Cloud mining difficulty

[futureazy]

Just buy bitcoins directly from any exchange and don't sell them, in the meantime keep posting in the forum.

[Crossbow376]

The short answer is don't buy a cloud mining contract.

As difficulty goes up your revenue per day will go down. The difficulty has been increasing by  roughly 20% every 12 days or so. This means that after just a few months your revenue will be almost nothing on a contract that lasts years.

I personally don't see a cloud company yet as a viable option with current options Ive looked into.  But 20 percent also has not been true on last changes.  I have heard experts talk about difficulty and it's pretty varying on what they think will happen.    The 20 can't go on forever, I hope it's done for now.  but only time will tell.  But last few have been much better then the old standard of 20.

The difficulty can't keep increasing 20% exponentially forever IMO.
We have incredible improvement in miner efficiency for the past 2 years (from GPU to early ASIC to new efficient ASIC), but the newest ASIC is already in 28nm. I don't believe it will keep improving in that insane speed honestly.

[Crossbow376]

Thanks for taking the time to answer guys

So another question: is there a way of earning btc next to mining and trading? Or which coin would be worth investing in?

Risky way: Gambling and trading
Less risky way: Investing in trusted casinos
Safer way: Selling products and services, joining a sig campaign

I personally don't touch altcoin, as it is way too risky for me.

[ranochigo]

The short answer is don't buy a cloud mining contract.

As difficulty goes up your revenue per day will go down. The difficulty has been increasing by  roughly 20% every 12 days or so. This means that after just a few months your revenue will be almost nothing on a contract that lasts years.

I personally don't see a cloud company yet as a viable option with current options Ive looked into.  But 20 percent also has not been true on last changes.  I have heard experts talk about difficulty and it's pretty varying on what they think will happen.    The 20 can't go on forever, I hope it's done for now.  but only time will tell.  But last few have been much better then the old standard of 20.

The difficulty can't keep increasing 20% exponentially forever IMO.
We have incredible improvement in miner efficiency for the past 2 years (from GPU to early ASIC to new efficient ASIC), but the newest ASIC is already in 28nm. I don't believe it will keep improving in that insane speed honestly.

The newest ASIC is currently at 20nm. They can optimize it more, improving the efficiency. IMO, it isn't about the efficiency but quantity, if more people join in, the hashrate should increase, thus increasing the difficulty.

[Crossbow376]

The difficulty can't keep increasing 20% exponentially forever IMO.
We have incredible improvement in miner efficiency for the past 2 years (from GPU to early ASIC to new efficient ASIC), but the newest ASIC is already in 28nm. I don't believe it will keep improving in that insane speed honestly.

The newest ASIC is currently at 20nm. They can optimize it more, improving the efficiency. IMO, it isn't about the efficiency but quantity, if more people join in, the hashrate should increase, thus increasing the difficulty.

But why would people keep buying new miners if they are not going to get profit in bitcoin mining?
Of course some people may not do the research before making the purchase, but it should be only be a small proportion of miners.

[ranochigo]

The difficulty can't keep increasing 20% exponentially forever IMO.
We have incredible improvement in miner efficiency for the past 2 years (from GPU to early ASIC to new efficient ASIC), but the newest ASIC is already in 28nm. I don't believe it will keep improving in that insane speed honestly.

The newest ASIC is currently at 20nm. They can optimize it more, improving the efficiency. IMO, it isn't about the efficiency but quantity, if more people join in, the hashrate should increase, thus increasing the difficulty.

But why would people keep buying new miners if they are not going to get profit in bitcoin mining?
Of course some people may not do the research before making the purchase, but it should be only be a small proportion of miners.

They can be having low or free electricity. You would be able to make ROI quite soon, since you aren't factoring your electrical cost. Also, since miners are more and more optimized, the price should go down for old ASICs and companies would be optimizing ASICs and improving the efficiency.

[DrG]

The short answer is don't buy a cloud mining contract.

As difficulty goes up your revenue per day will go down. The difficulty has been increasing by  roughly 20% every 12 days or so. This means that after just a few months your revenue will be almost nothing on a contract that lasts years.

I personally don't see a cloud company yet as a viable option with current options Ive looked into.  But 20 percent also has not been true on last changes.  I have heard experts talk about difficulty and it's pretty varying on what they think will happen.    The 20 can't go on forever, I hope it's done for now.  but only time will tell.  But last few have been much better then the old standard of 20.

The difficulty can't keep increasing 20% exponentially forever IMO.
We have incredible improvement in miner efficiency for the past 2 years (from GPU to early ASIC to new efficient ASIC), but the newest ASIC is already in 28nm. I don't believe it will keep improving in that insane speed honestly.

No the growth can't continue to grow at 20% - it will plateua just like it did with GPUs.  At that time, only the people with very cheap electricity will be mining, however, as everybody else would be operating in the red.

[soowein]

Hi there,

Do forgive me if the next question is stupid however I have got a newbie question.

In regards to cloud mining how does it work with the difficulty?

The difficulty level will go up but if I choose to do it myself (hardware) I will keep on purchasing the best stuff etc etc. Does this happen in cloud mining as well? Or is it that if I but a contract today the ghs will be less profitable as the difficulty goes up? (And my miners wont upgrade to meet the next difficulty level)? Also meaning that if you buy a new contract those miners will have a different capacity for the difficulty level?

Hope its understandable and some one has got an answer to this

It will eventually get to the point so that the most efficient miners can mine 1 BTC

while using 1 BTC worth of electricity in places where electricity is the cheapest