Do not get any cloud mining contracts. This means the more it is mined, the less each miner makes.
Calculating Mining Profitability
Any profitable crypto that is profitable to mine will attract miners, cause the proportion of the reward to decrease per miner. With cloud mining you typically can’t change what you mine. The amount of coin you mine will be greatly reduced as miners switch to the crypto you are mining, causing any profitability to be short-lived.
Any profitable crypto is likely to attract hardware manufacturers to produce commercial Asic miners, which can mine X more efficiently than GPU miners. This will cause miners’ proportion of reward to be greatly reduced.
Additionally, hardware is constantly being improved, with dedicated hardware for mining now and new players joining the field.
The competition’s hashing power is improving quickly, yours is constant. Mining contract cryptos are likely to be “pumped”, causing price to be artificially high. This could be actual pumps by miners no proof, but it makes sense or it can be buzz created by miners. What looks on paper to be a good return may be only good because of pumped prices The Difficulty is indicative of how much coin you will get per mining power.
This is not dependent on crypto price, it depends on how many miners there are. So you your income stream in coin halves every months or less, if it is profitable to mine. Additionally, in the case of privacy coins network of computers infected with a virusbotnets are often the biggest miners and this trend is likely to increase.
This is free computing power for the mining recipients that no one can compete with. The truth of cloud mining is obscured because it has pyramid incentives. The reason it is promoted heavily on youtube is because promoters are incentivized through affiliate programs, if you click on the link in the video they get substantial rewards if they have enough followers. They probably can get around a dollar per view. So promoters can receive 10’s or ‘s of thousands of dollars worth of mining contracts if they have that many views.