Great post! In a video of mine I mentioned how Genesis said that they were for people who wanted to be miners but did not want to take the risk. Notice how they did not talk about profit. Most of the newbs out there that fall for this don't give a darn about that though, they do want profit. They don't understand that even the "good company" admits that they provide a service (becoming a "miner" w/o the risk) that most of their customers probably don't even think about. People need to stop falling for this impulsive stuff. Don't be emotional with your Bitcoin. Be a machine and Buy and hold. Simple is better than fancy here.
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the only good thing about cloudmining is your ability to change what crypto you are mining after you buy the contract.
lets say I buy a contract for ZEC. What if ZEC crashes? If I bought it, I wouldnt really have anything to sell(very little). but with the cloud mining i could just switch over to another currency with that algorithm. other than that it increases risk and is not the best investment.
I have bought a $150 contract and am seeing the exact returns i calculated.
if we could get some kind of guarantee of proof of work being profitable for the period of the contract, this business model is not too shabby for someone who has no option to mine at home. but we cant get that.
with all that said i think cloud mining will find some very business savvy entrepreneurs that will arise with some new processing tech and make a better business model for cloud mining that is profitable and protects the users in some way
Are you sure you actually switch which currency you mine? I mine through Genesis and have a lifetime BTC contract, changed to DASH and the payouts change based on the price of DASH. I emailed Genesis and they told me I'm still mining BTC, just getting paid in DASH.
so the overall value of what they give you has changed to AS IF dash was being mined, yet you are still mining bitcoin. OR is it the same exact value overall but just paid in dash...?
but now as im looking it over it seems that bitcoin is used more universally as far as payouts go and maybe i dont know what im talking about. yet my original point still stands to some degree.
Hey, sorry it took so long for a reply, but here's what Genesis said:
Yes - you are mining BTC and getting a payout in DASH. Of course, DASH price has an impact on your payout, but much grater effect is on the mining difficulty and BTC price on the market.
Let me share some info about what events had impact on the decrease of your payouts:
These events all had an impact on your maintenance fee and on your earnings. Your fee is fixed in USD, but it changes daily according to the BTC price value. The lower the Bitcoin value, the higher the impact of that fee on your mining returns.
Bitcoin price is very volatile and there can be huge differences between days. Sometimes even between hours.
Difficulty depends on the total amount of hashrate which is hashing Bitcoin. A bitcoin block is released every 10 minutes, but the more computing power there is, the more likely it is that blocks are found by those computers quicker then 10 minutes. To counter that effect, the blockchain raises difficulty to make it harder to find blocks. For Bitcoin difficulty adjusts, very roughly, two or three times a month.
We are very sorry but unfortunately, we do not control these parameters - they are variable, as so it is the sheer nature of the cryptocurrencies. As any investment, it contents inevitable risks as well as possibilities of making a profit. We hope this explains it.
Thanks for your understanding.