Investing in cloud mining, is it still profitable?
Cloud mining is utilizing a remote data centers in order to mine cryptocurrencies (Bitcoin or Altcoins).
The main cons of this process are first:
- the trust: You have to trust your provider, you are going to put money in order to buy the contract, and in case of fraud or scam, there is no legal recourse. The providers are usually opaque and don’t give their identities.
- Lack of control: You don’t have control of what you are going to mine after you purchase the contract. For example, if you purchase a Bitcoin contract, you are tied to mine only bitcoin and can’t switch to another altcoin.
- Profitability: Is it profitable? That’s what we are going to see… :D
Personally, I have trusted Hashflare. They are well-known to the cloud mining community, in my opinion, they are more profitable than other cloud mining services and so far, I haven’t experienced any issues with their services.
How much money I’ve invested and what am I expecting?
I have invested 180USD (on 12 December 2017), it gave me a hashpower of 1.2 TH/s.
All Hashflare contracts are 1-year contract.
Over the first week, I have reinvested all the gains, today I have a total of 1.34 TH/s.
And here is how much I made from the 12 December to today (28 December 2017):
We I don’t have 0.00265067 BTC in my BTC Balance? It’s because, like I said, I have invested the first week gains and this total is including the maintenance fees (0.0035USD every 10GH/s meaning 0.469USD per day for my 1.34TH/s)
If we don’t take into consideration the increase of the difficulty nor the fluctuating of the price of BTC, I am making on average 0.00017671 BTC per day (2.8USD/day), which means I am breaking even in only 65 days.
To conclude, what I would advise you if you want to start this journey, is to reinvest your gains for at least 1 month (I did only 1 week in order to compare the figures) because that works exactly like compound interest and god knows how much compounding can be powerful (The rice and chessboard story ;) )
If you want to start with Hashflare, you can follow my referral link : https://hashflare.io/r/4A9E8472
You can buy Bitcoin, ETH & LTC using Coinbase: https://www.coinbase.com/join/5a32d9bf8ef68202b36c270b (Referral link)
Thanks for sharing this information. I just reinvested.
My pleasure!
It’s more a question of whether you can foresee good coins in the future. I was cloud mining LTC before it was on Coinbase.
You also used Hashflare to cloudmine?
I started out with much less and reinvest roughly half twice weekly. This way I can make my contract last longer and start collecting payouts whenever I decide it's most profitable.
I am slightly disappointed that the cost per GH/s is now up to $2.20USD plus regular maintenance fees though.
I think I'm going to withdraw once I reach my breakeven point, and then I will keep reinvesting my gains.
Even though the price went up, It is still profitable especially if the price of bitcoin goes up.
I would wait to withdraw until you reach a bit more than break even to cover transaction expense.
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