Questions about Cloud Mining

Answers to frequently asked questions about Cloud Mining

Today we will consider the most contradictory topic of Cloud Mining

Why it is contradictory? The fact is that a huge amount of fraud is connected with the principle of Cloud Mining and this happens because Cloud Mining is absolutely not transparent.

So, what is it? Is it worth it?

Cloud Mining is a mining process in which you do not have physical equipment, you do not use your own video cards.

You completely rely on the company that:

– will purchase video cards

– will purchase other equipment

– install it in their data center

– prepare the site

– configure all equipment

You only have to pay all expenses: company takes your money, and then pay  money for you for the profit from mining process.

In this model, of course, there is a certain risk because you can not be sure that the company has really invested your money in equipment and indeed mining is possible?

Consider several possible risks:

  1. A financial pyramid is created and at some point the founders of this “Cloud Mining” are hiding with the money of all investors
  2. Maybe the company is absolutely honest, but during those years that you work with them will happen some kind of force majeure and the company will be forced to close and will not be able to pay you all the money it owes.

Why do people agree to these risks and deal with Cloud Mining?

Cloud Mining removes from you all the problems associated with the equipment, there is no need for any maintenance, you do not have the sound of buzzing “flying planes” in the apartment, you do not have this “dryer” that constantly blows hot air … Of course this is all the great pluses of Cloud Mining

Another argument for Cloud Mining is the opportunity to start mining with minimal cash investments. If you want to do real mining you need at least a few thousand dollars. At the same time, a small hashrate, a small amount of computing resources in the Cloud Mining format, you can buy even for a few dollars or tens of dollars.

In which cases you can try Cloud mining?

– if you can make sure that the company (site) is reliable

– if you are willing to take risks, that the company will disappear before you receive your payments (and these risks are acceptable to you)

What you should pay attention to?

  1. The provider (sites / services) of Cloud Mining often like to hide part of the commission to show you a more attractive financial picture.

 

  1. Pay attention to the small font – it is there that hide all the nuances.

* for example you are offered to buy hashrate at a price of only $ 1, but in small text it is prescribed that you pay X cents per day for electricity and thus the price turns from 1 dollar to 1.5 dollars or even 2 dollars

 

  1. Cloud Mining services take most of the profit

* If, for example, at home, when you buy equipment for $ 1000, you would have received $ 1200 in profit per year, then in Cloud Mining you will earn 500-800 dollars per year (note: the figures are here for example only and are not exact calculations).

Conclusion:

– very clearly calculate all commissions, all hidden interest and payments

– if you can not find any important financial information on the site, always ask the support service

– make all the calculations in the Excel

– Calculate the best scenario and the worst scenario (calculate the options if your mining currency will grow in price and if it will fall, if the complexity of mining will grow faster or grow slower)