Is it cloud mining profitable? #2

in #cryptocurrency7 years ago (edited)

cloud_mining.png

I consider 5 cryptocurrencies: Bitcoin, Litecoin, Ethereum, DASH and ZCash. Coins exchange average rates from coinmarketcap API at June 30, 2017:

$ ./mine2.py
BTC_USD: 2548.58 USD

LTC: 0.0163619 BTC
ETH: 0.120068 BTC
DASH: 0.0723806 BTC
ZEC: 0.124969 BTC

Last month I'd posted initial research. Now I've reviewed my code, fixed calculations and added DASH and ZEC currencies.

Cloud mining proposal consists of the mining cost for hash rate and maintenance fee for offered power. I've took the mining price list from hashflare.io and got rewards per offered rate from online calculators:

"BTC": 
        "mining": # https://alloscomp.com/bitcoin/calculator
                    {
                    "MINE" : 1.2,          # USD per 10GH/s
                    "MAINT" : 0.0035,      # USD fee per 10GH/s per day
                    "COINS" : 353 * 1e-8,  # coins per day for 10GH/s for current difficulty
                    }
"LTC": 
        "mining": # http://www.coinwarz.com/calculators/litecoin-mining-calculator/
                     {
                     "MINE" : 13.5,       # USD per 1 MH/s
                     "MAINT" : 0.01,      # USD fee per 1 MH/s per day
                     "COINS" : 0.002067,  # coins per day for 1 MH/s
                     }
"ETH": 
        "mining": # https://etherscan.io/ether-mining-calculator
                     {
                     "MINE" : 2.2,            # USD per 100 KH/s
                     "MAINT" : 0,             # zero fee
                     "COINS" : 4.3849 * 1e-5, # coins per day for 100 KH/s
                     }

Below is shown calculation graph examples for 100 USD investment for each of considerate currency. The "outcome" line presents our expenses growth per day from 100 USD initial payment for hash rate power. Our revenue presented by "income" line. The "profit" line is the difference between "income" and "outcome". Since the cost for mined coins are higher than maintenance fee, the income is increasing faster that outcome. When income line cross outcome line, the profit changed to positive - it is a point of investment return.

The Ethereum looks more profitable now and have no maintenance fee, but ETH contract is limited to only 1 year. Important! Ethereum blockchain will probably switch from PoW to PoS consensus protocol till the end of 2017 (Cointelegraph), so mining PoW rewards turned off and investment may not returned.

The BTC and LTC contracts are unlimited and will continue to generate profit. My calculation shows that after ETH, the LTC mining is most attractive and then BTC and DASH.

ETH.png

ETH return in 164 days
investing: 100 USD for 364 days
revenue:   222.0 USD
maintance: 0.0 USD
profit:    122.0 USD (122.0 %)

LTC.png

LTC return in 178 days
investing: 100 USD for 364 days
revenue:   232.4 USD
maintance: 27.0 USD
profit:    105.4 USD (105.4 %)

BTC.png

BTC return in 219 days
investing: 100 USD for 364 days
revenue:   272.9 USD
maintance: 106.2 USD
profit:    66.7 USD (66.7 %)

DASH.png

DASH return in 218 days
investing: 100 USD for 364 days
revenue:   167.5 USD
maintance: 0.0 USD
profit:    67.5 USD (67.5 %)

ZCash mining is not currently available and looks not profitable:

ZEC
investing: 100 USD for 364 days
revenue:   14.9 USD
maintance: 0.0 USD
profit:    -85.1 USD (-85.1 %)

Keep in mind that network mining complexity is constantly increasing and hash rate power you've bought will not cover maintenance fee in future. In that case only coins exchange rate growth could compensate your investment.
Anyway, this is just my small research and not an investing recommendation.

The Python script is available on github

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I think the bitcoin is still the king in mining because of the price

Yes, the growing price could compensate mining expenses. In other hand, rising mining difficulty leads to less coins to mine and maintenance fee will eat profit.

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