There is the same recurring argument about mining hardware vendors: why do they sell hardware instead of keeping it for themselves?
Easy:
- First of all they ARE taking a cut on the mining profit (covering their hosting running costs + a markup)
- By selling mining capabilities they are less exposed to the bitcoin rate variations, this risk is offloaded to the miners
- They get the money now instead of later

Come on now, you know this applies to 90% of the bitcoin ecosystem... I don't have these guarantees from blockchain, MtGox or Kraken either!
What I know is that in one year from now, your KnC Jupiter WILL be obsolete and no one will buy it. KHS don't become obsolete. They might devaluate but they're still the same KHS.

The prices look steep but you really should not compare to the cost of acquiring the physical hardware, because contrary to buying your own hardware, you can instantly re-sell your KHS (maybe with a benefit... but more likely with a slight loss considering the difficulty increase, which  you need to offset with your mining profit). So you should see it as a rental deposit instead of a purchase.

Today for instance, due to the high volume of KHS put on at fixed price by the service, the prices are flat at 0.0014444 BTC/KHS. If you buy now you're practically assured to be able to resell at 0.0014443 until the remaining initial 90+ MHS are gone.

The other big difference with home-operated hardware is of course the scalability... I have over 20MHS with them right now, I sure wouldn't be able to do that at home!

Overall I've been very happy with them so far, cruising at ~0.5% gains per day on my initial investment.


My referral link in case you'd like to try it out: http://scrypt.cc?ref=baaaY

Indeed I never really understood all the craze around cex.io - the current rates have no ROI unless you're hoping for trading profits, which I guess is highly unlikely since GHS prices will obviously go down as difficulty increases. I do not think anyone actually makes money there except cex.io themselves.

There is however one new service that I'm so far really happy with and am ready to recommend: scrypt.cc
I like it because:
- It just launched so there is a first big batch of KHS put on the market by the service at a prices that actually has an ROI (~200 days... but still there is an ROI even if the market price drops to zero). Right now it's 0.0014444 BTC per KHS
- It is scrypt mining, which I hope should make the difficulty increases much slower due to the relative absence of ASIC mining
- They have their own multipool, meaning they automatically switch to the most profitable scrypt coin at any given time - and contrary to SHA256 coins like bitcoin, which all have pretty much the same profitability, this actually makes a huge difference (for whatever reason I'm failing to understand)
- It has a great referral scheme: you get 5% of what your referrals mine!


I've heavily invested in it personally, and I'm around 20 MHS, which yields ~0.2BTC/day or 6.6 BTC/month (the profitability varies of course based on the coins profitability, but so far it's been fairly stable). At the current market rates this means ~10+% monthly interest rate, and since I'm reinvesting everything to benefit from compound interest I estimate that my initial ~25BTC investment should double in around 150 days (or 200 days without reinvestment, if I want to be better protected from potential KHS market price drops...).

Here's my referral link: http://scrypt.cc?ref=baaaY
Of course, as much as I'd like you to use my referral link, I *am* genuinely happy with the service for the other reasons mentioned above, so if you're doubting my intentions feel free to do your own maths and just use the non-referral link: http://scrypt.cc