An practice report: get rich with Cloud Mining. Is Genesis Mining profitable?
Genesis Mining promises Bitcoin Mining for all and is with more than 300,000 members the market leader ter Crypto-Currency Cloud Mining. But how does Genesis Mining work, is it worth it or a fraud?
Table of Contents
Overview Genesis Mining: reviews, rating &, promo code
How does Genesis Mining work?
The principle of Genesis Mining* is fairly plain: Genesis Mining provides the finish infrastructure to effectively mine Bitcoin or other crypto-currencies. With this infrastructure you can “buy” or “rent” a part of the computing power. This computing power is voiced te calculated Megahashes (MH/s) or ter Terahashes vanaf 2nd (TH/s). Depending on the available budget, Genesis Mining provides several contracts with different computing power packages. After buying a computing power package, the machines commence to dig for Bitcoins or other digital currencies.
The Genesis Mining* standard package purchases the computing power for lifetime. This means that the spectacle is not only rented but indeed bought downright. But witness out: not only the hardware has to be paid, also the operation of the server farm occasion costs. And thesis are billed by Genesis Mining. There are no unexpected costs spil the operating costs are deducted directly from the mined coins. This means that a part of the computing power is directly used to finance the operation and thus the payout of the obtained Bitcoins is lower.
Samenvatting from my contract:
Spil a consideration for the Services the Customer agrees to pay to the Service Provider an amount of (the “Toverfee“):
a. 0.150000 USD vanaf GH/s upfront
b. USD 0.0003 vanaf GH/s and day, deducted on a daily poot* from the generated Coins
But here’s the crux: the computing complexity (Mining Difficulty) for mining fresh Bitcoins is steadily enhancing. If the complexity is so high that the operation of the required hardware is more expensive than the revenue of the obtained Bitcoins, Genesis Mining reserves the right to terminate the contract. The advantage: There are no hidden costs, but Genesis Mining automatically terminates the unprofitable contract. The downside: it is not truly clear te advance, how long a lifetime contract is.
- The Service Provider may terminate this Agreement with instantaneous effect if the Coins generated te the preceding 20 days do not suffice to pay the Toverfee under Two.b above.
The contract clauses described above refer to the “Standard” Genesis Mining Agreement with an SHA256 Bitcoin Miner. For other miners, such spil the X11-Miner, which is suitable for mining Altcoins, a different contract vormgeving is chosen. This is not a “Lifetime” contract, but a 2-year contract. The advantage here is, that no daily maintenance fees are charged:
Spil a consideration for the Services the Customer agrees to pay to the Service Provider an amount of (the ” Toverfee “):
a. 0.006000 USD vanaf kH/s upfront
b. USD 0 vanaf MH/s and day, deducted on a daily poot* from the generated Coins
The real advantages and disadvantages of the contracts I have not bot able to find out yet. Even with the X11-Miner Bitcoins can be obtained. Albeit not exceeding the normal Bitcoin mining, the principle of multipools is used here. This means that Altcoins are generated by the X11-Miner, but they are exchanged into Bitcoins at the current market price. For example, with the X11-Miner Altcoins are generated, but the payout is carried out te Bitcoins.
Is Genesis Mining a fraud and is it profitable?
The problem is that even Genesis Mining cannot predict how long a contract will be profitable. It is clear that Btcoin Mining is becoming more and more elaborate and the mining difficulty is growing steadily. The more computing power is provided to Bitcoin Mining, the swifter difficulty grows – and Genesis Mining itself cannot predict this.
Ter addition, the current Bitcoin / USD rate is still included ter the proficiency calculation. The operating costs (“fees”) are paid te US-dollars. Thus, spil the complexity increases, but the Bitcoin-US Dollar exchange rate resumes to increase, it can proceed yield profits. Strafgevangenis can this be predicted by Genesis Mining.
Everyone has to determine for himself whether he wants to take the risk and wants to be part of the Bitcoin rush. Just spil it wasgoed 150 years ago during the Californian gold rush, it wasgoed a gamble to become a gold digger and to earn money by digging. Who were the real winners that time?
Only a few gold diggers got rich ter this gold rush. Most who found gold directly exchanged it for goods. A high price had to be paid for shovels and scouring gear at that time. Also, anyone who borrowed money had to pay horrendous interests of up to five procent vanaf week. Traders and merchants were among the winners of the gold rush, for example Levi Strauss. (Source: https://plusteken.wikipedia.org/wiki/California_Gold_Rush).
A nice parallel can be drawn to the present, but the equipment has switched: it is no longer necessary to invest ter shovels, but te Hashingpower.
Our opinion: Genesis Mining is no fraud and it’s profitable
Ter our opinion Genesis Mining is not a fraud. The company presents real mining facilities ter Iceland. The gegevens centers are operated te Iceland, since the energy costs are very low and thus the operating costs can be kept spil low spil possible. This is also a proof that Genesis Mining does a lotsbestemming to ensure that the crypto-urrency prospecting is spil profitable spil possible, but no one will be able to give a assure. Note: wij did not visit the gegevens centers , but only use the information provided by Genesis Mining.
Wij have bot testing Genesis Mining for many months now and since then wij have bot receiving the money from our mining contracts. So, Genesis Mining always pays out.
Conclusion: Genesis Mining is not a fraud, but investing money ter computing power and / or ter crypto-currencies is a high risk. The invested capital can lead to a total loss, which means that the purchased computing power will never reach the ROI (Comeback on Investment). Te the end everyone has to take responsibility and has to determine whether injecting the gambling spel – because even with Bitcoin Bining, there is no differnece to other money investments: with the chance to earn big money, high risk of losing everything is not far.
My own practice: begin mining with Genesis Mining
The ogenblik I wasgoed interested te the mining of Bitcoin, I quickly realized – this wasgoed because of the high energy costs – that own mining hardware is not profitable. I wasgoed also looking for serious Cloud Mining providers. Soon I came across Genesis Mining and they made a very solid impression. But I did not trust it and the profitability promises, however, I determined to test it with some “play money”. I will share my practices and my opinion here.
Let’s go: register and buy very first Hashpower
Actually there is not much to say: email address and password and you have already created a Genesis Mining account:
2nd step: add Hashingpower
Now to the significant step: adding the Hashpower. Spil it is a test, I did not add a SHA256 computing machine (“Bitcoin Mining for lifetime”), but I also configured an X11 mining machine. For zuivere Bitcoin calculation, however, the SHA256 variant (“Mitcoin Mining for lifetime”) is recommended.
An example of how to configure your Hashingpower:
Peak: I chose this calculation because I dreamed to use spil little money spil possible. However, credit card charges (US $Five) vereiste be paid below $100. I managed to avoid this toverfee and chose a composition for $105. The smallest possible variant, which is selectable, is computing capacity for $30. However, this can only be used when paying with digital currencies (Bitcoin, Dash, Litecoin, Dogecoin). For credit cards, the ondergrens amount for an order is $50.
After the compilation is configured, you are directed to the order details pagina. A promotional code can be entered here. Every Genesis Mining customer gets this code and can send this code to friends or other users.
With the promo code the advertiser gets credited a part, you also get a discount on the order. You can use my code to get a 3% premie on your order.
Third step: pay the Hashingpower
After the contract is confirmed, you will be redirected to a payment pagina. Here the credit card details, the email address and cell phone number have to be confirmed. If everything is accepted, the Hashpower is confirmed via email and the mining of your very first own coins starts automatically.
Note: when paying with credit card, the generated Bitcoins are retained for 30 days. This is due to the fact that during this period the credit card company can cancel the payment. The Bitcoins can be transferred to your own wallet after 30 days.
Genesis Mining Promo Code
With the Genesis Mining Promo Code you will get a 3% discount on the order of Hashpower.
Genesis Mining after 6 days: very first payouts
After a few days, the very first Bitcoins are mined and credited. Unluckily, ter the last days Bitcoin exchange rate has dropped and due to the operating fees the profit decreased. Hopefully Bitcoin price (from more than $1,100 to less than $700) will recover soon, so that the operating costs will not be higher than nipt profit. During the very first days with the SHA264 algorithm 0.00019 Bitcoins were mined vanaf day, the current rate is 0.0001553 Bitcoins vanaf day. With lower profit I would reach ROI after 16 months with the current Hashpower.
Genesis Mining after 1 month
After one month, wij mined 0.005 Bitcoin with Genesis Mining. But what does this mean? Presently 0.005 Bitcoin are worth about Five US-Dollars. Thesis 0.005 Bitcoins were mined with 0.Four TH/s with the SHA256 algorithm and 7.Five MH/s with the X11 algorithm . Wij had to invest about 110 USD for both contracts.
The SHA256 algorithm contract presently brings about 0.00012 BTC vanaf day, which corresponds to 0.13 USD.
The X11 algorithm contract presently brings about 0.0005 BTC vanaf day, which corresponds to 0.05 USD.
Even without high mathematical skill, it becomes clear that with 0.005 Bitcoin te the very first month wij only got a puny part of the invested amount back. With the current Mining difficulty, wij would recover our invested capital after 22 months.
Genesis-Mining after more than a half year: did I klapper the ROI?
After more than half a year with Genesis Mining and many highs and lows here is a current assessment of whether cloud mining with Genesis Mining is profitable. Earlier this year, wij acquired the following processing power from Genesis Mining: