Mining in the cloud vs simply buying bitcoin

[Lucius]

Mining bitcoin with ordinary PC in the beginning was very profitable, difficulty was very low and reward was 50BTC per block. Maybe in some point cloud mining was profitable, but we all know that mining bitcoin today is profitable only for big companies which have very cheap sources of electricity, favorable geographic conditions (related to not too hot climate), and not too big taxes on crypto profits.

If someone manage to start operate mining farm I doubt such farm can be profitable in offering cloud mining, because most of cloud mining is just ponzi sheme, they pay users with money which is coming from new users, and part of the money stays in their pockets.

There is no doubt that buying in this case is right decision, but one should be cautious from where is buying. In some cases people buy bitcoin and get nothing (watch-only wallet, bitcoin address,), so cloud mining vs. buying bitcoin sometimes results in one big 0.

[AjithBtc]

Mining was more profitable in the earlier days, now the difficulty have increased a lot. The initial investment required is very big and what we get out of the investment isn't that profiting. Mining in the cloud is a simple process, but is very hard to find legitimate services. It is good to buy and hold than mining in my opinion considering the growth happening with bitcoin.

[mersal]

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?

investment is enough for a person to become rich but in sometimes it will not give you the heads at that time only you need to think of the next was available otherwise investment is only enough for everyone to get successful.

[akram143]

Both are profitable in the cloud mining your investment will give the the income for you but if you are invested in best cryptocurrency 12 always been the chance to develop suddenly so the positive and negatives are always there equally in both the way of money making.

[Shenzou]

Bitcoin cloud mining was only popular only back in 2014 and 2015 and that was back when the mining difficulty was low, and even back than it was not that profitable, the popularity of it had completely died out when one of the sites that was to be legit just completely shuts off without a trace and with millions of dollars of people's money, and that was when people had enough and lost all trust, so any existing could mining site right now is just a scam and if it is not than it is not profitable so don't try to invest in them and just buy and hold bitcoin for profit.

[kodtycoon]

mining is indeed more profitable but not for cloud mining, because what you invest in cloud mining is never good for you and will only continue to wait longer without any good results you can get, don't be tempted by anything about their promotion because it's just a ways to get more consumers. so it's better to buy bitcoin and hold it because with you holding it or trading it, it will be far more profitable

[Mahanton]

Bitcoin cloud mining was only popular only back in 2014 and 2015 and that was back when the mining difficulty was low, and even back than it was not that profitable, the popularity of it had completely died out when one of the sites that was to be legit just completely shuts off without a trace and with millions of dollars of people's money, and that was when people had enough and lost all trust, so any existing could mining site right now is just a scam and if it is not than it is not profitable so don't try to invest in them and just buy and hold bitcoin for profit.

You mean that Hashocean thing? Or other similar cloud mining company?If it does then theres still lots of cloudmining companies exist into those years but typically
majority of them are just scam and later they do popped out like mushrooms where scammers using up this cloud mining thing and giving out good returns and victimizing
greedy people into those times even nowadays which causes on being scammed their bitcoins.

[imstillthebest]

mining is indeed more profitable but not for cloud mining, because what you invest in cloud mining is never good for you and will only continue to wait longer without any good results you can get, don't be tempted by anything about their promotion because it's just a ways to get more consumers. so it's better to buy bitcoin and hold it because with you holding it or trading it, it will be far more profitable

Mining is more profitable ?  You sure about that   ? If it is then all miners should be rich now  and alll people should switch to mining now  .

 what about cloud mining ?  Cloud mining dont differ much on mining  but are risky and hard   . they take a long time to profit but its good to do them if you like to earn passive income for a lifetime  but if you like quick and easy profits then buying bitcoins or trading is the way to go  .

[finaleshot2016]

Actually, cloud mining will cost you a lot of power consumption so I can't consider it as a profitable one unless you have a lot of mining rigs. It will make you more profit if you have perfectly balanced all of your devices considering the power. Buying bitcoin and trying it in investment will give you a lot of profit. Bitcoin was growing up now and it's the right time for you to invest more because it might get you richer than mining.

mining is indeed more profitable but not for cloud mining, because what you invest in cloud mining is never good for you and will only continue to wait longer without any good results you can get, don't be tempted by anything about their promotion because it's just a ways to get more consumers. so it's better to buy bitcoin and hold it because with you holding it or trading it, it will be far more profitable

I don't think so? There's a lot of factors you must consider before having a mining rig that can be profitable.

[jambul_kribo]

mining is indeed more profitable but not for cloud mining, because what you invest in cloud mining is never good for you and will only continue to wait longer without any good results you can get, don't be tempted by anything about their promotion because it's just a ways to get more consumers. so it's better to buy bitcoin and hold it because with you holding it or trading it, it will be far more profitable

Mining is more profitable ?  You sure about that   ? If it is then all miners should be rich now  and alll people should switch to mining now  .

 what about cloud mining ?  Cloud mining dont differ much on mining  but are risky and hard   . they take a long time to profit but its good to do them if you like to earn passive income for a lifetime  but if you like quick and easy profits then buying bitcoins or trading is the way to go  .

minings profits depend on electricity cost in each countries and bitcoin price.if both of these factors support , maybe mining still profitable to us.most of miner prefer to stop temporary their miner while bitcoin price still below $10.000.and cloud mining personally not recomended , i am prefer to buy bitcoin simplyly.

[bonker]

mining is indeed more profitable but not for cloud mining, because what you invest in cloud mining is never good for you and will only continue to wait longer without any good results you can get, don't be tempted by anything about their promotion because it's just a ways to get more consumers. so it's better to buy bitcoin and hold it because with you holding it or trading it, it will be far more profitable

Mining is more profitable ?  You sure about that   ? If it is then all miners should be rich now  and alll people should switch to mining now  .

 what about cloud mining ?  Cloud mining dont differ much on mining  but are risky and hard   . they take a long time to profit but its good to do them if you like to earn passive income for a lifetime  but if you like quick and easy profits then buying bitcoins or trading is the way to go  .

Cloud mining is different from mining,you are going to give your money to someone for their mining activity and they will give a part of their profits but they are never really do mining they are just playing with money and scamming more and more money so no more cloud mining.

[freedomgo]

mining is indeed more profitable but not for cloud mining, ...

I agree, mining like having a mining farm is profitable for some but not for all as I have friends who stopped mining already due to high electricity expenses compared to what they earned. Mining is only good for places where electricity is cheap.

But cloud mining?,.... 100%, it will just end as scam.

[sulendra12]

Cloud mining sucks and you won't get your investment back unless you are fine with waiting a year just to get your investment back without earning anything, I'd go to latter choice considering how good Bitcoin's price this week and it might become better later on.

[andriarto]

mining is indeed more profitable but not for cloud mining, ...

I agree, mining like having a mining farm is profitable for some but not for all as I have friends who stopped mining already due to high electricity expenses compared to what they earned. Mining is only good for places where electricity is cheap.

But cloud mining?,.... 100%, it will just end as scam.

when the price of low bitcoin is certainly a problem with the costs that must be incurred, such as electricity. indeed for mining requires a lot of energy, so that what is obtained becomes not commensurate with the burden incurred. for now my friends also stop because they are not profitable, and wait for the change of season

[Free1bitco.in]

Cloud mining sucks and you won't get your investment back unless you are fine with waiting a year just to get your investment back without earning anything, I'd go to latter choice considering how good Bitcoin's price this week and it might become better later on.

I think you have a lot of problems regarding cloud mining.
well, maybe now it's natural if we think like that. besides that cloud mining is also at risk with scams, or other things. we cannot half-heartedly run it, and must really be serious. in this case, I also prefer to buy bitcoin directly if I want it.

[JohnBitCo]

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?

I will give you simple analysis on mining and saving bitcoins.

1-Simple mining is expensive and it cannot be done everywhere
2-Cloud mining is risky as there are many scam cloud mining sites around us.
3-Saving bitcoin is the safest option (Provided you save it in your private wallet and not on exchanges)

[whiteblue]

Cloud mining sucks and you won't get your investment back unless you are fine with waiting a year just to get your investment back without earning anything, I'd go to latter choice considering how good Bitcoin's price this week and it might become better later on.

I think you have a lot of problems regarding cloud mining.
well, maybe now it's natural if we think like that. besides that cloud mining is also at risk with scams, or other things. we cannot half-heartedly run it, and must really be serious. in this case, I also prefer to buy bitcoin directly if I want it.

many cases of cloud mining will experience scam cloud mining which has a very high risk if you want to do mining better if you build your own mining or you are still trading because now there are not many advantages to mining the benefits.

[smyslov]

It's profitable if you are going to mine new coins but not Bitcoin, it's one of the reasons why they are still new mineable coins in the market, because the top coins had a very high difficulty and they want to point their rigs to a new one, that's all they do mine new coins until the difficulty gets high, then look for a new coin again to mine.

[jrrsparkles]

It's profitable if you are going to mine new coins but not Bitcoin, it's one of the reasons why they are still new mineable coins in the market, because the top coins had a very high difficulty and they want to point their rigs to a new one, that's all they do mine new coins until the difficulty gets high, then look for a new coin again to mine.

But OP is alsing about cloud mining or mining with our own rigs,we actually need to know cloud mining is becoming absolutely worthless so if you don't know about it then get those informations on various threads on our forum too.And your point about own mining rigs and mining other coins also the good one but not all the coins will be profitable so mine the best potential coin.

[guoyu78]

If you ask me I'd say that the cloud mining seems to be quite better, cause if we are to assume that there isn't halving or all these you have mentioned, and there also happened to be a bull run, then the cloud mining is the best option because you will get more than the 1 Bitcoin (1.6 BTC like you have said) and the price will also increase so cloud in a way better Rohan buying. It just depends on when actually, what happens at that time. It can't be profitable at all times I guess. So you need to plan properly about it.