Bit coin mining services

[308mate]

Like this one:

https://cryptonomos.com/wtt

If I read it correctly, I buy a capacity on their infrastructure to mine bitcoin for the next 50 yrs. The more tokens I buy, the more capacity (or processing power?) I buy. I assume then that each time I mine a coin I keep it and have somewhere to put it? What if the value of bitcoin drops below the value of my mine infrastructure? Am I tied in for 50 yrs?

Does anyone have experience of these services?

Regards,

Pete

[AyBee]

If the value of the bitcoins mined was greater than the infrastructure cost that you're paying for, why wouldn't they just pay for the infrastructure themselves and keep the bitcoins for themselves? Isn't this just gambling by a different name?

[308mate]

Well that's my thought. I don't really understand it, which is why I'm asking.

[MDMA .]

308mate said:

I don't really understand it

don't put any money in then

Edited by MDMA . on Tuesday 6th June 13:08

[308mate]

MDMA . said:

308mate said:

I don't really understand it

don't put any money in then

Edited by MDMA . on Tuesday 6th June 13:08

Obviously, my intention is not to put any money into it until or unless, I understand it. That's why Im asking. But please, if you cant actually answer the question, feel free to chime in with some smug PH "this is beyond you, move on sonny" wisdom. Its what the place was built on.

[bloomen]

They're almost all cons and ponzis. Look at how fast mining difficulty is rising. They'd have to invest millions extra to keep giving you the same returns. Forget about it and move on.

[anonymous-user]

How do you "mine" a virtual currency?

[bstw]

I've done OK out of a mining contract with Genesis mining. I can appreciate that a lot of these are probably ponzi schemes but I bought the lowest cost Ether mining contract they did, i think it was about $40, in April last year. It paid me around 5 Ether overall which has turned into ~£1100 so a fairly healthy return.

It included some bitcoin and x11 mining as well which paid out some Dash and it's still trickling Zcash to my Polonniex account.

Not sure I'd be so keen to buy into it now, the gains I've seen have all been attributed to the huge growth in the last few months of the market as a whole and as said above the difficulty has increased a lot too. If you're looking for a reputable company though Genesis seem worked for me.