RE: Thinking about purchasing a cloud mining contract? You'll change your mind after reading this.
Original post with bad math, I stand corrected and will not buy mining contracts again, but I thought I would leave this messed up math version here to show how easy it is to screw this stuff up. I am not proud. LET TRUTH PREVAIL I SAY!!!
: )
I bought a 2 year mining contract for Litecoin on Genesis Mining on 2017-04-18 for 250 dollars. Litecoin was $11.14 that day. I could have bought 22.44 litecoin for that 250 dollars on that day. So far I have earned 3.69 litecoin and am coming up on the four month mark. Assuming that I would get about that every four months for two years means I will get 134.69 ltc. But that is probably not realistic as the price will go up and so then will the difficulty I assume, so let's say we get half that amount in year two, which is probably not that bad an estimate unless litecoin really goes up in price, then I would get 100.99 litecoin. Far more than the 22.44 litecoin the 250 would have bought. Even if I cut that number in half again, that would be twice the litecoin. Please advise.
24 / 4 = 6
6 * 3.69 LTC = 22.14 LTC
That's how much you would make over 2 years if you got 3.69 LTC every 4 months.
You can see from this site that on 2017/04/01 the difficulty was 87,421 and on 2017/07/31 the difficulty was 437,853. That a 400% increase in difficulty over those 4 months or an increase of 87,608 per month. If you had 20 Mh/s and if the difficulty increased by a mere 10k per month for the next 18 months, you'd make 10.22 LTC according to this calculator. So, with the 3.69 you've already mined, that would give you a total of 13.91 LTC. If the difficulty increased by 87.6k per month for the next 18 months you would make 5.41 LTC in that time giving you a total of 9.1 LTC over the 2 years.
As you can see, that's significantly less than what you would have if you just bought LTC.
Oops, got a little silly with my math there. I will see if I can edit that post, just goes to show it is easy to make mistakes. Thank you so much for your correction and all that info. Darn math.
#payitforward