Really? I must say I didn't went deep in research, I just read it a couple of weeks ago and it stayed in my mind, I was hoping to talk about it with some one experienced, I'm gonna doble check it now, thanks man.
Businesses sell profitable contracts (crypto or otherwise) all the time. The mining operation doesn't want the crypto volatility. They want a buyer that is willing to pay them more than their costs are so they can be assured a profit. If BTC soared to $70k tomorrow every contract in existence today is profitable. And the mining business doesn't mind because they have the same profits as if BTC dropped to $1k tomorrow.
However, it still likely never makes sense to buy cloud mining contracts. Not because you can't make a profit. You can if the price increases. But you will never earn more than if you had just taken the cloud mining fee and bought your crypto instead of mining it.
If they are cancelling contracts they are scams, not businesses. No doubt scams exist but are you saying, for example, Genesis Mining would cancel your cloud mining contract when they deem you have just about made back your money, regardless of time remaining on contract?
I don't believe in
Cloud mining, they are built to
Make you lose money.
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Really? I must say I didn't went deep in research, I just read it a couple of weeks ago and it stayed in my mind, I was hoping to talk about it with some one experienced, I'm gonna doble check it now, thanks man.
They sell contracts, and the contracts "expire" before you hit break even as they start to lose money.
Why would anyone sell a contract that is profitable to a third party when they pay for the hardware and electricity and have it running.
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Businesses sell profitable contracts (crypto or otherwise) all the time. The mining operation doesn't want the crypto volatility. They want a buyer that is willing to pay them more than their costs are so they can be assured a profit. If BTC soared to $70k tomorrow every contract in existence today is profitable. And the mining business doesn't mind because they have the same profits as if BTC dropped to $1k tomorrow.
However, it still likely never makes sense to buy cloud mining contracts. Not because you can't make a profit. You can if the price increases. But you will never earn more than if you had just taken the cloud mining fee and bought your crypto instead of mining it.
This, but also the fact they cancel contracts when it becomes unprofitable to them, which is around the same time you start to approach breaking even.
If they are cancelling contracts they are scams, not businesses. No doubt scams exist but are you saying, for example, Genesis Mining would cancel your cloud mining contract when they deem you have just about made back your money, regardless of time remaining on contract?
Yes, they have it in their clause they will cancel when it becomes unprofitable to send payments. Which is generally before you start breaking even.
Outrageous
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