Cloud Mining - Pros and Cons
Have you been thinking about cloud mining?
Investing in cryptos is a minefield for the uninitiated. Buy, but buy what? Hold, but for how long? How the hell do I buy a bit coin anyway!!
One common argument is why pay for a cloud service when you can just buy the coin? Well if you buy one coin you have one coin, but if you buy shares in a cloud mining service then you will have 3 or 4 coins, but after two years. If you are playing the long game, then this is good, if you want to day trade then this is not for you. Below are the pros and cons of cloud mining.
The Pros
You are buying hashpower so it is not reflective of the price of coins - if the coin prices are up then you still have the same hashpower
Generate coins immediately
No investment in machines necessary - even if you want to get an ASIC miner they are sold out almost everywhere - seriously it is nuts
Credit cards accepted - big bonus considering the heft fees charged by companies like Bitstamp and Coinmama to buy BTC
The Cons
You are buying hashpower so it is not reflective of the price of coins - if the coin prices are down then you still have the same hashpower
Earning decrease over time due to the increase in difficulty of mining
Some contracts are limited - Hashflare has one year and Genesis two year contracts
Read the fine print many contracts include maintenance or electricity fees like the lifetime Bitcoin contracts with Hashflare and Genesis.
To cloudmine or not to cloudmine, that is the question.
If, yes, then check out the links below to Genesis and Hashflare.
Currently the best deal are
Genesis - two year Dash contract - no maintenance fees and good return
Hashflare - Scypt contract - lifetime - electricity fees apply but the numbers are solid
If you use Genesis then please use my code when making a purchase to get a 3% discount it would really be appreciated.
>>> 3% Promo Code nBiS6j <<<
This is a pretty detailed analysis thanks a lot for sharing and keep on posting ;)
Thanks for your feedback! Happy Steeming
Have you been able to make a profit with Genesis mining? How do you calculate it?
I looked into it and found most cloud mining sites were unprofitable investments (though my analysis wasn't very detailed). Here's one interesting take:
https://99bitcoins.com/genesis-cloud-mining-review-scam-legit-investment/
I find it all depends on your investment. In the old days, people would mine on their own hardware. This becomes costly on hardware and power consumption (miners use A LOT of electricity).
Here's a popular mining calculator. If you adjust the values, you get a pretty accurate assessment. If you are cloud mining, there would be no power costs, since it's not your hardware doing the mining, thereby improving your profit over the long term.
Hope that helps! I'm still pretty new to all this but slowly wrapping my head around a lot of it. Steem on!
I haven't been in it for long, but the numbers are solid. For example the Dash difficulty has a steady pace so should remain very profitable for the extent of its contract. The real problem with cloudmining sites is that Bitcoin mining is not very profitable because of the nature of the coin itself and the fact that all BTC contracts include maintenance fees make the whole thing a bit of a gamble.
So for example I have a contract mining LTC - I paid $500 for it and it will mine me 17 Litecoins over the next year - maybe 15 with adjustjustments for difficulty, and next year it will provide say 12 again factored on difficulty increases - so 27 LTC for $500 not a bad deal
Another site to check out is Hashing24. I did a quick calculation of ROI and found that if the price and difficulty stay the same in about 9 to 10 months you break even. Granted this doesn't say much since the difficulty is always rising and the price always shifting.
Check out the Genesis Dash package as the difficulty levels remain fairly steady or the Hashflare Scrypt package as again the ROI and difficulty to curve is not as bad as for BTC - Happy mining!
Fortunately I started with Genesis almost a month ago! I'm currently sitting at .75TH BTC and 27.5MH for Dash. It's not much but I don't have capitol for a large upfront investment. What I've found myself doing is upgrading the minimal amount once a week across Hashflare, Genisis, and Hashing24. Probably not the best method, but I'm just trying to get each on to reasonable level of mining. Going to be using your code.
Here's my code for Genesis if you want to use it "sxuomr"
Every little bit adds up. Keep at it!