Mining Contracts

[outofservice]

**I know there is a page for Mining but I am a noob and can't ask questions there, I also have not found a review for Mining Contracts.

I am interested in Mining Contracts. I have a couple in mind but before I make a decision I need to do my due dilegence....

I would greatly appreciate all thoughts, opinions and experiences with Mining Contracts.

 - Greatest earnings?

 - Is Progressive Reinvestment the way to go?

 - Better to purchase an expensive contract (20/GH) that starts mining immediately or a 25/GH contract for a steal compared to the expensive one but you have to wait until March for mining to start?


Any and all input is appreciated!


Thanks,

 - OOS

[didusia77]

Just don't waste Your money for mining contracts!

[odolvlobo]

It depends on the future difficulty. Estimate what the difficulty will be over the next 6 months and then compare the revenue and costs for both options. If you can't do this then you should stay away from mining because you are going to lose money.

[outofservice]

It depends on the future difficulty. Estimate what the difficulty will be over the next 6 months and then compare the revenue and costs for both options. If you can't do this then you should stay away from mining because you are going to lose money.

Ok for those who have had the same question...
I worked out two estimates, both with revenue and costs and one with an average estimated increase in difficulty and the other with a much greater increase in difficulty. Based off of Cloud Hashing contracts (2 yrs) and calculator and the current bitcoin price.
On the average increase it was just a little over 10 wks to make your money back.
With the greater increase it was about 13/14 wks.


Anyone here with a 20/GH Cloud Hashing Contract to verify these times?

[BitcoinDenvini]

Waste of time and money

[popole]

yep i guess a lot people have watse money on it

[Itun]

Don't invest money into mining contracts.

But to answer your question, the 20 GH/s contract is better than the 25 GH/s one.

[gracesfall]

I've asked similar questions in the past and have always been told that it is a waste of money. The concern is that whoever you'd buy the mining contract from would skim off of your earnings.

[outofservice]

I recv'd an pm from a member who stated he had the 20 GH/s 2yr Cloud Hashing contract, I checked the website and that's a 1k USD purchase.

He is going into his 4th wk this Tuesday and states he's averaged .11 btc per wk (my calculations came to .1155 per wk). If you calculate this estimate with btc at 1k per coin that comes to 10 wks and it's paid for. So it seems the calculations I did were more correct than not. If you calculate it at 750 per coin that's only a little more time before it's paid off.

Thats 5.72 coins a yr (11.44 total coins on the 2 yrs) without figuring in their Progressive Reinvestment option. With Progressive Reinvestment it comes to 18.76 BTC for 2yrs.

Not sure how you can see this as a bad thing. You more or less make your money back within 10 to 12wks and then the rest is all profit. If you only had 1k to invest, as I do, this seems like a much better choice... in the long run.

For those of you looking to contracts, BMP also looks good. They are offering a 25 GH/s rate (1 yr), less cost for electricity, for $212 USD for a pre-purchase contract... but they don't start mining until they get their new equipment in March. I sent an email and they said once the equipment comes in and they start mining that the same contract will increase 4x it's cost from what it is now.
Using their calculator it comes to .1442 btc per wk. 7.4984 coins for the year.

....I've answered my own question. Hope this helps those who've been on the fence like me.

[trehoise]

Still telling me I already posted this...
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I've honestly never seen the point of mining contracts.  If you have a huge capacity for mining coins, why would you just sell off that space, and if you did, wouldn't you expect the margin not to be insane?  Just seems too good to be true, or at least not a very good return on your money otherwise.
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First it told me I already posted within 360 seconds (I didn't, and i'm not on a shared / proxy / etc ip), and now it keeps saying I already posted this.