Why shouldn't I mine DASH with 1000 MH/s

[jeffytune]

I just calculated my reward using various mining calculators like whattomine/cryptocompare/coinwarz.

All show me that I am gonna get my investment back in about 6 months.

If I buy 1000 MH/s from any reputed miner then why shouldn't I be profitable?

Do they hide anything from me?

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[brobbel]

I just calculated my reward using various mining calculators like whattomine/cryptocompare/coinwarz.

All show me that I am gonna get my investment back in about 6 months.

If I buy 1000 MH/s from any reputed miner then why shouldn't I be profitable?

Do they hide anything from me?

It can be profitable. It can be not profitable.

1) look into the contracts. Is there a fee for electricity/maintenance etc. -> did you include these into you calculation?

2) how long is the contract?

3) there will be difficulty changes. The more profitable the coins are,  the more people want to invest, the faster the difficulty will rise, and profits going down. There is no mining calculator which can predict this behaviour exactly.

4) there will be price fluctuations. Every coin is very volatile.

You can be sure that almost every day your daily profit is getting less and less and less. When there are fees, then there is a big chance you will reach the point that your profit is lower than the fee and mining will be ended. When there are no seperate fees, the mining period is short (1 or 2 years max)

In this case I guess it's a 1 year contract. In my calculations, when I have to get 6 months of today's profit to reach ROI, it will take at least 1 year in reality to reach it. So you see the point?

[jeffytune]

I just calculated my reward using various mining calculators like whattomine/cryptocompare/coinwarz.

All show me that I am gonna get my investment back in about 6 months.

If I buy 1000 MH/s from any reputed miner then why shouldn't I be profitable?

Do they hide anything from me?

It can be profitable. It can be not profitable.

1) look into the contracts. Is there a fee for electricity/maintenance etc. -> did you include these into you calculation?

2) how long is the contract?

3) there will be difficulty changes. The more profitable the coins are,  the more people want to invest, the faster the difficulty will rise, and profits going down. There is no mining calculator which can predict this behaviour exactly.

4) there will be price fluctuations. Every coin is very volatile.

You can be sure that almost every day your daily profit is getting less and less and less. When there are fees, then there is a big chance you will reach the point that your profit is lower than the fee and mining will be ended. When there are no seperate fees, the mining period is short (1 or 2 years max)

In this case I guess it's a 1 year contract. In my calculations, when I have to get 6 months of today's profit to reach ROI, it will take at least 1 year in reality to reach it. So you see the point?

1) No fee everything is included in contract
2) 2 years
3) Obviously but let say if its doubled in the time span of 12 months even then I can recover my investment from first 12 months.
4) Of course but for the sake of argument let say it stays same.

[brobbel]

1) No fee everything is included in contract
2) 2 years
3) Obviously but let say if its doubled in the time span of 12 months even then I can recover my investment from first 12 months.
4) Of course but for the sake of argument let say it stays same.

Then I guess it's Genesis Mining. I just checked with coinwarz and looked into their calculation with my own earnings, but that looks quite the same.

And although cloudmining in general isn't the best investment to make (=understatement), this looks to be different. At the current rate the chance you will get ROI and even profit is very high (only Dash mining; the others are far worse, except maybe Monero - that's the one I haven't)

And if it is GM, then you get daily payments from them.

[jeffytune]

1) No fee everything is included in contract
2) 2 years
3) Obviously but let say if its doubled in the time span of 12 months even then I can recover my investment from first 12 months.
4) Of course but for the sake of argument let say it stays same.

Then I guess it's Genesis Mining. I just checked with coinwarz and looked into their calculation with my own earnings, but that looks quite the same.

And although cloudmining in general isn't the best investment to make (=understatement), this looks to be different. At the current rate the chance you will get ROI and even profit is very high (only Dash mining; the others are far worse, except maybe Monero - that's the one I haven't)

And if it is GM, then you get daily payments from them.

You reached right.

But still there are couple of guys on youtube who advocates its worthwhileness but there are many many thread here that talk about it being crap and your will get nothing in return.

I am lot of confused. Who is right and who is wrong in their assessment.

[BTC-BTC-BTC]

People is not factoring in the difficulty increase for coming year. Asic will destroy any profit once all the companies resume selling their miners. At the moment companies are mostly are using their miners for Dash. Just like sha256 mining.

[brobbel]

1) No fee everything is included in contract
2) 2 years
3) Obviously but let say if its doubled in the time span of 12 months even then I can recover my investment from first 12 months.
4) Of course but for the sake of argument let say it stays same.

Then I guess it's Genesis Mining. I just checked with coinwarz and looked into their calculation with my own earnings, but that looks quite the same.

And although cloudmining in general isn't the best investment to make (=understatement), this looks to be different. At the current rate the chance you will get ROI and even profit is very high (only Dash mining; the others are far worse, except maybe Monero - that's the one I haven't)

And if it is GM, then you get daily payments from them.

You reached right.

But still there are couple of guys on youtube who advocates its worthwhileness but there are many many thread here that talk about it being crap and your will get nothing in return.

I am lot of confused. Who is right and who is wrong in their assessment.

Genesis Mining (and a few others like Hashflare, Hashnest, ViaBTC) are legit companies. 99.9999% of all the other cloudmining companies aren't - they are ponzi / scam sites.

Contracts from the legit sites are in general very poor. You pay high amounts to get very little, so ROI is over a year (when there is no difficulty change etc.) but in reality it will be double or more - most contract have a energy/maintenance fee, so they stay alive as long as it makes profit. And when the earnings are lower then this fee the contract will be suspended.

Other contracts are for a year, as mentioned in my example, and then there is little chance to reach ROI

This case looks different, but it's also because the high price of Dash. When this price drops, the ROI (in $ or BTC) will be much more difficult to reach. But at the current price / rate level it's looking good.

And as mentioned about the difficulty - because the high price of Dash and the profitable position there is a big chance more people jump into this - which creates a much faster difficulty rising.

[QuintLeo]

Keep in mind that ANY cloud mining operation is going to charge more for that hashrate then it costs them to generate it.
Unless your electric rate is fairly high, you can almost always make more by do-it-yourself - and then sell off the used gear eventually.