BTC mining contract / cloud mining

[WEB slicer]

This has caught my attention. Was wondering what people think or if they had any positive/negative experiences. CEX.IO does look interesting but it all smells fishy to me. Why would anybody sell another person hashing power profits when they could profit themselves? It doesn't make sense.

[the-skeptic]

When you can buy Antminers for half the price of CEX.IO "Ghashes", I think it should be self explanatory.

[grahvity]

For people like me who pay a bit over $.16/kWh, it would appear worth a try. I thought about setting up a miner in my parents' place where they don't pay for electricity but mom would wind up spilling beer on it and not tell me about it.

[ryanmnercer]

When you can buy Antminers for half the price of CEX.IO "Ghashes", I think it should be self explanatory.

That and most of the companies lock in you in a 1-2 year contract so you are still forced to pay when it's not even remotely profitable anymore.  CEX.IO for example has a 2 year contract. You are going to be operating at a loss no matter what. Period, you will lose more BTC paying than you mine out. The only reason they can do business is becuase every day a new sucker is born "omg I can make t3h bitcoinz!" and they think they'll be making hundreds a day when in fact they'll be making fractions a day.

[arivar]

When you can buy Antminers for half the price of CEX.IO "Ghashes", I think it should be self explanatory.

That and most of the companies lock in you in a 1-2 year contract so you are still forced to pay when it's not even remotely profitable anymore.  CEX.IO for example has a 2 year contract. You are going to be operating at a loss no matter what. Period, you will lose more BTC paying than you mine out. The only reason they can do business is becuase every day a new sucker is born "omg I can make t3h bitcoinz!" and they think they'll be making hundreds a day when in fact they'll be making fractions a day.

The GHS there does not expiry. They will mine for you forever, unless you sell them.

[ryanmnercer]

The GHS there does not expiry. They will mine for you forever, unless you sell them.

If you believe that, I have a bridge in Brooklyn for sale... and I'll even give you a discount!


Besides, it matters not if they'll mine 'forever' for you... it becomes more difficult every day, inside of a year or so it would essentially be useless for mining BTC.

[arivar]

I have opened a topic about this subject, you can check here https://bitcointalk.org/index.php?topic=522617.0. I believe you should consider the GHS on CEX.IO as a bond, and at some price it is really worthy to buy.
Their business makes complete sense, they can build a huge structure with money they receive from miners and take good commissions when they sell new GHS, in this way they are taking very little risk and it doesnt mean it isnt profitable for the miners.

[ryanmnercer]

I have opened a topic about this subject, you can check here https://bitcointalk.org/index.php?topic=522617.0. I believe you should consider the GHS on CEX.IO as a bond, and at some price it is really worthy to buy.
Their business makes complete sense, they can build a huge structure with money they receive from miners and take good commissions when they sell new GHS, in this way they are taking very little risk and it doesnt mean it isnt profitable for the miners.

It isn't profitable. I now suspect you of working for them.

[arivar]

I have opened a topic about this subject, you can check here https://bitcointalk.org/index.php?topic=522617.0. I believe you should consider the GHS on CEX.IO as a bond, and at some price it is really worthy to buy.
Their business makes complete sense, they can build a huge structure with money they receive from miners and take good commissions when they sell new GHS, in this way they are taking very little risk and it doesnt mean it isnt profitable for the miners.

It isn't profitable. I now suspect you of working for them.

I dont work for them, but I would be very happy if you can show me it isnt profitable at current prices, so I can stop mining there.

[arivar]

Mining contract are always good on roi

To make quick money

I believe at the current prices we are going to have something between 0.40% and 0.50% of return every 2016 blocks.

[crazyivan]

This has caught my attention. Was wondering what people think or if they had any positive/negative experiences. CEX.IO does look interesting but it all smells fishy to me. Why would anybody sell another person hashing power profits when they could profit themselves? It doesn't make sense.

You have answered your own question. The only way you can make money with cloud hashing is if the price of BTC would go significantly up after you purchase a cloud hashing contract. In most of cases reaching ROI is very unlikely. There are better ways to earn BTC online.

[-ck]

If you're only going to make money cloud hashing by gambling on the value of BTC rising, then you are absolutely always guaranteed to make a bigger profit just converting your money into BTC and bypassing the whole hashing part. Cloud hashing is a genius business model that only ever benefits the cloud, not the miner.

[crazyivan]

If you're only going to make money cloud hashing by gambling on the value of BTC rising, then you are absolutely always guaranteed to make a bigger profit just converting your money into BTC and bypassing the whole hashing part. Cloud hashing is a genius business model that only ever benefits the cloud, not the miner.

I agree fully with this post. It is simple mathematics, you bitcoin calculator, input your expected BTC earnings, include expected difficulty increase and you will see that in 0% cases you can reach ROI in BTC during the period of your mining contract, usually 12 months. Unless BTC goes up to $10k and in this case you are better off just buying BTC and holding. What I cannot understand is why so many people do not see this cause there are bunch of these cloud hashing services available which means there must be demand for them as well.

[bitcoinmaniac12345]

Yes all you that like mining without hardware this is the site https://cex.io/r/0/pvodka/0/
im gona be honest here if you click on it and sine up i will get 3% referal if you buy any gh/s from them but looking is free,i been doing mining for 1 year but limited funds available so now i for 2 cubes and antminer but they offer the hardware for aproximatly 10% electricity fee,be carefull if you buy small amount looks like fees are eating lots of profeat but if you buying more about 30-40ghs i see average 10%.This is the bigest pool also its a exchange ,since its biggest pool i think less likely i will get GOXED here .

[ryanmnercer]

When you can buy Antminers for half the price of CEX.IO "Ghashes", I think it should be self explanatory.

They also take their 'fee' for electricity out for the ghashes each time they deposit your fraction... which I suspect is probably inflated a bit.

For example (I decided to put about .35 BTC in just to see how blah it is) this is while I slept last night:


Block #292047, Reward: 0.00007085, Fee: 0.00000332
Block #292046, Reward: 0.00007093, Fee: 0.00003404
Block #292030, Reward: 0.00007318, Fee: 0.00001803
Block #292018, Reward: 0.00007215, Fee: 0.00002595
Block #292004, Reward: 0.00007213, Fee: 0.00000042
Block #292003, Reward: 0.00007480, Fee: 0.00000269
Block #292001, Reward: 0.00007211, Fee: 0.00001223
Block #291998, Reward: 0.00007463, Fee: 0.00000269
Block #291997, Reward: 0.00007197, Fee: 0.00000146
Block #291996, Reward: 0.00007193, Fee: 0.00000083
Block #291995, Reward: 0.00007211, Fee: 0.00000064
Block #291994, Reward: 0.00007196, Fee: 0.00004875
Block #291972, Reward: 0.00007204, Fee: 0.00000104
Block #291970, Reward: 0.00007330, Fee: 0.00000042
Block #291969, Reward: 0.00007331, Fee: 0.00000042
Block #291967, Reward: 0.00007185, Fee: 0.00000044
Block #291966, Reward: 0.00007450, Fee: 0.00000251
Block #291963, Reward: 0.00007213, Fee: 0.00000042
Block #291962, Reward: 0.00007227, Fee: 0.00000228
Block #291959, Reward: 0.00006049, Fee: 0.00001763

I also learned, you are not allowed to withdraw what you put in for the first 48 hours. I'm taking my bitcoin out as soon as they'll let me by selling the gashes.

[bitcoinmaniac12345]

I forgot 1 more thing you can also sell the gh/s back to them or somewhere alse with codes ,just wach out couse the price is slowly going down
https://cex.io/r/0/pvodka/0/

[ContractHashing]

$8 Per GH! https://contracthashing.com/products/6month/add-1-gh-to-your-account/

[ChuckBuck]

$8 Per GH! https://contracthashing.com/products/6month/add-1-gh-to-your-account/

Wow that's pretty terrible!  Might as well get the Antminer S1 at $2.64 per GH.

Cloudmining really is a scam operation at those rates!

[ryanmnercer]

$8 Per GH! https://contracthashing.com/products/6month/add-1-gh-to-your-account/

Wow that's pretty terrible!  Might as well get the Antminer S1 at $2.64 per GH.

Cloudmining really is a scam operation at those rates!

Indeed, I was actually going to buy an Antminer S1 last night but when I figured up the monthly addition to the electric bill my first though was "Yeah Indiana State Police will think I'm growing drugs and get a warrant" because the power company tells me every month I'm already operating at TWICE the average in my neighborhood heh.

[botolo86]

According to the bitcoin calculator on the bitcoinwisdom.com website, BTC mining contracts are profitable only when 1 GHS is sold for lower than $4.3 and at this rate, you break even after 423 days!

The problem is that BTC nowadays is pretty cheap, compared to last December, and you are always better off buying BTC than investing in mining equipment.

For example, if BTC was now at $1,200, it would make sense to buy mining contract at $9.1 per GHS and you would break even after 411 days.