Why cloud mining is a zero sum game

[AHUPP]

I recently joined PBMining and according the first two payouts I must reinvest between 10-15% monthly to keep it. Even though, ROI is about 160 days.

I don't know how hard the difficulty will increase from now on but it seems pretty good to me!

Are you guys having similar results?

[thirdprize]

I recently joined PBMining and according the first two payouts I must reinvest between 10-15% monthly to keep it. Even though, ROI is about 160 days.

I don't know how hard the difficulty will increase from now on but it seems pretty good to me!

Are you guys having similar results?

Would you care to show how you worked that out?  With 60Ghz my first payouts were around the .02 mark while my latest have been about .0063 Btc.  Big difference.

[petersiddle98]

I recently joined PBMining and according the first two payouts I must reinvest between 10-15% monthly to keep it. Even though, ROI is about 160 days.

I don't know how hard the difficulty will increase from now on but it seems pretty good to me!

Are you guys having similar results?

Where did you get the idea that ROI is 160 days for pbmining? It should be never...

[SFMiner]

I recently joined PBMining and according the first two payouts I must reinvest between 10-15% monthly to keep it. Even though, ROI is about 160 days.

I don't know how hard the difficulty will increase from now on but it seems pretty good to me!

Are you guys having similar results?

Where did you get the idea that ROI is 160 days for pbmining? It should be never...

It really depends on how quickly difficulty increases.

I just bought 1 TH/S on PBMining to test the waters.  If it grows faster than 35%/month, then my ROI is basically never.  If it grows slower than 35%, then it's less than a year.  It's a gamble, but one I'm willing to take, since I've exhausted all electricity available to me at the moment.

Until a legitimate hardware upgrade opportunity comes up (that would significantly improve my current .7W/GHS), I'm testing out cloud mining options.

[5ick3uffalo]

I recently joined PBMining and according the first two payouts I must reinvest between 10-15% monthly to keep it. Even though, ROI is about 160 days.

I don't know how hard the difficulty will increase from now on but it seems pretty good to me!

Are you guys having similar results?

Where did you get the idea that ROI is 160 days for pbmining? It should be never...

I started march and i´m deeeeep in positive ROI with PBMining

[hashie]

1. It costs about 3 times as much per GH/s for sha 256 or MH/s for scrypt  as it does to buy a physical machine to do the work.  This effectively puts your break even (NOT RETURN ON INVESTMENT!) around 200 days or more for these cloud contracts.

2. Your breakeven point is around 200 days and not return on investment because you do not have any underlying value with the contract (unless it is a gawmining hashlet that you can resell).  With a machine your return on investment is helped somewhat by owning the machine at the end of the mining period.

Not correct. There are cloud mining services that offer GH/s for decent rates with fast ROI periods, like Hashie.co - starting from $4.51 per 10 GH

-Sahra

[Gumbork]

1. It costs about 3 times as much per GH/s for sha 256 or MH/s for scrypt  as it does to buy a physical machine to do the work.  This effectively puts your break even (NOT RETURN ON INVESTMENT!) around 200 days or more for these cloud contracts.

2. Your breakeven point is around 200 days and not return on investment because you do not have any underlying value with the contract (unless it is a gawmining hashlet that you can resell).  With a machine your return on investment is helped somewhat by owning the machine at the end of the mining period.

Not correct. There are cloud mining services that offer GH/s for decent rates with fast ROI periods, like Hashie.co - starting from $4.51 per 10 GH

-Sahra

hashie.co is too new, high risk..

[crazyivan]

It depends on the company. I currently use 4 different cloud mining companies, there are all profitable ATM but LTCgear is absolutely the best. Have been with them since May and have reached 500% ROI so far.
Take a look at their review in my signature if you are interested.

Other then that, GAW s quite nice too but they have been reducing their payouts recently, I do not know whether this is going to continue.

[1echo]

yes cloud mining mainly blows

[pak13]

completely agree.

Cloud mining is like paying rent. It's lost money. If the owners of cloud mining services could make more not renting their equipment then of course they would. But they make more from peasants thinking they can make a fortune. Common sense people.

[hawkeyedwolf]

The future of mining lies much more in the "cloud" than in home mining.

In theory, a well designed cloud mining system can provide both hardware and power at lower than residential rates.

This pooling of buy power should be enought to give both you and the managing company a profit from mining - if anyone makes profit from mining that is -


The current state of affairs seems to suggest that cloud mining is more expensive than home mining, as some people are willing to pay a premium for the conveniance of the service.
Many cloudmining providers take advantage of this and turn around HUGE profits.

I agree that the future of mining lies in the "cloud". But I have a question. I purchased a 250GH miner with GAW Miners and I want to know if this was a smart move.

[thirdprize]

It depends on the company. I currently use 4 different cloud mining companies, there are all profitable ATM but LTCgear is absolutely the best. Have been with them since May and have reached 500% ROI so far.
Take a look at their review in my signature if you are interested.

Yeah, but do they do Btc?

[Katarina]

It depends on the company. I currently use 4 different cloud mining companies, there are all profitable ATM but LTCgear is absolutely the best. Have been with them since May and have reached 500% ROI so far.
Take a look at their review in my signature if you are interested.

Yeah, but do they do Btc?

Yeah most of them do BTC..

[Southpaw0]

cloud miners will close up shop eventually and run with your bitcoins, so never invest into cloud mining, its a ponzi.

[puwaha]

I agree that the future of mining lies in the "cloud". But I have a question. I purchased a 250GH miner with GAW Miners and I want to know if this was a smart move.

Why wouldn't it be?  You get a year of free hosting at GAW/Zen for your hardware miner, and if you haven't ROI'ed in a year, you can just convert it to Hashlets and start paying "rent".  Profit!

[l3sny]

With flat diff mining is actually profitable now depending on the price of the equipment or shares. What do you think?

[l3sny]

cloud miners will close up shop eventually and run with your bitcoins, so never invest into cloud mining, its a ponzi.

you meant the ones offering contracts or all of them?

[bitsmichel]

Starflyer, where did you buy your cloud mining contract? It is very important to use only good and reputable cloud mining providers. With some random and unknown company you can be in wrong hands. Not to mention they can scam you.

Is there a list of reputable cloud mining providers? There are so many companies these days that offer cloud mining services.

[polarhei]

You select the service as bulk the better. Currently, It's about time. We will know soon.

[polarhei]

Starflyer, where did you buy your cloud mining contract? It is very important to use only good and reputable cloud mining providers. With some random and unknown company you can be in wrong hands. Not to mention they can scam you.

Is there a list of reputable cloud mining providers? There are so many companies these days that offer cloud mining services.

You can select cex.io or eobot , they do good things.