Sorry if this is a super newbie question, but I am trying to understand what this is...

Please let me know if I got this right:

The bitcoin mining difficulty is constantly increasing as more people are competing to mine the same # of bitcoins and the number of "mine-able" bitcoins decrease.

AMHASH1 is a contract for the use of the current mining equipment on hand right now and AMHASH1 will never upgrade its equipment through their servicing fee.  This equipment will eventually be made obsolete because of the mining difficulty issue.  Once the equipment becomes too inefficient to produce a profit for the contract holders they will cease operation, the shares will no longer pay a dividend and will become worthless.

The primary variables that affect how long the cloudmining contract can continue and produce dividends is the price of BTC and  the rate of the increase of the mining difficulty.  Contract holders are just speculating that the contract will eventually at least pay dividends worth at least 100% of the price of the contract before AMHASH1 inevitably goes out of business.


Is this roughly how this works?