Bitcoin cloud mining comparison - Hashflare, Genesis Mining and Hashing 24 - Part 1

Self mining Bitcoin or other coins is quite cost intensive in terms of hardware and energy cost.

Cloud Mining seems to be an option. You just "outsource" the hardware and energy problem to other companies. The mined Bitcoins are usually paid out to your wallet on a daily basis deducted by a fixed USD fee.

The most popular cloud mining provider are Genesis Mining, Hashflare and Hashing 24.

Below I have listed the prices for 1 TH/s Bitcoin lifetime mining contracts.
(Of course cheaper contracts are possible)

Genesis Mining

Price for 1 TH/s: 150.00 USD
Daily maintenance fee: 0.28 USD

Hash Flare

Price for 1 TH/s: 120.00 USD
Daily maintenance fee: 0.35 USD

Hashing 24

Price for 1 TH/s: 199.50 USD
Daily maintenance fee: 0.33 USD

What does lifetime contract mean ? Does it last forever ?

Technically yes, but there is a huge drawback. With time, the mining difficulty rises (usually every two weeks). This means, less Bitcoins are mined every day. Also the value of the mined Bitcoins, in terms of USD, fluctuates. But (!) the daily maintenance fee stays constant.

Once the fee exceeds the value of mined Bitcoins, the contract gets cancelled after a certain amount of time. So the term "lifetime contract" is only valid as long the value of the mined Bitcoins in USD is higher than the daily fee.

The question here is, if the contract runs long enough to mine enough Bitcoins to get your invested money back. This situation is called "Return of Investment" (ROI)

My experience here is, that you can earn your money back and above - BUT if the value of Bitcoin crashes you may run into a problem.

This sounds bad at first, but imagine what happens, if you have bought 1 Bitcoin for 2.700 USD and the price crashes to about 1.800 USD ?

Right you make a huge loss. With the daily payouts, you get Bitcoins at different values every day and you get a nice average price.

That does not sound bad - right ?

I am a huge fan of cloud mining and I use all of them. Anyways, I also buy and sell coins directly on exchanges.

On first view Hashflare and Genesis Mining offer better deals compares to Hashing 24.

Also both offer mining contracts for other currencies like Etherium or Dash too.

This was part one of my review. Next time I will compare my income.

If you wish to try cloud Mining yourself, feel free to use my discount codes below:

Genesis Mining - 3% off on every contract : Uz30v8 or https://www.genesis-mining.com/a/863630
Hashflare - 10% off on every contract - first time : A7D35BCC
https://hashflare.io