Difficult times call for difficult measures.
I think the last weeks have shown how volatile the entire cryptoworld is and even if you diversify and follow all the “investment 101’s” that are thrown around you can still find yourself in a difficult spot from literally one day to another.
Hashie went down MDMA style which was hilarious and sad to watch at the same time. LTCGear allegedly had the database compromised several times and scrambled, GAWMiners moved from mining to staking and all of a sudden you look at a couple of your portfolios and realize that all of them have gone (or about) to go to sh…
I think the way to go right now is bulk renting and self-managing the hashing power to ensure it’s profitable but without killing the eco-system. (I mentioned that in another thread.)
The S5’s in bulk seem reasonable as well if you can get the rack space on an affordable enough price to justify hosting something like the 54 unit bulk from Bitmain.
An hybrid approach would be an alternative as well which means a mix of hardware and rented power which should also allow to balance cost vs return within an acceptable timeline.
I believe the difficulty increase must be considered as well, projected and taken into the calculation for at least 3-6 months to come. What if a company like BitcoinBrothers does in fact come through and they take their 6 PH super-computers online? Your hardware will go instantly obsolete for months to come, if not forever.
Right now the only way to mine (cloud or hardware) profitable and with low risk is imho really renting bulk power on terms of no more than 3-6 months. Clear cut price for the entire period of the rent and from there use that hashing power to mine / merge-mine Bitcoin and other SHA256 coins.
I’m confident that you can mine profitable (even if not insanely profitable) on SHA256. It depends on the coins you mine and the percentage of the overall hashrate your pool contributes to the coins you mine. For BTC there is no point having a pool with less than 2 PH. However, there is other coins across which you can spread the power and scale it across the net hashrate of the coins to receive a calculated number of blocks and daily return
So basically a SHA256 Multipool but I wouldn’t opt for auto-switching and auto-exchange for a number of reasons. The most profitable coin to mine at that precise moment in time doesn’t mean that your overall hashrate will generate enough blocks in fast enough and auto-exchange ti guarantee that payout. in addition if a number of Multipools mines the same coins and they are also auto-exchanging (which they do) then it can damage the coin or the market more than it can take and before you know it that “such profitable coin” to mine is gone. What we mine next once a coin is mined out?
So yeah, hybrid-mining (hardware and rented bulk) on short- to mid-term plans on a balanced merge-mining SHA256 multipool is the way to go imho.