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,
I think you smoked too much weed and "brokjen" your head. Cloud mining will, in almost 99.999% of the cases return less coins then you could have just purchased. You're also then at risk of losing out on a price spike to sell because you'll be sitting there with your thumb up your but waiting to earn your coins back hoping the spike doesnt deflate beflre you get your chedder back.
And that is why Cex.io was "smart" and the buyers of their hash were "stupid".
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
Total time invested, about 20 minutes and daily checking of prices.
Mining on cloud mining or selling on cex.io to try to break even - endless nights of work to gain 1BTC.
Comedy of errors.
I think that gambling with cryptocoins and mining cryptocoins is a pretty different task. Mining has its own magic. Also when you decide to become a miner you have to follow all new altcoins and be alert for any new and interesting coins. In case I knew (and anyone of us knew) that BTC would sky-rocket on Jan 13 I would have definitely bought some BTC back then. But this is a retrospective approach and nobody knows what the future of any coin will be. We, as miners keep all coins going. Without mining all minable coins would be dead.