After watching a lot of youtubers that promote Genesis mining i saw a recurring comment on most of their videos:
"Your profit calculations don't include the difficulty of mining increasing"
That got me thinking... When i built my first rig i measured profit using online mining calculators and those did not take into account rising difficulty.
When i build a rig there is an amount of hash power that rig will put out and that is not going to go up as time goes on. How is that any different from buying a set amount of hash power from a cloud mining service? Its never going to become MORE hash power just the same as my hardware mining rig... Yes i could add GPUs to a rig if it isn't already maxed out but i will still receive a set hash rate that will not change. The difficulty is going to go up and that physical rig will make less and less exactly the same as my cloud mining contract.
This explanation of cloud mining on a Reddit crypto post made a lot of sense to me:
"In theory it's to make a successful business for both themselves and their customers with significantly reduced risk: they set up hardware, pay the bills, and start mining. In return, they get guaranteed payments (in the currency that the customer pays in). They do not have to worry about difficulty increasing or decreasing, or about prices of the mined currency going up and down."
Is hardware mining and cloud mining more a philosophical debate than i first thought? Is owning/not physically owning the mining hardware a mental block for some people? i am very interested to hear from the hardware and cloud miners of Steemit! please upvote this post if you found it interesting and follow for more content!
My genesis mining code lol get 3% off:
In5mVh
Just a quick note on this, there's quite a few people who consider the difficulty when signing up to Genesis, and much like anything crypto related it comes with some form of risk. The Idea is for the price of bitcoin to rise in parallel with the difficulty, people are suggesting bitcoin will hit $35000 in the near future, if you are still earning the same amount of bitcoin from daily mining, you obviously profit more with the price increase.
Thanks for the input! i saw an article that bitcoin uses .06% of global electricity right now, if they keep building these huge mines and there are less and less coins coming into circulation (plus the halving in 2020) how could btc not hit huge highs (like $35,000) heres to hoping :D