The idea of cloud mining is very simple: Instead of spending thousands of dollars on mining hardware and all the necessary gear to support it, you can lease everything from someone else and keep the profits to yourself. The company that rents out the miners take care of the maintenance and all of the hassle of setting them up. In order to answer the question of profitability, all you need to do is run a few calculations
What will happen if Bitcoin’s price goes up?
In case Bitcoin’s price goes up dramatically, you can expect the USD amount of your earnings to rise as each BTC is worth more. However, as BTC price rises, more miners come on board, which in turn makes it more difficult to mine. This would actually lower your daily earnings in BTC. Overall in the long term, your profit or loss will probably even out with the increase in difficulty. However, since the difficulty is adjusted every two weeks if you’re already mining when the price starts to skyrocket you could get a “head start” and mine with a higher price at a lower difficulty.
Rhinex Fund Mining vs. Direct Mining
Let’s consider the alternative – mining at home. It’s really hard to give a direct estimation here since each person will have different electricity costs, shipping costs (for the miner) and cooling conditions (miners need to be kept cool). However, just to get a ballpark estimation, let’s use a standard $0.1/KW electricity rate (which isn’t cheap), a mining pool fee of 2% (pretty standard) and a hardware cost of $2900. I’m assuming you’ll buy the most efficient miner today, the Antminer S17 Pro, which can generate up to 62 TH/s with a power consumption of 2790 Watts. At the end of the day mining at home will gulp all profits in energy expenses and you are better off on a contract mining service like Rhinex Fund.
Visit rhinexfund.com to start investing on their platform
