Bitcoin Cloud Mining Services Review

What is Bitcoin Cloud Mining?

Cloud mining or cloud hashing enables users to purchase mining capacity that of hardware in data centres. There are several operators which have been offering contracts for several years.

Bitcoin cloud mining enables people to earn Bitcoins without bitcoin mining hardware, bitcoin mining software, electricity, bandwidth or other offline issues.

Bitcoin cloud mining, sometimes called cloud hashing, enables users to buy the output of Bitcoin mining power from Bitcoin mining hardware placed in remote data centres.

Then all Bitcoin mining is done remotely in the cloud. This enables the owners to not deal with any of the hassles usually encountered when mining bitcoins such as electricity, hosting issues, heat, installation or upkeep trouble.

What are Bitcoin Cloud Mining Advantages?

  • No electricity costs
  • No heavy costly bitcoin mining equipment to buy
  • No bitcoin mining equipment to sell when bitcoin mining is no longer profitable
  • No ventilation problems with hot equipment

What are Bitcoin Cloud Mining Disadvantages?

  • FRAUD!!!
  • Unverifiable or otherwise shady Bitcoin cloud mining operations
  • Lower profits – Bitcoin cloud mining services or mining company will have expenses
  • Bitcoin mining contracts may have the ability to cease operations or payouts in the contracts if the Bitcoin price is too low
  • Lack of possession of the Bitcoin mining hardware
  • Lack of ability to change the Bitcoin mining software

Bitcoin Cloud Hashing Services

Being listed in this section is NOT an endorsement of these services and is to serve merely as a Bitcoin cloud mining comparison.

Always Be careful with your bitcoins!

There have been a tremendous amount of Bitcoin cloud mining scams.

Hashflare Review: Hashflare offers SHA-256 mining contracts and more profitable SHA-256 coins can be mined while automatic payouts are still in BTC. Customers must purchase at least 10 GH/s.

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Genesis Mining Review: Genesis Mining is the largest Bitcoin and scrypt cloud mining provider. Genesis Mining offers three Bitcoin cloud mining plans that are reasonably priced. Zcash mining contracts are also available.

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Hashing 24 Review: Hashing24 has been involved with Bitcoin mining since 2012. They have facilities in Iceland and Georgia. They use modern ASIC chips from BitFury deliver the maximum performance and efficiency possible.

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Minex Review: Minex is an innovative aggregator of blockchain projects presented in an economic simulation game format. Users purchase Cloudpacks which can then be used to build an index from pre-picked sets of cloud mining farms, lotteries, casinos, real-world markets and much more.

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Minergate Review: Offers both pool and merged mining and cloud mining services for Bitcoin.

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Hashnest Review: Hashnest is operated by Bitmain, the producer of the Antminer line of Bitcoin miners. HashNest currently has over 600 Antminer S7s for rent. You can view the most up-to-date pricing and availability on Hashnest’s website. At the time of writing one Antminer S7’s hash rate can be rented for $1,200.

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Bitcoin Cloud Mining Review: Currently all Bitcoin Cloud Mining contracts are sold out.

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NiceHash Review: NiceHash is unique in that it uses an orderbook to match mining contract buyers and sellers. Check its website for up-to-date prices.

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Eobot Review: Start cloud mining Bitcoin with as little as $10. Eobot claims customers can break even in 14 months.

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MineOnCloud Review: MineOnCloud currently has about 35 TH/s of mining equipment for rent in the cloud. Some miners available for rent include AntMiner S4s and S5s.

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Bitcoin Cloud Mining Contracts and Comparisons

Bitcoin cloud mining contracts are usually sold for bitcoins on a per hash basis for a particular period of time and there are several factors that impact Bitcoin cloud mining contract profitability with the primary factor being the Bitcoin price.

For example, Pay per GHash/s would be 0.0012 BTC / GHs for a 24 month contract.

Contracts vary from hourly to multiple years. The major factor that is unknown to both parties is the Bitcoin network difficulty and it drastically determines the profitability of the bitcoin cloud hashing contracts.

Bitcoin network difficulty is a measure of how difficult it is to find a hash below a given target. The Bitcoin network has a global block difficulty. Valid blocks must have a hash below this target. Bitcoin mining pools also have a pool-specific share difficulty setting a lower limit for shares.

The Bitcoin network difficulty changes roughly every two weeks or 2,016 blocks. There are all types of cloud mining options for other forms of blockchain technology.

Bitcoin Cloud Mining Scams

There have been a tremendous amount of Bitcoin cloud mining scams like the possible $500,000 Bitcoin cloud mining ponzi scheme that was uncovered. Potential buyers should be extremely guarded and careful before purchasing any bitcoin mining contracts.

“A Ponzi scheme is a fraudulent investment operation that pays returns to its investors from their own money, or the money paid by subsequent investors, instead of from profit earned by the individuals running the business. Ponzi schemes are designed to collapse at the expense of the last investors when there is not enough new participants.”

Is Bitcoin Cloud Mining Actually Profitable?

Many people wished they had not missed the Bitcoin mining bus before the great Bitcoin boom started back in 2013. Back then you could mine Bitcoins pretty easily at home and make a very nice profit on the exchange rate.

However since then, the mining difficulty has increased immensely and today it is almost impossible to mine Bitcoin profitably at home with your own hardware. The only exception is if you have very low electricity costs and manage to mine efficiently for at least 6 months without any major changes in this competitive landscape.

Waste major of cloud mining companies are a complete Ponzi scheme

Gavin Andresen, the previous chief scientist of the Bitcoin Foundation, once said:

“I suspect many of them will turn out to be Ponzi schemes.”

Also just looking at our cloud mining reviews page you can see the amount of fraud and companies that fail to payout.

When consider a cloud mining company make sure to due your due diligence on every company you think of investing in. One the tools created for this task is the Bitcoin scam testIf it does not pass the test – do not invest. And like in Stock Investments, you can more loose and not just gain.

But even if you do find a legit cloud mining company is it really worth your money?

Doing the math

How to calculate estimated profit using hashrate?

Profit is calculated via the deduction of expenses from income

The income consists of daily payouts which size depends on the hashrate. In order to calculate an estimated income using the hashrate you will need to include it in one of the calculators below (set all Power values to zero):

1. Bitcoin – for SHA-256

2. Litecoin  – for Scrypt

3. Ethereum – for ETHASH (set all Power values to zero)

4. DASH  – for X11 (set all Power values to zero)

Next, deduct the maintenance + electricity fee of 0.0035 USD per 10 GH/s of SHA-256 and 0.01 USD per 1 MH/s of Scrypt from the income. ETHASH and X11 contracts are not subject to any fees. 

The sum you end up with is your estimated profit. 



Assuming the BTC exchange rate rises you’ll be making more money and so will the mining company. However, if that’s the case then perhaps you would have been better off just holding on to those $1200 in Bitcoin to begin with.

The examples given above are actually the best case scenario where the company you invest in actually has mining equipment. Most of the cloud mining site today are unfortunately Ponzi schemes masquerading as legit investments. Usually they’ll just take money from newcomers and pay it out to senior members and themselves until this whole scheme finally falls apart and the site goes down.

And if Bitcoin’s price drops?

Well it’s going to take you a lot more time to break even. However since the cloud mining company already cashed out on you as a customer when you signed up they don’t really care. Also, if BTC’s price falls so low that it’s no longer profitable to mine you won’t be getting anything which can make your break even time become infinite.

Cloud mining companies are usually always like a casino – the house always wins. If you do start making profits with them it is after a very long and risky period in which Bitcoin’s price probably went up and you could have made more money by just HOLDing.

Be careful with your bitcoins!
Be careful investing into bitcoins!


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