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RE: Cloud Mining - Pros and Cons
Have you been able to make a profit with Genesis mining? How do you calculate it?
I looked into it and found most cloud mining sites were unprofitable investments (though my analysis wasn't very detailed). Here's one interesting take:
https://99bitcoins.com/genesis-cloud-mining-review-scam-legit-investment/
I find it all depends on your investment. In the old days, people would mine on their own hardware. This becomes costly on hardware and power consumption (miners use A LOT of electricity).
Here's a popular mining calculator. If you adjust the values, you get a pretty accurate assessment. If you are cloud mining, there would be no power costs, since it's not your hardware doing the mining, thereby improving your profit over the long term.
Hope that helps! I'm still pretty new to all this but slowly wrapping my head around a lot of it. Steem on!
I haven't been in it for long, but the numbers are solid. For example the Dash difficulty has a steady pace so should remain very profitable for the extent of its contract. The real problem with cloudmining sites is that Bitcoin mining is not very profitable because of the nature of the coin itself and the fact that all BTC contracts include maintenance fees make the whole thing a bit of a gamble.
So for example I have a contract mining LTC - I paid $500 for it and it will mine me 17 Litecoins over the next year - maybe 15 with adjustjustments for difficulty, and next year it will provide say 12 again factored on difficulty increases - so 27 LTC for $500 not a bad deal