Genesis Mining Investment Oppertunity (ROI Calculation Included)!!steemCreated with Sketch.

in #bitcoin7 years ago

Hey Fellow Steemians,

We all know that genesis mining has been in the crypto space for a long time and it's not to be confused with a scam i even tried it myself with btc lifetime contracts and it's paying me every day, But what i wanted to focus on is the calculation of the ROI(Return On Investment) and wether it's worth to take the risk or not.

Contract Period

Currently Genesis mining offers XMR and ETH 2 year contracts and BTC lifetime contracts but in order to have a closer more accurate estimation on our ROI calculation we are going to be focusing on the 2 year contracts since they are not that many factors affecting the ROI (all we have to do is to estimate the difficulty and the price).

Pricing

pricing.png

ETH contracts are selling for $30/1MH/s
while XMR contracts are selling for $50/60h/s <==> $0.83/1h/s

PRO TIP: you can get more hashpower for less money when you purchase large contracts

pricing2.png

Eth contracts: $14,000/500mh/s <==> $0.28/mh/s
Xmr contracts: $8,000/10000h/s <==> $0.8/mh/s

Meaning if you purchase 500mh all at once you'll get it for $14,000 while if you purchase it with smaller contracts you'll get it for $30*500=$15000. So we are saving $1,000 on sizeable contracts :)

And for XMR contracts $8,000 when purchasing all at once and $8,300 when purchasing with smaller contracts.

In conclusion to this you are better of saving what you can and then purchasing all at once :)

Affiliate Codes

Another plus for us is using the affiliate codes which give us a %3 discount on our purchase so assuming you purchase a 500mh/s ETH contract for $14,000 with the code it drops to $13,580 and for XMR contracts $7760.

PRO TIP: you can make a Genesis mining account that you own and use its affiliate code where you can get the %3 back in BTC.

If you do this the calculation would be %3 from $14,000 is $420 and meaning if you use you own code you'll get it for $13,580 and you'll get $420 back in BTC a total of $13,580-$420=$13,160.

and for XMR we have %3 from $8,000 is $240 so $7,760-$240=$7,520

ROI calculation

Now we get to the fun stuff.

In a first calculation we are going to assume that the difficulty and the prices stay the same:

eth.png

So for ETH 500mh/s that we can get for $13,160 our monthly payment is $2,651 meaning $13,160/$2,651=4.96 months ROI

xmr.png

And for XMR 10,000h/s that we can get for $7,520 our monthly payment is $879 meaning $7,520/$879=8.55 months ROI

BUT as we all know the difficulty never stays the same for too long and it's always increasing and the markets are always changing aswell, so in order to estimate the difficulty we are going to be calculating the average difficulty increase per month and we'll calculate our ROI.

eth_diff.png

According to the ETH difficulty chart from march until now we have:

March=217T(Trillion), April=300T, May=465T, Juin=895T

Difficulty increase percentages: March to April=300/217=%38, April to May=465/300=%55, May to Juin=895/465=%92

Average Monthly Difficulty increase: (%38+%55+%92)/3=%62

Meaning that we will get $2,651 in the first month and $2,651(1-0.62)=$1,007 in the second month $1,007(1-0.62)=$382 in the third month and so on.

But this is JUST an estimation based on previous difficulty increases, who knows what the future holds for us.

xmr_diff.png

According to the XMR difficulty chart from march until now we have:

March=6B(Billion), April=7B, May=8.5B, Juin=11.5B

Difficulty increase percentages: March to April=7/6=%16, April to May=8.5/7=%21, May to Juin=11.5/8.5=%35

Average Monthly Difficulty increase: (%16+%21+%35)/3=%24

Meaning that we will get $879 in the first month and $879(1-0.24)=$668 in the second month $668(1-0.24)=$507 in the third month $507*(1-0.24)=$385 and so on.

But this is JUST an estimation based on previous difficulty increases, who knows what the future holds for us.

NOTE THAT these calculation are assuming that the difficulty increases and the price stays the same meaning that this is the worst case scenario that could happen.

Conclusion

In conclusion to all of this and in my opinion a %62 increase monthly difficulty increase in ETH contracts is not something you should be mining it's something you should be holding, XMR on the other hand with %24 monthly difficulty increase appears to be stable and that's what i think an investor should be going for.

I intend on buying an XMR contract soon and i'm going to be posting the stats here on steemit on a daily basis so make sure you follow me for more content like this.

Thanks for taking the time to read my post :)

Have a great day.

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I think nowadays altcoin mining become faded. Since mining is not a good solution for scaling up the altcoin. The altcoin is going to change from POW to POs. And there are more and more ICO with fixed amount of tokens. So the future of mining is not so optimistic...

Thanks for taking the time to do this research, i am looking at mining Zcash. Do you think that is profitable ?

yes zcash mining is profitable but Genesis mining doesn't offer zcash contracts :(

Do you compare mining with BTC, LTC, DASH? Is it more profitable?

I did a DASH contract ROI calculation :
https://steemit.com/money/@steemian69/purchasing-dash-x11-mining-contracts-roi-calculation-included

and i think DASH is the most profitable :)

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