The Truth About Cloud Mining: Why You Should Avoid It
The Truth About Cloud Mining: Why You Should Avoid It
You see ads everywhere: "Mine Bitcoin without hardware! Rent our servers and get rich!" This is called Cloud Mining, and for 95% of users, it is a money pit.
How it (Supposedly) Works
You pay a company $5,000 up front. They promise to rent you a miner in their facility for 2 years and send you the profits.
The Reality
- The "Maintenance Fee" Trap: The contract usually says you have to pay for electricity and maintenance. If Bitcoin price drops, the "fees" become higher than the mining rewards. The company keeps your machine, and you get $0.
- Ponzi Schemes: Many cloud mining sites don't even have miners. They just take money from new users to pay old users. Eventually, they disappear.
- You Don't Control It: Not your keys, not your coins. Not your hardware, not your hashrate.
The Better Alternative
Buy a Bitaxe for $150. Or buy a used S19 for $800.
Put it in your garage. Connect it to Gokby Pool.
Now you own the asset. You can sell the hardware if you want. You choose the pool. You hold the Bitcoin.
Real mining requires real hardware. Don't take shortcuts.
