Nicehash and renting hash power

[JangoUnchained]

How are those buying hashing power on Nicehash making money? I heard that mining through the Nicehash platform is like renting out your mining hashrate so the question is who are those renting? People just like myself? If yes how are they making profit? Is this idea even profitable?

[Coinfarm ventures]

It probably isn't profitable because of the high fees Nicehack charges. Renting hashrate is no different from gambling on hitting a block with random luck.

[OgNasty]

How are those buying hashing power on Nicehash making money? I heard that mining through the Nicehash platform is like renting out your mining hashrate so the question is who are those renting? People just like myself? If yes how are they making profit? Is this idea even profitable?

There are a couple of reasons why someone might want to rent hashpower.  Maybe you have a new coin coming out and you want to be in on the early generation of it.  This is the case I most often see from people talking about renting hashpower.  The other is of course gambling.  Maybe you think you can spend a little BTC and hit a block.  It would certainly be a nice payoff.  Pretty unlikely though.  Most of the time Nicehash is the winner.

[Maliceprime]

Renting hashpower makes sense in some cases, I remember when Electroneum was new many people rented cloud computing power to mine this coin and it was profitable later, at the peak of 2018 ETN reached a new ATH but now that many new coins don't care about PoW algorithm anymore.

[FP91G]

How are those buying hashing power on Nicehash making money? I heard that mining through the Nicehash platform is like renting out your mining hashrate so the question is who are those renting? People just like myself? If yes how are they making profit? Is this idea even profitable?

Perhaps this is beneficial when the Ethereum network has large commissions per block. We have seen 50-100 Ethereum fees and more many times. But trying this method with a total block reward of 2-5 coins is not profitable, because hashrate rental is expensive.

[adaseb]

There are many reasons why someone might rent hashpower.

Most likely reason with ETH is that they can rent the hashpower cheaper than the market rate when the ETH fees are crazy high.

If you are into Defi, Opensea, and pay attention to any drops and when they will happen. You can rent hashpower on the cheap and when fees are like 1000Gwei for a few moments it’ll pay off big.

[nicehash]

We actually have an article for this exact question: https://www.nicehash.com/support/hash-power-marketplace/general-help/why-would-someone-buy-hashing-power

One of the most frequently asked questions is definitely: "Why would someone buy hashing power?". There are several reasons why people buy hash power at NiceHash, rather than buy the coins directly or buy cloud mining contracts.

    *Buyers have done their math, tested different luck factors on pools and reward schemes, and are buying hashing power as an investment to obtain coins at cheaper rates.
    *Buyers can buy massive hash power and get it delivered in a short amount of time.
    *The order that the buyer places lasts from a few minutes to a maximum of 10 days, which decreases the risk of drastic changes over time in comparison to cloud mining contracts.
    *Pool owners buy hash power to increase the luck of their pool or to test the mining performance and compatibility of their pool.

[batsonxl]

it can be tricky because you need follow difficulty and rent on right time to find block.