Why mining contracts cost you more than you can earn from them

[gpucoolingmethod]

examp-le
1.82$ earned by first week.bitcoinfrenzy.com 2GH 99$ 25% reinvestment.Calc shows only 0.002686 btc first month.So 0,0020145 btc to you 0,0006715 btc for reinvestement on first week.

What am  I missing here? Or do they really sell unprofitable contracts?

Also isnt it better to just mine them themselves with all that gh/s combined? 4gh/s is more than twice as good as 2gh/s right?



there are more examples.

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[vpasic]

good morning Colombo!
of course they are selling unprofitable contracts.
no it's not better to just mine themselves, as you can see they are earning more by selling power than they can mine with same power.

[gpucoolingmethod]

of course they are selling unprofitable contracts.

please explain why? obviously no one buys them right?

[Sonny]

of course they are selling unprofitable contracts.

please explain why? obviously no one buys them right?

If you can get easy profit buying those hashrate, why would the site owner sell you the hashrate in the first place?

Even for highly overpriced hashrate or equipment, many people still buy them as they have no idea how difficulty adjustment works and how it will affect the mining profitability.

[ymer]

of course they are selling unprofitable contracts.

please explain why? obviously no one buys them right?

People are greedy and stupid and don't do the math.

[gpucoolingmethod]

of course they are selling unprofitable contracts.

please explain why? obviously no one buys them right?

People are greedy and stupid and don't do the math.

thate xplains lots of other things too

[vpasic]

think about it!
if you have money making machine why in the hell do you want to sell it or rent it for the less of the money that you can earn by your self!
so logically you would rent your miner for more money than you could earn by mining with it.
it is still hard to believe that there is so much stupid people in the world that still paying for that cloud mining contracts.

[crocko]

of course they are selling unprofitable contracts.

please explain why? obviously no one buys them right?

People are greedy and stupid and don't do the math.

At Cex.io you can sell your GH/s and keep what you have mined too. CEX,io have merged mine: you earn BTC, NMC,DVC,IXC.
You can add your own mining gear to their pool too.
So at least Cex.io is OK.

[byt411]

of course they are selling unprofitable contracts.

please explain why? obviously no one buys them right?

People are greedy and stupid and don't do the math.

At Cex.io you can sell your GH/s and keep what you have mined too. CEX,io have merged mine: you earn BTC, NMC,DVC,IXC.
You can add your own mining gear to their pool too.
So at least Cex.io is OK.

CEX.IO is not OK, their prices have dropped by half the last week and a half. Also, they have been involved in attempted double spend attacks, and their prices are still too high.

[crocko]

of course they are selling unprofitable contracts.

please explain why? obviously no one buys them right?

People are greedy and stupid and don't do the math.

At Cex.io you can sell your GH/s and keep what you have mined too. CEX,io have merged mine: you earn BTC, NMC,DVC,IXC.
You can add your own mining gear to their pool too.
So at least Cex.io is OK.

CEX.IO is not OK, their prices have dropped by half the last week and a half. Also, they have been involved in attempted double spend attacks, and their prices are still too high.

If you don't have any mining gear and wish to know how mining is, CEX.IO is the perfect training ground.
Selling and buying at the proper time, patience and good information  are mandatory if you hope to earn something by trading. Doesn't matter if is about the BTC, oil or gold etc. If you don't have these skills better return to your common job.

[ymer]

of course they are selling unprofitable contracts.

please explain why? obviously no one buys them right?

People are greedy and stupid and don't do the math.

At Cex.io you can sell your GH/s and keep what you have mined too. CEX,io have merged mine: you earn BTC, NMC,DVC,IXC.
You can add your own mining gear to their pool too.
So at least Cex.io is OK.

CEX.IO is not OK, their prices have dropped by half the last week and a half. Also, they have been involved in attempted double spend attacks, and their prices are still too high.

crocko is shill.

[byt411]

of course they are selling unprofitable contracts.

please explain why? obviously no one buys them right?

People are greedy and stupid and don't do the math.

At Cex.io you can sell your GH/s and keep what you have mined too. CEX,io have merged mine: you earn BTC, NMC,DVC,IXC.
You can add your own mining gear to their pool too.
So at least Cex.io is OK.

CEX.IO is not OK, their prices have dropped by half the last week and a half. Also, they have been involved in attempted double spend attacks, and their prices are still too high.

If you don't have any mining gear and wish to know how mining is, CEX.IO is the perfect training ground.
Selling and buying at the proper time, patience and good information  are mandatory if you hope to earn something by trading. Doesn't matter if is about the BTC, oil or gold etc. If you don't have these skills better return to your common job.

That is correct. But it is merely a testing platform: I do not recommend investing seriously, and also, prices will just drop, you won't earn by trading.

[sqabeloth]

It all sounds logical still I can't believe there are so many people that stupid.

[leannemckim46]

examp-le
1.82$ earned by first week.bitcoinfrenzy.com 2GH 99$ 25% reinvestment.Calc shows only 0.002686 btc first month.So 0,0020145 btc to you 0,0006715 btc for reinvestement on first week.

What am  I missing here? Or do they really sell unprofitable contracts?

Also isnt it better to just mine them themselves with all that gh/s combined? 4gh/s is more than twice as good as 2gh/s right?



there are more examples.

Thats because the owner of the site need to earn and recover his time cost..

[crocko]

of course they are selling unprofitable contracts.

please explain why? obviously no one buys them right?

People are greedy and stupid and don't do the math.

At Cex.io you can sell your GH/s and keep what you have mined too. CEX,io have merged mine: you earn BTC, NMC,DVC,IXC.
You can add your own mining gear to their pool too.
So at least Cex.io is OK.

CEX.IO is not OK, their prices have dropped by half the last week and a half. Also, they have been involved in attempted double spend attacks, and their prices are still too high.

crocko is shill.

Can you repeat please [in plain English]?
I wish to know If I can report you to a moderator.  
Maybe a ban will teach you a nice lesson.

[Operatr]

It's pretty simple when it comes to these contracts. Mining is already a margin game, by selling a contract the mining company is offloading the risk to you and recouping their hardware costs.

But that is the cost of having someone mine for you opposed to doing it yourself, just like any other service.

[supersajin]

Like any other purchase it's up to the buyer to find the best price with the best service.  The going price per GH for excellent cloud mining services is .011-.017 which allows you to break even within 60-90 days assuming difficulty increases.  All cloud mining sites are not built the same.  I have made some excellent investments and some very poor investments as well.  My signature has a few profitable sites.  Good luck

[gpucoolingmethod]

Like any other purchase it's up to the buyer to find the best price with the best service.  The going price per GH for excellent cloud mining services is .011-.017 which allows you to break even within 60-90 days assuming difficulty increases.  All cloud mining sites are not built the same.  I have made some excellent investments and some very poor investments as well.  My signature has a few profitable sites.  Good luck

Ive checked out your first site but there is no info what the %rate is or how the investment works

UPDATE the 3rd option actually give me 70 usd profit according to this http://www.bitcoinx.com/profit/

so WHY dont they mine it themselves? they would get 70 usd more per gh/s contratc in 5 years

[gpucoolingmethod]

made an update

[supersajin]

Like any other purchase it's up to the buyer to find the best price with the best service.  The going price per GH for excellent cloud mining services is .011-.017 which allows you to break even within 60-90 days assuming difficulty increases.  All cloud mining sites are not built the same.  I have made some excellent investments and some very poor investments as well.  My signature has a few profitable sites.  Good luck

Ive checked out your first site but there is no info what the %rate is or how the investment works

UPDATE the 3rd option actually give me 70 usd profit according to this http://www.bitcoinx.com/profit/

so WHY dont they mine it themselves? they would get 70 usd more per gh/s contratc in 5 years

Leancy is pure speculation!!  The rate average is 4.75%
PB Mining is the most profitable cloud mining site around.  Sites like PB have multiple reasons for selling hashing power.  CASH is #1.  Also the nature of Bitcoin is to build a community, the more people involved the stronger the currency and eventually the higher the price.