Posts Tagged ‘cloud mining contracts


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.


The fresh information from about the addition of an option to buy future mining contracts for Bitcoin has made us thing and calculate how profitable are they if we compare them to what other options are already available to start mining immediately. We are going to do a comparison between the FHA contracts (purchasing cloud mining hashrate for the end of April) that you can already purchase to the currently being shipped Bitmain AntMiner S1 BTC ASICs and to a BTC cloud mining service that is already available and running by offering 5 year Bitcoin mining contracts, namely the PB Mining Bitcoin cloud mining service. We are going to compare how much it will cost you to purchase 1 Terahash (1 THS or 1000 GHS) worth of Bitcoin mining hashrate at each of these services.

1 THS of ASIC mining hardware currently shipping:
– 5x 180 GHS Bitmain AntMiner S1 overclocked to 200 GHs each
– This will cost you about 5 BTC for the moment for the miners
– You will need power supplies for about 2100W for them
– You will need to pay for 2.1 KW of power an hour for electricity
– Miners will be at your door in a week and you will start mining

1 THS of PB Mining cloud hashrate currently being sold:
– The current cloud mining hasrate price is 0.0083 BTC per 1 GHS
– You will need to pay 8.3 BTC at the moment for 1000 GHS
– The cloud hashrate will start mining for you in a few hours
– No extra cost for electricity or need to support hardware
– This is a long term mining contract for 5 years that you purchase

1 THS of CEX future cloud hashrate for end of April (FHA):
– The current contract price for FHA is about 0.00799999 BTC per 1 GHS
– You will need to pay 7.999 BTC for a purchase of 1000 GHS contract
– The cloud hashrate will start mining in about month and a half for you
– No extra cost for electricity or need to support hardware
– You can sell or trade the cloud mining hashrate contract at anytime

So it seems that all of the above options do have their own advantages, but there are disadvantages as well. It is up to you to decide what seems the most reasonable for you at this moment if any of the options is a viable alternative for you. Based on our experience, the AntMiners are very good product and the company making them is really fast and ships from stock (if ordering directly from them), not to mention the always up to date prices going down with the difficulty increase. The PiggyBack Mining cloud mining service so far is working great based on our few weeks of experience using it, they also update prices after difficulty increase. The use of for cloud mining is not so good of long term investment in mining hashrate due to the higher prices driver by the users trading on exchange, but if you use the platform for trade and treat the cloud mining as just an extra profit while trading it is not a bad option.