mining rig/hash power rental?

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txholdem

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i am not sure about the reasoning behind this.

if you can profit from mining, why do you rent out your rigs/hash power?
is there some kind of tweeking, with given hash power/rig, that can make a significant difference in outcome? (i.e., significantly increasing profitability?)

and can someone explain the hash power rental pricing from nicehash? e.g., 2.9BTC/TH/day.
what does that mean? TH*day?

also, they dont specify algorithms, e.g., SHA-256/scrypt/cryptonight, how do i rent just by a number like 2.9BTC/TH/day?
 
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Im not using nicehash but as far as I know.. Sometimes its more profitable to rent your miner than mining by yourself coz of many reasons f.ex pools with much more computing power can easly mine more than you alone.
Idk this price but i think its like 2.9btc for computing power 1 terrahash (1 000 000 000 000 hash)/s per day
 
what places do you know that are for mining rig for renting purpose?
 
Maybe they do it more to lock in profits with longer contracts. For example if they sell a 12 month mining contract now for 70% of the monthly amount you can make with the hashpower, then its a good deal for the buyer now, but in a couple of months time as the mining gets harder, it becomes a better deal for the seller.

So its esentially like freezing the mining difficulty for the seller and ensuring they can make back money on the hardware investment.

I must admit, I am totally guessing that, but it seems logical to me.
 
davids355 said:
Maybe they do it more to lock in profits with longer contracts. For example if they sell a 12 month mining contract now for 70% of the monthly amount you can make with the hashpower, then its a good deal for the buyer now, but in a couple of months time as the mining gets harder, it becomes a better deal for the seller.

So its esentially like freezing the mining difficulty for the seller and ensuring they can make back money on the hardware investment.

I must admit, I am totally guessing that, but it seems logical to me.
Click to expand...

yes, i thought about hedging, but with nicehash, there is no contract.
 
Safff said:
Im not using nicehash but as far as I know.. Sometimes its more profitable to rent your miner than mining by yourself coz of many reasons f.ex pools with much more computing power can easly mine more than you alone.
Idk this price but i think its like 2.9btc for computing power 1 terrahash (1 000 000 000 000 hash)/s per day
Click to expand...

nicehash can join mining pool themselves.

2.9BTC/TH/day = 2.9 BTC/(TH*day) .. the unit is different from BTC/TH/s/day or BTC/(TH/s*day)
if they indeed mean BTC/(TH/s*day) which is BTC/(86400 TH/day)... the unit is just wrong...
still dont get it.
 
txholdem said:
yes, i thought about hedging, but with nicehash, there is no contract.
Click to expand...

Just make sure they are established, I’ve done a few and they’ve disappeared shortly afterwards.
 
Nicehash is quite nice. I'm using them at the moment, and it's much profitable then just mining Bitcoins. They mine altcoins that are most beneficial for your hardware/rig. However, you can just not use Nicehash and just mine altcoins yourself to skip the service fees and other fine print fees, but I'm lazy so it ain't worth it in my opinion.
 
Nicehash was hacked recently.
They are not the company i would go with ( few of my friends lost some $k in that hack )
 
Why should you rent your mining rig? A simple answer
Instant and secured profits
Buy a mining rig for 10k$ (example) and rent it for 10k+$ a year then you got enought money to buy another one
So instead of waiting a lot of time on a year you can multiply your mining rig in size much more faster than if you used your mined coins to reinvest
 
They make money on contracts. Usually 12 or 24 month contract with locked hashrate. But as mining difficulty goes UP, your contract stays the same. Meaning over 6 months your rented rig could be easily making much less to no profit at all for its cost and you are doomed paying for it.
 
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