Quote from: buwaytress on January 13, 2018, 03:47:49 PM

Cloud mining as an industry is a curious one to me - externally, they are some of the most reputable establishments. They have influence in the media, they are seen as early enterprising successes by businesses, and they have played a role in helping securing the Bitcoin network in all these years. But internally, they suffer from a long track record of unhappy customers. Perhaps unfairly, as those unhappy tend to be the loudest and those in profit choose not to speak but in general, they could improve on a lot of things to improve their standing. This forum, in my observation, has many who agree cloud mining is unprofitable. Personally, I think they are a borderline rip off, targeting newcomers unfamiliar with mining.

In any case, you're on the right track if you're thinking to remodel. There are at least two huge projects (Hydrominer and Gigahash) that are trying to do something similar - managed mining (but in my opinion is just a more accurate way of saying cloud mining. They tackle two points you yourself bring up:

1. Selling electricity instead of hashpower. Electricity is more predictable especially if used up in shorter periods, rather than the typical annual or lifetime contracts sold by cloudmining companies. You buy X amount to run a rig for X time - and quickly you see profit or loss.
2. Improving transparency - absolutely! The most misleading thing outside of vague contract terms is the profit calculator. If you could provide transparent operation costs - electricity consumption and price per unit, blocks found, fees earned, Bitcoin liquidated, rental, maintenance costs. Why not? I would then say that if people bought "shares" of the cost, they then share in the profit/loss. No need for fixed formulas of costs earnings that probably aren't true anyway.

I don't see entirely why the cloud mining industry gets a "bad rep" when it comes to the customers. If cloud mining is profitable for people individually, there isn't a reason it wouldn't be profitable for both the cloud mining organization and the customer. But what it comes down to is greed, on the end of the cloud mining operation. There isn't a reason ANYONE cloud mining should not at least* get their money back in the near future. I mean lets face it, we all now 2 currencies can be mined and by mining Decred while mining Ethereum is more profitable than just mining full Ethereum. While the cloud mining operation "only" mines the Ether or Bitcoin, they are making a killing off the 2nd coin that they don't have to share the gains with anyone from.

I looked into Gigahash, their site doesn't work and already has scam reports. While Hydrominer is flat out a lie?...with the first few things I read on it. Based in Croatia, their electricity power is already at the rate it would be if it were Hydropower in the USA, Sweden or UK was being used. The ICO is more or less a way for the founders to just make more $ off of it, in the "sense of building/harnessing hydropower." These are just my mere findings.

----------------
So what I noticed in these last 2 days... people want reputable cloud mining operations- BUT no one wants to define what that is, in their viewpoint? Interesting.

Come on everyone, what is it that would lead to a "legitimate" mining operation in your eyes? I don't ask just because I feel like it, I ask because answers/findings will be used in the organizations development.

Thanks again!

AgronA

Posts

Merits