Cloud hashing review

[Jonesd]

Hi,

My mining contract started yesterday and the return on the first day was 0.0029 BTC. At the time I bought it I paid about a bitcoin, so not taking the difficulty increase into account, I will at most receive one BTC in the end.

0.3 BTC is more realistic.

ah well, bought it on a whim, so could have expected it.

[kinglothar]

Indeed I never really understood all the craze around cex.io - the current rates have no ROI unless you're hoping for trading profits, which I guess is highly unlikely since GHS prices will obviously go down as difficulty increases. I do not think anyone actually makes money there except cex.io themselves.

There is however one new service that I'm so far really happy with and am ready to recommend: scrypt.cc
I like it because:
- It just launched so there is a first big batch of KHS put on the market by the service at a prices that actually has an ROI (~200 days... but still there is an ROI even if the market price drops to zero). Right now it's 0.0014444 BTC per KHS
- It is scrypt mining, which I hope should make the difficulty increases much slower due to the relative absence of ASIC mining
- They have their own multipool, meaning they automatically switch to the most profitable scrypt coin at any given time - and contrary to SHA256 coins like bitcoin, which all have pretty much the same profitability, this actually makes a huge difference (for whatever reason I'm failing to understand)
- It has a great referral scheme: you get 5% of what your referrals mine!


I've heavily invested in it personally, and I'm around 20 MHS, which yields ~0.2BTC/day or 6.6 BTC/month (the profitability varies of course based on the coins profitability, but so far it's been fairly stable). At the current market rates this means ~10+% monthly interest rate, and since I'm reinvesting everything to benefit from compound interest I estimate that my initial ~25BTC investment should double in around 150 days (or 200 days without reinvestment, if I want to be better protected from potential KHS market price drops...).

Here's my referral link: http://scrypt.cc?ref=baaaY
Of course, as much as I'd like you to use my referral link, I *am* genuinely happy with the service for the other reasons mentioned above, so if you're doubting my intentions feel free to do your own maths and just use the non-referral link: http://scrypt.cc

[TheCleanGame]

I'll vouch for Scc as well.

It's been a bit, the price of KHS is higher, the payouts are averaging .5% a day for the entire 6-8 weeks I've been there now.

Blockchain.info and massive DDOS attacks have delayed the end of beta and launch of the new site.

Personally?  I'm loving it!

New deposit api was put in yesterday after the blockchain.info api snafu for 2 days... looks like they're having just a bit of an issue getting up and running, to be expected.

New site design is finished and as soon as deposits are back up and running Admin says they'll be focusing on bringing it online.
Screenshots admin released:
http://goo.gl/W9jzBx
http://goo.gl/QV6yTa

Lombriz, myself and about 20+ other members have been hanging out in an IRC chatroom at webchat.freenode.net/?channels=#scrypt.cc and there's someone there 'almost' 24/7 now that can answer questions.

NO CONTRACTS!!  KHS/BTC Exchange!

Come and watch the excitement as the issues get ironed out and launch day approaches!  Open a free account at Scrypt.cc?ref=baagt and see you in IRC.  (Using a referral link does not affect your profits)  The  chat on the beta site doesn't handle the current ddos very well.  A commercial chat is being put in on the new siteface.

Keep it Clean!

[kickbit]

Hi,
I think cloud mining is not about mining, it's about trading (like cex.io). But if you can't trade - it's loss of money.

I made bitcoin calculator, and started new topic here:
https://bitcointalk.org/index.php?topic=523491.0
It's pretty accurate and you can estimate your real mining profit there

[TheCleanGame]

Hi,
I think cloud mining is not about mining, it's about trading (like cex.io). But if you can't trade - it's loss of money.

I made bitcoin calculator, and started new topic here:
https://bitcointalk.org/index.php?topic=523491.0
It's pretty accurate and you can estimate your real mining profit there

For BitCoin or any other 'single-coin' mining operation, this is very true. 

Difficulty rises on a single popular coin lead to the results your calculator shows.  Scrypt.cc?ref=baagt is currently analyzing the profitability of over 40 profitable scrypt coins every 60 seconds and mines the most profitable 3-5 coins of the moment.   

The varying difficulties, current exchange rate and other variables are all considered before mining a coin.  Pretty keen piece of software actually.  Would love to take an up close and personal look at it.

Because of the nature of the market and so many coins, the profitability for the shares you purchase have a much better payout for a much longer time than if they were tied to any one specific coin/network.

Medium and possibly long term, awesome investment.

Keep it Clean!

[crazyivan]

Cloud mining is almost never profitable, regardless of the service you might select. If you compare the amount of BTC which you would spend to lease your miner and the amount of BTC which you would get from mining, you will ALWAYS lose money. Having this in mind, it is better buying BTC and holding or investing into something else.

[TheCleanGame]

Cloud mining is almost never profitable, regardless of the service you might select. If you compare the amount of BTC which you would spend to lease your miner and the amount of BTC which you would get from mining, you will ALWAYS lose money. Having this in mind, it is better buying BTC and holding or investing into something else.

What you say is true... for Single Coin Mining operations.

That's why Scrypt.cc?ref=baagt is so profitable though, you're not tied to any one coin and difficulty.

Hell... at an average of .5% a day with no work at all... Why would you NOT want to put your idle btc into it?  

No Rental Fees
No Contracts
No Single-Coin Difficulty Ridiculousness

The top 40+ profitable Scrypt coins are analyzed every 60 seconds and the top 3-5 profitable coins are mined.  Auto-conversion to BitCoin and direct deposit to Scc account every 10 minutes.

High Payout
A low ball estimate is 4 satoshi's per KHS per 10 minute period.  144 payments a day.  I've seen as high as 21 satoshis per KHS and as low as 3... the long average is bringing in roughly .5% a day the last 2 months.

Great Community
Crazy Fun, Great Community, No "Burping" necessary, auto-reinvest coming on the new site face in a few days when they leave Beta. Woot!  Everyone's happy as they're making money.  (Happy trollbox... go figure, eh?)

DDOS Attacks
They're still continuing but additional protection has reduced the effects to just a bit of duplicating in chat.

Withdrawal/Deposit System
New local wallet solution in place, no longer depending on blockchain.info's api for withdrawals and deposits.  The new deposit api has a bit of a timing issue and some deposits are getting hung for about 3 hours.  Admin and the Team will be finalizing that on Monday.

Referrals
Clicking on referral links does not change your profits.  I'm still looking for a few more adventurous souls that want to make cash and help me out while doing it.  Income is scarce at 2 miles above sea level so your support is greatly appreciated!  I get paid for helping you find this great opportunity.   Scc keeps the 5% referral fee on non-referral accounts and their advertising starts soon!  Get a jump on getting rewarded for bringing this great opportunity to people!

New Site Face
Work has again begun on getting the new site face connected up and ready for launch.  Everyone is looking forward to it and the extra features/information it brings.

Pictures of Data Center(s)
Still waiting on pictures?  The DDOS and deposit/withdrawal issues are out of the way and the new face is set to launch with the photos everyone has been waiting for.  Watch all the cheap KHS get bought up by those of us willing to take the plunge by opening up your account too. Scrypt.CC?ref=baagt.  Come participate in chat while the great prices go past.  Bought 122KHS with $107 worth of btc yesterday... that's not going to be possible when Beta ends. :8

See you there!

Keep it Clean!

[-ck]

Cloud mining is almost never profitable, regardless of the service you might select. If you compare the amount of BTC which you would spend to lease your miner and the amount of BTC which you would get from mining, you will ALWAYS lose money. Having this in mind, it is better buying BTC and holding or investing into something else.

What you say is true... for Single Coin Mining operations.

That's why [CUT GREAT BIG AD]

Same shit.

[newtypeseed]

cloud mining is new and great

[XScrypt]

cloud mining is new and great

Cloud mining and rig renters prey on people who can't do math. A simple "back-of-the-envelope" calculation can show that. I chose to write a Monte Carlo simulator using data from sites like CoinWarz to figure out at what price point things like rig rentals and cloud mining make a guaranteed profit for the end user. The short answer: It doesn't. In almost every case it's better to either buy you're own equipment or just outright buy the coins you want and hold them.

Places like scrypt.cc and similar sites CAN make you a profit if you play your cards right, but that has less to do with actual mining than trading.

[kingscrown]

good review!

[killinitsoftly]

The thing with cloud hashing and why it's pointless to review, is that it may work exactly as advertised right now, but my concern would be the long-term dependability of the cloud hashing administrators.

[mmcgehee]

Good review of cloud hashing, but its missing two very important things most analysis like this leave out, is 1) scale, and 2) the dynamics of the BTC price.  

Great big players can (and do) launch large data centers, with the sole intent of mining for profit.  They put their data centers in remote places with low electric rates, and profit wildly.  Those guys are not going to share with cloud hoppers like us.  You must either be one, or just watch them make a lot of money, very rapidly, as venture capitalists, and wish you were one too.  It's a party we aren't invited to.  When we shop for cloud miners, we're looking for a Venture Capitalist who are willing to share, and be good faith business men.  That's like looking for a vegetarian lion.  They don't exist.


Difficulty will go up, but if the BTC price goes up faster than the difficulty, mining will not gradually get unprofitable.  Instead, it will simply use bigger numbers, both to get into mining, and in terms of the payout rewards.  Events, like the introduction of ASIC chips, impacts this too.  Will something else come along, like ASIC, in the future?  We all must understand, they're working on this in silicon labs all over.  The person who pulls off the ASIC II will make a fortune.  

I believe both of these things will happen, and are happening.  It's like Einstein's theory of relativity.  Mining is unprofitable . . . as a hobby.  For big Venture Capitalists, it's one of the biggest most profitable things to come along, in a long, long time.

[easy8]

it was nice reading your review! i have been looking around for reviews like this... i thought i found a nice one ( https://cloudmining.guru/wp/category/reviews/ ), but another user pointed out it's not objective, and could be related to PBmining...  but who knows whom to trust? i don't... it seemed credible to me, but i am a beginner.

And did anything change ever since? What are your experiences?

Anyways, i am becoming really interested in this cloud mining thing, because some are extremely happy with it, while some say its a ponzi scheme. i am excited what the future brings 
 

[spiderbrain]

Great review, thanks. So who are all the people mining with GHash.io? Server farms using them as a pool?

[tuanvie]

mining whether the cloud is still able to profit?
due to the higher diff now and the price of GH / s also high

[eazyigz]

They delayed my contract a day, then again for two weeks. Clearly they dont take difficulty serious and have already breached the contract by missing the start date.  Im struggling to get refunded. Terrible business to deal with.

How much did you originally invest with them?  What was your risk tolerance?

[Mabsark]

The thing with cloud hashing and why it's pointless to review, is that it may work exactly as advertised right now, but my concern would be the long-term dependability of the cloud hashing administrators.

Here's a list of the ASIC manufacturers cloud mining services:

ASICMiner: AMHash
BitFury: Bit-x
Bitmain: Hashnest
KnCMiner: KNC Cloud

[Argwai96]

The thing with cloud hashing and why it's pointless to review, is that it may work exactly as advertised right now, but my concern would be the long-term dependability of the cloud hashing administrators.

Here's a list of the ASIC manufacturers cloud mining services:

ASICMiner: AMHash
BitFury: Bit-x
Bitmain: Hashnest
KnCMiner: KNC Cloud

These cloud mining services are higher on the dependability/legitimacy then other cloud mining providers however it is still not a guarantee that they are (and will continue to) operate honestly. 

It is also very important to be conservative in estimating the increase in difficulty in the future when determining how profitable a cloud mining contract will be