The truth about cloud mining, without referrals! (Week 30 Results)
Have you ever wondered whether or not cloud mining was even worth your time and money... minus the referrals of course?
Whether it's done via Genesis Mining, Hashflare, or CCG Mining, you'll now have the answer to the question you've been asking, after watching this quick case study below:
What have your experiences with cloud mining been like so far?
My quick 2 cents.
I bought ETH and XMR 2 year contracts on Genesis in early September 2017.
A simple analysis shows that if I had just bought the currency with the same amount of money I would be way better off than I am today. I’ve done the math a few times to figure out the percentage but I did not do it today. The difference was so vast that even after the crash we’ve had the situation remains the same.
ETH was about $294 and XMR about $115
I've been trying to tell people this forever, like why not just invest directly into the coins and tokens yourselves, why give some company 50% of your profits, and wind up breaking even in the end... this shit never made any sense to me unless you're a referral magnet.
My reason for doing it was that, at the time Coinbase would only allow me $60 per week investments, and I wanted a larger presence in cryptos.
But even with the current shitty prices, I would have at least a 200% return. Instead I haven’t yet broken even on Genesis.
Ha ha, $60.00 per week on Coinbase, they were totally fucking you bud!
Of course they were.
I had a decent sum I wanted to put into the space, but Gatekeeper Coinbase was protecting my interests…
Coinbase has always been good to me, so I have no complaints really.
I haven’t had issues with them either, except I hated that for the first 3 months I wasn’t given any room. And I don't like being protected from myself.
Hey, I hear ya, my limit was pretty low when I started too... but not that low.
Hey @tolkatore! Thanks for sharing Crypto Jedis report about Cloud Mining. I found that the first priority of cloud mining is to find a provider that is not a scam. Furthermore, I absolutely agree with Crypto Jedi, that serious money is required if you expect serious rewards. Get rich quick cloud mining doesn't exist. If a cloud mining provider promises crazy rewards with little invest, the profits are most probably based on referrals and the cloud mining service is a scam. The most important thing of cloud mining is to always go for the Bitcoin profit, not the fiat profit (ROI should be calculated based on Bitcoins). If the amount of Bitcoin spent is higher than the amount earned, money is better spent buying Bitcoins. Another crucial aspect is the fees. I found that some cloud mining providers charge a fixed maintenance fee per TH/s. Since the maintenance fee is defined in fiat currency, the relative amount of fees increases significantly when the price of Bitcoin drops. I saw maintenance fees go from below 10% to over 60%. Thanks again for sharing and keep up the good work!
Cheers -@sblue
Which is exactly where the scam aspect comes in, because a lot of people will argue that just because they don't run away with your money, that it is not a scam, but if you give them a bunch of money, and then wind up breaking even in the end... is that not a scam?
I'd say that it depends. Everone who buys a mining contract or mining hardware should be aware of the risk. There's nothing scammy about the odds not being in your favour when taking such a high risk. Of course, the line blurs if it comes to maintenance fees and when all risk is outsourced to the customer. Having crazy referral programs, empty promises about profit, and selling thin air by lying about having hardware is where I draw the line to call it a real scam.
I respect that, but I will always be an avid believer that buying the coins and tokens themselves is the best option.
I wouldn't disagree with that per se. In most cases, odds are in your favour. I even came to the same conclusion for my situation. Electricity and housing costs are too expensive for me to have my own mining setup. It couldn't compete with the rest of the world. And mining contracts are too risky due to the added overhead of costs, which lowers the profit and strongly couples it to the Bitcoin price. I'd even agree with you to call it a scam when all expenses and risks are outsourced to the customer and the cloud mining provider can walk away with profit (or breaking even). So... No mining for me either 😅
Yeah, the whole thing just never sat well with me, but to each their own I guess.
Instead of spending thousands of dollars on Bitcoin mining hardware, you can pay someone to lease their hardware and keep the profits to yourself. The company that rents out the miners takes care of the maintenance and all of the hassle of setting them up.
Yeah, and they also windup taking all your profits too.
I'm using Hashflare and I'm not disappointed :D Especially right now with 30% off!
Even with the 30% off, I'm not sure you're going to make a profit, but you could easily do the math to find out overtime.
Solid video, love the Fett background.
I bought a genesis and a hashflare contract. The Hashflare one is interesting because of the ability to reinvest and purchase more mining power. With the value in flux, I've started keeping the payouts rather than reinvesting, hoping to time the market a bit.
What are your thoughts on difficulty increasing over time? Should we expect to see a 9% drop WoW moving forward? Could it escalate exponentially?
I expect mining to become a zero sum game really soon, if it isn't already my friend.
I think we need to come with new "tricks" for bitcoin mining
Ha ha, tricks is right.
This is the only way....
Well I am not that good at crypto and mining stuff, but I learned that mining stuff can yeild a good income
Yeah, self-mining, and cloud mining are two totally different things bruh.
Can an individual do mining at home?
Yep
What stuff does he need to start the process
This is 100% true. its totally depands on our mind also
Interesting post @tolkatore! I do not know much about the subject but it is always good to learn something new. :-D
Yeah! is it true, it depends on your time and money