Bitdeer is a cloud based mining offering that is similar to famed Genesis Mining.You:Take on BTC price volatilty risk on behalf of BitmainLend money to Bitmain, a company that has all the hallmarks of being on the verge of bankruptcyTake on the hash risk: the presence of S15s in the offerings shows that Bitmain is sitting on unsold S15 inventory that has yet to come online. This indicates a probable rise in future BTC hashrates and resulting fall in the profitability of those cloud packages.The packages offer various degrees of credit risk vs. price risk. As durations increase, credit and hashrate risks increase while the returns offered are greater. The pricing in itself is a clue as to how desperate for cash Bitmain is.Looking at the 30 day special offer (on normal pricing you are guaranteed to lose money from day one):The 30 day 100 Th/s 'special' is as follows:$120 or $4 per day advance to Bitmain$13 'maintenance fee' per day ($0.13/T/Day)For a total cost of $17 per day.CryptoCompare show forecast revenues of $18.69 per day (based on $3,796.26/BTC and an optimistic total BTC hashrate estimate of 36.5Eh/s) or in other words, a 9% gross profit margin not including CC fees, fiat currency risk (if not in USD) and such.Additionally, if BTC falls below $2,602 (equivalent to $0.13/T/Day in the package above) then mining rewards will stop being given to you altogether as they are below 'maintenance' costs and your $120 contract advance will not be refunded: you lose it all, Genesis style. Same if total BTC hashrate goes above a certain threshold (somewhere above 50Eh/s) and the lower mining rewards fail to cover the maintenance costs.In summary:For a likely diminishing 9% gross return you have to take on the price risk of BTC over a period of 30 days, and the credit risk of a company that has failed to pay its debts since November (to gamble on shitcoins).Or in other wordsHaving raped and pillaged the crypto industry for years, Bitmain is still not in the business of offering fair business deals.
Submitted December 28, 2018 at 12:24AM
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