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40 sats \ 3 replies \ @KaboomracksAlex OP 17 Jun \ parent \ on: The Lifecycle Of Bitcoin Miners, Evaluating Risk On Miner Purchases bitcoin
Yeah cloud mining is often a scam. There are some people who offer real products, and there's a market for it, but often it's not a good way to go.
I am personally very skeptical of cloud mining. If it were profitable, why would the cloud owners not mine themselves and keep the profit? Would you buy a map to buried treasure?
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I'm not too familiar with the economics. One of the biggest cloud mining platforms is called Bitfufu, which is affiliated with Bitmain in some way.
I imagine the way it works is that they sell the hash rate for more than they would've earned mining. They have hash rate on standby, mining themselves until someone buys it.