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December 06, 2014, 08:56:49 AM Last edit: December 06, 2014, 02:22:29 PM by shirkan |
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Hi Guys,
the following is based on the assumption that bitcoin as a currency/commodity has no value. The true value of Bitcoin is its protocol and future use of this protocol as a service.
Therefore the Bitcoin-Network and the miners (servers) are the real star. Even if bitcoin as a currency will never succeed, the servers and hashing power has value.
As you know, mining bitcoins has become more and more unprofitable. To me this is the best indication that the bitcoin price is where it belongs (right now). Why? Because one bitcoin nearly buys you the hashing power needed (right now) to harvest one bitcoin over time (taking electricity, difficulty, yield, etc. into consideration).
In this context, offering Cloud Mining as a service appeals to me as the perfect hedge. You sell hashing power for the price it is worth right now. You are getting payed for the hardware without ever having to worry about the future bitcoin price and new mining technology coming to the market. Actually, every uncertainty regarding your investment in hardware is eliminated the second you sell a cloud mining contract. You already made your ROI.
From there on out you increase market and pool share. Even if bitcoin as a currency will never succeed you will be sitting on a very valuable good.
As a cloud mining service user, however, all the risk associated with mining has been transferred to you! You will probably never get your investment back.
The race between the cloud mining companies is on! Or what do you think?
PS: English is not my native english..please excuse any mistakes.
regards
shirkan
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