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Why cloud mining companies even exist?

Discussion in 'CryptoCurrency' started by Pete Friedman, Apr 14, 2015.

  1. Pete Friedman

    Pete Friedman Regular Member

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    Hello,
    I'm wondering why cloud mining companies (websites on which you can rent computer power to mine bitcoins) even exist. Since they already have all the hardware needed for mining, why don't they just mine themselves? Wouldn't that be more profitable for them?
     
  2. pike222

    pike222 Regular Member

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    You do realise who made the most money in age of gold rush ...
     
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  3. googs70

    googs70 Newbie

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    i dont know why jafeerh thanked pike222, nor do i know why pike222 made that post.
    i had to google his answer, to find out the answer, and luckily, im old enough to know why and how.
    pike222 should stop assuming everybody knows what he knows, and not reply with rubbish like that.

    In answer to the OPs question, i would think as long as miners power costs are lower than what they charge you, they profit.
    They rely on lots of people doing it to make it worth while, and it would be only a small part in their big business, every $ adds up..

    i hope that helps you understand better Pete ;)
     
  4. pike222

    pike222 Regular Member

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    Ho Googs,

    Why i told in post above is pretty basic stuff buti see you missed my point let me explain a bit more..in the ages of gold rush when everyone was crazy with gold rush and where thinking they are going to make a lot of money over night ,people who actually made money where the ones who sold shavels ..

    same can be applied in this case.if these guys could make money mining bitcoins they would not rent their resources for
    others to make money...

    Hope you now know why i made that post ..

     
  5. RuthSam

    RuthSam Jr. VIP Jr. VIP Premium Member

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    What ??????????????????? cool-story.jpeg
     
  6. demonicsheikh

    demonicsheikh Registered Member

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    There is no need to go in deep OP.
    It is simple. Have you been to Fiverr? Many of the gigs make me think that why these things even exist! but when i see people purchasing the same service i think twice.....
    They(Cloud hosts) offer service and people buy the service to get BTC.
    Hosts get profit selling a service and miners well sometimes profit and sometimes loss. Depends on your strategy. Both parties get what they want.
     
  7. PitchBlackHat

    PitchBlackHat Registered Member

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    Because people are gullible?

    I mean, if you had the luck and discernment to mine a future favorite alt coin, good.
    But it's maybe easier to win at the casino now a days...
     
  8. mazar

    mazar Regular Member

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    i wander more about them getting lots of people to help pay for a 51% attack