Please excuse my skepticism, but I'm really just interested in getting to the root of the matter.
Do you actually pay for someone else to mine BTC for you? Would you share monthly returns/ pay rates?
I find it hard to believe that there isn't a catch... why wouldn't the miner just mine and keep the profits themselves? My guess is that the miner makes more money from "renting out" their equipment than the actual value of BTC being mined, which means the "renter" is probably losing money.
Genuinely interested, cheers!
There's no catch. For a 12-month 14TH contract you'll be getting around $30/day worth of bitcoin. And miners do this because they get paid upfront. I.e. they can buy a mining rig with the money you pay them for a one-year contract. That lets them get into mining business with practically zero investment. They just have to uphold that contract for one year and then they own the mining rig.
Why wouldn't they let you buy them a mining rig? All they have to do is to run it for you for one year. So it's a WIN-WIN; you profit from mining without all the hassle with having an actual mining rig, and they get a mining rig for running it for you for one year.
this clarifies my doubt as why they are renting. put simply they mine BTC with your money for you. keep the convenience charge and gives rest to you.
but for me altcoins are more profitable. i love those tiny coins.
This is actually what I was looking for, thanks! I reasonable answer to a troubling question.
Same question i had in mind. For sure owner of equipment makes more money,otherwise they would not rent their equipment and do mining themselves. I think trick here is the payout limits. Most probably some high percent of the people who rent equipment and do mining do not hit the payout threshold and as a result leave their BTC s to equipment owner. So hashflare for example in this scenario earns money from renting their equipment and from left out BTCs..
The only thing that's risky is that some companies pretend to mine for you and then run away with your money. So you gotta go with a company that was in business for several years, such as Hashflare. Signup link for Hashflare is in the article above.