Why buy mining contracts when its cheaper to buy coins instead?

[adaseb]

I am searching the forums and there are people that are renting out mining contracts where basically they charge 1 LTC for a service that generates 0.5 LTC for the time period.

Why would anyone buy this when they can buy the LTC themselves for half the price.

For example

With a 2000khash/s rig

In 24 hours you generate about 0.5 LTC, but people are renting out their rigs for 1.0 LTC

Is there something I am missing here?

[1715498599]

1715498599

[Nachi888]

I guess that's why they are renting them, so they can double their earnings.
Some people just can't count, and some are just mis-informed.
Why would somebody pay thousands for a miner that will never pay itself off when it gets delivered months after it's real usefulness? Yet, lots of people do.
That's why is better to sell mining rigs than do the mining yourself.


Feeling generous? - Drop me a coin.
BTC: 1FS3xsHUWR5idc7ws4nBWbhDfW6b1f5Chm
LTC: LLgpRq5JZEySuVe5BhFuCPD7SWfTrFPq6k

[timisis]

I am searching the forums and there are people that are renting out mining contracts where basically they charge 1 LTC for a service that generates 0.5 LTC for the time period.

Why would anyone buy this when they can buy the LTC themselves for half the price.

For example

With a 2000khash/s rig

In 24 hours you generate about 0.5 LTC, but people are renting out their rigs for 1.0 LTC

Is there something I am missing here?

First off, every season is fool hunting season. Second, such contracts are useful to people who want to accumulate a certain currency for whatever purpose quickly, and regardless of the cost. What usually happens is that the difference is not 2x, but up to 1x5 can be tolerated by many investors.