Quote from: TheUltraElite on Today at 05:35:15 AM

Quote from: mikelexus on July 04, 2021, 02:18:01 PM

I am new to this but I am very interested in reselling cloud mining/mining farms.

In order to resell a mining farm, you first need to own that mining farm and in order to own that, you would need to have bought that farm from someone. Seems ideal and if someone is really renting out their farm then this work out nicely.

This is not necessarily true. It would be possible for someone to sell pre-order cloud mining contracts that are estimated to start at some future date. In order to stay in business, you would likely need to have contracts with a manufacturer of ASIC equipment that will guarantee you will receive the miners by a certain date.

Quote from: TheUltraElite on Today at 05:35:15 AM

But in reality this is not the case. In the name of "Cloud mining" what exists are MLM/HYIP programs that use new investors money to pay off old investors like a ponzi and keep running this with no mining actually happening in the background.

Cloud mining has historically been very bad for customers, but I can't think of a time when cloud mining was bad for the sellers of cloud miners. Customers will eventually get burned, and the operator profits (or runs away with customer money).

IMO a more consumer friendly product would be some kind of synthetic contract that pays out up to a maximum of nBTC that is sold for something less than n, at price x, and the seller has to put up n-xBTC as security. The contract would pay out based on what a particular miner would be expected to produce, based on a preset electric consumption and electric cost assumptions, and based on the difficulty.