How Can Cloud Mining Ever Work?

This post is not so much about video courses, but allow me a chance to talk about something else I follow closely – Bitcoin and Crypto. In this post, I want to talk about “the dream” that is cloud mining.

If you’re not aware, there are companies that will “rent” you servers to mine bitcoin. The servers live in their data center, use their electricity, and they take care of everything. You give them money, tell them your Bitcoin address, and they’ll turn it on for you.

Let’s use Genesis Mining as an example, although there are others.

Today, I can “rent” 100 MH/s of Etherium mining for a 2 year contract, for US$2799.

Using a web based calculator, I can see that 100 MH/s is expected to profit US$129.66 per month at current rates. Or $1577 per year, or $3140 in 2 years.

So would you pay $2800 today for $3140 in 2 years?

That’s about a 5% return on investment if nothing bad happens. Given the risk of crypto-currencies, and the up and down fluctuations of prices, there is a certain level of risk to this.

5% annual return in a high-risk investment seems a bit foolish. Put that $2,800 in a low-fee stock index fund instead.

 

About the Author

Just a guy happy to share his knowledge with people willing to listen.

61,000 students, in 174 countries.

“You can have anything in life that you want if you help enough other people to get what they want.” – Zig Ziglar

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