Cloud mining has been a heated topic recently. Some analysts say although the price of coins is going down, the price of cloud mining is rising in general. And some cloud mining providers have even run of stocks of their products.
To me the market a little weird. I think for the cloud mining industry to better develop, it should invite more competition. And buyers should evaluate the risk and returns in advance.
What is your thought on this?
The Reason we Cloud Mine is To Obtain Coin w/o inflated Platform Prices, and to sell coin once its become profitable.
Want an example of a cloud mining that is profitable, the person that buys Cloud Share right before the price of coin goes up.
Those who wish to buy something like a cloud contract and then sell the coins immediately are well Near sighted and of course 99% time Loose any return on their investment.
Just ask the Guy with 1000 Bitcoins he bought at 20$ uSD a piece and sold at 90$ woot profit huh
20 * 1000 20,000 invested
1000 * 90 90,000 Cashed out
1000 * 1200 1,200,000 Max profit....
1,110,000 Profit Missed
There were days when CLoud Mining BTC was not profitable wat so ever yet had those Cloud miners held for 6 months they would have profited 1000%'s of percent.
Simple,
Inflated platform prices are on the trading platforms themselves. Most Coins people bother to mine are inflated or pumped. Not all cloud mining operations could have been profitable but surley not all have been duds. Infact Cloud mining is becoming the most popular way to own a share of the mining power. Most people dont realize that you cant actualy determine profitablilty of a coin especialy when looking long term.
IMO A combination of things make profitability and in the end USER ERROR is were most people go wrong and loose money. Play your cards right and you can make skipping rocks profitable. Even Lottery winners end up poor beacuse well people who are stupid with currency are just stupid with currency.
Cloud mining companys offer a product, stupid people buy the product when its not profitable, people who research or intellegent people buy the product when its profitable or just before it becomes profitable. The Could Mining company doesent Care if your Stupid or intellegent their offering a service not free money.
Cant complain about that, services are good for crypto community. Scam Companys that steal pre order money are things that can bruise the community. I do suppose if BTC/LTC doubled in price tomorrow all cloud companys would suddently have a profitable product if purchased today. So Dont hate on the Cloud its As good as Gambeling by buying coins outright and selling when you seen a bump.
Buy 1000 BTC in Jan 2013 for about $13K on BTCe
Move coins to cold wallet
Sell 1000 BTC in Dec 2013 for $1.2Million on BTCe -- You see if the Man who purchased the 1000 BTC in DEC had instead Purchased Cloud Mining power a month Earlier he would have had a very profitable month Cloud Mining... Making your Statement = to mine buying coin = Great Investing in cloud = Great
First off cloud mining has more inherent risk than owning hardware. With owning hardware you can stop mining at any time and sell the hardware - recouping usually at least 1/2 your initial capitol. Very few cloud mining contracts let you exit at any time.
I can't really understand what you meant by the part I bolded. But if you bough a cloud contract back then you would have had a few BTC trickling in everyday as opposed to the 1000BTC sitting in your wallet. Assuming no slippage on an exchange you will ALWAYS come out ahead versus cloud mining.
Not 1 person has come out yet stating they made their ROI.
I suggest you read this:
https://bitcointalk.org/index.php?topic=739510.0