Why cloud mining companies even exist?

Pete Friedman · Apr 14, 2015

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?

pike222 · Apr 14, 2015

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

googs70 · Apr 15, 2015

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

pike222 · Apr 15, 2015

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 ..

googs70 said:
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

RuthSam · Apr 15, 2015

What ???????????????????

demonicsheikh · Apr 15, 2015

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.

PitchBlackHat · Apr 16, 2015

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...

mazar · Apr 16, 2015

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

Why cloud mining companies even exist?

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