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Basic profitability math in a cloud mining crypto currency domain

2 points by nikita-leonov ↗ HN
Hey everyone,

I was looking into buying some cloud hardware for mining today. Found a cloud service genesis mining and did some basic math to justify an investment for me. Got disastrous numbers. Is it my math is wrong or service is a scam? Here are details — http://leonov.co/2017/сloud-mining-profitability/

Thanks in advance for the provided feedback.

2 comments

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LeoSolaris
Why would anyone rent out a dedicated mining machine for less than the return it would make mining, rather than mining with it for profit?
nikita-leonov
Absolutely right. There is no reason to rent it without profit, but an initial estimate for the people who is not aware how cryptocurrencies mining works make it feel like it is a perfect deal. I guess they just trying to fool people, they even may not have an actual hardware but just re-selling money from exchanges and keep the profits for themselves.