Cloud mining and holding bitcoin

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Lakeparty
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Joined: Mon Apr 25, 2016 7:57 am

Cloud mining and holding bitcoin

Post by Lakeparty » Mon Dec 11, 2017 10:42 am

Bitcoin has certainly been fun to watch. I have been really looking into cryptocurrency and converted a small portion of my portfolio to it. Just curious if anyone else has been cloud mining any crypto and what your experiences are? Trying to figure out what's the best thing to do with cryptos but for now seems like just having a small collection of some of the bigger market cap coins and holding them looks good.

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randomizer
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Re: Cloud mining and holding bitcoin

Post by randomizer » Mon Dec 11, 2017 10:44 am

Not even remotely tempted. Happy to get rich slowly, not interested in gambling.

quantAndHold
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Re: Cloud mining and holding bitcoin

Post by quantAndHold » Mon Dec 11, 2017 11:07 am

Lots of people use the cloud to mine bitcoin, but they usually use other people’s credit cards to do it.

The amount of money you’ll make from mining is less than the GPU time will cost.

barnaclebob
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Re: Cloud mining and holding bitcoin

Post by barnaclebob » Mon Dec 11, 2017 11:13 am

Why on earth would anyone rent time on a processor for less money than they could get for mining?

ensign_lee
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Re: Cloud mining and holding bitcoin

Post by ensign_lee » Mon Dec 11, 2017 11:19 am

barnaclebob wrote:
Mon Dec 11, 2017 11:13 am
Why on earth would anyone rent time on a processor for less money than they could get for mining?
This is a really good point.

If you're going to invest in bitcoin, just invest in the actual coin. And if you want to mine, get a miner and MINE. But don't pay someone ELSE to mine for you. They're just going to scalp you. Why would they sell their ability to make money?

In almost ALL instances, you would have been better off (gotten more bitcoin) had you done so vs getting into a cloud mining contract. The rising difficulty that resets about every 2 weeks will murder your financial expectations.

Compare how much in bitcoin you'd have had been able to buy with fiat at the beginning of a mining contract vs how much was paid out had you gotten in, say, 3 months ago. Or 6 months ago.

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rmelvey
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Re: Cloud mining and holding bitcoin

Post by rmelvey » Mon Dec 11, 2017 12:34 pm

I don't like the cloud mining services. A lot of them are structured like a ponzi scheme. You are usually better off just buying and holding the crypto yourself.

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Watty
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Re: Cloud mining and holding bitcoin

Post by Watty » Mon Dec 11, 2017 12:49 pm

rmelvey wrote:
Mon Dec 11, 2017 12:34 pm
I don't like the cloud mining services. A lot of them are structured like a ponzi scheme. You are usually better off just buying and holding the crypto yourself.
And they may not be all that secure.

https://www.wsj.com/articles/millions-m ... 1512625176

mega317
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Re: Cloud mining and holding bitcoin

Post by mega317 » Mon Dec 11, 2017 1:49 pm

We should chart the number of positive threads on every asset against the price.

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Veiled
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Re: Cloud mining and holding bitcoin

Post by Veiled » Tue Dec 12, 2017 8:47 pm

barnaclebob wrote:
Mon Dec 11, 2017 11:13 am
Why on earth would anyone rent time on a processor for less money than they could get for mining?
Ignorance. Wanting to get in without capital. It seems like another form of leverage...

I honestly go back and forth about this... Mining (putting a sunk cost down for a miner and building a wallet for the lifetime of the miner) seems better than exchanging my actual money for fractions of coins that will change in dollar price but not increase in my wallet. But then I'm still spending money on a physical doo-dad that might mean nothing if bitcoin drops or becomes irrelevant or finally depreciates as coins are lost.
Pardon me as I read these one hundred and fifty-seven SP vs LLC vs Scorp threads...

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