RE: What is the best CLOUDMINING website? | Genesis Mining, Hashflare.io, Hashing24, Bitclub Network

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What is the best CLOUDMINING website? | Genesis Mining, Hashflare.io, Hashing24, Bitclub Network

in bitcoin •  7 years ago 

No it isn't and you know full well that it isn't. That's why you can't address the points made in this article despite you saying you would do so. I'm still waiting.

Cloud mining may seem profitable if you use a profitability calculator that doesn't take difficulty increases into account. It may also seem profitable if you include the increasing price of coins. If you compare the profitability of cloud mining to simply buying and holding coins though, the maths shows that cloud mining is unprofitable.

The above link shows that for 15Th/s and a 5% difficulty increase each round then you would only mine about 45% of what you could have simply bought. How on earth can you call that profitable?

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I can make it easy. In your post you are not considering game theory. The less profitable it gets to mine the less additional miners will join. So the assumption of a continuously exponential growth of the difficulty is wrong. You are spreading a post which is correct in itself but you are missing important aspects and your assumption about the difficulty rise in the future is wrong.

I'm actually downplaying the difficulty increase by assuming 5% as you can see quite clearly here. Over the past 3 months, the average difficulty increase has been about 11% per round. Over the past 6 months, the average difficulty increase has been around 8% per round and over the past 12 months it's been about 12% per round.

Does that mean it going to be over 5% on average for the next year? Of course not. But given the history, it's better to assume that it will be rather that assuming it won't based on "gut feelings" and "wishful thinking".

To claim that cloud mining is profitable is nothing but a flat out lie.