Why would you purchase mining power?

[nighthawk13]

I just recently registered for NiceHash and noticed that they sell mining power.  I would imagine if it was profitable to purchase mining power and then connect it to a mining pool to make money then everyone would be doing that.

What is the reason someone would buy mining power?

Is there an opportunity it buy from one pool and then use that power on another pool and earn through arbitrage?

[Dudeperfect]

Exactly and that's why most of the mining companies turn into a scam or loss. I am not blaming the model of mining companies but it is something that is out of the understanding level of the average investor. Even saw some advertisements about reselling the cloud mining power/mining contract.  Thus if someone is willing to invest in such contracts then I would recommend doing a deep research before taking any such kind of decision.

[aintnopassincraze]

Well it isn't arbitrage because you are paying in BTC and then receiving your altcoin later on that is mining nothing else. And perhaps people haven't realized it is profitable or don't have the skills to go through getting to that spot? A lot of factors go into wanting to be on NiceHash and that 70 million dollar hack as of late does not help their cause.

[zeingrind777]

Exactly and that's why most of the mining companies turn into a scam or loss. I am not blaming the model of mining companies but it is something that is out of the understanding level of the average investor. Even saw some advertisements about reselling the cloud mining power/mining contract.  Thus if someone is willing to invest in such contracts then I would recommend doing a deep research before taking any such kind of decision.

Yes, it is true. My first start investing in cloud mining, they initially pay and after a month tipped into a scam. now I have no more trust with the site of cloud mining.