Why investing in cloud mining platform is a waste of money?

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Investing in cloud mining platforms is not worth it. Let me explain you why.

Resources :

Let us start with why people invest in cloud mining platform. Of course resources such as mining equipment, electricity bill to run the mining operation and of course you need to keep the mining operation cool, so that ac or fans will add up on your electricity bill.

These are investments or expenses to get the return in form of bitcoin the miner gets after mining. As long as the mining is profitable, the miner will continue mining. But keeping in mind that the miner needs to upgrade the mining equipment every once in a while to keep the mining operation profitable. So avoid these hassles and if still to keep your skin in mining game people invest in cloud mining platform.

Is the investment in cloud mining platform worth it?

Keeping in mind that the returns are not fixed. The more mining resources get deployed the difficulty of mining goes up and return goes down. As long as bitcoin price goes up, more miners will join the mining network, so chances are the mining difficulty will increase, and that means lower returns. But the increased price usually offsets the loss.

The investment you make in cloud mining platform might be a scam

Say you put in $100 in cloud mining platform today, you buy a contract. They promise to get your $100 back in 40 months ( approximately). But here is the deal, say for $100, you get .1 bitcoin today, the way they calculate your return is in dollar terms. So, the assumption here is whatever amount of bitcoin you get back after 40 months will be worth $100 and as long as bitcoin price is up in future in terms of bitcoin your return will be less than 0.1 bitcoin. So, if you directly buy bitcoin today that is 0.1 bitcoin, that will be worth more than whatever return you make in terms of bitcoin.

And you do not know if these cloud mining platforms will honor their contracts and not shut down site. I have already lost money on a site, and speaking from experience, you cannot invest or give your money to these cloud mining sites.

So, my advice go to coinbase and buy some bitcoin now. Read here to find out why investing in bitcoin is a great idea.

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