Bitcoin Price Ruins Cloud Mining


#1

Good read.

Cloud Mining has been taking a beating with the precipitous drop in Bitcoin price over the lasts several months. The profit margins have become thinner and thinner, and now may be non-existent for many in the industry. Some reports have as many as 30,000 miners leaving the industry since BTC has entered the $300-and-below range. Many Bitcoin critics are eager to take this as a sign of Bitcoin’s inherent weakness of value. Is that the case? Can this purging of clouded, corporate miners, in fact, be a good thing?

I like this paragraph :smile:

Maybe the problem with Bitcoin has been too many chefs in the kitchen? Bitcoin price in US Dollar values didn’t have any problem rising thousands of percent in value annually when cloud mining was just a novel idea not ready for prime time. It seems the mom-and-pop miners, who were working from home, were doing a fine job by BTC. The difficulty in the algorithm is adjusting as we speak so the CPU rate remains consistent.

Source: CryptoCoinNews


#2

I think this will be a great thing. It is eliminating the greed and killing the dreams of the get rich quick crowd. All of this greed has spawned many, many, many scam and ponzi sites, which further hurt the BTC and crypto names.

The mom and pop miners were the true believers in BTC. Cloud mining let every Tom, ■■■■ and Sally get involved. Crypto is not something that you should just be able to get involved in with out a good understanding of what you are getting into. And it is apparent, that many folks took a dive into what they thought was a swimming pool, when in fact is was a vast ocean of shark infested waters.

It has been made apparent that crypto is not ready for the main stream, yet. The cloud companies tried to exploit this and have failed miserably, it appears. And probably set main stream adoption back many years. But maybe that is what is needed at this point in BTC existence.

Hopefully the BTC price is allowing us to dawn a new beginning and move forward progressing cryptos, not milking them to satisfy our vast, inherent need for greed.


#3

You’re both echoing my sentiments exactly. Good to know I’m not alone sometimes. I really think the end of cloud mining will be a major stepping stone towards a proper btc economy, for so many reasons, least of which, as you pointed out, the greed is driven from the game.


#4

I agree with most of what you’ve said apart from:

Crypto is not something that you should just be able to get involved in with out a good understanding of what you are getting into…

It’s true that mining or technical aspects of crypto are not something everyone should just jump into but the application / usage of Bitcoin is something everybody should definitely get into. It just needs to be a lot easier. Honestly how is an average person meant to grasp the stone age qt wallets for example? Average Joe is bound to run into issue or even lose his coins.

Let’s look at GAW for example and people can say what they want about for example Josh Garza. If one leaves the actual company and it’s performance out of the equation then we’d have to admit that the vision (which was sold) had a solid base and had a lot of potential. The path chosen down the line and everything that came with it is a true shame but those that still remember the actual vision would most likely agree.

[quote=“mharter, post:2, topic:459”]
It has been made apparent that crypto is not ready for the main stream, yet. The cloud companies tried to exploit this and have failed miserably, it appears. And probably set main stream adoption back many years. But maybe that is what is needed at this point in BTC existence.[/quote]

Totally agree again. Mining isn’t something the mainstream should have to worry about anyway. The mainstream wants to pay online and offline in a convenient way for whatever they purchase. The average mainstream person couldn’t care less if the FED prints the money or if we mine it. They just want to spend it without trouble and preferable with very little risk.

Another point is that PoW is not optimal for a currency. PoS might be but it’s not needed. In reality you can’t put the faith of a “currency” in the hands of miners securing the network, or not. It’s a risk factor which can’t be sustained for a globally recognized currency that can be compared to the USD or the Euro.

So what are the alternatives moving forward? Something like Ripple with a 100% pre-mine controlled by a bank? Not preferable either since all the power and control goes back to one institution´. An alternative would be perhaps a coin that is neither PoS or PoW but instead charges “slightly” higher transaction fees which would or could be used to maintain a global network of dedicated nodes to secure the network.

I guess time will show but I can see the industry change in 2105. To what? I don’t know, hopefully to the better.


I know right? Recently it seems everyone echos others which is a good thing. It means that a large number of people feels/thinks the same.


#5

This may actually be a good thing… all honestly…

Isn’t cloud mining something that is starting to look more and more like elaborate ponzi schemes anyway?

edit testing the edit capability on a day old post.


XPY - Paycoin Discussion - GAW DAYS
#6

Depends on who the provider is or where they get their hash power (if they have any). Cloud mining is certainly on the edge of going dead, time to think differently, think, crowd mining.


#7

crowd mining without all the messy “corporate” structure?


#8

Precisely.


#9

You can send me a couple S5s and I’ll be happy to burn them in for you. ; )


#10

There you go :wink:


#11

Funny thing is I have the power to run them…


#12

oops what happened to my link? Did you ever see it?


#13

Must have killed your link to 60th. ; )


#14

fixed… damn Mods…


#15

Nope. It was and still is just vapor IMO. While the current banking systems or crypto currencies (or whatever it is the “vision” was supposed to improve) have their flaws, the essence of the issues, the scale, and the method of solving them are horribly misrepresented. For example the fees or transaction times are not a major problem in need of immediate solution for most consumers or merchants except some die-hard idealists, which in turn limits the appeal of such solutions. Even those businesses that do have such problems (e.g. Amazon with their super thin margins or PayPal giving up a lot of its revenue to banks) are not jumping to radical solutions even if they have resources to do so. I could probably concoct a better “vision” to solve a non-existing problem. Actually I should rather head over to the rant thread.


#16

I meant the original vision going back to at least August 2014 which then “evolved” into something completely different in October. Well. it was always said “In October everything changes”, didn’t expect such a big change though.

The entire Paybase and co idea was never talked about prior to that. The “vision” was very different and it was one of the main reasons many of us joined ZC.


#17

Sorry, I was thinking of the latter one. Although I don’t believe the one in August had legs either, if you are talking about ZenPool with unrealistic revenues etc. But I would have to go back and refresh my memory on that.


#18

Yeah the later one doesn’t need to be discussed lol. All I can say is “one does not simply become a payment processor”. I don’t go out cutting peoples hair either and believe me you don’t want me to cut your hair.

The fact remains thought that no provider can guarantee everlasting profits from mining,. I guess the last weeks have portrait that very well. Looking better now with BTC above $230 but bellow $200 mining is just not sustainable. Not on the cloud or on rented hardware anyway.


#19

If you give me $20… actually probably still no :grinning:

As for the original vision, is that it: https://archive.today/AtaN2
I can probably find one or two fatal flaws in it…


#20

Yeah, parts of it :wink: