Genesis Mining PRE-SALE vs. Hash Flare, comparison of Ethereum Mining contracts
Good News from Genesis Mining today. New contracts for Ethereum Mining a available for pre-order.
Time to check the current possible profitability and compare #GenesisMining with #Hashflare.
Genesis Mining
Just today I fell over the newest offer from Genesis. Right now you are able to pre-order ETH mining contracts after Genesis did not offer any capacity for a long time. Before rushing to their website and buy, there are three things to consider:
Profitability as of today
The new offer comes with a price tag of 1520 USD per 40 MH/s which seems pretty massive invest for a 2 year contract. To figure out the ROI I will look at good old coinwarz website and check the metrics. (I added a link to the calculator at the end of the post)
As you can see the contract will need nearly 330 days until ROI as of today. Always remember that price of ETH has a massive effect on the ROI, also mining complexity increases so the 330 days might still be optimistic. Also in this case I did not calculate any pool fees.
The total assumed profit after one is just $1,682.42 if we deduct initial invest of $1,520 the net profit would only add up to $160 for year one.
In year two obviously there would be no further investment so total profit (excl. ETH price volatility and complexity increase) would be approx. $1,844 which equals to approx 120%.
There are no maintenance fees at Genesis.
You will have to judge if you wish to lock your money for this time frame and speculate on Ethereum to further rise in price massively.
Change of Mining methodology
It is assumed that ETH mining will switch from POW (Proof of Work) to POS (Proof of Stake) in the near future. If this is the case, you Ethereum mining contract will no longer be able to generate ETH.
Genesis clearly states that in case this happens, the contracts will be moved to the most profitable other Altcoins and continue to work for you during the remaining contract time.
You need to be aware that you may end up mining something different. Good thing here: Ethereum miners do have a pretty nice range of coins that can be mined as opposed to the ASIC Miners that are focused on Bitcoins.
Limitation to existing customers
Right now the website states that this offer can only be pre-ordered by existing customers. You may wish to check back later if this changes.
In general Genesis has been out there for a while. I personally trust them since they have not been selling contracts for some time now. To me this is a good sign for a valid business model.
Hashflare
Hashflare has been selling various mining contracts for a while and exists for some years as of now. Just lately SHA-256 (Bitcoin) receive a low stock warning but Ethereum ETH mining is still available without limitations.
Profitability as of today
Prices of Hashflare are calculated in $2,20 per 100 KH/s so we will have to do some calculations to get to 40 MH/s.
1 MH/s = 1,000 KH/s = $2,20 x 10 = $22
40 MH/s = 40,000 KH/s = $22,00 x 40 = $880
To get to the 2 year equivalent, obviously $1.760 which is a premium of $240 you pay for Hashflare. BUT this is only half of the truth.
Let us assume that you wish to spend $1,520 in total, this would allow you to purchase a total of 69.09 MH/s at Hashflare. Obviously only running for one year but lets look at those figures:
ROI is at 191 days here and the overall profit is $2,905.96 removing $1,520 this will be approx. $1,385 which is about 91% in one year. Still not too bad.
Change of Mining methodology
Until now there is no official comment on the upcoming change and its influence on the hashflare contracts. There have been press releases though about Hashflare 2.0 which might include some more flexibility on coins you are mining. Details are unknown though.
Limitations
The contracts available on Hashflare are not limited right now. You can basically start mining immediately. This also allows common re-investment strategies as stock is not expected to run out soon.
Conclusion
Both contracts, based on current ETH price and mining complexity, promiss nice profits, while Hashflare might have faster ROI. Over two years Genesis would be more profitable though.
Assuming that you are able to reinvest your earnings into Hashpower for a while the possible profit rises exponentially. The opportunity to reinvest though seem to be higher at Hashflare from latest experiences.
If you want to get into mining business, both might be interesting for you. Possible gains with direct investments into coins could be more profitable if you select the right coins or invest in an ICO. (See my latest post about ICOs here: https://steemit.com/ico/@bitcoinquest/investments-in-ico-s-the-journey-to-get-wepower-and-titanium-blockchain-in-your-wallet)
As all cryptocurrency investments also CloudMining incorporates large risks. Since you do not own the miners yourself you might loose your money in case anything bad happens. (Hack, Fire, Scam or worse)
If you are interested in Cloud Mining and wish to start today, you may wish to use following affiliate links. These will help me too.
Hashflare registration:
https://hashflare.io/r/363833A9
Genesis Mining registration:
https://www.genesis-mining.com/a/2106526
If you wish to start trading Altcoins and not yet have an account at Binance you may want to use following link:
https://www.binance.com/?ref=16321033
Coinwarz Ethereum Calculator:
Image Sources: Hashflare, Genesis Mining, Coinwarz.com
I am no financial advisor, nor do I recommend you to invest in any of the mentioned cryptocurrencies or mining operations. It is your own responsibility to validate risks and assure that you can afford any investments. Cryptocurrency can lead to 100% loss of your investments. I can not be made liable for any loss from your actions.