more for philosophical reasons or slim thrill of long shot.

Profitability depends on many things like if you are in country where the electricity cost is so cheap then maybe mining is really for you.

But maybe they should shift their attention to alts if they want to mine since if they are solo miner provably there's more potential to earn more bigger on alts rather than choosing to stick on mining Bitcoin. Because as been said this is been dominated by lots of institution and they might not get what they want from Bitcoin mining.

If they can afford to spend huge then go for it since somehow this is still good business to try.

[348Judah]

All in all we can say cloudmining and hosted mining is just not profitable because we have so many middlemen costs occurring. You will be charged to have operations funded by a maintainer who will always charge a cost to stay in profit for himself.

I remember those days we all have bene hunting after cloud mining and always check for the latest one coming out, because we have the passion for anything that could bring in an opportunity for us to earn form it, but later do we find out that its just a waste of time and nothing more.

Cloud mining are high demanding and if you're not careful, you will just end your time being wasted upon their useless protocols for claiming rewards which they might never offer you, most of them now are even scam, while some are just mere testnets, to check-run on the main project coming in full.

[suzanne5223]

Cloudmining and hosted mining are not profitable right from the get-go due to the unfair rules and the conditions the miners provide to gatekeep their investors , which is technically a scamming strategy at the end of the day. Besides, why would a miners offers such an investment strategy if there's no shady motive involved.

Such costs are often baked into long-term contracts, which are priced to ensure they profit — not you.

Out of curiosity. Do you use AI to generate this content? This is one of the AI glitches that was purposely added so that people can identify AI generated content

[m2017]

Cloudmining and hosted mining are really famous because you don’t need coder skillz to set up your miners. Setting up miners is simply done by someone else.

This "someone else" has full access to your crypto, which directly contradicts the "not your keys - not your coins" principle.

I always thought that cloud mining is a partial or complete fraud. I was always curious that on the other side of the mining platforms, are there any processes of mining crypto currencies or is it just an illusion, and the reward to clients is paid at the expense of newly arrived clients, that is, from their money (it turns out to be a classic Ponzi scheme).

[tech30338]

Cloud mining for me is a scam, i have a friend who do this for a while, and while he said there is an earning, I'm thinking about the referral, that he is asking me to do sign with it, but i did not, for few months he's using the earning to upgrade, but after another few months it close with the money he spend and the said earning, and did try another one and same happens.

[Obim34]

Cloud mining for me is a scam, i have a friend who do this for a while, and while he said there is an earning, I'm thinking about the referral, that he is asking me to do sign with it, but i did not, for few months he's using the earning to upgrade, but after another few months it close with the money he spend and the said earning, and did try another one and same happens.

What you said is true, in cloud mining you don't run the operation yourself, it can save you the stress, but all profits are shared among those who contributed to facilitate cost of mining. It is not profitable in the long run, even for those hosting mining by themselves are not making enough. In the future, according to each halving, the block breaks into halves, making mining rewards less attractive, yet the cost of operation is the same or even more than the previous.

[btcltcdigger]

Hosted mining has long ago stopped being profitable. Like years ago. sure, there might be an odd altcoin which you could make some profit off of, but in general, it was more or less waste of resources.
As for cloud mining, that's been a scam since day 1. Who would rent out mining equipment for $10 that can mine $15. No one. Makes no financial sence

[KiaKia]

I've never seen a cloud mining service that was profitable for the customer

When I was mining ETH from 2017 until the end in 2022, this question always came up and almost every time it was the same scenario:

1 - high chances that the service wouldn't even exist, it would just be numbers on the screen
2 - all the calculations you make will only be profitable if BTC rises considerably in price, and that brings us to the main point:
If you depend on the price of BTC rising to make a profit, why not buy BTC directly, have it in your custody and with BTC rising you'll make a profit?

If you look at all the rules of these services, you'll come to the same conclusion, so save your time and don't get involved with dubious services

Even in 2017, some cloud mining companies closed down saying its not really profitable anymore, I was present online at the time and I was mining some ETH then too, some cloud mining services did well for a while and later they stopped too, it was like a pyramid scheme I believe.

I learnt my lesson the hard way as I lost some big amount of money, but the experience and lesson learnt reshape me into who I am today, there is nothing that can confuse me that cloud mining is still possible today, it's impossible.

You can still rent GPU power today through some mining platforms but that's all they do, rent out their hardware capacity, cloud services and data cloud stuff but the era of mining and earning coins per day is over.

[Sticky Bomb]

All in all we can say cloudmining and hosted mining is just not profitable because we have so many middlemen costs occurring. You will be charged to have operations funded by a maintainer who will always charge a cost to stay in profit for himself.

Not just that. Majority ot cloudmining doesnt reallt operated with the specs or gadgets shown on the website.. What does it mean? They are just simply using the website and the image crafted for the newbie to get on with the site and invest money on that. After a while they can do like the users earning showing it and let them withdraw at first but when its famous already they will start planning to exit and scam the money. Tsk

The above is just for random scammers and not necessarily any cloud mining services. The internet space is porous you know and anything is obtainable. There are still reputable cloud mining platforms like Genesis mining, Binance pool and Ecos

I do not think cloud mining is the best with respect to profitability. Hosted mining is better as long as you have enough capital to buy your own hardware to increase hash rate which is very expensive and more reason only big companies are obviously profitable in the business.

If you have the upfront investment and wish to be in the business for longer, hosted mining is the best as long as you are working with more reliable hosting providers

[lionheart78]

Most cloud mining operations is running using the Ponzi Scheme.  They don't have a real mining farm.  They pay their investors through the money that is invested by the later investors.  This is also the reason why after some months the system collapsed because just like a Ponzi scheme, the inflow of money cannot support the payout anymore.

Just imagine this, assuming that there is actually a mining farm, why would they sell the hashes if mining is profitable?  Why would they take the responsibility of maintenance of the unit only to pay the profit to those investors?