Mining in the cloud vs simply buying bitcoin

[Free1bitco.in]

I think cloud mining is profitable in this situation because the value of Bitcoin is in the middle of the situation so cloud mining giving the profit without any investment but normal mining needs the electricity lot more that's why I am saying this.

actually, I prefer to have bitcoin directly compared to waiting from cloud mining. I don't know, I better do it myself. besides, many people say that cloud mining is not so profitable. so, of course I prefer a simpler way.

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[LogitechMouse]

I tried to do cloud mining and invest the satoshis I got from faucet sites to get some GHS but that was the time that I'm starting to know cryptocurrency. Nowadays, many are saying that cloud mining isn't profitable anymore and most of the sites are purely scams and I agree with them. I'm lucky I think that I didn't invest any penny on cloud mining instead I just bought Bitcoin and hold it.

[kodtycoon]

I tried to do cloud mining and invest the satoshis I got from faucet sites to get some GHS but that was the time that I'm starting to know cryptocurrency. Nowadays, many are saying that cloud mining isn't profitable anymore and most of the sites are purely scams and I agree with them. I'm lucky I think that I didn't invest any penny on cloud mining instead I just bought Bitcoin and hold it.

wise choice not to invest in cloud mining because it won't make a profit too, so it's better to buy bitcoin and hold it for a long time if we don't have much time to do day trading

[FanEagle]

The cloud mining that we used to have is not the same of what we have right now. Currency cloud mining operations are mostly scams and there are very few ones who are legit doing it but they cost so much and the running expenses are so much that you will not make any profit.

Normally back in the day the idea was basically similar to ICO or any crowdfunding, a company would build an equipment for mining and they would need more money to build something even better, so lets say they can make 2 dollars per machine a day, they would rent it out for 1 dollar and get 0.5 for maintenance but would sell it to you for like 3 months or 6 months in advance so you pay upfront which they then use that money to build a machine that would make them 4 dollars not 2, so you rent that in advance whereas old machine becomes worthless before the time runs out and they would use that to build an 8 dollar machine and continue like that.

[Barbut]

Better vhy coins you wish to have, download wallet and keep your private keys safe. It's safe investment for the future, investing in cloud mining services is like trowing away your money. I don't believe that some people still fall on this kind of scams, probably newbies that don't knowuch about cryptocurrencies.

[indrakusumaindra]

I think cloud mining in general is not profitable.

Here are my calculations for Mining Cloud vs Buying Bitcoin.

All following calculations are done on annual basis.

All following calculations are done WITHOUT halvings and adjustments counted until you read later down.

Hash rate (total hash power of the world) close to 49 Mil. Th/S as of today May 17, 2019.

Every hour gives the world 6 blocks, multiply that by x 24h x 365 days= 52,560 blocks produced in the world in 1 year.

Currently there are 12.5 bitcoin mined per each block x 52,560 blocks= 657,000 bitcoin can be mined per year in the world if no adjustments and halvings happened.

49 mil. Th : 657,000= about 75 TH/s to mine 1 bitcoin as it stands now, before counting adjustments and halvings.

Let’s assume I bought 1 bitcoin today and paid about $7,200 (as of May 17, 2019) in a hope to sell it in 1 year at a higher price.

Now let’s see what would happen if instead of buying 1 bitcoin I invested the same amount of money in cloud mining.

Typical contract from a firm like Genesis Mining offers 1TH at a rate of about $60 all-inclusive per year (May 17, 2019), and that's including maintenance and other fees.

For $7,200 I can buy about  120TH for 1 year term of cloud mining.

120Th : 75Th per 1 bitcoin= that should give us 1.6 bitcoin over 1 year period of contract for the price of $7,200.
 
1.6 bitcoin is obviously more then 1 bitcoin which I can buy today, so cloud mining is better, right?

I think NOT, because remember we have not counted difficulty adjustments and halvings yet.

Now let’s do that, let's include them in the picture.

The next halving is in about 1 year,  so we don’t have to take it into our example as the contract will be over by the time of halving, so for now we just have to worry about difficulty adjustments.

But from historic data I never seen those adjustments less then 100% year over year and usually it’s even more.

So, in our example instead of 1.6 bitcoin, I am lucky if I get 0.8 bitcoin by the end of cloud mining contract.

Therefore, in my humble opinion, it’s safer to buy bitcoin rather then mine one in the cloud.

Would you disagree? And if I am wrong where the flaw in the logic and/or calculation?

well there is a lot of thing that you need to consider lets say by buying bitcoin you are making a profit by trading it or just hold your assets. But by mining that means you are converting the fee of energy into bitcoin. So i do think if your country have a low cost in electricity it would be nice for you to mining bitcoin and the bitcoin that you earn could be considered as investments or you can even sell it immediately. So its matter of choices and both are good and there is nothing wrong whether you buying or mining it.

[freedomgo]

Better vhy coins you wish to have, download wallet and keep your private keys safe. It's safe investment for the future, investing in cloud mining services is like trowing away your money. I don't believe that some people still fall on this kind of scams, probably newbies that don't knowuch about cryptocurrencies.

Most likely newbies are the easy victim of this scams, newbies needs to be smarter now, they will learn a lot in this forum if they will use it wisely.
By simply searching cloud mining here, they will know the feedback, and they'll find it not profitable to invest.

[RealMalatesta]

I thought cloud mining is a scam, I read a lot of bad feedback about it, I consider it as a ponzi scheme.

People who believe in crypto and understand it, would rather buy bitcoin and hold that invest in a certain business called cloud mining that gives too good to be true returns, that's one of the big factor to consider, anything like that is surely a scam.

That has always been most investorschallenges, we look at projects or investments that looks too good to be true and yet we continue to invest in them, nothing good is really easy I must confess, and we have lots of genuine cloud mining programs that gives good returns, but notwithstanding, the returns are not like some that we see that is quite outrageous.

Mining does not even pay that much again generally unlike before and many people would rather prefer to invest in Bitcoin directly and wait for the bull run for them to get profit than to go into mining business which is still a little bit expensive too.

[mangsitin]

Personally, I say that Cloud mining has a very long profit level, because we have to wait for the return of funds before getting a profit, so for me it is very boring to wait for profit on the Cloud Mining.

[boyptc]

Personally, I say that Cloud mining has a very long profit level, because we have to wait for the return of funds before getting a profit, so for me it is very boring to wait for profit on the Cloud Mining.

It's no longer profitable, check the contracts and see if they are profitable.

And there's a high chance that you will invest to scam cloud mining so better stay away from investing into such. Buy bitcoin, hold and do something else while waiting for its all time high.

[shulc7]

just agree with that , but my simple calculation is you need much capital to really get profit of mining rightnow , less than half bitcoin can be mined so it will harder time by time

The question was about cloud mining, which does not need great investments. However, I do not trust much cloud mining propositions. Investing in Bitcoin seems to be honest and more promising. I am for buying BTC.

[nydiacaskey01]

For those who are mining their own coins are complaining about the cost of maintenance, electricity and labor cost, what more for those who are just doing it by cloud mining? I always think that cloud mining is nothing but a ponzi scheme that is ready to collapse any moment. Just look at scrypt.cc and cloudminr.io, they are an example of a popular cloud mining that shut down a few years ago.

[coin_1122]

Personally, I say that Cloud mining has a very long profit level, because we have to wait for the return of funds before getting a profit, so for me it is very boring to wait for profit on the Cloud Mining.

Already we have seen many scams in the Cloud mining websites, everything seems to be a higher percentage of income but it will take very long to get our investment. Most of the cloud mining websites are completely based on the profit-sharing method basis of the number of investments they got.

[Free1bitco.in]

Personally, I say that Cloud mining has a very long profit level, because we have to wait for the return of funds before getting a profit, so for me it is very boring to wait for profit on the Cloud Mining.

Already we have seen many scams in the Cloud mining websites, everything seems to be a higher percentage of income but it will take very long to get our investment. Most of the cloud mining websites are completely based on the profit-sharing method basis of the number of investments they got.

well, almost all sites that I have listed have the same pattern. give profit at first, then disappear with the not so clear news, and others. however, at the moment I still avoid cloud mining sites.

[tbterryboy]

Let me assume that the market is in a very good condition and there is every chance that I'm going to make huge profit within a year or just few months just like in the past few years when there was bull then, then I'm opting for buying Bitcoin direct and storing in it in my wallet. That would be more quick to earn my profit than making use of cloud mining. I haven't made use of cloud mining before but based on what people have told me, it takes long to make any profit from cloud mining and the profit is not much.

[fullhdpixel]

Better vhy coins you wish to have, download wallet and keep your private keys safe. It's safe investment for the future, investing in cloud mining services is like trowing away your money. I don't believe that some people still fall on this kind of scams, probably newbies that don't knowuch about cryptocurrencies.

Most likely newbies are the easy victim of this scams, newbies needs to be smarter now, they will learn a lot in this forum if they will use it wisely.
By simply searching cloud mining here, they will know the feedback, and they'll find it not profitable to invest.

Very soon,   that era will come when scammers will no longer see anyone to fall into their trap, not even newbies.

That will be for newbies that that are willing to make research first before making investment, because some of us made some silly mistakes in our decision as a newbie because we didn’t really go through forum to see people’s comment or seek people’s opinion before investing, but I think now that the news is all over the internet and everyone knows that they need to beware of scammers, it may be a bit difficult for scammers to fall for scam projects again, and I think that is why we keep having less news nowadays about people being scammed, I indeed believe too that scammers era is already going out if they are not planning another strategy though.

[Free1bitco.in]

Let me assume that the market is in a very good condition and there is every chance that I'm going to make huge profit within a year or just few months just like in the past few years when there was bull then, then I'm opting for buying Bitcoin direct and storing in it in my wallet. That would be more quick to earn my profit than making use of cloud mining. I haven't made use of cloud mining before but based on what people have told me, it takes long to make any profit from cloud mining and the profit is not much.

agree with what you think. for now it's better to buy in the market than cloud mining. I have joined cloud mining several times, and ended a scam. I think buying directly will reduce the risk we get. I would rather agree to buy it directly.

[sulendra12]

agree with what you think. for now it's better to buy in the market than cloud mining. I have joined cloud mining several times, and ended a scam. I think buying directly will reduce the risk we get. I would rather agree to buy it directly.

But buying yourself hardware miner needs lot of money and if your electricity cost is too high and your profit from mining is not even close to pay the fee and then it's not your choice to have miner. You have to make a research and survey for everything just to make sure you can get profit from there.

[semobo]

Let me assume that the market is in a very good condition and there is every chance that I'm going to make huge profit within a year or just few months just like in the past few years when there was bull then, then I'm opting for buying Bitcoin direct and storing in it in my wallet. That would be more quick to earn my profit than making use of cloud mining. I haven't made use of cloud mining before but based on what people have told me, it takes long to make any profit from cloud mining and the profit is not much.

This thread is about cloud mining vs mining on your own so keep the concept of buying bitcoins away.

Cloud mining are scams so don't get cheated so if you has the ability to build your own mining rig which might be expensive but worth to do.

[jakoylantern]

For me, it depends on the person mining in the cloud vs. directly buying bitcoin or trading it to make a profit is a way too different to me. Yes, it has the same point that you will have a bitcoin, but some people don’t want to buy bitcoin or analyzed when will be an excellent time to buy a much a portable rate for them compared to the people that want to mine. If you are the people, that want to mine bitcoin and just want to calculate if your grows income still profitable to bitcoin’s value and if yes I’m sure you still continue mining right. But if your not that kind of person I’m sure you try buying and selling bitcoin or trading to make sure that you analyzed thoroughly and make a more significant profit and I think much faster to gain some bitcoins if you trade a large amount of money.