I have been doing some cloud mining as an experiment for 3 months now, and it is profitable so far. Where you are right about increasing difficulty reduces the amount mined, the increasing price negates that. I know 3 months isn't very long, but so far so good.
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The price increase just obfuscates your losses by comparing apples to oranges. You haven't made a profit from cloud mining at all. You've made a profit from the price increase which has nothing whatsoever to do with cloud mining. If you would have just bought coins directly the price would still increase but you would have more coins which would be worth more USD.
If you pay the equivalent of 1 BTC for a mining contract, you will get back less than 1 BTC. If you buy 1 BTC directly then you will have 1 BTC. By buying cloud mining, you've actually lost money compared to simply buying the coins.
I understand that. I took note of how much coin I could have bought at the price on the day I bought my contract. And I am comparing that to how much coin I am mining. After 3 months it still looks like I will mine more coin than if I just purchased. But time will tell.
You quite clearly are not taking that into account though. If you think you are, then show your maths.
Post the following details:
You're right, I am too stupid to calculate such things.
Cheers.
Given that you think you're too stupid to do the maths (which would explain why you think cloud mining is profitable), post you're details and I'll do it for you.
You wont do this though because you know what I'm saying is true.
Sorry, I am also too stupid to post details.
But I will post that so far I have mined 1/3rd the amount of coins I would have been able to buy on the day when I started 3 months ago. At this rate I will mine more than I could have bought around the 9 month mark. It will certainly take longer though, taking increasing difficulty in to account. Time will tell.
Cheers.
Do yourself a favour and look at the link I provided.
https://steemit.com/bitcoin/@marcusorlyius/thinking-about-purchasing-a-cloud-mining-contract-you-ll-change-your-mind-after-reading-this
The table shows that you would have earned about 30% of what you paid for the contract after about 3 months. It also shows that the contract becomes unprofitable after around 300 days and the total amount earned is only 45% of what you paid. That's with a 5% difficulty increase each round. Over the past 3 months, the difficulty has increased by 65% which is an average of about 11% each round.
You are massively - and I do mean massively - underestimating the effect of difficulty increases and you don't stand a chance of mining more than you could have bought. You can choose to believe otherwise if you want but you'll only be fooling yourself - making it more likely you'll buy more hashing power and lose even more money.
If you provided the details I asked for, I could have provided you with projections more specific to your circumstances.