mining is not ICO

27.11.2017

I know you were mining last summer!

On top of that, I"m also sure you're continuing that next summer too. Will I? No. I can explain why.

It's simple -- mining is not ICO. And I've definitely decided for myself that investing in ICO features a breadth of benefits compared to mining. Shall we compare?

Mining and cloud mining
Mining, as you know, is the process of acquiring cryptocurrency. It is acquired in two ways:

Independently using equipment sold freely. Of course, the cost is very high and expenses for the power you need to consume are even higher.

Using cloud mining, you get to rent powerful equipment, you pay depending on the hashrate, and you get acquired cryptocurrency or the fiat equivalent on an electronic wallet account.

Option one: Assume that you've bought expensive equipment, considered the cost of the power, and started making acquisitions, for instance in bitcoins (the most famous cryptocurrency), more or less at home. What will be your annual income?

When using the most powerful equipment, at a minimum kW/hr rate without including inflation, the income will end up no more than 40% per annum . It may seem to be quite a lot, but... that's under the ideal circumstances. Since the cost of power isn't the same everywhere and the equipment might not work the whole day, it will overheat and require cooling. This is lost time and thus lost money. On top of that, keep in mind that any equipment can simple break down.

Option two: cloud mining. In this case, you no longer have to worry about the cost of electricity and buy up expensive equipment. Just find the service that suits you the best; make a rent payment for a month, half year, or year, etc; and mine! If you're not mining bitcoins (which have become ever harder to acquire), but rather, ethers, then your income may be 60-70% per year.

Do you think it's that simple and profitable? No. And here's why:

Nobody will sell you power according to its actual cost and the mark-up is always a minus to your income.
The service always takes a percent. In other words, you won't get anywhere near all the cryptocurrency you're mining.
There service may end at any moment and you can't control that. This means that risk is inevitable. Plus, I can tell you that about 90% of all cloud mining services are scams! They work based on a pyramid scheme and in a couple months, after collecting enough money, they'll just evaporate. You'll never find them.