How I have wasted money purchasing cloud mining contracts
Whatever amount of money I invested in cloud mining contracts was a waste. And I highly recommend that if you cannot market the crap out of your referral link ( and get thousands of referral incomes) then do not waste your money.
How did I get in to cloud mining Contracts –
I started looking into Bitcoin last May ( in 2016) when Bitcoin was about around $600. I was kind of sad that I did not pay attention to this digital money before 2016, although I actually heard of Bitcoin way before, may be in 2011 or 2012.
What did I do to own Bitcoin
When I googled “how to earn bitcoin” , I came to know about mining bitcoin. With my i3 CPU and no GPU laptop it was not possible to earn much from bitcoin mining and I did not have time for Bitcoin faucets. These are 2 easy ways of making some Bitcoin.
Read more at - http://abhiroopbhattacharyya.com/purchasing-cloud-mining-contracts/
I've thought about cloud mining briefly and I am having trouble seeing how one would make a base profit from it - unless you are betting on the price of the currency going up during the duration of the time you buy. I recall casually considering the numbers on nicehash renting power and recall it being similar to just buying the coin for the price. With that said, nicehash has a great mining program which I use on my gaming PC when I'm not gaming. I could definitely be wrong about the profitability - if someone would explain that would be great.
Occasionally there will be some coins that for one reason or another end up being profitable to mine on nicehash, or sometimes nicehash ends up being super profitable itself because of a coin having high demand. It requires heavy monitoring of exchanges so you know how much to try and mine and can dump onto an exchange and a still get your payments before any price drop. Nicehash works as an actual marked with bids and asks so its a lot more fairly priced, its also basically sold by the actual hash, so if you want to say submit 10,000 shares of a given coin you can order that much and either pay the market rate or wait and see if others are willing to sell at your price, either way you don't actually give up the money unless/until the order is done and it can be done in an hour or a day or whatever you like, but no one rents for an entire month at a time let alone 6 or more.
With these other "cloud miners" you are basically giving out a loan to someone with almost no recourse if they do not perform, in most cases its even specifically stated in whatever agreements they have that you are taking on all the risk, if the mining doesn't perform, tough luck, and they all have long term contracts that pretty much ensure you will stop earning anything before you make a profit. They will either do something like eobot did and say "oh sorry we can't afford the power bill any more want to have our old stuff now that its worthless?" or they will just take off with the money whenever the marketing gets over powered by people complaining about how they lost money and the fresh money stops coming in.
TLDR: Unless you REALLY know what you are doing you are better off just buying whatever coin you want to mine directly.
Thanks for the reply :3, I really appreciate correspondence on steemit as I think many people are caught up on voting and the like, and of course thanks for the explanation on how to play nicehash properly. You should write something up about it (or at least its mechanics) - I noticed you don't make posts, that reply alone would have made a good post.