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MikeJohnson

What are your thoughts regarding cloud mining?

This is one of those subjects that you see so many people coming out from multiple angles with very strong viewpoints.

Are cloud mining companies scams? Are they legitimate? Do you require pictures of equipment before investing?

Let's hear your thoughts.

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  • rafabit4000

    Look, most cloud mining needs no equipment, just buy gh / s in its mining contract or even kh / s, depending on the algorithm used to mine. Two good examples of sites that do not require hardware to mine are: http://www.gawminers.com and https://cloudminr.io/, and the second to make the first deposit, earn 50gh / free.

    Others I could mention is the http://cointellect.com/?code=05cae232

    where I am registered and already have almost 4,200 Dogecoins equivalent to € 0.6602, where it is automatically converted to that currency and you get in paypal. I have no graphics card to mine, use only cpu.

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  • Alchemix

    This is a long overdue thread topic...but i dont think we will get many opinions from this forum. Personally im invested in 2 different cloud mining companies and im kinda on the fence with results.

    Im actually beginning to lose faith in any form of mining bitcoins. It appears we have passed the point of no return and maybe the only way to acquire bitcoins is to "earn" them with goods or services.

    Multiple cloud mining companies which have turned about to be scams, more looking like they will go that route any day...more companies selling newer and better asics etc etc. It all just seems to end with the customer having less btc than they started with...

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  • MikeJohnson

    @rafabit4000 Look, most cloud mining needs no equipment, just buy gh / s in its mining contract or even kh / s, depending on the algorithm used to mine. Two good examples of sites that do not require hardware to mine are: http://www.gawminers.com and https://cloudminr.io/, and the second to make the first deposit, earn 50gh / free.

    Others I could mention is the http://cointellect.com/?code=05cae232

    where I am registered and already have almost 4,200 Dogecoins equivalent to € 0.6602, where it is automatically converted to that currency and you get in paypal. I have no graphics card to mine, use only cpu.

    It seems that GAW Miners is now really pushing away from cloud mining and moving to cloud staking. I recently saw that a $50 investment in GAW Miners will now take 1,900+ years to ROI.

    1 Mh/s is yielding about 1 satoshi per day. I'm not sure I would call that profitable personally.

    I haven't seen CloudMinir as of yet but am going to check it out soon.

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  • MikeJohnson

    @alchemix This is a long overdue thread topic...but i dont think we will get many opinions from this forum. Personally im invested in 2 different cloud mining companies and im kinda on the fence with results.

    Im actually beginning to lose faith in any form of mining bitcoins. It appears we have passed the point of no return and maybe the only way to acquire bitcoins is to "earn" them with goods or services.

    Multiple cloud mining companies which have turned about to be scams, more looking like they will go that route any day...more companies selling newer and better asics etc etc. It all just seems to end with the customer having less btc than they started with...

    Even Gavin Andresen suspects that most cloud mining companies are ponzi scams at this point.

    The idea that you can purchase a small sliver of an "industrial mine" certainly seems to be a good one initially but it seems we've seen more and more ponzi scams than legitimate operations at this point.

    The extremely large cloud mining operation PB Mining recently closed up shop raising even more questions about the legitimacy of the operation and cloud mining companies overall.

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  • Alchemix

    Speaking about GAW specifically, i really hope they dont turn out to be a scam. Other than Genesis Mining, they are the other company im personally invested in.

    If i were to lose all the money i have put into both of these cloud mining companies, it wouldnt be that big of a deal. I cant say the same thing about a few other people i know...

    GAW is almost too good to be true...they seem to be the type of company that uses magician type diversions to trick their customer base. When i first heard about them, i was on pace to invest a lot of money into their asics.

    I then decided to start reading ANYTHING regarding their company and the CEO i could get ahold of...this lead me to significantly slow down the amount of btc i was sending them.

    To be honest, i have read some of the issues you have had with them on bitcointalk (if your the same person) and its not looking good for them in the future. I just have a strange "vibe" every time im reading posts on their forum.

    If anyone else here has anything to add regarding GAW, i would love to hear honest accounts of both positive and negative. Speaking of negative, its almost hard to read threads on bitcointalk regarding GAW. Even if many of those guys have had bad experiences, the nature of those threads are so tasteless,vulgar,immature etc etc that its a real shame.

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  • Rassmus74

    The only cloud mining I try to stay away from is CEX. Even if I think they are one of the serious cloud mining companies. In the end I was actually loosing money from having bought their miner. The maintenance fees was so high I had a negative result. But Hash Profit is my goldmine at the moment. I hope they will be on the market many months/years since everything I get from them now is pure profit. CoIntellect is an uncertain investment even if you don't have to invest. I'm not sure what this company is, maybe they have Trojans in their code.....I don't know. But I still run their miner on my PC earning me 500-1500 doge/day. Hashie got my attention when they introduced AmHash. I bought some GHS from them but not sure yet how good they are. But I had a free miner there that had been working for a while so I didn't have to invest that much.

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  • Rob

    I have zero firsthand experience cloud mining. But I did a small project for someone who was one of the top people at a cloud mining company, and I had the chance to ask him straight out if it was ever more profitable to buy a cloud mining contract with his company than to just buy Bitcoin. I was surprised that he basically admitted it was better to just buy Bitcoin. He said they presented their contracts to look attractive, but the details used the present network hash rate, and didn't take into account the projected increases in the hash rate during the term of the contract.

    To defend their company, he said a lot of people just don't want to buy Bitcoin, but they do like the idea of being hands on, and mining Bitcoins… Not that cloud-mining seems very hands-on to me, but maybe it does to some people. And he said it's a way to get more people involved in Bitcoin.

    Of course, any company could go broke, get hacked, be running a Ponzi scheme, or have other issues. All considered, cloud mining seems like a lot of risk to me, and thus I've never had any desire to give it a try.

    On the other hand, I was thinking a positive side of cloud mining is that we do need hashing power to secure the network, and I supposed any real cloud-mining company (and everyone who buys a contract with a such a company) is helping to secure the network.

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  • rafabit4000

    Look, if it's hit or not, I can not say, because I have no proof. But if someone feels hurt by the mining companies can opt for another type of way to earn bitcoins or even altcoins.

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  • Theogoodman

    Pictures dont mean anything. You have NO idea much or how little hashing power is being shown, what pool they are mining ect. GAW looks like it has gone full ponzi, CEX is too big for its britches.Genesis Mining´s owner seems like a genuine nice guy, still doesnt prove much.

    PB= No pictures, No workers , just payouts - no big suprise bitcoin-trader.biz= yes they also had cloud mining, if a company is giving away 20$ to everyone at a conference, then you might want to think about why that is. All others= PONZI UNTILL PROVEN OTHERWISE

    At inside bitcoins paris I asked the mining panel consiting of Genesis Mining and Bitmain "how can we audit cloud mining companies" Bitmain said that there is no real way to do it, they do not disclose informaiton about orders unless the client wants them too. Bitmain rep Yoshi also suggested that companies could point all power to a pool for a few seconds to show power. Genesis understood the reservations people have, invited them to vist any location (of course at your own travel costs). Also pointed out that pointing to a pool as described could be a disatvange since other mining companies would see exactly how much power they have. The total minng power is kept secret for tactical reasons according to Genesis.

    There is no way you can ROI at CEX because of fees, you could trade GH, but that is trading not mining.

    Probaly better off not cloud mining , buying a set up for at home and learning how to use it, if you are able to sell your mining gear for an ok price when you want to stop mining you might break even, this of course depends on how much your power costs per kw/h You could also make a deal with someone you trust if they have cheap power and have miners sent to them. More work, but a lot more learning about mining and crypto.

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  • Venik

    Guys what do you think about www.bitcoincloudservices.com? A guy from another board made a test with different cloud miner companies. It is a german board so i will translater over google translator ;) .

    Here are the current numbers and yields of 4 Mining cloud providers CW 51 / 12.21.2014

    1.) All suppliers listed here paid to 21/12/14 from over and the pages are accessible 2.) All amounts companies here are REAL Duch purchased GH generated, WITHOUT consideration of referral income 3.) Of course there is always the risk that those providers are suddenly gone with the inserts.

    PB Mining is not listed on. The site is indeed achievable, but the seller no longer pays off, though Payouts are displayed in the customer area. In addition, the amount of revenue is so minimal that an ROI can never be achieved (0.00000014 BTC / GH / day).

    Bitcoin cloud service currently 0.0017 BTC / GH / 1year with earnings of 0.0000127 BTC GH per day (12.21.)

    grmining currently 0.0017 BTC / GH / 5years with earnings of 0.0000117 BTC GH per day (21.12.)

    ZeusHash current from 0.0027 BTC / GH / unlimited with earnings of 0.0000066 BTC GH per day (12.21.)

    hashnest UMISOO currently 0.0008 BTC / GH / unlimited with earnings of 0.0000057 BTC GH per day (22.12.)

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