The real truth about cloud mining and the scammers trying to sign you up with their affiliate links.
There of a lot of people on this site telling you to purchase cloud mining contracts using their affiliate code. These people are knowingly trying to rip you off.
They will point you to bitcoin profitability calculators that show that you'll mine X amount per day, X*7 per week, etc. and that you'll recuperate your investment in a couple of months and make sweet profit for the next year or two.
Wow, sounds too god to be true right? That's because it is too good to be true. The vast majority of those calculators completely ignore the fact that the difficulty increases reduce the amount you make.
For example, look at the mining calculator here which doesn't take into account difficulty increases. It claims that for 1Th/s with no electricity costs or other fees you'll get:
- 0.00001135 BTC/hour
- 0.00027237 BTC/day
- 0.00190656 BTC/week
- 0.00817097 BTC/month
- 0.09941351 BTC/year
As you can see, the amount of BTC it claims you will make in 1 year is simply 52x the amount you would make in 1 week. This is a fundamental misunderstanding of how mining works and completely ignores the difficulty increases.
If you take a look at this old post of mine, you can clearly see the effects of difficulty increases that should prove beyond a shadow of a doubt to you that cloud mining isn't profitable.
Do not waste your money on cloud mining and just and purchase and hold coins directly.
These guys trying to sign you up with their affiliate links are knowingly trying to rip you off. The reason for this is because cloud mining is unprofitable and the only way to make money from it (as opposed to just buying coins) is by getting loads of people to sign up with your affiliate link and causing them to get ripped off.
These people are scum. They are knowingly directly benefiting from your loss. Don't fall for their scam. If you see people pushing their cloud mining affiliate links, flag their posts and post a comment explaining that they're trying to rip people off. Feel free to link to my post proving that or to copy whatever content you want from it:
One of these scammers is @foodnature who keep trying to bury the evidence of cloud mining being unprofitable. I've asked him to address the points made in that link but he refuse to do so and just flags my comments in the hopes that other won't see them. So, let's see if he'll address them here. I guarantee you that he doesn't for the simple fact that he can't because like I make absolutely clear in the above link - cloud mining isn't profitable.
nice info dude! :)
I have been doing some cloud mining as an experiment for 3 months now, and it is profitable so far. Where you are right about increasing difficulty reduces the amount mined, the increasing price negates that. I know 3 months isn't very long, but so far so good.
The price increase just obfuscates your losses by comparing apples to oranges. You haven't made a profit from cloud mining at all. You've made a profit from the price increase which has nothing whatsoever to do with cloud mining. If you would have just bought coins directly the price would still increase but you would have more coins which would be worth more USD.
If you pay the equivalent of 1 BTC for a mining contract, you will get back less than 1 BTC. If you buy 1 BTC directly then you will have 1 BTC. By buying cloud mining, you've actually lost money compared to simply buying the coins.
I understand that. I took note of how much coin I could have bought at the price on the day I bought my contract. And I am comparing that to how much coin I am mining. After 3 months it still looks like I will mine more coin than if I just purchased. But time will tell.
You quite clearly are not taking that into account though. If you think you are, then show your maths.
Post the following details:
You're right, I am too stupid to calculate such things.
Cheers.
Given that you think you're too stupid to do the maths (which would explain why you think cloud mining is profitable), post you're details and I'll do it for you.
You wont do this though because you know what I'm saying is true.
Sorry, I am also too stupid to post details.
But I will post that so far I have mined 1/3rd the amount of coins I would have been able to buy on the day when I started 3 months ago. At this rate I will mine more than I could have bought around the 9 month mark. It will certainly take longer though, taking increasing difficulty in to account. Time will tell.
Cheers.
Do yourself a favour and look at the link I provided.
https://steemit.com/bitcoin/@marcusorlyius/thinking-about-purchasing-a-cloud-mining-contract-you-ll-change-your-mind-after-reading-this
The table shows that you would have earned about 30% of what you paid for the contract after about 3 months. It also shows that the contract becomes unprofitable after around 300 days and the total amount earned is only 45% of what you paid. That's with a 5% difficulty increase each round. Over the past 3 months, the difficulty has increased by 65% which is an average of about 11% each round.
You are massively - and I do mean massively - underestimating the effect of difficulty increases and you don't stand a chance of mining more than you could have bought. You can choose to believe otherwise if you want but you'll only be fooling yourself - making it more likely you'll buy more hashing power and lose even more money.
If you provided the details I asked for, I could have provided you with projections more specific to your circumstances.