Why does "cloud mining" service work?

[maeusi]

Legit cloud mining services are very rare. Maybe two or three. Why do they rent out and not profit theirselves? Mining makes profit on long term. Whwn you invest yourself, you have not that much money as it is possible to invest by crowd. So it makes sense to rent out hardware. But as I said, legit cloud miners are really rare.

[lottery248]

in a nutshell, if you are unable to buy miners and mine online, cloud mining is often a way to solve your problem, but legit sites are few.

And what about mining with rentals? You can buy small rentals if you have few coins. Will you choose something in which you trust some other with your balance and have no control over mining configuration or where you have control over the mining configuration and in same way is transparent as well (showing the proof of mining)

oh this is one of the method too, thanks for the reminder and/or extra information. i bet 99% of the mining rig rentals are not able to block people from choosing their own pool, so rental is the safest cloud mining IMO.

[maydna]

I don't know much about cloud mining, and I had heard that many cloud mining services are scams. But I had also heard that there are some legitimate cloud mining services, which rent out their hardwares for their customers to mine Bitcoin.

I have a question: Since mining is profitable, why do those companies rent out their hardwares for other people to mine Bitcoin and don't simply use the hardwares to mine Bitcoin for themselve?

i think its because they know that if they are mining by themselves then they can not make profit in a day and if they rent to other people in cloud mining services, they can make a profit from renting their hardware because they need to pay electricity fee. so they better to rent out their hardware than using for mining. beside that, if they have big hashrate, they can split the hashrate into some part then they can rent out for some people which it will give them more profit in the same time.

[Ctn]

in a nutshell, if you are unable to buy miners and mine online, cloud mining is often a way to solve your problem, but legit sites are few.

And what about mining with rentals? You can buy small rentals if you have few coins. Will you choose something in which you trust some other with your balance and have no control over mining configuration or where you have control over the mining configuration and in same way is transparent as well (showing the proof of mining)

Yeah and just imagine without any control of miners how I'm determined of myself that I'm mining for the right pools. "Who will decide what" matters a lot here. The mining industry should be transparent to gain full confidence over the self mining or rental mining.

[coolcoinz]

Good questions OP. Since there are sites where you can rent a mining rig from a private person, and there are server room owners who can host your physical miner for you, why would anybody choose a cloud mining site? Given that you can't mine at home, if you had a choice between renting a physical miner from a private owner, buying your own miner and giving it to someone to run it at his farm and giving money upfront to an anonymous company for a contract that can be broken at any time? They know what they're doing, because they aren't giving you any guarantees.
Why are they still running? Because people are greedy and lazy and with cloud mining it's just a few minutes before you start "mining".

[giveen]

About cloud mining we all can only assume if those miners of genesis mining and hashflare is real. And they have surely been around for many years but they are not offering anything spectacular like returns in 3 months so that's the reason why you are getting confused. On genesis mining they have bitcoin mining valid for lifetime and they are going to charge fees on daily basis, nothing wrong with that but there are many people who complained about not getting roi and their contract getting cancelled. What genesis mining does is reduce the money which makes the fees they charge more and therefore they cancel your contract. However they haven't been any complains about their limited contracts and i have tried dash mining and got roi in 6 months so if you want you can try their eth or xmr mining. Onehash also allows you to rent miners but you need the right pool because i have tried it and barely got any profit but they don't have any contract system.

[spngebob]

I have a question: Since mining is profitable, why do those companies rent out their hardwares for other people to mine Bitcoin and don't simply use the hardwares to mine Bitcoin for themselve?

They rent their equipment because they want to upgrade farms.
So you are probably just lending them money for long period.
I don't see any other reason.

[xIIImaL]

I have a question: Since mining is profitable, why do those companies rent out their hardwares for other people to mine Bitcoin and don't simply use the hardwares to mine Bitcoin for themselve?

They rent their equipment because they want to upgrade farms.
So you are probably just lending them money for long period.
I don't see any other reason.

If we want to be make 1000$ per month means which antminer series would option to fit for it? Please let me know the cost of the miner and where I can buy it in online in middle east and asian region. Can we lend it for some months.

[Tyrantt]

Legit cloud mining services are very rare. Maybe two or three. Why do they rent out and not profit theirselves? Mining makes profit on long term. Whwn you invest yourself, you have not that much money as it is possible to invest by crowd. So it makes sense to rent out hardware. But as I said, legit cloud miners are really rare.

Hard to think that there are any nowdays. All that I've made ROI have stopped their cloud mining services and the best one there was (cex.io) has closed it's service due to high maintenance fees.  Cloud mining services are pretty much gone.