Cloud Mining - The Definitive Answer

MatthiHuMatthiHu Member Posts: 4
Hi guys,

this is my first post here so please bear with me if I have overlooked some forum rules.
Anyways, I consider myself to be a kinda tech savvy guy, own some crypto coins, did some trading and have also built a mining rig myself. I am getting more serious about it right now and I am really thinking about using some cloud mining provider. Certainly, they can, in principle, be more efficient than any DIY mining rig at home.
However, I am really unsure about what to choose and if this really is the way to go. Here are some of my considerations and it would be really interesting to hear your opinion on it. ;)

1) Scam and Ponzis. I simply didn't jump into it because of a complete lack of trust from my side. Many providers promise a ROI that is just surreal. There is so much misinformation and contradicting information out there that I simply don't know what to believe. I am living in Switzerland and the crypto scene is becoming kinda big here. So I used some local companies for e.g. buying Bitcoin in the past although they have really high fees, simply because I trusted them more. Still, I haven't found a cloud mining company that offers the same level of trust and yet a competitive cost structure.

2) Future Proof. Mining (with proof of work algorithm) to me does not seem to be here to stay. It is simply too much of a waste of energy and not scalable. With Ethereum probably switching sooner rather than later to something else, others will follow. With a legit cloud mining solution I don't have the feeling I can recover my investment before major changes are happening. None of the cloud mining providers offer a credible solution as to how they are prepared for the "end of proof of work mining".

Finally, I talked to a guy in Zug (Switzerland) lately who is planning to launch a cloud mining service here that kinda addresses to above mentioned problems. But I think it's really just in the beginning phase since he could not (or didn't want) to give a lot of information on it. He mentioned that he wants to solve the cost problem by reducing imbalance energy of renewables in the power grid. This really is becoming a problem for energy providers and it would be a win win to help stabilize the grid and yet have cheap power. For me this is also more justifiable from an ecological standpoint. Anyways, what do think of that?

I would really like to invest but preferably somewhere in EU or Switzerland since regulations are protecting customers a bit better here.
Looking forward to hearing your opinions,



  • mbrandombrando Member Posts: 21

    I'm in a similar scenario. All I've thought to do is to try services in small amounts after some research. You cannot trust the hype you see in the videos or what you read here. Not that anyone would be looking to deceive you straight out. However, they be having a good experience with the Ponzis they are involved with unknown to them of the Ponzis aspect. There is a fine line between some of what people have called scams and offerings that just really need more time to play out.

    I've been proding nicehash a bit to see what the overhead costs are there. So far I'm seeing from 15% to 30% depending on how you setup your contracts.

    - Mike
  • cidmocidmo Member Posts: 446 ✭✭✭
    ive been mining with hardware since 2014 and cloud mining on hashflare since last summer
    i think what ppl should do instead of investing in cloud mining is find someone locally who wants to upgrade
    i know the trust part is difficult but considering its local it should be easier to work out a trust based system

    for me i am maxed out on my circuits at home so i invested a lil in nicehash
    when they shortened contracts to a year i did the math
    they dont even have to buy hardware they just need to buy btc or keep ur btc
    then give u less back throughout the year in increments
    thats why they have contracts when genesis doesnt
    its a lending platform
  • MatthiHuMatthiHu Member Posts: 4
    Thanks for your answers guys. I think that it is kind of paradoxical that in crypto where the need for trust in others should not be required, so many services are so intransparent.

    Do you see any solution? I mean for me this would be, as you mentioned, something local that is obeying the laws and is therefore better rooted in society. (Maybe also beneficial for crypto in general). Also more realistic revenue forecasts would help building trust.

    I think you cannot go around obeying laws in the end. The physical world can never be trustless. That is something a lot of blockchain startups do not acknowledge in my opinion. The throw blockchain at some problem and that may close some security holes but then again you have to trust the hardware, trust the people, etc. You cannot go around real trust except for some edge cases, like e.g. the initial idea of payment.

    What do you think?
  • e_ownere_owner Member Posts: 12
    In my opinion it’s not really hard to define the scam website from a not scam. Scam website looks like a scam from the very first second you entered it.
    Some of NOT scams are: Genesis, Hashflare, CCG. I think so because:
    1. You can find really a lot of people using it and discussing the pros and cons, prices, etc.
    2. You can check the traffic of the website and see that it’s alive.
    3. You can check info about them: affiliate program, policy, conditions, etc. (It’s always evident when it’s all fake).
    As for the least, if you think that cloud mining as a notion is a scam, then you just don’t need to go for it. I, personally, think that it’s not. Still, I never invest more than I can lose, because every website can be hacked and even go bankrupt even if it’s 100% legit.
    So, this is my personal idea of how things go. Currently, I’m with hashflare. It’s not an add, but an advice. They are 3 years old now, that’s why they give a discount of 30%. Check the review, maybe you'll like it.
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