Mining Question

So I’ve read in a lot of places that cloud mining was not profitable and that just investing in btc makes you more money. Knowing this why do everyday people still mine, whether its cloud mining or actual hardware mining. You pay the same for both and since btc gets harder to mine as time goes on, why bother unless your at an industrial scale?

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Most people realize this with BTC, and that is why mining BTC is really dominated by “industrial” mining farms. For the average everyday miner like myself, there are still options. I can mine many different alt coins, or I can use a service called

This allows you to mine the most profitable coin at the moment and get your payouts in BTC. I went through the trouble of buying my own mining hardware for two reasons:

  1. It’s very interesting and fun for me
  2. After 6-8 months of mining, I will have my hardware costs recouped, and the coins are free from that point on

Hope this helps!

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Cloud Mining and doing your own mining are 2 VERY different things. You also dont pay the same…

Cloud mining… renting someones Hash power and taking the gains at hopefully a profit. typically small based on the investment.

Mining yourself. big upfront cost ($250-$700 per GPU) but you also dont pay a premium for the hashrate and its a 1 time cost not recurring, so once you’ve got your ROI its all profit.

For example… i spend $3000 on a Mining Rig. The rig produces 210 Mh/s @ 900W power… about $400-$450 a month dual mining ethereum and Decred.

At that rate ill get my ROI in 6-8 months if the difficulty dosnt go crazy. from there its profits(although dminishihg profits as months go by due to difficult increases)

once mining isnt profitable, i can resell the GPU’s to gamers for like 25-50% of my initial cost.

in short… the initial invesment mining yourself is large, but the profits are bigger and your overhead isnt recurring.

with cloud mining, small profits with a recurring cost but no overhead.

cloud mining is safer but you wont make a ton

mining yourself is more risk, a longer ROI, but much more profitable if done right…at least as things stand now

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But thats just the thing, if I put 3k into a btc lifetime contract on genesis mining I get 22TH making me $650 a month (I did take out the maintenance fee)

If this is true why do people say you don’t make money in the long run, especially if you keep reinvesting your profits.

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had just bought a Gtx 1070 for my workstation which currently mining on nicehash with i7 6700k 4.5ghz and gtx 970 for 0.0003 btc per day 300W power draw with 1200w psu lol

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A few reasons:

  1. 22 TH/s now profits you 650 a month, but what about when the difficulty goes up?

  2. you are relying on the cloud mining company to honor its contract/not go bankrupt/not get hacked/not disappear. if you mine your own coin, there is none of that risk

  3. since its a BTC contract, if BTC goes PoS or the difficulty spikes dropping profits, you cant change gears. with a GPU you could mine something else

  4. once the profitability is gone, you have no asset. with GPU’s you can still sell the hardware for a nice chunk.

for $3000 im not sure you arent better off just buying bitcoin.

with GPU i think its a safer ROI and you own the asset

With the S9 miner who knows what happens with bitcoin difficulty

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once mining isnt profitable, i can resell the GPU’s to gamers for like 25-50% of my initial cost.

This is a great point that I want to touch on in another topic. Most people think that if you buy your own GPU mining rig for $3500 you need to recoup all $3500. This is not true. The computer parts, assets, still hold some value. Yes there will be a flood of GPUs on the market but I bet that gamers are going to go NUTS! They are going to love that they can get 2 GTX 1070’s for less than the price of one AND they can run them in sync (SLI).

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They are fooling you with this “Lifetime Contract”. Check out this post.

This is coming STRAIGHT from someone in the pub. Read the terms and conditions for GM. They have a very clear statement in section 5.6 that says

“HashCoins reserves the right to change the launch date, Contract Term and/or Mining Term of any Contract”

So a lifetime contract now will, more than likely, turn into a 1 year contract.

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This is a great point. Every cloud mining company has fine print stating that they can terminate the contract if it is no longer profitable for THEM.

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I made a video recently with my 2 satoshis on cloud mining:

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I’ve been mining ETH for 5 months with gpus and already got ROI plus some. Granted I hit the ground running at exactly the right time before ETH exploded in value, but its working out for me. I’ve mined 22 ETH since I started

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