Cloud mining - why?

[danieleither]

Can someone help me understand the point of cloud-mining and why anyone would buy a cloud-mining contract? For every one I've looked at, the cost of the contract far outweighs the amount of bitcoin that would be mined, so why do people buy these contracts?

The only way I can see it 'could' be beneficial is if you purchased a contract some time in the future at a fixed price, and by the time your mining contract begins the value of bitcoin has risen significantly and outweighs the cost of the contract - or is that the point, like some sort of gamble?

[BitcoinNewsMagazine]

You are always better off just buying and holding bitcoin for the long term. Just stay away from the cloud mining contracts. The companies are in business to make a profit for themselves, not the investors.

[mk4]

so why do people buy these contracts?

Mostly ignorance and their want to join the "crypto hype train". The same reason why people frequently get tricked into investment schemes. Even a quick Google search would immediately let them know how bad of an idea paying for cloud mining is.

[TheUltraElite]

or is that the point, like some sort of gamble?

Cloud mining is a pyramid scheme/MLM scheme. So yes it becomes a sort of a gamble and a hype led koolaid crew.

This is enhanced by the fact that these schemes spread on social media and previous faucet sites and google ads (not anymore now) for giving high referral commission and thus more and more people signed up.

The real winners here were the people running the scheme who are the scammers and the social media promoters who promoted them, specially youtubers. They got paid for it and they didnt care about how people lost, they just wanted their money - you see how money can manipulate people to forget their morals?

And the losers were those who got on the hype train, those investing last were the least probable of breaking even because on fine day the site will have shut down and all the money gone into thin air with no legal authority to contact and nobody to run after.

If you talk about accusing the youtubers then they will either claim their disclaimer or say they were also scammed/pull the victim card.

[joniboini]

The only way I can see it 'could' be beneficial is if you purchased a contract some time in the future at a fixed price, and by the time your mining contract begins the value of bitcoin has risen significantly and outweighs the cost of the contract

Nah, that's just gamble as you say. Even if some companies have this product I believe they'll add additional clauses so that they got more profits. Most of them win because the price per share is really high while the bitcoin the user got is small, I doubt they'll change their strategy.

This 'business' is likely going to keep running because it's easy to set up a cloud mining website for $100, and then ask a user to pay $50 for some 'hash power'.

[freedomgo]

Cloud mining has become a HYIP, don't easily fall for that one, I don't know if there still a legit business now that offers cloud mining but in general, it has a very bad reputation, so stay away. Investing in bitcoin or other potential coins would be better than risking your money in cloud mining.

[jossiel]

I don't know if there still a legit business now that offers cloud mining but in general, it has a very bad reputation, so stay away. Investing in bitcoin or other potential coins would be better than risking your money in cloud mining.

I have seen that Viabtc offers it but it says that it's sold out. You can calculate how much profit would be.

https://www.viabtc.com/contract/pricing

Like what others said, cloud mining became a place for scammers that creates the scheme as HYIP today. There's no point in putting your bitcoins there and it's recommended just to keep it on your wallet. I think most newbies are thinking that they are actually mining when they buy unprofitable contracts through cloud mining. They tend to think that they mine and boast it to their friends.

[TeslaWatt.com]

Even if the cloud mining is legit, I would vote for holding physical machines in some professional facility or at home. But if you have massive electrical charges, much better is to have your machines hosted at a professional facility. Check it in person if you can.

[Finestream]

Even if the cloud mining is legit, I would vote for holding physical machines in some professional facility or at home. But if you have massive electrical charges, much better is to have your machines hosted at a professional facility. Check it in person if you can.

It's also necessary to know how to set up the rig, knowledge is very important when running a mining farm, well, that's an advantage for those who have free or cheap electricity, and I would try to educate myself on how to run a mining farm if I have that kind of advantage.

Anyway, some people just looking for cloud mining or we can just call it as an investment as AFAIK, they just have to invest money and get a return on it on a regular basis, but as of now, there are only few legit cloud mining services in the crypto space.

[gentlemand]

The first thing many newcomers ask is 'how do I start mining?' If they ask that they get told it's an impossibility for the average person.

Then they see cloud mining and think 'hey, this is where the real money is and I don't have to do any work. I can't believe more people aren't doing it. I've got one over on everyone else.'

They pour in and wind up with nothing. If they'd bothered to ask about cloud mining they would be told almost all of them are ponzis but many are not inclined to ask after the first time they're told where they're going wrong.

The people selling it know how that's how many a mind works and they certainly know how to exploit it.

[LTU_btc]

You have valid concerns about cloud mining and for me it's very strange that people still investing their hard earned into such schemes 2020.
99% of cloud mining websites is just ponzi schemes and they don't mine any crypto. Their contracts is terrible and you barely can reach ROI at the end of contract. These who are offering high returns - they just will turn into scam soon like every ponzi scheme and run away with your investment.
I think main problem is people ignorance about mining in general. They know almost nothing about it and they think that cloud mining is profitable and it's easy to earn money in this way. Unfortunately, they are completely wrong about it. And no matter how many warnings about cloud mining we will post, it's simply imposible to warn everyone about it.

[AmoreJaz]

Even if the cloud mining is legit, I would vote for holding physical machines in some professional facility or at home. But if you have massive electrical charges, much better is to have your machines hosted at a professional facility. Check it in person if you can.

or use solar panels, it will incur heavy cost at the beginning but later on there's no more cost. been in cloud mining contracts before and guess what? as others have said stay away, better invest on your on own hardware equipment. if it is not profitable, you can stop but at least you have your equipment and you can resume anytime you want. even if the the cloud mining site is legit, you cant get your profit out of it, not even your initial investments.

[posi]

It good to be well informed things before ones totally get involve into it, I'm once a victim of hyip ponzi scheme and i can tell you from experienced that the only things which make people join cloud mining/hyip scheme are ignorance and greediness.
People who are not greed joined because they dont know what is it what while some people who have been warned about it still join because of the free money theh will make through it.

[stompix]

so why do people buy these contracts?

The only way I can see it 'could' be beneficial is if you purchased a contract some time in the future at a fixed price, and by the time your mining contract begins the value of bitcoin has risen significantly and outweighs the cost of the contract - or is that the point, like some sort of gamble?

Exactly...
You purchase those contracts because you think mining will be profitable in the future and you lack both the cheap energy and space or knowledge or time to set your own mining gear. Plus, lately, you can't buy new and performant gear for a few hundred $ you need a bit more, with contracts, it's more flexible.

And yeah, contracts are purchased on a fixed amount of time at a fixed price.

I don't know if there still a legit business now that offers cloud mining but in general, it has a very bad reputation, so stay away. Investing in bitcoin or other potential coins would be better than risking your money in cloud mining.

I have seen that Viabtc offers it but it says that it's sold out. You can calculate how much profit would be.
https://www.viabtc.com/contract/pricing

Although I'm going to hate myself for this in the morning, there is also bitdeer, the farm that is equipped and run by bitmain.
As much as I hate Bitmain in general it would be better if newbies would put their money here instead of other scams that are simply ponzi schemes.

or use solar panels, it will incur heavy cost at the beginning but later on there's no more cost.

And what do you do at night?
 

[Mighty_crypt]

Cloud mining aren't real to begin with, every cloud mining company don't have real mining farm, they are just deceiving people, I used genesis cloud mining company in the past and after few weeks I stopped using due to few bad reviews about them, later genesis website stop working

[sheenshane]

I used genesis cloud mining company in the past and after few weeks I stopped using due to few bad reviews about them, later genesis website stop working

Absolutely they are the Ponzi pyramid payout scheme. I heard about them before but I already fooled by this cloud mining investment (I forgot the name)so they will never fool me again. The money that you invested and paid for their contract will be paid back to you in a small amount daily as your payout and that is a drip-fed.

Instead of investing in paid contracts in cloud mining why not you didn't buy your own mining rigs and operate your own. And don't be fooled on the cloud mining companies without any proof of actually owning any hardware. Probably they also claiming mining equipment photos/images that they don't have.

[Ridwan Fauzi]

Have you learn about cloud mining? If I were you, before I make a decision to spend money in anything place I'll check the place before I spend it, don't just take a decision from what othere people says and find some reviews against it, I mean, I'll consider an advantage and disadvantage of the place first. Like what I found in this thread, there are some bad opinion against cloud mining especially which end up in scam, you check them.

1. Cloud farm-mining.com website is a scam!
2. start-mining.com scam, don't join this scam website
3. Is HashFlare About to Exit Scam ?
4. Cryptominingfarm.io is a scam cloud mining site
5. Seedhash.com Scam - Cloudmining

[pooya87]

isn't it obvious?
a miner has to buy the equipment, maintain them, tolerate the heat and the sound while running the equipment 24/7, pay the bills, and a lot more. meanwhile someone buying a cloudmining contract is doing nothing apart from clicking a button (to pay). so obviously people choose this since it is the easiest way without having any additional cost or effort.
but as others have already mentioned cloudmining has been a scam for a long time. so now it is just a bet that the gamblers make.

[Taskford]

Can someone help me understand the point of cloud-mining and why anyone would buy a cloud-mining contract? For every one I've looked at, the cost of the contract far outweighs the amount of bitcoin that would be mined, so why do people buy these contracts?

The only way I can see it 'could' be beneficial is if you purchased a contract some time in the future at a fixed price, and by the time your mining contract begins the value of bitcoin has risen significantly and outweighs the cost of the contract - or is that the point, like some sort of gamble?

Just use the search bar and type cloudmining for sure you can see s many threads like this asking the legitimacy of those platform, Just avoid those kind of site sites theirs nothing gnna happen since its not beneficial at all the only thing you will gain is pure heartbreak since I'm sure after they collect the big amount target the error stuffs will starts and they will slowly leave their investors crying, so if you don't want to cry better leave and search for different realistic investment opportunity.

[azarharus]

so why do people buy these contracts?

Mostly ignorance and their want to join the "crypto hype train". The same reason why people frequently get tricked into investment schemes. Even a quick Google search would immediately let them know how bad of an idea paying for cloud mining is.

Pretty much yeah.
OP suggested that people buying contracts because they expect price of bitcoin to go so up high that they're going to be in profit eventually.
But most of the time people sleep on doing math, relying on their expectations and assumptions