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RE: Lessons Learned From The Genesis Mining Debacle
I have never seen the point in cloudmining.
If they have the equipment..why not mine the coins and keep them for themselves.
I have never seen the point in cloudmining.
If they have the equipment..why not mine the coins and keep them for themselves.
Exactly. I almost signed up and then asked myself that very question and could not answer it. It is like those ads on tv back in the day for psychic who will give you the winning lotto number. Why not use that gift to "see' the number for your husband or girlfriend after signing an iron clad contract.
Well the point of it for them as a business is leverage and a hedge. They get to leverage and buy more equipment at the cost of users taking a portion of the earnings...and hedging since the resale value of equipment (GPUs and ASIC) reduces eventually.
There's no way they would have gotten that big without funding from investors and users...it's just a mathematical game of scale, which is even more apparent since the the founders are really math geeks.
As for users, it really doesn't favor anyone using the service since you give up so much power...but there is opportunity none the less...and users basically take a chance for the opportunity.
True when the volatility of bitcoin was not as high as the past year or so. It makes no sense now for a cloud miner to share profits with users given the soaring prices for bitcoin.
sounds like the perfect set up for a scam.
Imagine that they did what you said....
then... about the time they get their equipment paid for....
"Oh my goodness...we got HACKED"...
all of the user's coins are gone.
oh my!