Stay away from cloud mining, with some exceptions.
So, ASICs are unprofitable, and it is a bit profitable to land on video cards, but what about cloud services?
In short - cloud mining is the best way to lose your money, and in some cases not to get income even due to the growth rate.
.. when users on the forum or in a chat, throw off money to someone alone in order to purchase expensive cryptocurrency mining devices, in the hope of earning income as a percentage of investments.
It makes sense, since it makes sense to engage in large volumes of mining (I recall, for example, 1 kW / h of energy costs for mining on the basis of video cards, will bring income of only about 52t.r. per year, while spending on equipment ~ 300t.r./ kW without taking into account the risk of equipment breakdowns, etc., it is possible and many times more, if you speculate a little, it’s true that the risks of a fall will be added), and it’s impossible to hold large capacities at home / inconvenient, but it is expensive to purchase a room. But when the amount of equipment increases, the cost of the premises becomes elevating, plus those who collect money for iron this place may already be available at a bargain price or for free.
.., web service with personal account and automatic payments, large capacity and premises, legal entity to solve problems with customs, etc.
In this case, the service also collects money on pre-order, otherwise the idea is the same, just different scales.
If in the previous case, the acquisition of equipment occurs simultaneously with the emergence of new customers, in this case, customers buy capacity directly from the service, which independently makes a decision and orders new equipment for its money, as well as mining itself for itself, if there are not enough customers.
.., new customers or the service itself. In my opinion, this is the most interesting way to generate income for cloud mining customers. This makes it possible to speculate with contracts, and, in the presence of liquidity, sell all acquired contracts before they become unprofitable. In fact, this is a simplification of the real life cycle of mining equipment - you buy it, hold it for a while and then sell it to the next customer at a reduced price, only in the case of cloud mining, the equipment actually does not move anywhere and everything happens quickly and without extra costs.
Often, such a service offers options for purchasing pre-order capacity as well as purchasing newly acquired capacity. In the future, users themselves form their own prices on the market (the first example from Google is Chinese oxbtc, it has been working in the cloud mining market for 3 years already).
If you look at cloud mining, nicehash is a unique service. Instead of independently purchasing equipment for mining, a service is offered for the purchase and sale of capacities between customers. Nicehash itself acts as an ordinary pool for miners selling their capacities, and for buyers there is an opportunity to purchase contracts for the selected capacity on the classical stock exchange, which will be available immediately or during the voiced period, and nicehash itself acts as a guarantee of power delivery, to issue the necessary power, not spent payment will be returned.
In no case do I advertise this service, and although I already wrote about it in the previous article, I continue to insist on my opinion - using their pool for cryptocurrency mining is noticeably less profitable than on other pools and selling self-produced, but very convenient, since everything happens automatically.
So, where are the profits, or rather the losses
At one time, a huge number of new cloud mining services ultimately turn out to be fraudsters, who in fact do not acquire any capacities, and the income to old customers is paid according to the Ponzi scheme from new customers. And they can also just run away without making a single payout (the first groups were often so). Now this has become less, I suppose because the market for cloud mining offers is very saturated, new customers are simply very difficult to find.
Plus, as I said before, mining Bitcoin, when purchasing equipment at the manufacturer’s price, is on the verge of payback per year, and since cloud mining cannot get devices cheaper (if it’s not the manufacturer), fraudsters can, without deceiving anyone, just to pay clients their investments as if they were really mine, and at the end of the contracts, keep the difference. It does not look like a fraud - but customers will lose money anyway, so why suffer.
To cheat a service, as I wrote above, maybe by manipulating the cost of service, making it very large. The high cost of electricity, the overestimated cost of the acquired capacities, the early closure of the contract as 'not profitable' (most services do not offer endless mining, but only as long as it is not unprofitable, plus a little time) as well as manipulation of the domestic market for trading power between customers .
The first is that before you carry money to cloud mining services, make sure that they are what they claim to be and not the virtual trading of dials on the site. To do this, the service must publish information about the miners, their capacities, as well as mined blocks by the service pool. This does not protect against fraud, but usually complete fraudsters cannot provide such information, almost all pools of mined cryptocurrency blocks are anyway known, and you can simply check if the fraudster does not slip his stats.
The second is that the service should clearly indicate the cost of sold capacity. No abstract contracts for a fixed price in fiat currency. Strictly - the cost of T / G / Mhash. Moreover, it is desirable to indicate what kind of equipment is used and what are its characteristics.
The third is very clear and unambiguously interpreted costs. The cost and cost of electricity for purchased capacity (how much is kilowatt and how much kilowatt consumes the contract), the availability and method of collecting commissions (before or after deducting electricity costs).
The fourth is a clear timeframe for the completion of the contract, usually a fixed term (a year or three) and a closing condition as soon as energy costs exceed revenues (for example, the rate of cryptocurrency has fallen dramatically).
No cloud service can promise you a guaranteed income, it depends on a lot of conditions that are not under control. It is good practice to inform customers about this. But, you can show the history of income from previous contracts, and the fact that I have not found a single service that shows this (nicehash paints history for the last month maximum, but something is not enough) proves that mining is not profitable.
Do income calculations yourself. Take the history of the change in complexity over the past year, for Bitcoin this is a completely predictable value, the growth rate for the last three years is constant, about 13% -15% per month, substitute the same growth in the calculator or calculate yourself at least monthly income, At least all calculators allow you to set your complexity, if you can not take into account its growth. Consider in the cryptocurrency that you extract (or use Bitcoin), but it is clear that if you have Altcoin, then its indefinite course (again in Bitcoin) will also bring noticeable risks.
Consider the cost of electricity in a pessimistic scenario, at the lowest rate that most people think, at least read a little about technical cost analysis or ask around others. You have to understand that the current selling rate of capacities on the domestic exchange will be very different from the future, be prepared to use automatic means for selling (bots), because manually you may not have time to do this when you find that mining does not become profitable - you are on this exchange is not alone.
And yet, carefully consider whether the risks are worth the meager income that you suddenly get.
In short - cloud mining is the best way to lose your money, and in some cases not to get income even due to the growth rate.
First of all, they are various groups (in Russian, "chipping")
.. when users on the forum or in a chat, throw off money to someone alone in order to purchase expensive cryptocurrency mining devices, in the hope of earning income as a percentage of investments.
It makes sense, since it makes sense to engage in large volumes of mining (I recall, for example, 1 kW / h of energy costs for mining on the basis of video cards, will bring income of only about 52t.r. per year, while spending on equipment ~ 300t.r./ kW without taking into account the risk of equipment breakdowns, etc., it is possible and many times more, if you speculate a little, it’s true that the risks of a fall will be added), and it’s impossible to hold large capacities at home / inconvenient, but it is expensive to purchase a room. But when the amount of equipment increases, the cost of the premises becomes elevating, plus those who collect money for iron this place may already be available at a bargain price or for free.
Secondly - the development of group to a full-fledged business
.., web service with personal account and automatic payments, large capacity and premises, legal entity to solve problems with customs, etc.
In this case, the service also collects money on pre-order, otherwise the idea is the same, just different scales.
Thirdly - further development before the exclusion of the pre-order phase.
If in the previous case, the acquisition of equipment occurs simultaneously with the emergence of new customers, in this case, customers buy capacity directly from the service, which independently makes a decision and orders new equipment for its money, as well as mining itself for itself, if there are not enough customers.
Fourthly - one more step in development, the ability to sell capacity
.., new customers or the service itself. In my opinion, this is the most interesting way to generate income for cloud mining customers. This makes it possible to speculate with contracts, and, in the presence of liquidity, sell all acquired contracts before they become unprofitable. In fact, this is a simplification of the real life cycle of mining equipment - you buy it, hold it for a while and then sell it to the next customer at a reduced price, only in the case of cloud mining, the equipment actually does not move anywhere and everything happens quickly and without extra costs.
Often, such a service offers options for purchasing pre-order capacity as well as purchasing newly acquired capacity. In the future, users themselves form their own prices on the market (the first example from Google is Chinese oxbtc, it has been working in the cloud mining market for 3 years already).
Fifth, multipool, intermediary for capacity exchange - nicehash
If you look at cloud mining, nicehash is a unique service. Instead of independently purchasing equipment for mining, a service is offered for the purchase and sale of capacities between customers. Nicehash itself acts as an ordinary pool for miners selling their capacities, and for buyers there is an opportunity to purchase contracts for the selected capacity on the classical stock exchange, which will be available immediately or during the voiced period, and nicehash itself acts as a guarantee of power delivery, to issue the necessary power, not spent payment will be returned.
In no case do I advertise this service, and although I already wrote about it in the previous article, I continue to insist on my opinion - using their pool for cryptocurrency mining is noticeably less profitable than on other pools and selling self-produced, but very convenient, since everything happens automatically.
So, where are the profits, or rather the losses
- The cloud service itself wants to eat, no one will work for free! This is usually a commission for servicing as a percentage of mined coins, but sometimes it is not directly, and it is hidden in the overpriced cost of electricity.
An excellent example was recently observed in a chat, the user showed a screenshot of a personal account of some cloud service, where the number of mined coins was shown and the maintenance costs were so high that the total profit decreased tenfold. And we remember that the income from mining is obtained on the verge of energy costs, which is at best 30% of revenues. - Favorable prices on contracts, if available, in a very short period of time. In order to catch such a moment, you will have to sacrifice or risk something, for example, to keep the necessary balance on the service account. And we remember that any service in cryptoeconomics is not regulated, and protection from the state can not wait, and therefore the chance to lose their investments is not an illusion.
- More or less noticeable income that you can really get from indirect services of the service - referral links, dice games or free coin distribution, which for me are only a way to attract new users controlled by the owners of the service, which means at the right moment all your bets will lose . I don’t know a single person who earned significant amounts on referral links, but in theory this is possible.
- The only real benefit I saw from purchasing the mining capacities of nicehash is promotion of a new mining pool, when investing sums in acquiring capacities and directing them to this pool (nicehash gives you this opportunity), you can increase its capacity during periods of failure, returning almost all the costs back (but it still turns out a small expense, if you repeat this all the time, as nicehash eats its own interest anyway).
Scammers
At one time, a huge number of new cloud mining services ultimately turn out to be fraudsters, who in fact do not acquire any capacities, and the income to old customers is paid according to the Ponzi scheme from new customers. And they can also just run away without making a single payout (the first groups were often so). Now this has become less, I suppose because the market for cloud mining offers is very saturated, new customers are simply very difficult to find.
Plus, as I said before, mining Bitcoin, when purchasing equipment at the manufacturer’s price, is on the verge of payback per year, and since cloud mining cannot get devices cheaper (if it’s not the manufacturer), fraudsters can, without deceiving anyone, just to pay clients their investments as if they were really mine, and at the end of the contracts, keep the difference. It does not look like a fraud - but customers will lose money anyway, so why suffer.
To cheat a service, as I wrote above, maybe by manipulating the cost of service, making it very large. The high cost of electricity, the overestimated cost of the acquired capacities, the early closure of the contract as 'not profitable' (most services do not offer endless mining, but only as long as it is not unprofitable, plus a little time) as well as manipulation of the domestic market for trading power between customers .
How to protect yourself from cheating
The first is that before you carry money to cloud mining services, make sure that they are what they claim to be and not the virtual trading of dials on the site. To do this, the service must publish information about the miners, their capacities, as well as mined blocks by the service pool. This does not protect against fraud, but usually complete fraudsters cannot provide such information, almost all pools of mined cryptocurrency blocks are anyway known, and you can simply check if the fraudster does not slip his stats.
The second is that the service should clearly indicate the cost of sold capacity. No abstract contracts for a fixed price in fiat currency. Strictly - the cost of T / G / Mhash. Moreover, it is desirable to indicate what kind of equipment is used and what are its characteristics.
The third is very clear and unambiguously interpreted costs. The cost and cost of electricity for purchased capacity (how much is kilowatt and how much kilowatt consumes the contract), the availability and method of collecting commissions (before or after deducting electricity costs).
The fourth is a clear timeframe for the completion of the contract, usually a fixed term (a year or three) and a closing condition as soon as energy costs exceed revenues (for example, the rate of cryptocurrency has fallen dramatically).
No cloud service can promise you a guaranteed income, it depends on a lot of conditions that are not under control. It is good practice to inform customers about this. But, you can show the history of income from previous contracts, and the fact that I have not found a single service that shows this (nicehash paints history for the last month maximum, but something is not enough) proves that mining is not profitable.
Do income calculations yourself. Take the history of the change in complexity over the past year, for Bitcoin this is a completely predictable value, the growth rate for the last three years is constant, about 13% -15% per month, substitute the same growth in the calculator or calculate yourself at least monthly income, At least all calculators allow you to set your complexity, if you can not take into account its growth. Consider in the cryptocurrency that you extract (or use Bitcoin), but it is clear that if you have Altcoin, then its indefinite course (again in Bitcoin) will also bring noticeable risks.
Consider the cost of electricity in a pessimistic scenario, at the lowest rate that most people think, at least read a little about technical cost analysis or ask around others. You have to understand that the current selling rate of capacities on the domestic exchange will be very different from the future, be prepared to use automatic means for selling (bots), because manually you may not have time to do this when you find that mining does not become profitable - you are on this exchange is not alone.
And yet, carefully consider whether the risks are worth the meager income that you suddenly get.
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