What do you think about cloudmining? 0.004 BTC per GH/s for 5 years.

[Cesar22]

Seems good...just found this service who provides cloudmining...called PBmining.

They offer five year contracts for BTC-mining, 0.004BTC per GH/s

No additional electricity costs, so after 10-15 weeks it might be break even and after this time free BTC come every week directly to your wallet.

The company is legit and is selling mining hardware since years with very positive feedback on ebay.

After some research I think I will invest in this. I don't see any disadvantage in this...you?

ref link removed

[BTC_Fundamentals]

I was thinking about this by myself.
If you have no access to free electricity, this may be a good investment.

[Glizlack]

People have been warning that their business is not sustainable due to the price of power, management, and other reasons. With that said they pay on time since they started. Less and less reason to be suspicious but remember to always be carefull.  I have considered buying from them 2 or 3 different times but when i run the numbers I would prefer to either just invest the btc or have my own equipment at my house/shop

Steve

[EvilPanda]

There will be a better offer from GAW, they are working on a competitive project.

[Syke]

I would be interested in cloud mining, but only if the coins received were truly freshly-minted coins.

[ShakyhandsBTCer]

I think your 10-15 week assumption of your break even point would assume that difficulty does not increase in that time period. Difficulty will increase almost certainly

[-droid-]

Yeah cloud mining is definitely tempting. I've been on PBmining and been happy with the payouts  **  \/ see my sig **

[BTC_Fundamentals]

This price for gh/s is almost 2 times less than cex.io can offer and still is not competetive ?

[-droid-]

This price for gh/s is almost 2 times less than cex.io can offer and still is not competetive ?

I think it is.

Gotta keep in mind your not paying shipping, not paying electricity, or losing out due to downtime or network outtages.  PBMining has been solid since they started

[LiteCoinUser84]

You should also be aware that Cloudmining in the past has been wrought with scammers and fraudulent companies. There are a lot of questions that have been raised surrounding companies including PBMining (however, there is also no proof saying they are illegitimate, just suggestions they might be a ponzi). There is nothing to protect you when you cloud mine. Its an extra risk factor to consider.

[zimmah]

A mining contract for 5 years is too long unless there is some kind of way to gradually increase GH/s during that time.

As difficulty doubles about every two months or so, and will likely continue to do so for the next few years (at least until we run 14nm chips) in just 12 months 1GH/s would make about 1.5% of what it made before.

Any mining contract for over 6 months is not a very good idea unless there are some ways to re-invest GH/s. Also the mining host should have either 'free' electricity or continually update their mining hardware to keep on top in efficiency.

Running a cloud mining company could be very profitable but you'll have to stay on top of the industry.

[ShakyhandsBTCer]

Running a cloud mining company could be very profitable but you'll have to stay on top of the industry.

Running cloud mining companies is a very profitable endeavor.

They are able to sell their GH/s well above the market rate, buy their machines in bulk, allowing them to buy at a discount. Then their overhead (electricity/maintenance) is automatically paid for by their customers.

[ABitNut]

For the customer it's not such a good deal though.

Before buying I suggest running your planned cloud mining purchase through a profit calculator. The same as (I hope) you would do before purchasing hardware. It seems like a great deal now, but in the end I doubt you will mine back 0.004 BTC with 1GH/s in 5 years.

[xstr8guy]

A mining contract for 5 years is too long unless there is some kind of way to gradually increase GH/s during that time.

As difficulty doubles about every two months or so, and will likely continue to do so for the next few years (at least until we run 14nm chips) in just 12 months 1GH/s would make about 1.5% of what it made before.

Any mining contract for over 6 months is not a very good idea unless there are some ways to re-invest GH/s. Also the mining host should have either 'free' electricity or continually update their mining hardware to keep on top in efficiency.

Running a cloud mining company could be very profitable but you'll have to stay on top of the industry.

You make no sense at all.

PBMining is not an exchange like CEX.io. You pay for your product (hashrate) and you earn BTC. That's it. You're money isn't tied up in an investment since you don't get it back at the end of 5 years.

It's the same as buying a miner except you don't have to pay for electricity and you have nothing to sell when you're done with the product. No big loss though. Secondhand ASICs sell for pennies on the dollar these days. I have 70 USB Block Erupter, an ASICMiner Blade rig and 3 BFL Singles I'll give to you for free if you want to come pick them up, lol.

And since it's similar to buying a miner, the vast majority of your profits will come at the beginning. After 6 months, yes, you will be earning very little because of difficulty adjustments. I spent 9.4 BTC with PBMining less than 3 months ago. I'm now at 6.4 earned BTC. It may take me another 3 or 4 months before I have a positive ROI. But it's no worse an investment as my hardware ASIC purchases.

[trand]

i think still more better you use your own gear, lets imagine if your as cloudmining owner and have 1Ths mining HW
what should you do?
do mining by yourself or rent it?
anything your answer that have answer your question

[jonsi]

i think still more better you use your own gear, lets imagine if your as cloudmining owner and have 1Ths mining HW
what should you do?
do mining by yourself or rent it?
anything your answer that have answer your question

It all depends on the price that you rent it for.

[bitgeek]

i think still more better you use your own gear, lets imagine if your as cloudmining owner and have 1Ths mining HW
what should you do?
do mining by yourself or rent it?
anything your answer that have answer your question

What the hell does this mean?

[hexagram]

It all depends on the price that you rent it for.

i got in at 0.004 and 0.0036 / GHs

has anyone calculated the BEP time? after that i don't much care how much profit i make as it would be pure profit. i find it rather impossible to predict future difficulty x future BTC price to get a number for myself. so i'm kind of just giving it a shot as i don't see this as less profitable than owning my own hardware miners since i have no capacity to deal with the heat and electricity bills.

any ideas?

[ShakyhandsBTCer]

A mining contract for 5 years is too long unless there is some kind of way to gradually increase GH/s during that time.

As difficulty doubles about every two months or so, and will likely continue to do so for the next few years (at least until we run 14nm chips) in just 12 months 1GH/s would make about 1.5% of what it made before.

Any mining contract for over 6 months is not a very good idea unless there are some ways to re-invest GH/s. Also the mining host should have either 'free' electricity or continually update their mining hardware to keep on top in efficiency.

Running a cloud mining company could be very profitable but you'll have to stay on top of the industry.

You make no sense at all.

PBMining is not an exchange like CEX.io. You pay for your product (hashrate) and you earn BTC. That's it. You're money isn't tied up in an investment since you don't get it back at the end of 5 years.

It's the same as buying a miner except you don't have to pay for electricity and you have nothing to sell when you're done with the product. No big loss though. Secondhand ASICs sell for pennies on the dollar these days. I have 70 USB Block Erupter, an ASICMiner Blade rig and 3 BFL Singles I'll give to you for free if you want to come pick them up, lol.

And since it's similar to buying a miner, the vast majority of your profits will come at the beginning. After 6 months, yes, you will be earning very little because of difficulty adjustments. I spent 9.4 BTC with PBMining less than 3 months ago. I'm now at 6.4 earned BTC. It may take me another 3 or 4 months before I have a positive ROI. But it's no worse an investment as my hardware ASIC purchases.

I think what he is saying is that the increases in difficulty will make it very difficult to accurately calculate your potential ROI. You can see that difficulty is increasing by ~20% every two weeks now but a low of things can happen that could increase/decrease this rate 6 months or a year from now, let alone 5 years from now.