RE: Is Cloud Mining On Hashflare Worth It?
I will start by saying that I haven't exactly been researching this for long - pretty much from when I discovered this post.
Those that say it is not profitable - it is not really hard to work out that it can be profitable. It takes about a minute to punch the numbers into CryptoCompare. the $830 Monero plan would yield about $1304 based on todays prices.
My main concern is the risk of your investment. in a few different ways. required hash rates could increase, or the company you're engaging could go bad.
$830 would buy you around ~2.35 XRM today.
If you mine, all things being equal, you would end up with around 3.8 XRM in a years time.
The benefit of buying today liquidity, and your XRM balance is certain.
having said that, the difference of 1.5XRM in 12 months time could be worth a couple of thousand.
It's very interesting whichever way you look at it. I'd like to know if there are any cloud mining operations for other minor alt coins. i'd love to min something like vertcoin.
Edit: ha since i made this post i ended up buying a little bit of BTC haspower on Hashflare - an amount that I'm happy to write off.
It'll take a couple of days for the transaction to hit my credit card so i can do the verification - but we'll see how we go.
Please keep me posted on how things progress on Hashflare for you.
How much hash power did you purchase?
Are you reinvesting the daily proceeds into more hash power or withdrawing it?
These are the two main risks with cloud mining but it also appears that the price going up on the coin would more than offset the incremental increases in mining difficulty. It comes down to trusting the company you're dealing with to still be around long enough to make good on your investment.
I have a good amount of Vertcoin too and would like to mine it. It's easier to mine than most coins and is designed to stay that way.
only 150GH/s.
If my calculation is correct - it should take me 6-8 weeks to earn back my initial outlay - based on todays current BTC prices. If it is looking that way in the first few weeks i will likely invest further - so to answer your question - i'll be reinvesting if it is looking like the numbers add up to tell a good story.
I would love to mine vertcoin - i'm very excited about where this coin is heading - but they're asic resistant so it is likely that cloud mining companies wouldn't find benefit in setting up those kind of service. I guess that's the "drawback" of being decentralised.
I am not sure whether i read it correctly, Are you assuming the numbers mentioned in CrytoCompare are accurate? Are you aware of the difficulty increase? CryptoCompare doesnt consider the increasing difficulty.
In the past 12 months, the difficulty increased from 7.1G to 115G. Meaning, monero mining became 1500% tougher. So you would end up getting far lesser XMR than crypto compare predicts after 12 months. You might earn more $ values than invested. But your XMR value would be far less. Meaning, You would have earned a lot more through buying XMR and holding it for 12 months, instead of investing in Cloud Mining.
Well they are accurate - at that point in time
If you're talking about a 12 month period then you have to also realise that the increasing difficulty happens for a reason, and that reason is usually increasing price. So the coins earnt when difficulty was low would now be worth more.
Anyways this post is very old, and I never ended up pushing forward with my trial of cloud mining
My point is if you buy the coin directly instead of buying hash, you would get more coins and your profits would get multiplied due to price increase. Instead if you get a contract, you would end up getting lesser coins than the projection due to difficulry increase. Which will result in far lesser profit than buying and selling.
except that isn't necessarily always true. it may be in some cases, but not always.
And difficulty doesn't always increase. It can also decrease.
When I did my bitcoin calculation, it worked out that I would likely hit break even point on a 12 month contract within 2-3 months.
Yes it is true every time. I am yet see proof of someone who earned more through CM(without referral bonus) than holding, in the same period of time. Difficulty decrease is such a rare occasion that you wont able to notice it in a 12 month contract. When you did your calculation, you wouldnt have considered the difficulty increase. It is the main criteria which cannot be predicted. Also you should not calculate it in dollar value instead the relative coin count/price on the day you bought the contract.
Say for example, in 2017, a 1500 dollar hashflare investment would have returned $4300 by the end. But the same investment directly in bitcoin, would have returned $19,600. This is always the case with cloud mining. Cloud mining would always give lesser profit than Buying and holding.