Thinking of starting a new cloud mining service

Hey guys!

I see a problem with cloud mining services: they offer hashpower, and not dedicated hardware. That's why if a new mining software come out, your contract will worth less, that's what happened with Genesis-Mining as you know.
It can be solved by offering dedicated hardware.

So I started to thinking about creating a cloud mining service in this way. Let's say you rent a dedicated GPU, pay once for it for 6-12 month, and it mines directly to your pool account.
It's better, because of 3 main reason:
- you always see everything in your pool, it's more reliable - you can hold the ZEC or change, your choice
- if a new mining software come out, it will be installed and you earn more
- if zcash will not worth to mine, the software can be changed to ethereum, or whatever you want in the 6-12 months.

And of course you don't have to work with hardware, but you still mining.

I did some calculation and it seems that I could do it for appr. 400-450$/6months/RX470 card - everything included.

What do you think?
Is there any interest for it?

Best!

How would this differ than from say NiceHash that rents out rigs from others?

www.Zcash-Miner.com is offering 3 months contract starting from Dec 1. Till then, i.e. in the slow start mining period, they are offering free mining to all the pre-order.

At the current rate, the pricing, 400-450$/6months/RX470, can not reach ROI.

You mean the Nicehash gpu farm rental service?
There you can rent a whole rig. I think smaller part to rent may be an advantage. Maybe "half" cards are working with time multiplex

As I see they offer hashpower too, it's the some problem what i described above

As far as renting a rig not the hashpower part of nicehash

@vegtamas Nicehash's fee is very expensive, 6%+ (3% both side). So you can beat it by creating the same service with lower fee.

Cloud mining is ok for people who want to learn but not invest. Your idea is good though.

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You are right, but I think momentary calculations don't mean too much. Tomorrow it can be twice as much or half as much. I did the calculation in the morning and it had 10-15% profit.
But why people buy contracts which are more expensive?
I think they take the risk, and bet for the success of zcash. Besides it does not help the business if the momentary ROI is not good.

The nicehash Mining Contract for 24 hours actually nets you a loss like why lol

thats how i run mine actually renting hardware instead of hashrate orks good :blush:

We currently offer two types of orders:
a) standard order, where you bid on how much are you willing to pay for dedicated mining time and amount of hashing power.
b) fixed order, on which you lock on the price for maximum of 24 hours (can be cancelled at any time) - but you can't get outbid.

We offer fair and fresh approach to cloud mining - which many have tried to replicate but failed.
So, why I say "fair mining"? It means you can cancel your order at any time and get your remaining funds back - no questions asked. You pay for only valid shares and you can mine on any pool you want. It's even easy for beginners, since they can start with only 0.01 BTC to test out the waters.

One thing the world needs more right now is more cloud miner companies...

Why are you saying that? I think what I described is correct, clear and profitable.

Yeah and that 's great. But what I described is different :slight_smile:

You'd be charging twice what the card actually costs someone to buy and they'd only get it for 6 months.

Great deal, for you.....to get free cards paid for by people who are kinda gullible.

How do you address the 24 hour contracts not being profitable AM I missing something? There's not a return. I know about bidding on your site but those contracts are profitable. Thanks

Not trying to take over your thread just adding supplemental information to validate your point :ok_hand:🏼

Yes. The card needs a rig with motherboard, psu, ssd, memory, cpu. And all of it needs electricity and cooled space.
I have only 10% profit for management on the whole thing and yes, the hardware after it. But maybe I decrease the price with the profit so only the hardwares remains, it's just approximation yet, if there is interest for it I will do detailed model/contract.
I write this because I want to be transparent. If you put it to a calculator the investor will have 20-30% profit on the 400$ after 6 months, it's not that bad. But of course, it's just momentary calculations, it will change, but that's what investors do. Take the risk.