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?
most people usually don't want to financially commit to a profitable mining setup. 'cloud mining,' as it is nowadays is attractive for people new to the cryptocurrency scene as it appeals as 'free money.' however, as they are new, they're usually unaware of the prevalence of pyramid schemes related to cryptocurrencies.
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?
i've said this many times before in other threads: there is no reason for a business to sell you their resources at a loss. you are not making money off of this, they are. on the chance there was a cloud mining op that was legitimate, they would have zero reason to help out a consumer make money when they could be using the hardware to make more money; hence by selling you this service, they ultimately make money off of the consumer.
cloud mining hasn't been legit since cex.io anyways. i'm more than comfortable labeling any recent cloud mining op that pops up as a scam with cursory examination.