A Cloud-Mining Review
Is it good? Is it ANY good?
Modeling the income per day from a cloud mining service
I modeled my personal income from one–of many–so called cloud-mining services, and I found out that...
Scientific Modelling, Problem Solving, Optimization, Bitcoin, Cloud-Mining
September 11th, 2014
It is profitable. For the owner of the cloud-mining service, and for you too. I've been "cloud-mining" for about 150 days with PBMining, and I should be reaching break-even soon. I'm not a shill, but I'm not a dissatisfied customer either. I do hate the manners of the guy behind PB, he is bad customer service personified.
—Hello, I would like to cancel my contracts and get a refund of my BTC.
—It doesn't work that way, sorry. When you purchase a contract it is for 5 years.
This guy does not comply with Canadian consumer law, which says that I am entitled to a refund, however he very well knows that someone from abroad is not going to lawyer-up because of a meagre 200 dollars, so he just treats you like a bitcoin ignorant—shit—person and leaves you with a measly rent.
In fact, there's threads in BTCTalk that speak of PBMining as a scam, and some of their facts sure sound convincing. I'll leave the searching and witch-hunting to you, I'm more concerned with providing you the most precise source of data concerning earnings on a cloud-mining service yet.
To do this, I've patiently gathered statistics to feed them to my beloved AI, and she came up with a model, a simple formula—among many others—to more or less predict how much would you earn, and when would you recover your money.
y = 0.0100095763883545 + 6.67943103879376e-6*x + 4.36936982479757e-13*x^3 + -1.38768508653121/(141.537091517342 + x) - 2.44307733536866e-9*x^2
This is the earnings function for PBMining, where X is the number of days mining, and Y is the amount you should earn during those days. The only caveat is that you should multiply it by the amount of GHS you have, but it is a no-problem, since every investment will pay in about the same time-frame, independent of its size.
PBMining offers five year contracts, which amount to 1826 days; and that's about the period this function covers. It won't work for larger intervals of time. That being said, let's cover some points:
- The first year you should recover your investment and earn about 67% more than what you invested
- The 2nd year you should be at about 117%
- By the 5th year, 185%.
Of course, none of this is exact enough; but it is better than anything I've read so far. My personal margin of error against this equation is 14.73%, which is quite LARGE actually. But nonetheless better than whatever magic guesstimation I could find elsewhere.
Just don't do Cloud Mining
The thing is, that however BIG you might think this earnings are, I've been told they are breadcrumbs compared to what I would earn by mining directly, like 1/30th of the real profits (thanks M.A.).