All About BTC, LTC, ETH mining as well as other alternative crypto currencies
KNCMiner has announced that they are starting to offer for a limited time Bitcoin online mining contracts powered by the company’s mining hardware located in their Clear Sky mining farms in the polar region (KNC Cloud). The currently available contracts are three – 1 THS for $1995 USD or about 1.99 USD/GHs, 3 THS for $5495 USD for about $1.89 USD/GHs and 5 THS for $8995 USD or about 1.79 USD/GHs. The duration of all contracts is only 6 months however and not 1 year as you might expect however at these prices and with the current market situation these cloud mining offers are highly unprofitable and there is not much point to invest in them. Normally you would expect to see really good offers for cloud mining from an ASIC hardware manufacturers, but apparently this is not the case with KNC’s offers for the moment.
Running the numbers through a Bitcoin profit calculator shows that 1 THS contract for 6 months at the current Bitcoin price and network difficulty will not even ROI if the difficulty remains at the same level at it is at the moment. With no difficulty increase, which is of course impossible, you would need more than 7 months just to ROI, let alone make some profit. And if you take into account an average difficulty increase of about 15% the numbers will never be in your favor with these prices and just 6 months contracts. Again if you are going to bet on the fact that the price of Bitcoin will rapidly increase by the end of your 6 month contract, then you will still be better of betting on just buying Bitcoins now and investing in these mining contracts. It seems that some companies in the crypto mining business have forgotten why people mine in the first place – to make profit, and if it is even just for fun… well what fun is it to invest in a cloud mining service that has no chance of even returning your initial investment.