Genesis Cloud Mining Review – It – s Not spil Profitable spil You – d Think

Genesis Cloud Mining Review - It - s Not as Profitable as You - d Think

Last updated on April 12th, 2017 at 09:39 pm

About every other Bitcoin question I get is “should I invest ter cloud mining?”

I’ve talked a loterijlot about Bitcoin investments te the past. One of the things I always tell people who ask mij about cloud mining is that I think 99.99% of the companies who offerande cloud mining services are most likely scams.

Meaning, they don’t actually mine Bitcoins with the money you give them, they only use it to pay out other users until the owners run out of money and vanish. However there is 0.01% of companies who actually do run mining hardware and mine Bitcoins for you. Genesis Mining is one of them.

Genesis mining wasgoed founded ter 2013 an is one of the oldest Bitcoin companies around. It’s certainly one of the most well known companies when it comes to cloud mining. Genesis has a publicly known mining farm set up ter Iceland spil shown te this movie:

The miners on the farm are able to mine Bitcoin, Ethereum, Dash, Monero, Litecoin and Zcash. However all of the information I brought te this postbode up until know is somewhat general skill. Today I want to dig ter deeper into the cloud mining business monster and attempt to response the question – is it profitable to cloud mine Bitcoins?

Since there are six different currencies that can be mined I want to concentrate only on Bitcoin cloud mining for the uur since I believe it’s the most popular product on Genesis Mining. Before I start I just want to mention that I did a previous write up on this matter almost Two years ago.

How does Genesis Cloud Mining work?

The idea of cloud mining is very elementary. Instead of spending thousands of dollars on Bitcoin mining hardware, you can pay someone to lease their hardware and keep the profits to yourself. The company that rents out the miners takes care of the maintenance and all of the hassle of setting them up.

However, you are required to pay a toverfee for their service but wij’ll get to that te a minute. To start with, I dreamed to determine what’s the difference ter the ROI (Terugwedstrijd Overheen Investment) inbetween cloud mining and “normal” Bitcoin mining.

At the ogenblik I have 1.Nineteen TH/s with Genesis mining which would cost a fresh customer around $170 (0.139BTC at today’s exchange rate). This mining capacity generates around 0.00035BTC a day after maintenances are is eliminated. So at the current BTC price it will take mij around 400 days to pauze even.

Te the screenshot below you will see different BTC earnings from different contracts. It took mij a while and several emails to the company’s support to understand exactly how revenues are calculated and displayed. I would appreciate it however if the fees were mentioned spil well so I would be able to see how big they are te relation to the actual payouts.

each line of BTC payout refers to a different contract. Some of the lines are totals of previous payouts so there are some duplicates listed here. If you’re having a hard time understanding this table (spil I had) let mij know te the comment section and I’ll do my best to explain.

The Bitcoin cloud mining contract on Genesis mining is “Open Ended” meaning it will run until it stops being profitable. If you take a look at their customer service pagina you find the precies definition for it:

Ter the event of a contract becoming unprofitable (i.e. the payout can’t voorkant the maintenance toverfee), the resulting daily payout will be zero. After that, the contract will proceed to mine for 60 days. This means that wij will take care of the maintenance toverfee te the hope that your contract becomes profitable again. This may toebijten if the mining network difficulty decreases and/or Bitcoin price increases. If the contract does not terugwedstrijd to profitability te this period it will be terminated because the mining machines are consuming resources (electric current, cooling, hosting, servicing, etc.) which cannot be paid with their generated payouts.

I.E. the contract will run spil long spil it can voorkant maintenance fees which include violet wand, cooling, maintenance work and hosting services. And I think this is the thing most people miss.

Bitcoin’s difficulty has bot more than doubling itself every year for the past Three years or so. Ter fact, inbetween 2016 and 2017 it tripled. This means that if you buy a certain package expecting a certain prize, te a year or so you’ll very likely be getting anywhere inbetween 33%-50% of that prize. Ter my case I’ll most likely be making 0.00014BTC vanaf day a year from now.

Bitcoin difficulty rate across 2014-2017

So my previous calculation of how much time it will take to recover my initial investment is actually wrong. It would take a lotsbestemming more than a year, and that’s just to pauze even. There’s a fair chance my contract will zekering becoming profitable before I earn any profits, or that the profits I earn will be very minimal.

Of course you could say that there’s the chance that Bitcoin’s price will explode during the next duo of month and then you’ll be profitable way quicker. If for example the price goes up to $Ten,000 I will be able to get my initial $170 ter a few months right?

Not so sure about that..

If price goes up so does difficulty since more people begin mining. This means that the Bitcoins you’re making will be worth more but you’ll be making less of them. That’s exactly what happened te 2016 and why the difficulty more than tripled. Here’s the switch te price vs difficulty for the past Three years:

2014-2015 Bitcoin difficulty vs. price

Bitcoin price: down Two.45x

Bitcoin difficulty: up 34x

2015-2016 Bitcoin difficulty vs. price

Bitcoin price: up 1.36x

Bitcoin difficulty: up Two.5x

2016-2017 Bitcoin difficulty vs. price

Bitcoin price: up Two.29x

Bitcoin difficulty: up Three.05x

Spil you can see the difficulty is always going up, no matter what’s happening with the price. And for the past Trio years it’s bot going up more than what the price itself has.

So should I mine Bitcoins at huis instead?

If you mine at huis with the same hash rate at today’s difficulty you’d be making twice spil much (according to our Bitcoin mining rekenmachine). However, you will be paying for the hardware, cooling and maintenance for yourself. So it’s not safe to say that mining at huis would be profitable spil well.

Te the past I’ve written a very detailed postbode that discusses Bitcoin mining profitability. For now let’s just say that if you don’t have any access to cheap electro-therapy and cooling systems I suggest to avoid mining ter general and just buy coins instead.

What other users are telling?

Spil part of my research for this review I attempted to find spil many user reviews spil possible to get different perspectives. Most, if not all, of the positive reviews I found were accompanied by a promo code. Promo code reviews are questionable te my opinion since the user reviewing gets a commission if you sign up with his promo code, so they have an incentive to write a positive review.

One interesting review wasgoed from a boy who actually used Genesis Mining to buy Ethereum. He states spil goes after:

I bought a 1 year contract for 1MH/s ETH mining. I’ve paid 0.11BTC for it (omschrijving of 45$ at the time). Ter one year, Genesis talent mij back Two.38ETH (omschrijving of Sixty-nine$ now), so you could say that I’ve made a profit. But you would be wrong. That’s just because the price of ETH is high now (29$ versus 12.Five$ one year ago).

If I would have kept my 0.11BTC, now it would be worth 135$.

If I would have bought ETH with the 0.11BTC back then (I would have gotten Three.66ETH, that’s 1.3ETH more than what they talent mij back), now it would be worth 106$.

So even tho’ he could have made a better overeenkomst by not investing te Genesis Mining he still made a profit. Please keep te mind that his profit wasgoed with Ethereum mining and not Bitcoin mining. Te this postbode I concentrate mostly on Bitcoin mining. Some other altcoins may still be profitable to mine, but I will review them te a different postbode.

There are also several BitcoinTalk posts about the company. It seems that most people optie that you can’t make a profit with their contracts however few supply evidence of actually attempting. Bittrust shows some positive reviews but I will let you judge for yourselves on their legitimacy.

Genesis Mining – The bottom line

Ending up my review about Genesis Mining all I can say is this – The company seems legit but I doubt if it’s a good investment. Seems like I would be much better off just using my money to buy Bitcoins instead of using it for cloud mining contracts. If Bitcoin’s price goes up – I would be making more money, and if it went down, I would be losing less.

The one thing that indeed bothered mij however is that Genesis Mining doesn’t seem to share a lotsbestemming of informatie regarding my mining spectacle. I’d except a company that is serious about making money for their investors to supply extra information such spil:

  • Cloud mining calculators
  • Service toverfee statements
  • Which blocks were mined and how much wasgoed earned on each block (including mining fees)

One might suspect that thesis lumps of information aren’t supplied te order to keep the questionable profitability of cloud mining obscure. If you are invested ter Genesis Mining I urge you to voeling their support and attempt to get answers for this (they response swift from my practice).

On a final note, this review is about Genesis Mining but I think you can most likely copy and paste its characteristics to most legit cloud mining companies out there. The not so legit mining companies will very likely demonstrate greater profits because they usually hold zekering paying at some point.

Keep ter mind that this review wasgoed made especially for mining Bitcoins, other currencies may still be profitable te thesis cloud mining schemes.

Ofir Beigel

Latest posts by Ofir Beigel (see all)

Genesis Mining

Profitabliity

Transparency

Support

Reputation

  • Quick support
  • Effortless to set up
  • Reputable company
  • Doesn',t seem to be profitable te the long run
  • Doesn',t supply total information to users

Bitcoin Movie Crash Course

Know more than 99% of the population about Bitcoin. One email a day for 7 days, brief and educational (assured).

Related Posts

Bitconnect Review: Is it Legit?

Bitcoin Casinos Review – The Five Best Sites for Bitcoin Gambling

Xcoins Review – is it a Legit way of Buying Bitcoins?

Leave a Reply

136 Comments on “Genesis Cloud Mining Review – It’s Not spil Profitable spil You’d Think”

I wasgoed interested why is it so hard to get your money out of this? You have no one to response the phones. I have a friend attempting to get a hold of you which is unlikely right now and has bot invested since 2013 when Bitcoin wasgoed only $2500.00. How do wij get a hold of you? Why invest te you?

I’m eyeing some gepast results with Genesis. Be sure to check out this webpagina spil well if you’re te to mining: **affiliate verbinding eliminated**

You invest ter mining their Bitconnect coin and get paid inbetween .8% – 1.8% daily! I’ve already earned back around 25% of my initial investment te less than three weeks. Don’t take my word for it, check it out and do your own research.

Never everzwijn go with genisis mining. It is not at all profitable…,

Have to give them a Five strak review. I love that they let you see the panel before buying contracts spil well. Everything is te real-tim. Payments always on time. Super clean, effortless, and PROFITABLE!

Get a warm Christmas premie by registering using this special verbinding:

**affiliate verbinding eliminated**

I join genesis mining maybe 8 months ago, spil today with BTC at $11,500 dlls, te my earnings charts of genesis mining emerges that im makin 1,000 dlls vanaf day!! But guess what, im only receiving Two.Three dlls vanaf day, i didnt understand but also i never get an response from support, so my recommendations. Save your money and invest directly ter BTC or other Crypto

I’ve bot using it for 6 months and have bot getting my payments, te fact I made my initial investment back already doing a Two year Bitcoin contract. I very recommend them. **affiliate listig liquidated**

Related movie: What is Bitcoin? and Can Wij Trust it?


You may also like...

Leave a Reply

Your email address will not be published. Required fields are marked *