Bitcoin over $17k and Hashflare.io worth it! :smile:
As some of my followers from my early beginning on steemit is aware I had bought some contracts at hashflare for mining bitcoin. I am here to post an update on my results.
When I first started the contracts in late August my payout was equivalent to ~$0.70 a day for 1 TH/s. Currently for simplicity sake if we assume bitcoin price is at $20k the payout is equivalent to ~$2.66 a day for 1 TH/s. The ROI on the hashflare contract will be less than two months! The end result is I get 10 months addition mining days to earn on top of my principal. To be exact I started my contract on Aug. 24th and broke even at Sept. 24th. This is assuming current bitcoin prices are $20k then I have made my principal back in one month!
Why I say ROI is less than two months when my own results are showing one month you may wonder? Well bitcoin difficulty has increased more than twice the % since I started therefore my payouts have been cut to half.
I will try to keep this simple, there are two big elements that affects the ROI for hashflare. First it is the price of bitcoin.
If we assume the average price of bitcoin is $5000 this is how much return I will get from first day to day 60.
| Time | Total BTC Amount | Total $ Amount |
|---|---|---|
| Day 1 | 0.00005976 | $0.2988 |
| Day 10 | 0.00066193 | $13.2385 |
| Day 20 | 0.00132464 | $26.4927 |
| Day 30 | 0.00187161 | $37.4322 |
| Day 40 | 0.00241088 | $48.2175 |
| Day 50 | 0.00297635 | $59.5269 |
| Day 60 | 0.00344102 | $68.8203 |
If we assume the average price of bitcoin is $20,000 this is how much.
| Time | Total BTC Amount | Total $ Amount |
|---|---|---|
| Day 1 | 0.00005976 | $1.1952 |
| Day 10 | 0.00066193 | $52.9540 |
| Day 20 | 0.00132464 | $105.9708 |
| Day 30 | 0.00187161 | $149.7288 |
| Day 40 | 0.00241088 | $192.8700 |
| Day 50 | 0.00297635 | $238.1076 |
| Day 60 | 0.00344102 | $275.2812 |
(My apologies as I am borrowing a computer to post. My 13 year old dell laptop can not even post images let only excel spreadsheets. How humiliating of me.)
I ignored the fact that each day I get deducted a maintenance fee based on current day bitcoin price to keep the concept simple. You can see from both charts above you get 4 times more if bitcoin is at 20k. Easy to understand why bitcoin prices matter.
The second part is mining difficulty. As time rolls on more mining power is being used to mine bitcoin because the reward pool is getting smaller. There is over 16million bitcoins already mined so with less than 5 million left the earning for the same amount of hash I have in December will be less bitcoin payout than when it was in August.
Chart below of the daily payouts without including maintenance fees.
| Time | Total BTC Amount |
|---|---|
| Day 1 | 0.00008671 |
| Day 10 | 0.00010007 |
| Day 20 | 0.00009145 |
| Day 30 | 0.00007853 |
| Day 40 | 0.00007635 |
| Day 50 | 0.00006700 |
| Day 60 | 0.00006752 |
| Day 70 | 0.00005737 |
| Day 80 | 0.00006215 |
| Day 90 | 0.00006281 |
| Day 100 | 0.00006392 |
| Day 110 | 0.00005553 |
| Day 112 | 0.00005058 |
So presently I am earning 43.69% of what I got in the first day of joining. That is more than double the increase in difficulty! So I would need to spend over twice the initial money in order to earn what I was earning in August.
In conclusion I have flip my position and am routing for others to join in on the investment. Hashflare had a promotion during Halloween with some discounts and they did it in Thanksgiving and cybermonday. The contracts for mining bitcoin are SHA-256 and are currently priced at $1.5 per 10GH/s. I bought mine when it was $1.2 per 10GH/s. If your not in hashflare yet I suggest to wait until the week of Christmas to see if hashflare will offer a discount. In addition if you to use my promotional code you will get 10% discount. https://hashflare.io/r/9B5028CE
Another item worth mentioning is if you do not intend to invest more than $30 to hashflare I suggest do not invest into the contracts at all. Reason is they have a withdraw fee and maintenance fee that will eat up most of your earnings.
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