How does cloud mining work?

[squatz1]

Well in theory or on paper, the thing that happens it that you rent a companies, miners (be it their asics or their gpu's) and then you're going to get the profits that come from the mining -- minus some  fees that the company charges. You'd be able to rent for a certain amount of time or sometimes even unlimited.

Make sure you notice how I said this is how it works on paper -- in most companies they're going to scam you, in some of the reputable companies they're just going to stop paying you when it's not profitable for them anymore, so then you're going to be shit out of luck. Plus the fact that it literally makes no sense for a company to do this, they could just reap their OWN rewards.

[jemarie20]

I appreciate the effort for writing this post, but whatever with a good suggestion of cloud mining negative side will still carry the whole lot. Its not even profitable to those who want to invest in this kind of scheme. Though there are some who profit but still I will not recommend it.

Many people said that cloud mining is not advisable if someone want to mine bitcoin is like  someone mention in the thread below.
https://bitcointalk.org/index.php?topic=3268826.0

If you want to know more information about mining visit the mining section of this forum because there are a lot of information on what is the best and advisable way if someone want to engage in the mining world.

[Zocadas]

The problem with these scam "cloud miners" is, that contracts seem to be allowed to be sold on popular auction platforms. Many crypto newcomers are trapped into these "services", because they simply don't see another way to buy Bitcoin, at least in countries, where no Bitcoin ATMs are offered.

[Tyrantt]

I'm starting to get annoyed at the fact that people still discuss BTC cloud mining as a legit thing and cloud mining services at all... Please, the time of bitcoin cloud mining has passed a couple of years back, it just can't work anymore.

There's no need to read detailed posts and articles on why btc cloud mining isn't viable anymore, you just have to think about it a little and you'll see for yourself.

Don't invest anything in cloud mining that you can afford to lose and don't invest into ones that are strictly "mining" bitcoin.

[KorakPawon]

Easy, cloud mining means using the processing power shared from the data center remotely. You Just need a home computer or laptop to communicate, local or outside bitcoin wallet and so on. But better if you use local wallet. eg Mining hosted by hiring a mining machine guided by the provider.

[tmfp]

I'm starting to get annoyed at the fact that people still discuss BTC cloud mining as a legit thing and cloud mining services at all... Please, the time of bitcoin cloud mining has passed a couple of years back, it just can't work anymore.

Yes it can.
If self mining Bitcoin is profitable, which it is, then cloud mining can be also, as its essence is profit sharing in exchange for capital investment. There are reasons that generally it isn't, but that's down to the nature of the contractual terms rather than the concept per se.

[stomachgrowls]

I'm starting to get annoyed at the fact that people still discuss BTC cloud mining as a legit thing and cloud mining services at all... Please, the time of bitcoin cloud mining has passed a couple of years back, it just can't work anymore.

Yes it can.
If self mining Bitcoin is profitable, which it is, then cloud mining can be also, as its essence is profit sharing in exchange for capital investment. There are reasons that generally it isn't, but that's down to the nature of the contractual terms rather than the concept per se.

Duration and contracts would be the main thing why it would mainly affect our profitability when it comes to cloud mining which we do indeed shared up funds to buy out hashes but we do know that profitability would be still on questioned on this thing unlike if we do have our own physical miners which we do mining operation with our very own eyes then it might convince me that this would be possible profitable than into those cloud mining.

[Tyrantt]

Duration and contracts would be the main thing why it would mainly affect our profitability when it comes to cloud mining which we do indeed shared up funds to buy out hashes but we do know that profitability would be still on questioned on this thing unlike if we do have our own physical miners which we do mining operation with our very own eyes then it might convince me that this would be possible profitable than into those cloud mining.

I have no idea what you wanted to say, that's just one long, long sentence. I've read it 3 times and still can't figure it out.

Yes it can.
If self mining Bitcoin is profitable, which it is, then cloud mining can be also, as its essence is profit sharing in exchange for capital investment. There are reasons that generally it isn't, but that's down to the nature of the contractual terms rather than the concept per se.

In theory. But how much would you need to invest to get ROI? There's a reason why companies are giving up on cloud mining, even CEX.IO has stopped with their gh/s sale due to cloud mining being unprofitable.

Self mining bitcoin can be profitable, yes, but how much do you need to invest again? I'd rather invest in some cloud mining service that focuses on some alt-coin (non sha-256). it's just isn't profitable anymore when you compare the amount of invested money and earned money.

[Ruby Anderson]

Most of them charge a lot of fees because bitcoin price is down, and it will not profitable for now  .

maybe for now. But if you buy a cloud mining contract now, when the price is so low, and after this crypto winter is over, and the price starts to go up again (in this case i mean BTC), then it will be profitable. but that can only be if my theory will come true. At least I hope so!

[iqlimasyadiqa]

Most of them charge a lot of fees because bitcoin price is down, and it will not profitable for now  .

maybe for now. But if you buy a cloud mining contract now, when the price is so low, and after this crypto winter is over, and the price starts to go up again (in this case i mean BTC), then it will be profitable. but that can only be if my theory will come true. At least I hope so!

Only people who are prustation will choose cloud mining. The thing you mentioned is wrong because whatever the condition then investing in cloud mining is a mistake. I've known cloud mine for quite a while and I've also invested in a lot of cloud mining and the results are very bad. So I strongly recommend that you never get to know cloud mining because it will only make your money and time wasted with no results whatsoever we can get.

[dongamk]

If you want to keep a 1 mb file on your computer’s hard disk, you will have to have that available space on your local computer’s hard disk. However there are few advantages which were noticed eventually. example: limited storage space, hardware crash (data loss), data can only be accessed on local computer.

Now when cloud storage took place, this risk vanished and better ways to access data were discovered. Example: No hardware crash risk (cloud servers do replica backup to other servers, no data loss), unlimited storage, data can be accessed anywhere in the world even from your smart phone.
Now cloud mining is just that concept, you dont have to deploy your own miners, you dont have to configure your own networking system, no internet maintenance, no worries of downtime. Hence, great mining output.

So when you calculate, these cloud mining centers earn from subscriptions and the percentage saving on Bitcoins.
Advantage:

• No added electricity costs
• No equipment to sell when mining ceases to be profitable
• No ventilation problems with hot equipment
• Reduced chance of being let down by mining equipment suppliers.

Disadvantage:
    

• Risk of fraud
• Opaque mining operations
• Lower profits
• Lack of control and flexibility

[tmfp]

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Be very careful with your plagiarism unless you want banning.