Renting Hash Power, is it profitable?

[Ayers]

No, renting hash power is almost never profitable, think of it like this, would you sell someone mining hash when you could make more by just doing it yourself?

then why people rent and spend so much money? that is what boggles me.

because cloud hash is it done in the way that you might get something in the very long term as a return, especially if bitcoin increase, that is the only earning you will ever get from them if they are legit of course

[deisik]

Renting hash power means cloud mining as far as I understand it.
There are already a lot of topics about cloud mining, and all have one thing in common:
They say don't do it.
I can only agree to that!
It's only profitable to the company who makes the offer of renting hash power.

A disclaimer (before anything), I do agree that cloud mining is scam in the majority if not all cases (I've been always telling this myself), but there is a point which I can't really understand. The main argument against cloud mining is that why anyone would want to sell hashing power when they could just mine bitcoins themselves? But in absolutely the same manner, I could ask as well why would any mining equipment manufacturer want to sell their hardware if they could just as easily mine bitcoins themselves, and do that with even higher profits than miners (since they would always have top-notch equipment)?

I'm just playing devil's advocate here, so bear with me

[darklus123]

Renting hash power means cloud mining as far as I understand it.
There are already a lot of topics about cloud mining, and all have one thing in common:
They say don't do it.
I can only agree to that!
It's only profitable to the company who makes the offer of renting hash power.

A disclaimer (before anything), I do agree that cloud mining is scam in the majority if not all cases (I've been always telling this myself), but there is a point which I can't really understand. The main argument against cloud mining is that why anyone would want to sell hashing power when they could just mine bitcoins themselves? But in absolutely the same manner, I could ask as well why would any mining equipment manufacturer want to sell their hardware if they could just as easily mine bitcoins themselves, and do that with even higher profits than miners (since they would always have top-notch equipment)?

I'm just playing devil's advocate here, so bear with me

Lol that made me think for a minute. But the that was 100% accurate , there is always a reason behind everything. That does mean that you do agree now that cloud mining platform can really be a sort of income for bitcoin users? Or you were just stack on the same idea on why did they really sell it?

 Well, I have my perspective in the certain mining hardware of why it was made and being sold. I can only say that it is a part of promoting bitcoin

[Wind_FURY]

Well, I rent hash power on nicehash and I spend 0.01 btc. after spending all of it, I only got 0.0004 in return. is renting hash power profitable? then why many people still renting hash power on them. am I doing something wrong?

First ask yourself why Nicehash are renting out hash power. Did it not occur to you that their rigs are not profitable for themselves? The purpose of renting out hash power is to transfer their risk to you. You are the hedge in their risk of their mining operation. So the answer to your question is a simple no.

I get all your point. and thanks for a heads up for me not to rent hash power again. but the question right now is, why are there still people renting hash power on them spending like 1 bitcoin or more. I just dont really get it.

Occasionally during certain times they can be profitable but the majority is no, it also depends on how they are paying. They don't have to be mining bitcoin and can be renting the miners for an altcoin that just launched trying to get a lot of coins at low difficulty, essentially they are gambling.

The more reason not to give them your money. They are now truly passing all the risk to their customers if they are essentially gambling in altcoins which are all ponzi schemes.

The answer to why there are people still buying? I ask you, are they really buying? How do you know? What if they are all paid shills in the forum trying to scam you?

[DarkStar_]

Renting Hash Power Profitable  :  NOPE

why many people still renting hash power:    Gullible

No. It's not. Ever. Just don't do it. They're always all a scam 100% of the time. Avoid them at all costs!!!

The amount of people claiming it isn't profitable is funny. Actually research/learn about the topic before lying about it first, thanks.

NiceHash isn't a scam 100% of the time, though they don't care if people withhold blocks on their service (bad). MRR doesn't allow this IIRC.

It definitely can be profitable. You should read the solo ckpool thread, there's been a bunch of people who found blocks from renting hash from legit sites, and made crazy profit. It probably won't be though.

[Gotottack]

Well, I rent hash power on nicehash and I spend 0.01 btc. after spending all of it, I only got 0.0004 in return. is renting hash power profitable? then why many people still renting hash power on them. am I doing something wrong?

It is sometimes profitable and sometimes not. Also be careful of scams in renting hash or using cloud mining. It's profitable if you pay for the service at a fixed rate and then the prices of what you are mining shoots up. For example, if you rent a bitcoin miner 1 year ago and you are just break-even at that point. By now you have doubled earnings but kept the cost the same. Hence you profited already. Maybe you just have to know when to see all your mined assets.

[densuj]

No, renting hash power is almost never profitable, think of it like this, would you sell someone mining hash when you could make more by just doing it yourself?

then why people rent and spend so much money? that is what boggles me.

Usually the people who rent and spend so much money for renting hash power, they are traders altcoins.
They mine new coins that has low difficulty of mining and the coins that new on exchangers and still there are values, they usually renting hash power on nicehash.(at least it is my experience when looking for new coins will be mined).
And they doesn't mined old coins (dash,bitcoin, litecoin and other coins that has high difficulty of mining),
Because it is un profitable.

I therefore conclude that renting hash power is profitable, it all depends what coins to mine.

Yes, it is profitable at least 20% of your capital for renting hash power, if you can choose new coins will be launched on announcement on this forum. But if you can not do it, renting hash power is not profitable.

But the problem there are many scam coins and difficulty of choosing new coins will give the profit.
And long time for waiting until the coins on exchangers.
In my opinion it is complex ways for trading altcoins and not suitable for me, but everything depend on our strategy of mining and trading.

[bering]

Well, I rent hash power on nicehash and I spend 0.01 btc. after spending all of it, I only got 0.0004 in return. is renting hash power profitable? then why many people still renting hash power on them. am I doing something wrong?

First ask yourself why Nicehash are renting out hash power. Did it not occur to you that their rigs are not profitable for themselves? The purpose of renting out hash power is to transfer their risk to you. You are the hedge in their risk of their mining operation. So the answer to your question is a simple no.

I get all your point. and thanks for a heads up for me not to rent hash power again. but the question right now is, why are there still people renting hash power on them spending like 1 bitcoin or more. I just dont really get it.

in my country i have been experience such as this and usually most of them were invited from their friends to rent hash power and also mostly they were too tempted to the profit which offered by those sites without have good knowledge how hash power works and usually too most of them will realize this service aren't profitable anymore when the profit which is given to them is very small and regret their decission

[ranlo]

Well, I rent hash power on nicehash and I spend 0.01 btc. after spending all of it, I only got 0.0004 in return. is renting hash power profitable? then why many people still renting hash power on them. am I doing something wrong?

First ask yourself why Nicehash are renting out hash power. Did it not occur to you that their rigs are not profitable for themselves? The purpose of renting out hash power is to transfer their risk to you. You are the hedge in their risk of their mining operation. So the answer to your question is a simple no.

This is exactly how to think about it. If I can make $100 mining with the hardware, why would I do MORE work (I still run the hardware, but now I also have to deal with accounting, user maintenance, etc.) and charge less than $100? Hint: I wouldn't. It doesn't make business sense.

[Pursuer]

Well, I rent hash power on nicehash and I spend 0.01 btc. after spending all of it, I only got 0.0004 in return. is renting hash power profitable? then why many people still renting hash power on them. am I doing something wrong?

First ask yourself why Nicehash are renting out hash power. Did it not occur to you that their rigs are not profitable for themselves? The purpose of renting out hash power is to transfer their risk to you. You are the hedge in their risk of their mining operation. So the answer to your question is a simple no.

This is exactly how to think about it. If I can make $100 mining with the hardware, why would I do MORE work (I still run the hardware, but now I also have to deal with accounting, user maintenance, etc.) and charge less than $100? Hint: I wouldn't. It doesn't make business sense.

that doesn't make sense as a reason in my opinion.
and I am not saying nicehash or whatever the name is, is legit business but the reasoning here does not make sense to me.

assuming there is a legit cloud mining like the 2014 GHASH.IO, it always makes sense to sell hashpower, it is like any other businesses if it is profitable you start taking investors to be able to grow your business, you take 50 investors and buy a lot more hash power and by sharing that additional revenue you are increasing your profit.

[mbpinewatch]

yes if you are the one renting it otherswise no as I'm sure the persons renting out the hash will get a payment from u and from the hash you rent.

[ArdiPrabowo]

Well, I rent hash power on nicehash and I spend 0.01 btc. after spending all of it, I only got 0.0004 in return. is renting hash power profitable? then why many people still renting hash power on them. am I doing something wrong?

how long you get return 40k satoshi from investment 0.01 bitcoin
is every day, you only 25 day you can BEP
if every week you must 25 week you can get BEP, or still under one year you can bep(still competitif return)
if every month you wait over 2 year can get BEP(not competitif return investment)

[Xanidas]

Well, I rent hash power on nicehash and I spend 0.01 btc. after spending all of it, I only got 0.0004 in return. is renting hash power profitable? then why many people still renting hash power on them. am I doing something wrong?

in my experience using hashnest where i only invested around .015btc, i am getting atleast 5k satoshi daily (fees excluded), so i can say it might be profitable only if the bitcoin price rises together with the mining difficulty but if btc price don't rise it will not be profitable after some months

[stomachgrowls]

Well, I rent hash power on nicehash and I spend 0.01 btc. after spending all of it, I only got 0.0004 in return. is renting hash power profitable? then why many people still renting hash power on them. am I doing something wrong?

First ask yourself why Nicehash are renting out hash power. Did it not occur to you that their rigs are not profitable for themselves? The purpose of renting out hash power is to transfer their risk to you. You are the hedge in their risk of their mining operation. So the answer to your question is a simple no.

This is exactly how to think about it. If I can make $100 mining with the hardware, why would I do MORE work (I still run the hardware, but now I also have to deal with accounting, user maintenance, etc.) and charge less than $100? Hint: I wouldn't. It doesn't make business sense.

This means both option are not profitable but the advantage on doing hardware mining is the possibility of gaining profits specially if the cost of electricity on your place is cheap and regarding on the maintenance i could say it really adds up the expenses and mining on hardware would be okay if you do have lots of it not only on operating on a single miner,you are just wasting your time.Renting hashpower is not profitable in any way since difficulty is rising and most of them are just scams.

[JasonXG]

Well, I rent hash power on nicehash and I spend 0.01 btc. after spending all of it, I only got 0.0004 in return. is renting hash power profitable? then why many people still renting hash power on them. am I doing something wrong?

wow you screwed up badly ! You went from 100% to 4% Why did you think you would make profit anyway ? It couldn't be that easy or they would do it for themselves. It is mainly for mining new altcoins or altcoins with bonus pow for early investors. Some currencies are cheaper to mine the to buy on the market. Inflation coin for example is 6x cheaper to mine then to buy it off the exchange.

[mastica]

In the general the renting of hash isnt profitable, you will need lucky to find a block, and anyway you will need the hash to get those block credited to you, soo you may end loosing more then getting with those renting. People should be honest about their renting income and cost, anyway there is no way to predict, but i do see this as scam since only the owner does profit for the rent.

[lumeire]

Just an idea, we should start a case study on this. So we can answer this question once and for all.

IMO in my experience, cloudmining was a dud. This is way back when the price was $300ish though.