Im looking on their site and I dont understand this part (tell me where I am going wrong)
An example realtime price is .082 BTC for each GHS. Lets say I want to go big and get 1TH/s which is 82BTC. At this point is where I get lost...How long will they hash at 1TH/s for me? Until infinity? The reason I ask is that at a rate of 700USD/BTC it will take over a year to become profitable according to
http://www.vnbitcoin.org/bitcoincalculator.phpMy conclusion is the people willing to go this route are gambling on BTC going even higher, or still being able to sell your hashing power in the future? Or was your cost for each GH/s much lower and you happened to get in early?
they will hash forever and ever (or until some scam / hack / natural death / it ends).
its not really much of a gamble, just a flat out loss versus mining yourself unless you factor in risks like your hardware breaking, house burning down, etc.
There was never a point where they were willingly offering GH/s at a "good deal" price, one of the larger deals that is pure profit is obtaining the GH/s via referrals. The fact that they're able to monetize this points directly to botnet and/or they are clearly making a good profit on the upsell.
In short, they're buying the same equipment you could buy (maybe at a bulk discount, maybe not) and selling it to you and making a profit on the service. As the generation % of 1gh/s changes, the value of it should go down but... randomly hasn't, etc.
for example i will sell you a % of my GH/s for 1% more than the coins it generates are worth to be assessed and paid daily. Deal?