Mining is a difficult business and I don't encourage any to participate in it if they don't understand the concept of it or at least use money they need for housing, food etc.
I have signed up with three different contracts with them:
- Dagger-hashimoto 60 Mh/s (ethereum)
- Scrypt Hashing 2 Mh/s (Litecoin)
- X 11 5 Mh/s (Dash)
It is important to notice that the X11 and Dagger-Hashimoto comes preconfigured to Bitcoins from Genesis. I do not know why they do this, it is just what I've learned. It is easy to change it to your liking and I have since changed it to my idea of having an overweight of ethereum and Litecoin and Dash as supplements.
Market conditions the past months has however proved to be in favor of bitcoin and Litecoin, so my first payout exceeded my expectations:
All in all, I paid 108 USD for this setup. Divided by 14, it should break even within 8 months (!) Not bad in my opinion. The contracts are for two years, so so far we are looking good. How it will pan out after my change to ether, dash and litecoin, remains to be seen. My plan is to take profits as we go along and I doubt I will loose with my scheme. It will require some trips to Poloniex, but thats fine by me. There are a few other placements I'm looking into as well and I might take a different path with these funds. We'll see.
If you are considering signing up with Genesis, humour me by using my using my affiliate code: Vqgrc7 It will give you 3% off your purchase. You find them here: https://www.genesis-mining.com/
Anyhow, I'm delighted for every upvote, which gains everyone.
Good luck,
how did you calculate your break even? Which assumptions did you make regarding the increasing difficulty?
For info, I do a little mining (BTC only), and so far - after 3 months - I got back app. 20% of what I have invested. The daily return decreased app. by a third, as did the Bitcoin price increase. I am assuming that in case the Bitcoin price stays flat, there is no chance to ever break even due to increasing difficulty.
Generally I would be very cautious about this business model.
The calculation is the simplest there is.
108 USD total investment / 14 USD a month ≈ 7,7 months payback.
As I have tried to get through here, this is in large a result of +30% increase for bitcoin and a huge spike for Litecoin. Without those it would not be profitable. I do not see why increased difficulty would deminish the probability for success, as these assets has to be looked upon as commodities. It will be compensated by a higher price.
My attitude is that although the money making with Genesis and Splititmining is slow it's not a problem as it's not costing me any more money - I invest about £100 a month into 3 mining sites, splititmining actually I like the best because it auto reinvests building up your hash power.
Auto-reinvesting to build up hash power - the perfect Ponzi scheme!
I have taken money out of it and it wasn't a problem, I don't see the difference between taking out the profits and then re-investing them to actually just leaving it in there to cook? Plus I have done extensive research and spoken to their support team who respond VERY quickly whatever time of day or night. All the scams I have uncovered and tested at www.ukbitcoinblog.com my blog don't have this.
I will add I spread my investments across different sites and have strict research and testing before putting anything larger than $10 into anything. I also have my own mining rig here at home working 24/7 so my risk is greatly reduced.
To be honest also I think that banks while we're at it that use fractional reserve banking are worse than a ponzi scheme. The fact the whole thing can crumble (and has a number of times) is just terrible, take Bearings bank taken down by one trader, or RBS that the Government here bailed out.
At least with Bitcoins and the blockchain it's not based on debt.
To be honest there's not much difference between this and compound interest. That's just re-investing the interest back into making more interest.
The fact is that increasing difficulty happens anyway, regardless of BTC price. Thats the whole point. Your profit will shrink to zero sooner or later. Later if BTC rises, sooner if it doesnt, and it is very unlikely that the price will increase that much so that you regain all your investment before the payouts go to zero. I hope otherwise of course, but be realistic and rethink it before you invest more!
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Source: https://www.cryptocompare.com/mining/calculator/eth?HashingPower=60&HashingUnit=MH%2Fs&PowerConsumption=0&CostPerkWh=0
Is the hashrate you got mistyped? - or are they deducting some other costs from your profits (with some magic equation, that's WAY more than average power used to mine that amount per month).
How can a post get 158 votes and only 36 views?
bots
Oh well, I thought steemit had some mechanism to avoid that.
Half of the posts on the mining category are genesis mining crap or similar cloud mining scams which makes browsing steemit really annoying.
Well if you think I'm trying to scam someone, think again. Mining is not for everyone and I do this with my own money. There is a chance to lose and a chance to win. It is my first experience in this field and I suggest you read something that interests you instead of shrugging off my experiences as scam.
Yea sure, you know if it wasn't for the referals you wouldn't make money on the cloud mining scam.
I'm making money from a spike in Litecoin and a 30% raise in bitcoin. Beginners luck. Nothing else.
You would have made more by just buying the coin on an exchange, genesis is a useless intermediary.