Cloud Mining

[coinnewbit]

are there any reason not to mine using cloud? it seems to be a loss on the company's part.

[1715569898]

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[1715569898]

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[Coef]

are there any reason not to mine using cloud? it seems to be a loss on the company's part.

None of the cloud hashrate I found could give me ROI, when I take the increasing difficulty into consideration.
Which cloud-hashing company are you talking about?

[coinnewbit]

oops i meant cl0ud why would butt come up? but yeah, companies like scrypt.cc apparently will let you break even within 3 months? why not just mine themselves?

[Klootviool]

Why would companies sell miners and not just mine themselves?
scrypt mines altcoins(scrypt-n and scrypt jane), so diff increase wont effect them that much.

[coinnewbit]

Why would companies sell miners and not just mine themselves?
scrypt mines altcoins(scrypt-n and scrypt jane), so diff increase wont effect them that much.

exactly my point? won't they profit more?

[beaknuke]

they do both!

[Klootviool]

I meant that manufacturers of hardware could run their own hardware and make profit too

They can profit more, but the risk will also be higher.
By selling miners(hardware) or cloudhash, companies get their profit instantly.
The user pays for electricity and maintenance through fees.
Through withdrawal fees they earn money(cloudmining)
cex.io will introduce trading fees too, so that will give them a lot of profit.

[beaknuke]

they 'test' them, so making money

[CLOUDMINING.GURU]

If you are interested in cloud mining and want to read some reviews check out: https://cloudmining.guru
It might helps you to decide.

Cheers

[FalconFly]

are there any reason not to mine using cloud? it seems to be a loss on the company's part.

Only on the surface...

So far only few cloud mining services operate, some are extremely unprofitable, others appear to be profitable but may very well be a ponzi or some form of scam.
Old rule of the road applies : if it looks too good to be true - it probably is.
(in the Bitcoin world - 1000 times that)

The term "counterparty risk" is to be taken very seriously here, conventional banks/companies are innocent, white and reliable peace doves in comparison.

The real question currently on the table rather is : is there any reason to mine at all?
As it stands now, the vast majority of folks would be far better off waiting for the current Bitcoin price trend to bottom out and simply buy the amount they desire.

I've been mining for 5 months now, using equipment that cost me alot of money back in Nov 2013 - and barely made only a little BTC so far with it.
In the same time, I've also been buying BTC directly, which I received within a short time and ended up being significantly cheaper than anything I could ever mine with my gear. And I mean big time cheaper.

Outside of the educational and hobbyist purpose, mining now carries extreme risks to end up being shamelessly unprofitable, even if you spend alot of cash on high-end gear. They're all too expensive, the only guys making a killing are the hardware sellers. And what they don't immediately sell, they use to mine for themselves - causing the permanent overflow of global hashrate.
As a private, normal person, you cannot win this mining hardware battle. So IMHO, the only way to win is not to play their game.

When it comes to the "alternative" of cloud mining, my honest advice : stay clear of them (all of them, no matter how nice they advertise) and you won't go wrong doing so.

PS.
Mining is fun at the beginning - but the ever-declining BTC output, permanent caretaking (at least need to look if everything is still up 24/7) and time will make it... dull and boring within weeks. I absolutely guarantee you it's not worth the trouble for the average guy, if you even remotely take profitability into the equation.
After all, if BitCoin is what you want - no need to take a lenghty detour through middle men who earn money with you, never knowing if your mining output will ever yield the desired amount - while you could have all you want within days without all the delays and risks (and there are plenty of risks).

[coinnewbit]

Cex.io allows for trading of ghs, does paining allow you to do that as well?

[CLOUDMINING.GURU]

Paining? Do you mean PBMINING?

If yes, no you can't trade or sell GHS on PBMINING.

If you want to read some cloud mining reviews check: https://cloudmining.guru

Cheers

[oztusk]

hardware mfgs would rather sell to people who pay more than the equipment is worth.
there are enough of those around.

[jparsley]

With stronger miners coming to the network everyday some miners wont get profit in a 6mths

[crazyivan]

Have not been able to find a single service which would bring me ROI. Still do not understand why do people use it?

[OhMyCoin]

I'm waiting for new miners first...

[sorryforthat]

Ive been mining on Cex.io and have done quite well. Have been doing it for about a month, 75 GHs that I use as a primary and I use another 25 on top of that to trade daily. During my daily trades I can make about .00040000 per sell and I will do this a few time when I have time. If I were to sell it all I would be up 40 Dollars. So I may not have reached ROI, I do have the current option of getting out with profit.

[bitcasino]

Have not been able to find a single service which would bring me ROI. Still do not understand why do people use it?

Same.
I think people use it because you can buy from less than 10$.

[kickbit]

You can calculate estimated profit here:
http://mining-profit.com/
In fact, there will not be any profit
Calculations are little pessimistic, this calc has high maintenance fee at the moment. But you can set it to "0" - and ROI still will be negative.