" BTC minimum withdrawal amount is set to 0.05 BTC. "

it would probably take you 2 years to make the first withdrawal, unless of course you invested more bitcoins in this cloud mining company which would not be a smart move.

Now let's see, you have 500 $, buy bitcoin and hold for 6 months, you will have good returns and most importantly, you are in control of your bitcoin. Is different from making a very risky investment in a cloud mining site where you will hardly make a profit, withdrawal and headaches because of adjustments of minimum values of withdrawals