Cryptotech.no cloudmining


#1

Hey guys, found a new cloud mining company out of my home country, and i wanna know your thoughts !

they claim to have developed a chip that reduces power consuption by 60 - 80%

plus norway has 98% renewables and subsidized electricity through the welfare state.

Will this combination revolutionize cloud mining as they claim?

If anyone want me to go investigate or try to contact anyone i am a native speaker hit me up

Links to their sight and introduction vid of the company



#2

I think they have a strong technology team and their ASIC seems great. I don’t know their operational skills but if they can get everything up and running, it should be a very interesting case to follow. Mining is a scale game and they need to go big.


#3

No matter how energy efficient their chips are i am against cloud mining. Now if they were to start selling their ASIC’s that is the point I would become more interested.


#4

Yeah, those ASIC’s seem nice. Could you elaborate why you are against cloud mining?


#5

Seen too many people get burned. @ImaginaryPi has done a number of posts on this. First you are taking all the risk upfront with your capital and unless you keep feeding the machine; the maint fee’s will eventually eat up any hashing power you have purchased.

If you have between $500 and $1000 you could set yourself up with your own miner that will pay itself off in a fairly short period and continue to operate as the price electricity is a flat line cost and the mined coins typically just go up in value if you are paying attention and not just mining every crap coin that comes out.

Another couple of points.

  • by mining yourself you help decentralize the network
  • You will more than likely learn a thing or two.

#6

@Nekko brings up a lot of points I brought up in my livestream while working on the rigs Peter and I mine with.

Basically I look at cloud mining like this:

By signing up for cloud mining you are taking on all of the risk. How? You have paid the upfront cost of the equipment for the cloud mining company. So you have put the money up, their responsibility is now to pay you back. They have not guaranteed to you any amount of payback. Your contract is at least a year with the stipulation in your contract that they may cancel your contract due to electrical costs, maintenance fees, or not profitable. Not profitable to whom though? So all of the risk of not obtaining your ROI is on you. For them, you have paid the cost of equipment and they will mine on that equipment until it is not profitable anymore for them. They also hold the assets which hold some value.

Next, most of them want you to pay them in crypto. You are paid back in crypto over time. If there is a fork during this time, you are out that amount.

I touched on this already but it is very important. Read your Terms and Conditions! The biggest lie on the internet is when you click that you have read the terms and conditions and you agree with them. No one reads all that “boring” stuff until it’s too late. Read it and make sure you understand it. Each one that I have read will have clauses for them not to have to pay you. For one reason or another, they don’t have to always pay you and it’s on their terms. If THEY deem it not profitable. This is the shift of risk from them to you.

They make money no matter what. Either through taking their portion of the mining, the equipment, or your violation of the contract.


#7

Thanks for good points. I am not going to put my hard-earned money into any of the most known sites. My impression is that they give low ROI and high risk. When it comes to mining in the garage: One guy offered me to set up an 8 GTX 1080 Ti 11gb - miner for me and teach me the basics. I already now how to run servers. But I am investigating alternatives and that’s when I came upon that Cryptotech company that has received some media coverage over here in Norway.


#8

Thanks for good points.


#9

If you can setup a server you can setup a miner. They are easy and there are tons of guides like the one here at the PUB.