Mining in the cloud vs simply buying bitcoin

[bitbunnny]

In 2017, I tried cloud mining with its big promises of profit, but I didn’t get anything, the company "hashflare" did I requested not only a large commission for the withdrawal of my $ 4, but also my identity card, which I refused to provide in view of the meager amount.

You are not the only one with such experience. In general I wouldn't suggest cloud mining, it's a big chance you will lose your money and sometimes your personal data because this is usualy a scam. In fact I don't know any legitimate cloud mining service.
So, if you don't have the opportunity to earn Bitcoin is still better to buy it than to invest in cloud mining.

[FlightyPouch]

Mining in the cloud is very difficult because to get a single Bitcoin from cloud mining means lots of hard work and time required. Buying Bitcoin is the fastest, easiest and smartest way to own Bitcoin only if one has the funds to purchase. In this way, one can purchase 1BTC within the next few minutes which the cloud mining cannot give within the same time frame.

Mining bitcoin through cloud is really difficult not only because you are working for them but this is not even a choice to earn a good amount of bitcoin. Buying bitcoin is not the fastest, it is the easiest and most reliable way to get bitcoin. Obviously, you can't mine a bitcoin in a minute, even if you are using a mining rig, especially with the difficulty of it these days and in the near future.

[Bitcoin Smith]

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?

both are very good ways to make your income to be increased but it's everything not suitable for everyone there are different people in this world so experience them will be the decision making time.

[Free1bitco.in]

In 2017, I tried cloud mining with its big promises of profit, but I didn’t get anything, the company "hashflare" did I requested not only a large commission for the withdrawal of my $ 4, but also my identity card, which I refused to provide in view of the meager amount.

You are not the only one with such experience. In general I wouldn't suggest cloud mining, it's a big chance you will lose your money and sometimes your personal data because this is usualy a scam. In fact I don't know any legitimate cloud mining service.
So, if you don't have the opportunity to earn Bitcoin is still better to buy it than to invest in cloud mining.

speaking of experience, I think there is enough cloud mining that made me quite frustrated in the past. true, most of it ends in a scam. after experiencing this I am not very interested in producing bitcoin through cloud mining anymore. I suggest buying bitcoin instead of cloud mining. for now, I don't really know about the development of cloud mining, it's just that I believe more in buying bitcoin, and try to use it better than cloud mining. or maybe it's better to build a rig for mining purposes, it's better when you're interested in mining.

[bitgolden]

I once tried cloud mining, and this is not a very pleasant experience for me - it would be better if I just bought bitcoin. If you want to do mining, collect a normal farm. Only those who have invested in cloud mining speak of the profitability of cloud mining. )

All these third party mining, I just dint buy into the idea, because it can still never be like setting up your own mining farm which is even faster in operation and generate more, just that setting it up is too costly and if it were to be the mining machine cost alone, it would not have been an issue, is it not just to get alone for it which I know that it would definitely be profitable for one to pay it back, but the cost of electricity is what is making it quite difficult for people to be able to go into setting up a farm for mining.

If we cannot mine, the only choice we are then left with is the investment in bitcoin, at least that one too is profitable and when the bull run starts, it would not make us have any missing space of not being able to mine, because we would have been overwhelmed of the profit that we have.

[illnino]

I once tried cloud mining, and this is not a very pleasant experience for me - it would be better if I just bought bitcoin. If you want to do mining, collect a normal farm. Only those who have invested in cloud mining speak of the profitability of cloud mining. )

Cloud mining can turn to be a scam. One of the most important criteria is the transparency of information published on the official website of the service. Give preference to trusted sites and pools. Pay attention to the terms of the proposed contracts. If the service promises you to recoup your investment in less than 6 months, then most likely they are scammers. Do not be fooled by favorable conditions, remember that free cheese is offered only in a mousetrap.

[tungaqhd]

I once tried cloud mining, and this is not a very pleasant experience for me - it would be better if I just bought bitcoin. If you want to do mining, collect a normal farm. Only those who have invested in cloud mining speak of the profitability of cloud mining. )

Cloud mining can turn to be a scam. One of the most important criteria is the transparency of information published on the official website of the service. Give preference to trusted sites and pools. Pay attention to the terms of the proposed contracts. If the service promises you to recoup your investment in less than 6 months, then most likely they are scammers. Do not be fooled by favorable conditions, remember that free cheese is offered only in a mousetrap.

In a time when the trend of cloud mining was no longer popular and there were so many bad reputations, I don't think we should invest in any similar service or system, it's almost a scam, although a few are probably reliable, I really don't know how long we will need to recover the capital and make a profit. Finding a profit in the cloud mining crisis would be unwise, buying bitcoin is probably simpler, even through bitcoin we have many other activities that can increase profits and all under our management, not worrying about scams

[stadus]

I tried to do cloud mining and my impressions are: Cloud mining is very susceptible to the market situation and quickly becomes unprofitable. It is better to buy Bitcoin at the right time and make a profit.

You are not in control in cloud mining, IMO, it's called an investment for people that are mining and you put your money to receive a certain amount based on the criteria they will lay unto you. In the past, I heard a lot of cloud mining but I never joined any because people say they are scams or like a HYIP which will eventually go dark after they collected a decent amount of money.

With that, I was convince that mining is only profitable if you are the one to operate it, if you don't have knowledge then better invest in bitcoin or altcoins as your own choice.

[bering]

In a time when the trend of cloud mining was no longer popular and there were so many bad reputations, I don't think we should invest in any similar service or system, it's almost a scam, although a few are probably reliable, I really don't know how long we will need to recover the capital and make a profit. Finding a profit in the cloud mining crisis would be unwise, buying bitcoin is probably simpler, even through bitcoin we have many other activities that can increase profits and all under our management, not worrying about scams

Since several years ago indeed cloud mining era has been ended and one of the caused is increasing large number of cloud mining scam and it's makes people avoiding them again and the trend was change currently that people are more likely want a simply way to buy bitcoin to get profit and it's more effective rather than buy some contracts at mining company and moreover lately it's very difficult to find legit mining companies who really pay their investors

[Ayiranorea]

By now mining in small scale isn't that effective and profiting at the moment. Rather than setting up a new mining farm it is always a good choice to buy bitcoin and hold. In between if one has got better learning about the trading analysis can use the same fund into trading practices. This will get regular earning compared to mining.

[mazdafunsun]

I consider cloud mining a scam practice.
The idea could be appealing at start but when you start thinking of fundamentals of this bussines, I quickly realized that it can not be profitable for their customers only for the cloud service.

The answer is it better to buy.

[DarkIT]

I consider cloud mining a scam practice.
The idea could be appealing at start but when you start thinking of fundamentals of this bussines, I quickly realized that it can not be profitable for their customers only for the cloud service.

The answer is it better to buy.

so far I have never gotten a big profit from cloud mining, besides, before I did, most cloud mining became a scam. between the two options, I would certainly prefer to buy bitcoin instantly, it's better than cloud mining because we can benefit from price recovery. in fact, at the moment I am aiming to add the bitcoin that I have in my wallet.

[Arsenyo]

I agree with you, buying bitcoin is more safe now. And I am sure that cloud mining no longer makes a profit. In 2015-2016 maybe, but not now. I never tried cloud mining thanks to all the negative things I heard about it. Practically everyone regret about investing in mining equipment.

[cutesgirl]

Mining project you need about $5k for buying and prepare for everything to pay electric fee, but if you use your $5k to buy or invest with some altcoin or ICO you just take rest in your bed and looking when price higher, with mining you have open your eyes always because no way if electric and internet die your mining is die.

[romero121]

Mining in the Cloud                                   Buying Bitcoin

Hard to find legitimate services.              More Legitimate services available.
More scams in the name of cloud.          Scams are easily identifiable.
Easy to invest than real way of mining.   Easy to buy and invest with trust.
No maintenance required after capital.   Need to be careful storing on wallets.
Highly complicated than real mining.       Simple process

[jmigdlc99]

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?

You are right, luck is a huge factor in the equation.
The difficulty sometimes rise, sometimes drops; of course, overall it rises more than it drops. I didn't do the math, but I think that there's also a chance for profit. So instead of your max 0.8 BTC, there could be something like 0.5(?)-1.25(?) BTC range.
Your conclusion is, however, correct. It's not worth the risk. (And I'd not even insist on how many fake cloud mining companies are around, let's just keep the calculation on legit ones.)

I disagree with the luck part, no amount of luck will save you from cloud mining.

I don't know anyone who has ever made a decent profit from cloud mining. The problem is cloud mining contracts force you to buy coins at fixed rate without any protection at all. If you will have to count on difficulty and the promise of coin's value increasing then better to just buy the coin directly and wait for it's value to increase.

[meliodas]

It is better or even best to just simply buy bitcoin straight. Don't believe to the passive income or consistent income that the cloud mining offers because at least 3/4 of the cloud mining companies are fake and they are just pretending that they got some equipment for mining cryptocurrency but they don't, they are just scamming people and they will run or make a story that they're screwed and they can't do anything about it but to shutdown.

[Lizzylove1]

I rather buy bitcoin than getting involve in cloud mining that has no contract guarantee, cancelling contract and stealing money when the odds are high. Cloud mining is filled with scammers. Even reputable cloud miners can scam still.

[yoseph]

both have risks and costs that must be considered first, of course if you make a decision to invest is good for next time
mining isn't bad but you must prepare the device to be used so that nothing unexpected happens

It is actually not worth it one single bit, at the end of it all you will realize that you have wasted considerable amount of time and money all for nothing, most people don't really factor in that they are going to pay for the electricity use when it comes to cloud mining because though they mine at a profit, the power usage takes a huge chunk of the profits in the end.

[Xxmodded]

Mining less risk because very day you got payment from mining tools, but by buying bitcoin or altcoin just take one day to earn much profit depend which one altcoin we buy. With mining we have waiting more than one year for taking back our profit without have problem when our mining project tool. We have always pay many electric and internet access to get earn with mining.