Mister Mister Posted October 25, 2016 Share Posted October 25, 2016 Hi does anyone know about cloud mining? Does it make any sense? Some people say it's a scam, as you naturally aren't going to get as much BTC back as if you just buy them. But doesn't this assume the price will be stable? Also it seems like this would only apply to people playing the short-term price speculation game. I don't see how the same economics wouldn't apply to investment in any other field. My head is starting to hurt from trying to do the math and economics of it, feel like I am missing something...If I think BTC is a good investment, does buying hashpower from a company in Hong Kong make sense? Or should I just buy the coins? Thanks for your help. Link to comment Share on other sites More sharing options...
Nima Posted October 25, 2016 Share Posted October 25, 2016 Hi does anyone know about cloud mining? Does it make any sense? Some people say it's a scam, as you naturally aren't going to get as much BTC back as if you just buy them. But doesn't this assume the price will be stable? Also it seems like this would only apply to people playing the short-term price speculation game. I don't see how the same economics wouldn't apply to investment in any other field. My head is starting to hurt from trying to do the math and economics of it, feel like I am missing something...If I think BTC is a good investment, does buying hashpower from a company in Hong Kong make sense? Or should I just buy the coins? Thanks for your help. Just buy the coins. In almost every scenario you're better off that way in my personal experience, and I run an ASIC mining rig Link to comment Share on other sites More sharing options...
aviet Posted October 25, 2016 Share Posted October 25, 2016 Hi does anyone know about cloud mining? Does it make any sense? Some people say it's a scam, as you naturally aren't going to get as much BTC back as if you just buy them. But doesn't this assume the price will be stable? Also it seems like this would only apply to people playing the short-term price speculation game. I don't see how the same economics wouldn't apply to investment in any other field. My head is starting to hurt from trying to do the math and economics of it, feel like I am missing something...If I think BTC is a good investment, does buying hashpower from a company in Hong Kong make sense? Or should I just buy the coins? Thanks for your help. Mining BTC is a bit like a printing press for the people - low barrier to entry, and thus making money is difficult. Everything I have seen about mining seems to suggest it is unprofitable, chasing profits in the future. The cloud mining firms I looked at a few years ago are now gone. I made the decision to buy instead of mine. I think the only time it would be a good idea to mine is with a new coin that will go up in value and then probably collapse. Your more likely to make money in trading, but since the last Bitfinex hack, which I was caught up in (Goxed also) I have pulled out of Bitcoin. I think its junk. Its been around for 8 years and already about 25% of the money supply has been stolen without restitution. The only real value it has is for making anonymous transactions. The bulk of the dollar price is speculative inflation. If the price of Bitcoin was set by people who are actually using Bitcoin in real transactions, the price would probably be a few dollars. With that said I don't think the BTC speculative bubble will pop until something better comes along, as the interest in crypt is real. Also, as BTC would be grossly deflationary if it was gaining more and more adoption, it would be useless as a currency. Link to comment Share on other sites More sharing options...
Mister Mister Posted October 26, 2016 Author Share Posted October 26, 2016 Mining BTC is a bit like a printing press for the people - low barrier to entry, and thus making money is difficult. Everything I have seen about mining seems to suggest it is unprofitable, chasing profits in the future. The cloud mining firms I looked at a few years ago are now gone. I made the decision to buy instead of mine. I think the only time it would be a good idea to mine is with a new coin that will go up in value and then probably collapse. Your more likely to make money in trading, but since the last Bitfinex hack, which I was caught up in (Goxed also) I have pulled out of Bitcoin. I think its junk. Its been around for 8 years and already about 25% of the money supply has been stolen without restitution. The only real value it has is for making anonymous transactions. The bulk of the dollar price is speculative inflation. If the price of Bitcoin was set by people who are actually using Bitcoin in real transactions, the price would probably be a few dollars. With that said I don't think the BTC speculative bubble will pop until something better comes along, as the interest in crypt is real. Also, as BTC would be grossly deflationary if it was gaining more and more adoption, it would be useless as a currency. I'm not interested in short-term trading, more storing long-term value. Link to comment Share on other sites More sharing options...
Nima Posted October 26, 2016 Share Posted October 26, 2016 I'm not interested in short-term trading, more storing long-term value. Mining doesn't store you much long term value, since mining output deteriorates as network hashing power grows. Link to comment Share on other sites More sharing options...
Guest Gee Posted November 19, 2016 Share Posted November 19, 2016 Mining is a waste of money mate, just buy it. If cloud mining turned a profit from mining, you would only sell the mining if the value of the sale was greater than the expected value of the mining. Like, if I have a cloud mining rig I can rent out, if my mining rig can net a bitcoin a day, and if a bitcoin cost $500 why would I rent it for less than the value of the bitcoin? I would lose money, right? Link to comment Share on other sites More sharing options...
Mister Mister Posted November 20, 2016 Author Share Posted November 20, 2016 Mining is a waste of money mate, just buy it. If cloud mining turned a profit from mining, you would only sell the mining if the value of the sale was greater than the expected value of the mining. Like, if I have a cloud mining rig I can rent out, if my mining rig can net a bitcoin a day, and if a bitcoin cost $500 why would I rent it for less than the value of the bitcoin? I would lose money, right? Right I get that. There are two reasons I imagined it might make sense. One is, if we sign up for a year-long mining contract, neither you or I know what the price of bitcoin will be in a year. The other reason, is that both of us may be interested in BTC as a long-term investment rather than a money making price speculation endeavor. So you get to mine more because I give you some money to help with your costs, and I can protect myself from a rise in cost. But I think I see the problem with that now. Link to comment Share on other sites More sharing options...
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