11

The person hopes that the future ratio of how much money they can earn with a given hash power will be more favourable, so they enter a long-term contract. The person wants to increase the hashrate of a mining pool they own, whether for test purposes or to attract more people with a high hashrate. The person holds some other cryptocoins and wishes for their ...


8

Lack of Control I don't think there is ever a good time to invest in Cloud Mining. I remain utterly unconvinced of the whole business model. Mining itself already has a very slim return rate, then putting both your investment and the hardware into the hands of a third party that wants an additional cut seems counterintuitive. With regular mining you can ...


4

When you're calculating the profit from Bitcoin mining, you take into account the current bitcoin price, how much hashpower you have, and the current difficulty. Difficulty rises over time. (Generally speaking.) Between Jan '12 and Jan '13, difficulty rose by a factor of 2.9x. Between Jan '13 and Jan '14, difficulty rose by 407.2x. Between Jan '14 and now,...


4

The short answer is cloud-hashing is not profitable as you might expect. You can still generate profit but its value is minuscule compared to the investment. To concretely answer this question, I'm going to share with you a model I developed to calculate profit from the cloud-hasing service (bit-miner.com). Profit Model Google Sheets Link if you want to ...


4

If you don't already agree with the above answers and understand why they are true, I recommend strongly rethinking the idea of mining. Before investing a single cent into mining, please invest in yourself, and your comprehension of btc first. If you're mining simply for the enjoyment of learning about this fascinating technology than I recommend mining ...


4

Keep in mind, at current prices it would take a very long time to get your initial investment back with cloud mining. There have been many reports of cloud mining to be a ponzi pyramid scheme as they have the advantage of "time" on their side. They are basically paying you back what you paid them slowly. However, if the price of BTC does rise significantly ...


3

One factor I know you are currently missing is mining difficulty. It will become more and more difficult to mine litecoin. So profits will drop as there will be less litecoin mined for the mh/s you're leasing. I'd recommend you watch some videos about it on youtube. https://www.youtube.com/watch?v=0phyRzSisyE


3

Some possibilities: 1) Pool-hopping. 2) Password cracking. 3) Supporting a specific mining pool / alternative blockchain currency. 4) Betting on the difficulty decreasing (relatively to the exchange rate), and securing a long-term contract which will be profitable in that contingency.


3

99.9% of such companies are frauds.. they simply gather money from new users and payoff the old users. They repeat this to get enough trust among users. To make it more lucrative they throw in affiliate or referral schemes. That ensures people refer friends and family or simply go social in promoting these sites with a story that they have earned (which ...


3

There are two main reasons: 1) The person wants to build the hash rate for an alternative currency or mining pool in which they have a financial interest. You can't get a mining pool or alternate currency going without hashing power. 2) The person wants to mine something other than Bitcoins, typically a currency that isn't yet available on any exchange. So ...


3

I use this analogy for cloud mining: If you had a money printing machine would you rent it out or use it yourself? Cloud mining -no matter how you consider it- makes no sense financially. If the company is making a loss, they'll be out of business, if they're making a profit, why aren't they making that profit directly?


3

No, neither CPUs nor GPUs of any kind are of the slightest use in Bitcoin mining. This has been the case for several years, since the introduction of ASIC miners which are now many orders of magnitude more efficient. See In the ASIC-age, is it worth starting mining Bitcoin at home?


2

The profit is the lesson: you got scammed.


2

Bitcoin mining can be profitable BUT it is not for the unwary. You need to look carefully at the hash rate, difficulty, power consumption and electricity prices to determine whether it's worth doing. I have a number of AntMinerS3 at home. I got these as they were the best (most efficient) miners at a sensible price. However, with BitCoin prices having ...


2

If one could enter into a long term agreement at a particular price for renting the equipment, then they would benefit from any increases in the exchange rate. I can't think of any other reason, but others might.


2

Cloudhashing.com does cloud mining, but they did not offer trading the last time I checked.


2

To go from GH/sec to BTC/day, use this: BTC/day = GH/sec * 1,000 * 25 * 24 * 3,600 / 2^32 / difficulty(in millions) Because: the block reward is currently 25, there are 24 hours in a day, 3600 seconds in an hour, and the base share difficulty is 2^32. So 100GH/s, at the current difficulty of 707 million will yield: 100 * 1,000 * 25 * 24 * 3600 / 2^32 / 707....


2

You're also assuming the price of Litecoin will stay the same over those two years. Right now it is near an all-time high at around $45. Over the previous two years its value has usually been more like $4. If it should go back down to that price, you'll lose money.


2

Unfortunately, most of the "cloud mining" websites are ponzi schemes trying to disguise themselves as a cloud mining contract provider. This site catagorizes Bitknock as a ponzi/scam dated back to November 2015. A little bit research could have made you aware of the dangers. I personally lost dozens of bitcoin in such projects, even if I joined only the ...


2

Yes, the payouts can be send to your Bitcoin wallet. But as with all cloud mining services, they would not offer that service if they would not make any profit with it. Instead of investing $ 2400 on life time 10 TH/s mining, have you considered just buying Bitcoin worth $ 2400? I tend to tell people to be cautious with such services and do the maths ...


2

Yes, profit will be even lower. Hash rate has grown from 540 PH/s to 1800 PH/s in the last year. At that rate it will take much longer than 13 months for your ROI.


2

Regardless of the cryptocurrency you choose to mine, you should get the machine with the most GPUs and CPUs as you can get (GPUs are especially important). This is because most, if not all, of the hash functions used in altcoins can be and have been GPU accelerated, so GPUs will be able to mine them far faster than CPUs can. Having more CPUs allows you to ...


2

I recall reading somewhere that Microsoft has anti-mining heuristics in azure, and they will deactivate you. they sell vm time by assuming you are not utilizing 100% of the resources.


1

Don't make cloud mining contracts! A lot of cloud mining providers are just scammers. The network's cumulative hash rate of Dash varies a lot but tends to go up and below 3 TH/s a lot. Currently, the block reward is at (converted) 261.96 USD. It goes down by 7.1% per year. Dash's block time is 3.5 minutes. Think about it: We can approximate the total money ...


1

No it is not. The value of Bitcoin fluctuates over time. Cloud mining takes years, not months, to be profitable. By then, you've missed out on profit from the price fluctuations, which is much higher than the profit from cloud mining. Cloud mining is only profitable if you assume the value of Bitcoin will not increase during these years.


1

Sure - you can run cpuminer-multi on Azure or AWS, and it will CPU mine. You will need to find a pool to mine with. Alternatively, if you want to solo mine, then you merely need to run a full Monero node, and from within bitmonerod you use the start_mining command. Details on the options you can pass to that command are available via the help command within ...


1

There are a few that I have tried that seem to be OK and not ponzi schemes. But don't take my word for it and figure it out for yourself. Hashnest Mining Sweden Genesis Mining


1

There are lots of them, that's called "cloud mining" - just google the term and you'll probably find your way. You either rent a miner or pay for mining equipment, or eventually just throw your money into a black box with the expectation that you'll get some reward later - basically mining operators crowdfunding some (or all) of the investments and ...


1

Well it depends on the contract, usually they promise you a fixed hash rate working for you for a fixed time (as 200Mhs for 2 months) and you will get whatever that miner gets. This can be done hiring full machines and then you can just tell the operator the pool and client configuration so you get the coins directly on your account. Or the can sell you ...


1

Australian business called BitMiners - http://www.bitminers.com.au - Appear to be fairly established as they are a division of a larger company. cheapest and most "credible" i can find.


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