WARNING!!! Genesis Mining are making money from providing services!!!!!
So I see a lot of people crying "Scam" when they buy a Genesis Mining contract for $60 over 2 years and don't become instant billionaires. It's also possible that you could buy a contact and only just or not even make $0 ROI.
There are a few reasons and some logic that leads to these things, so I'm going to throw a few "out there" comments out below.
BTW I don't own or work for Genesis or any other mining company, but I just always like to put myself in the drivers seat for examples such as below. I am also going to do it.....that's right.....I'm going to post my discount code at the bottom of the post....earns me something like 0.25% increase in hash power.....that's enough to become a millionaire, so my thoughts will be completely biased below and without any integrity at all.....you decide
Business is business! I'm not going to buy equipment, get up at 6am every day, get stuck in traffic and deal with complaining co-workers just so you can get a cheap deal. It costs money to mine coins and if I've invested a lot of money to start a business, I'm going to recoup that through a strategic thing called "Profits". I basically charge you a bit more than it cost me, but did take away some hassle and risk in doing so. That's my service. I remove some risk and problems for you and you pay me for it.
Business is business! You're paying me a bit more than I paid throughout the whole deal and I've just got enough to buy myself a Ferrari California GT. I will keep doing such things until either I have everything I want (the same car in white, red then green) or until my family or friends have also been looked after. I could probably steal a load of cash from the 500,000+ customers I have, but unless the majority of them have all put in $2k each, I probably would do better to keep earning annuity income. (and avoid jail, being kidnapped, murdered or other such things that happen when you mess with karma)
You're paying me to mine coins that I get paid for!!!!! Amazing isn't it! I don't have to prove anything to you about the amount of work that went into the mining of the coins, so providing I leave a strong enough margin, I will always get a bit of an extra bump on top of the coins I mined for you. Sorry if this is news to you, but you're welcome to buy some machinery and a small power station if you want to earn that little bump extra yourself. I hear solar power is getting really good now if you want to keep costs low but be aware that a standard laptop might not quite cut it....
On that note, I'd like to add a word from our sponsor: "If you're signing up for a contract, please use the discount code 8zgrP5 to get 3% off and hook me up with a bonus. Thanks,"
I should also mention that I'm aware of the recent outage and account issues. Mine happen to have been partially solved and I'm confident all will be good within the next few days.
Should have put that at the start of the post as it's actually why I posted......simple minds and all that :)
Hello.
I am going to comment before I even read your article.
Why? Because your title is not very precise. Do you realize that many companies make money from providing a service?
It is quite common.
Now, I am going to read your article, and I hope there is information in it.
@stover.daniel Thanks for the comment! I appreciate your honesty and pointing out my error. I hope you will find the article interesting.
Excuse me if I was rude.
Your post was informative. I would love to see a real analysis if this profitable or not (taking out a contract).
Best wishes!
No need to apologise @stover.daniel
You can check profitability on various web apps, but ultimately you need to take the same approach to it as anything of this kind. You invest what you can afford and use it as it should be used.
In the case of cloud mining, you should invest no more than 5% maximumof what you would like to invest in your cryptocurrency portfolio in total.
You might buy some coins cheap or exchange at good rates, but all the time, the small increments the mining will give you, will help you earn what is essentially interest on your original investment, long-term.
In the case of an x11 contract, you should see the first 5-6 months get you back what you put into it (if you're only mining Dash and the price remains stable). As you get a 2 year (no fees) contract, that gives you 18 months of profitable mining.
You won't get rich quick and it may slow down if mining difficulty increases on a certain coin, but you should slowly grow your portfolio with minimal risk (5%).
I hope that helps.
I have rarely seen such a clear and direct explanation of what mining should in an overall "portfolio." Thank you!
https://www.cryptocompare.com/mining/calculator/dash?HashingPower=40&HashingUnit=MH%2Fs&PowerConsumption=140&CostPerkWh=0.12