When I started mining cryptocurrency, I found a lot of problems to find information about the reliability of cloud mining companies, often because of the amount of disinformation that exists from many disgruntled users and other times because these companies only offer data or statistics that interest them.
This analysis focuses on one of the most famous cloud mining companies, and I will not try to check whether is a fraud or not, I will present real data about the 4 months I have been using it, since I paid for one of their contracts (contracts of Bitcoin, Ethereum and Dash).
Hashrate: 24.200 GH/s.
Daily maintenance fee: $ 0.00028 / GHs = $ 6.776. This cost is deducted from the daily payment they make. That is, if every day you mine BTCs worth $ 30, you have to discount the daily maintenance cost (in my case $ 6.776) and that is what they will transfer to your account in BTCs.
Price: $ 3,230.
Duration: 2 years.
Hashrate: 21 MH/s.
Daily maintenance fee: None.
Duration: 2 years.
Hashrate: 45 MH/s.
Daily maintenance fee: None.
Initial interesting data
In my case, the payment of the contracts was made with credit card, but it can be paid with some cryptocurrencies as well. The payment with a credit card means, that the mined coins are held for 31 days to ensure that no fraud occurs, yet you can see what is undermining your contract day by day. Once finished the 31 days, everything stored will be transferred to your BTC account. During those initial 31 days you can see the coins mined in “My Orders” section.
If your contract does not produce benefits during 1 month, that is, the daily maintenance cost is higher than the value of the mined coins, the contract is automatically cancelled.
The contract of BTC allows you to mine coins with SHA256 algorithm, which, apart from the BTC, allows you to mine zetacoin, as you can see in the following image.
You can distribute your hashrate as you wish, but those coins that have AUTO in parentheses are not directly mined, but BTC would be mined and afterwards automatically changed to that currency. For example, if you put 100% in DASH you would be mining BTCs but they would be changed at the end of the day to DASH.
BTC contracts are currently available in preorder that will start mining on 03/15/2018. If after reading this post you want to hire something, you have in the conclusions a promotional code with which you will receive a 3% discount.
To calculate the avarage difficulty of the last months will be taken into account, although in the conclusions section a predictions will be made with an exponential increase of the same.
Statistics after 4 months
The start date was 10/07/2017 and statistics will be shown here until 10/11/2017. Maybe in future post I will update these statistics.
First week of mining after the initial 31 days
As you can see in the image above, I make a daily detailed control, after all it is my money that is at stake.
I have to clarify that the calculation in $ is not real, since the image of the current BTC ($ 7700) is being taken into account, but on 10/07/2017 it was quite lower ($ 2444). The value of the BTC at each moment is quite important, because it will determine the percentage of BTC that remains genesis-mining with respect to mining.
If you pay attention, every day that passes my contract mine less, why? because in the mining the difficulty and the price of the daily BTC influences. Let’s give an example:
On the 10th I was hit by 0.00698512 BTCs, from which the $ 6,776 of maintenance costs of my contract have been removed, but for example, on the 16th, it cost me 0,005025 BTCs. On the 16th, it undermined the price of BTC, which went from $ 2,400 to $ 1,800, and the increase in the difficulty of mining of BTC that increased by 13.53%, which is quite a lot (this occurs approximately every 2 weeks and in the image occurred on 07/14/2017, you can see the history of difficulty increases in https://bitcoinwisdom.com/bitcoin/difficulty).
You must keep in mind that every 2 weeks your contract will mine less due to the difficulty (the difficulty is usually that it increases). At this point my forecasts were quite bad for the price of the BTC and I thought that my indefinite contract would end in 2018 without having recovered the investment. I had 0.04781559 BTCs accumulated and the price of BTC was at $ 1800, which was equivalent to a profit of $ 86.06 and my mining was going to be reduced gradually every 2 weeks. If you look at the image, in the “BTC ($) accumulated” column, it would be $ 369 at the current BTC price.
First month of mining (10/07/2017 to 10/08/2017)
From 10/07 to 10/08 I went from mining 0.00698512 BTC to mining 0.00487391 BTC. It was a very bad month as the difficulty of mining increased by 20%, but the price of BTC rose to $ 3400, which was good news, and had accumulated 0.18053812 BTC in 1 month, which was equivalent to $ 613 ( at the current price of the BTC it is equivalent to $ 1395).
The forecasts were somewhat better, but nothing great, had only recovered $ 613 in 1 month of the $ 3230 invested and knew that the gains of the following months were going to be lower (I had done my calculations).
Later, in the section “Conclusions” I will put the predictions from 11/11/2017 onwards in case you are interested.
First 4 months of mining (10/07/2017 to 10/11/2017)
And the light was made, the price of the BTC skyrocketed to the current $ 7700 and the 4 months had already 0.61220254 BTC (to 11/10/2017). If you look at the “BTC ($) accumulated” column, the 0.61220254 BTC equals $ 4733.550039.
Mine value = $ 4733,550039
Initial investment = $ 3230
Benefits = $ 1503.55
I would never have thought that I would amortize the investment so fast, but the increase in the price of the BTC has caused the BTC cloud-mining to be profitable. Yes, in 4 months I have gone from mining daily 0.0069 BTC to the current 0.0038 BTC, a rather large reduction, but at the current price of BTC my contract will not be canceled until the next halving in 2020 according to my predictions.
During these 4 months many things have happened with genesis-mining, including the hacking of their servers, but once solved, they made all the overdue payments. Yes it is true that in your console sometimes do not appear daily payments and leads you to think that they do not pay, but they do the transfers.
In the payments you have to take into account that they have a minimum, that is, if the value of the mined BTC does not reach x, they accumulate it and they pay it when the minimum limit is reached. The following table shows the minimum limits necessary for you to pay.
Surely you have noticed in the cells highlighted in yellow in the images of the document, these cells are days that the payment did not appear in the console of genesis-mining and I had to verify later that I had made the transfer.
Other contracts (ETH and DASH)
The benefits that these contracts return to me are not comparable to those of BTC and I will not analyze them in this post (I will analyze them in another later), although they are also profitable contracts but to a lesser extent. Currently, for me they are not worth it, which does not mean they do not deserve it in the future, especially if its price increases, but for example, Ethereum plans to move to POS instead of POW and this would mean that the contract ETH would no longer be valid and you would have to activate an alternative currency such as ETC, and in the case of DASH, the introduction of new ASICs does not make it very profitable until cloud mining providers update their contracts.
These are personal opinions that can change at any time due to market volatility, but today I would only recommend BTC contracts.
In my opinion, the BTC contract is profitable at present, due to the increase in the price of the BTC price and that it is an indefinite contract. As risk of the same is the volatility of the price of the BTC, if it lowers enough and stays that way during 1 month, they can cancel you the contract.
In 3 months I managed to recover the investment in the BTC contract, and in 4 months I had a profit of $ 1500. If most analysts agree with their predictions, the price of BTC will increase during 2018 above $ 10,000. On the other hand, if as others think, the world of cryptocurrencies is a bubble, the inverted one could be lost quickly. My personal opinion is that during 2018 it will continue to rise, but you never know.
Regarding genesis-mining, it is NOT scam, they pay, although not always daily. Their customer service is quite slow and if you want to claim something, you’d better forget it because they do not usually pay attention to you, but otherwise it’s a reliable company in cloud mining.
Currently I have invested more money in another provider of cloud mining for 2018 and as soon as I have real data I will create another blog entry.
I leave you an image of my mining predictions with the BTC contract that I currently have (24,200 GHs) from November and at the current BTC price.
It is not an exact prediction and not even BTC’s mining formula is accurate, but it is an approximation that can be useful. Each row corresponds to 2 weeks for the adjustment of the difficulty and can be diverted enough if there are eventualities in the bitcoin world (hardforks, more powerful ASICs …). This calculation is if the price of the BTC is maintained at $ 7700, but presumably will go up. By the way, the gray line of the image corresponds to the estimated date of the halving in BTC in which the mined will be cut in half, so beyond June 2020 you never know what will happen. I leave you another 2 images, one with the BTC price at $ 3000 (on the left) and another at $ 10,000 (on the right).
As you can see, the contract would be canceled at the end of 2018 as long as the price of BTC remained as it is today. In the worst case, we would recover the investment and earn $ 1,000.
“And is not it better to buy BTCs directly instead of mining them? After all, people often say that it is better to buy them”
With the current price of the BTC at $ 7700 it is more profitable to mine. For an investment of $ 3,230 I could buy 0.42 BTC and mine 0.56 BTC by 2020 (according to my predictions), as you can see the difference is quite large, although this can change quickly.
One last recommendation, never invest money that you can not afford to lose, the world of cryptocurrencies can change very fast, both for good and bad.
If the post has been useful for you and you have thought about investing in genesis-mining, you can do it through this link.
During the purchase of the contract put this code
in the promotional code field once the payment method has been chosen. In the following image the field is shown, you must click on the “Validate” button before proceeding with the payment.
They will give you a discount of 3% on the price of the contract and they will give me 2.5% of the power of hashing that you hire, it is a win-win for everyone 🙂
You can also donate if you want at the following addresses:
BTC => 1EWBLbga3ERF2zLc4VMmkquNktLGJemBwh
ETH => 0x05bf045da595b3c113a7cbdaf5c3703a4560309d
LTC => LRuqbS4ByGgTxo6cD8S5ezDoNGAVxnb3u8
DASH => Xgvp2kRFKtFctqVWE7gvY5o2fEd9C1JMj9
See you next time!