I learned this lesson the hard way at the start. If someone has the equipment to mine Bitcoin, why bother with hiring it out? I ended up losing half a coin to some sketchy outfit called CEX. Now, I’ve stumbled upon another ad, and it seems like we’re in that phase of the cycle again when all the shady characters come out of the woodwork.
Any thoughts on this?
Yeah, I had a similar experience. If they could earn more by mining themselves than what they charge you, it doesn’t really add up. They’d be making more profit that way. And if you’re not making more than what you’re paying, then you’re just throwing your money away.
Well, it could be that someone with the hardware prefers the steady income from renting out processing power rather than dealing with the ups and downs of mining volatile cryptocurrency. It’s a possibility. And if folks are willing to pay more than the operating costs, then they’re still turning a profit. I’m not advocating for these services necessarily, but it’s definitely a potential legit business model.
Yeah, I see what you’re saying. It does seem odd that these ads are promoting farms splitting up equipment and renting it out to regular folks. If anything, it would make more sense for smaller players to rent out to larger ones. I mean, there’s a reason why mining pools are a thing, right?
Ouch, that sounds rough! Losing half a coin to a sketchy service is definitely a hard lesson learned.
Thanks for sharing your experience to warn others.
Mining pools exist for a reason. They leverage economies of scale by combining the processing power of many miners. This significantly increases their chances of successfully mining a block and earning rewards.