Passive income with crypto - Not trading, but mining?

I have been mining for almost 6 months now, and it all started with genesis mining. The reason that I am cloud mining is that I foresaw the noise and potential obsoleteness of mining hardware as difficulty in mining increases exponentially. And conveniently I didn't have a place to fit all the mining rigs. So do I recommend cloud mining over home mining?

It all comes down to what you're comfortable with or willing to trade off for. If you're looking for a maximum profit so yeah you should definitely get ASIC miner. (ASIC miner provide the highest hashrate available in market) That is if you're comfortable with noise as loud as this:

In this video by JMS Vlogs, you can clearly hear the noise of ASIC miner in the background as he speaks. He even self modified an ice storage box just to cover the noise up.

Of course, how about gpu mining, there's less noise from it. Then you have to deal with technicality of setting it up to mine certain coin. And each coin have its own different settings. For example, Ethereum have the problem of shortage on gpu RAM(Random Access Memory) and thus reducing hashrate. Then you have to find a modified driver, which only improves like 1 or 2 megahashes. And the technical difficulty you might face in the future is just so damn unpredictable.

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OK, SAVE THE HASSLE, CLOUD MINING??

GENESIS MINING

Contract that I bought my first terahash :

As you can see, genesis mining contract is open ended. Meaning the contract is not fixed to a specific date, it will continue to mine as long as it is profitable. And i started my mining the day after I bought the contract which is on June of 9th 2017.

Thats a upfront fee of 0.15 usd per GH/s. And I'm buying 1 terahash and is equivalent to 1000 gigahash. So in total I have to pay 150 usd in total. But there's 3% discount if you use any promo code.

After promo code reduction, the amount I have to pay is 145.5usd
And if you paid with credit card, you have to wait for a month or so before you really get your payout in your wallet. But it is mining in the background on the day after you paid. And thankfully they didn't charge anything extra on my credit card. Precisely just 145.5 usd.

My pending payouts

Here you can see the amount of btc I'm mining in background, while waiting my transaction in credit card to be confirmed. This is because anyone can reverse their transaction with credit card within a month.

(Pending mining profit from June of 9th 2017 - July of 9th 2017)

My real payout in Electrum wallet

I had to blur and slash the line cause these input are irrelevant, as I used this wallet to for other purpose too. Sorry guys

On July 11th 2017, Genesis mining paid me in a lump sum of 0.0084151 btc which at that time was around 19.72 usd. This means I was getting 0.66 usd per day. So in theory, days required to break even is around 145.5/0.66 = 220 days.

But noooo, my break even happened earlier -

The math

Let's add from the day I received my first payment up to 30th of september :

97.97 + 7.99 + 8.19 + 33.37 = 147.52 with an excess of 2.02 USD

Let's calculate the duration of break even :

30th september - 9 june ( day that I paid for the contract) = 114 days! (3 months and 21 days!)

220 -114 days = 106 days

I was 106 days earlier to break even!!! This is all thanks to the massive increase in bitcoin price!

(on June 9th 2017 the price was around 2k, but on August the price doubled thus increase the value of each bitcoin I mined even though I'm getting lesser and lesser bitcoins)

(Regardless of the fact that there's almost a 30% increase in difficulty every month, I still managed to break even faster than expected)

OK, I BROKE EVEN, THEN WHAT'S MY FUTURE PROFIT?

If you sign up with genesis mining, they're few of the company who still have open ended contract

Means you will keep receiving free money as long as the mining contract is still profitable!

So if you mined with 1 terahash today on 20th december 2017 :

I calculated genesis mining maintenance fee to be around 28%. And this is the amount you should get. And of course this is the difficulty for that particular day. But it gives you a rough picture of what your profit will be. Check out coinwarz.com if you want to know more.

74$ per month just by doing nothing is a great profit! Imagine if you reinvest your profit everytime for higher terahash. You got back your money and you'll see your earning snowballing.

CONCLUSION

Mining can still be an alternative source of passive income. You might argue that if I went on to buy btc and hodl it till september 30th, you could've doubled your money! Yes you're completely right! But once you sold part of your bitcoin to get that profit, you need to find back that cheap entry point into the market, and sometimes you might fail horribly and lose money. So on each trade your bitcoin get lesser and lesser. So why not mine and trade at the same time? Once you broke even from mining you can use that money and reinvest in higher terahash. So you'll get higher btc payout. And use those to sell in market when it's all time high. But of course, mining is still a risky business. The company you invest might shut down or get hacked. I took the risk and I broke even so I'm not bothered if anything happen to this company.

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Disclaimer : Im not making this post to scam people, but it is my honest review and what I've earned so far. It's up to you all to be the judge if cloud mining is legit.