3 ms·

Because they are booking a guaranteed upfront profit, and passing the risk on to the customer? Don't mine for gold, sell shovels.

• tedunangst 9y ago
  Profit is hardly guaranteed considering capital costs. Disregarding that, I'm not sure shovels are the best comparison. Coin mining is pretty predictable in aggregate, unlike gold mining. If you own mining hardware, you can calculate expected income pretty reliably.
  • eitland 9y ago
    Except you cannot calculate the price of the mined coins predictably. So renting out mining gear can either be a bet that you think crypto will decline or just a way to reduce risk. (I'm assuming up front payments. )
    • csomar 9y ago
      There are futures to hedge against that.
  • plantain 9y ago
    On the lease terms offers (often 2yrs+) the profit is baked in.