Quote from: crazyivan on September 08, 2014, 04:37:21 AM

How is this different from simply using BTC to buy that particular coin at the first place?

Actually, that's a a good question, and the answer is rather simple: support. I'm a Megacoin fan (have I mentioned that yet?!) and I do what I can to support the coin. I can buy Megacoin (and I do), and I can throw hashrate at the network to make it (a tiny bit) stronger. I have limited options at home, so this service is rather perfect for me.

I have a few question marks myself though...
The more I'm beginning to understand cloud mining, the more I see pro's and con's, and the more less obvious things I see. One of the things is, does GM really mine Megacoin, or do they mine Bitcoin through the most profitable course, calculate the appropriate amount of Megacoin anyone should receive and buy that, and keep whatever's left to themselves. Kinda like GAW does with their hashlet's. They have different names, for different pools, but in reality they all mine the most profitable pool and the equivalent of each pool is payed out to those who "mine" at those pools. If a hashlet would mine at Clever and make 1BTC per day, but in reality that hashlet is mining at GAW's Zenpool where it actually mines 1.5 BTC, then GAW pay's the 1 BTC to the customer and has .5 BTC profit. Same sort of thing might apply here at GM. If mining at a Megacoin pool would make 100 Megacoin, but by mining the most profitable coin you mine enough to buy let's say 150 Megacoin, then it's a smart thing to do so. But is that happening?

So you see, I think there is a market for pure coin mining where hashrate is aimed at the exact coin of choice, just for those who wish to invest in the strength and future of "their" coin. That market may be small as most people can't say two sentences about cloud mining without mentioning ROI at least once. But that market is there. It's what I'm trying to realize actually.