A Slow Payday at Genesis Mining!
I was really excited when I bought first contract with Genesis Mining expecting a payout every day. OK, I was a bit optimistic but nevertheless the expectation of receiving passive income was a dream come true.
I purchased life time Bitcoin mining contracts and 2 year Ether mining contracts. The payout was smooth going with payouts every day so I was pleased at the rate of return on my investment. I worked out at the time that based on my payout I would see my principal returned within 5-6 months and after that it would be profits all the way. Three months has now elapsed and I am on my way to making free money.
5-6 months is still a long time, but with interest rates at an all-time low of near to 0% it was still better than nothing. Bitcoin being a “life-time” contract will allow me to mine bitcoin continuously albeit in small amount each time and ether for a duration of 2 years from the time I purchased my contracts.
However the recent hack discovered on 21st July 2017 resulted in the slow payday at Genesis Mining. Genesis Mining has informed us that they are on the case and everything will be back to normal soon. It has now been over a month and payouts are still being affected. However, missed payment have been made whole so I did not lose out as a result of the hack.
The hack has not affected my original schedule in which I expect to see return of my initial principal I invested in to Genesis Mining.
Whilst all eyes have been on the hack, the bitcoin mining difficulties seem to have decreased as I make this post whilst ether mining difficulties have increased. This is where I might find the spanner in the works.
The chart below shows the mining difficulties for bitcoin in the last few days has dropped considerably. Is this because of SEGWIT(X2) and the need to make bitcoin mining more profitable in order to overcome the challenges from the new upstart called Bitcoin Cash (BCH).
Snap shot of chart taken from https://bitcoinwisdom.com/bitcoin/difficulty
We see that the value of Bitcoin is going up every day but at the same time from the chart, the difficulties is decreasing. This only bodes well for the future of Bitcoin mining. As the difficulties drop, the number of bitcoin mined should also increase and thus Bitcoin should be come more profitable as a result.
However the chart showing the Eth mining difficulties tells a different story. The mining difficulties have spiked in the last few days.
Snap shot of chart taken from https://www.coinwarz.com/difficulty-charts/ethereum-difficulty-chart
Although difficulties have spike, the daily mining average does not seem to be affected as yet. Hopefully as the ether mining difficulties increase the price of ethereum should also go up in-line with the increasing difficulties.
There have been many YouTube commentators who are unhappy with the current situation regarding delayed payout associated with Genesis Mining and their decision to quit or not to upgrade their hashpower. They are only focused on the daily payout aspect and not on the picture as a whole. Of course it would be nice to get free money but with such rewards comes associated risks and one must always be aware of these risks before investing.
I still have faith in Genesis Mining to create a steady stream of passive income although it will only become so after I recuperate all my invested principal.
Oh! and by the way, if you are looking to buy more hashpower, do use my code UxW31v for a discount on your purchase.
The quotation marks are important. They take their maintenance fee every day. With more network hashpower being added every day, each THs slowly loses the ability to generate funds to pay the fee. When it gets to the point that it doesn't make enough to pay the fee, the "lifetime" contract expires. I would guesstimate maybe two years? Three at the most.
That's why they would probably raise their prices. With your exact points in mind, why would we want them to charge us less so they make less and can't sustain our contracts long term? Businesses need to make money to grow and stay in business, especially as difficulty continues to rise and technology investments are necessary to perform.
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Nice post. I too bought a 2-year eth contract and it's been painful to see the returns diminish during the ice age. I hope Genesis reallocates our hashpower to a solid coin when eth is no longer viable, or even lets us choose. Like you, I also bought a lifetime BTC contract and have gotten a few referrals to boost my returns. Referrals are key for staying ahead of difficulty without reinvesting more. I'm more excited about their BTC contract as Genesis is now out of stock, and presumably will offer contracts again at potentially higher prices. The ROI on a BTC contract is really solid, especially the longer Genesis operates.
If anything, they should bring them back at lower prices.
See my other post, but why do we want them to make less money and not be able to sustain their business model, so we can save a few bucks on our initial outlay? Difficulty rises, and profits are necessary on both sides to sustain. It takes money to make money.
Hashrate pricing over time goes down, not up. You can use the archive.org Wayback Machine to see what Genesis was charging three years ago:
https://web.archive.org/web/20140704202700/https://www.genesis-mining.com/pricing
And those are MHs prices, not THs prices.
But, we all know how much the difficulty has risen since then. It was an entirely different ecosystem in 2014 when bitcoin was much less expensive and there was much less competition.
And the global hashrate has gone up even faster than the difficulty has. This has huge implications for cloud mining.
Hodl is a much better strategy than buying cloud mining contracts.
wow bitcoin make me but very hard online income
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