Here's some quotes from Guy:
Home mining is not going to be around much longer though. The big mining farms are making it so you cannot compete or get ROI. Whether we like it or not mining is moving to the cloud. There will still be some home miners, but not many and most will be in the cloud.
We believe that 2015 will be all about mining contracts. Mining contracts backed up by real hardware.
I agree with Guy.
With all due respect to Guy, this will never work for a simple reason that there is absolutely NO incentive to EVER use mining contracts vs buying bitcoin outright (in OECD countries). With the price of bitcoin approaching the cost of production for marginal players, all profit of such contract will be retained by the cloud mining company. I looked at every single cloud mining operation, and basically it is just a license to lose money (for buyers of such contracts, of course).
In theory, cloud mining has to prove that buying such mining contract will result in the GUARANTEED lower price per BTC acquired than could be obtained by buying bitcoin on the open market. However, such proof does not exist at the moment and is unlikely to exist in the future as well. Case closed.