💹 Buying Ether VS Ethereum Cloud Mining: What is more profitable for long term? 💲 (English/German)
Hi Steemians, a few days ago I had a talk with a friend about Ethereum mining. Last year I invested 50 € in Ethereum Cloud Mining for him for example and now he has 2.3 Ether worth over 550 $. If I had bought Ether directly for 50€ last year, it would be more than 5 ETH worth over 1000 € today. So the question is: What is more profitable in 2017? Buying Ether, or Ethereum Cloud Mining?
I was sure Cloud-Mining is more profitable, because of the high Ethereum price. If I would buy 10 Ether today, it would cost me about 2300 $. I can get the same amount of Ether much cheaper with Cloud-Mining. With around 37 MH/s Ethereum Mining Power, I will get over 10.4 Ether after 1 year and it only costs about 1090 € at Genesis Mining and it is mining 2 years. So after 2 years you will get about 20 Ether back for only 1090 € instead of 10 Ether for 2300 $ if you buy it today directly.
Note: Of course the increasing mining difficulty is not included in the calculation, so it will be a little bit less than 20 Ether after 2 years Ether Cloud-Mining, but it is still cheaper than buying (in the moment). Here you can see the mining difficulty chart of Ethereum and unfortunately it is raising strong, what could make buying Ether more profitable than cloud mining soon: https://www.coinwarz.com/difficulty-charts/ethereum-difficulty-chart
My conclusion: If you want to invest in Ethereum, you can buy cloud-mining contracts for Ether at Genesis Mining for 2 years. With this code you will get a 3% discount at Genesis Mining: I3QXtG But keep in mind, that the mining difficulty is raising very much in the last time and if this goes on like this, buying Ether is better than cloud mining.
[German] Hi Steemianer,
vor ein paar Tagen hatte ich ein Gespräch mit einem Freund über Ethereum Mining. Letztes Jahr habe ich zum Beispiel für ihn 50 € in Ethereum Cloud Mining investiert und jetzt hat er 2.3 Ether, im Wert von über 550 $. Hätte ich letztes Jahr stattdessen Ether für 50 € direkt gekauft, wären es über 5 ETH, die heute über 1000 € wert wären. Die Frage ist also: Was ist 2017 profitabler? Ether kaufen, oder Ethereum Cloud Mining?
Ich war mir sicher, dass Cloud Mining profitabler ist wegen des hohen Ethereum Preises. Wenn ich nämlich heute 10 Ether kaufen würde, würde es mich c.a. 2300 $ kosten. Den gleichen Betrag kann ich aber auch günstiger mit Cloud-Mining bekommen. Mit ungefähr 37 MH/s Ethereum Mining Power bekomme ich nach einen Jahr über 10.4 Ether und es kostet nur rund 1090 € auf Genesis Mining und es erzeugt sogar 2 Jahre lang Ether für dich. Nach 2 Jahren wirst du also ungefähr 20 Ether generieren für nur c.a. 1090 €, anstatt 10 Ether für 2300 $ wenn man heute direkt Ether kaufen würde.
Anmerkung: In meiner Rechnung ist natürlich der steigende Mining-Schwierigkeitsgrad nicht mit eingerechnet, sodass es nach 2 Jahren Cloud-Mining bestimmt etwas weniger als 20 Ether sind die man raus bekommt, aber es ist trotzdem günstiger (im Moment). Hier kannst du den Mining-Schwierigkeitsgrad Chart von Ethereum ansehen und leider steigt dieser gerade stark an, was schon bald Ether kaufen profitabler als Cloud-Mining machen könnte: https://www.coinwarz.com/difficulty-charts/ethereum-difficulty-chart
Mein Fazit: Wenn du in Ethereum investieren möchtest, kannst du Cloud-Mining Verträge auf Genesis Mining für 2 Jahre kaufen. Mit diesem Code erhältst du 3% Rabatt auf Genesis Mining: I3QXtG Man sollte aber beachten, dass der Mining-Schwierigkeitsgrad in der letzten Zeit stark angestiegen ist und wenn das so weiter geht, ist Ether kaufen besser als Cloud Mining.
PS: If you are searching for a good company for Ethereum Cloud-Mining, I can suggest this two sites, where I mine Ethereum too and it is very lucrative:
[German] PS: Falls du nach einer guten Firma für Cloud-Mining suchst, kann ich dir diese beiden Seiten empfehlen, wo ich auch Ethereum mine:
Genesis Mining (Click to the website/Klicken zur Webseite)
(Paying with Credit Card possible)HashFlare Cloud Mining (Click to the website/Klicken zur Webseite)
(Paying with Bank Transfer possible)
Here is a 3% discount code for Genesis Mining too: I3QXtG
[German] Hier ist auch ein 3% Rabatt-Gutschein für Genesis Mining: I3QXtG
Best regards and hear you in my next article!
[German] Beste Grüße und wir hören uns in meinem nächsten Artikel!
Jonas Ahrens
There are very little periods where mining contracts could be more profitable. They are almost 100% not as profitable as just buying or miningyourself.
Cloud_mining can be profitable for people who live in places with high electricty costs, for example in Germany, where mining gets more and more expensive. Just a guess. Not mining by myself.
Yes normally buying is better than mining, but with the current ETH price and mining difficulty, Ethereum Cloud-Mining is more profitable.
Eh, maybe maybe not.
In the moment it is definitely more profitable. Of course I can´t know what is next year. But if you are calculating with current conditions, Ethereum Cloud Mining is more profitable than buying Ether.
Exactly calculating with current conditions is not the investment advice I would be giving. Buy ETH, buy GPUs.
Unfortunately you cannot say "In the moment" for a 2 year contract job. In the moment is applicable only if you are getting mining contract for 1 day or a few weeks.
Cloud mining all the way for me. These are the sites I use!
All Free Gh/s.
Eobot - https://goo.gl/FVAp7L - Daily free faucet!! Number One & Most Trusted
Fleex - https://goo.gl/hyff4J - 100Gh/s
Rapid - https://goo.gl/W1CzRr - 100 Gh/s
CryptoS - https://goo.gl/LtaaTU - 20Gh/s
MinerClub - https://goo.gl/Lfok5X - 15 Kh/s
Nano - https://goo.gl/ZgcrQe - 15 Khs
Elite - https://goo.gl/72rxWA - 5000 DogeCoin to start investing.
Demix - https://goo.gl/pcpMve - 5 Gh/s
DogeMine - https://goo.gl/syBPcZ - 20 Kh/s
I do not recommend you invest $$$ except in Eobot, more your time,
in and internally generated Gigahashes
Then cash out when you like the day returns!
Then send it over to Eobot to boost my account their.
Please use the links so i can gain a small amount of Gh/s for your referral.
Happy Mining.
Hi, ethereum is going to Proof of stake with Casper some time in the neat future which means that you can no longer mine it. So if you have a mining contract and ethereum goes Casper, you cannot continue to mine ether and can only mine other coins. That is a risk you have to take with a Mining contract.
Interesting information, thanks.
eye catching post
Yes. But like every other cloud mining promotor, he didnt calculate the difficulty increase. Which sometimes reduces the profit by 80%
I disagree... had the same scenario..the cost of an Ether mining contract with Genesis I could have bought 5.2 ETH ...mined less than 2. Bought ZEC mining with Genesis.... never going to make half the amount I spent.
@themagus Yes last year it was more profitable to buy Ether. If you invested 50€ in ETH Cloud Mining last year, you received about 2.2 Ether until now. If you had bought Ether for 10$, you would have 5 ETH. But now with the high ETH price, I calculated that Cloud Mining is much more profitable than buying ETH. (Increasing mining difficulty is not included in the calculation) Only after 1 year you will mine more ETH for the same price as if you buy Ether directly for the current price.
Okay @future24, I take your word for it because I am too lazy to do the maths {smile}... but I will not buy mining power again. Just my take.
Yes, everyone should do it as they want. Im definitely reinvesting in Ethereum Cloud Mining Contracts again in the moment. I will not buy Ether directly. Are you buying Ether in the moment?
I have a few, but am not actively buying at the moment
I did a pretty in depth analysis of this. It does not make financial sense to mine at this point. Make sense to just put the money into the token.
Why do you think so?
I you thinking the price is going to go up the hash rate will become higher making it more difficult to mine. Makes more sense to just buy coin
Ok I did another research too and the mining difficulty is really rising very much. https://www.coinwarz.com/difficulty-charts/ethereum-difficulty-chart This could make buying coins more profitable.
you can add a 3rd site very legit
https://hashing24.com/?rid=53616c7465645f5fbfdbf646f6e1a02a648d16be4d399540
I am eager to see a followup on this after 10 months.
In the mean time, ETH price reached an ATH of $1380 from $230 and dropped back to $400 as of writing. Whereas, ETH mining difficulty increased 468% in the past 9 months. I always believe, Cloud mining is lesser profit than buying the coins directly. Because, people who promote cloud mining always undermine the difficulty increase. But the reality is, if a coin is very profitable, the difficulty level increases parabolically in the next few months and the profitability drops severely.
In this case, the author of the article mentioned that due to difficulty, he is going to get a bit lesser than projected ETH. However, In today's difficulty, it will take 1 year to generate 1ETH using 37Mhz Mining power.
Using a very conservative difficulty increase (9% per month), he is going to get less than 6 ETHs in 2 years.
Using the actual difficulty increase(468% per year/12 = 39% per month), he is going to get less than 2 ETH in 2 years.
This is the ugly part every Cloud mining promotor misses. Difficulty increases 100s% and makes it far less profitable than buy and Hold. In this case, the user will end up getting less ETH in small pieces instead of having more ETH and an option to sell it any time.
In very rare occasions, cloud mining gives more profits.
My Conclusion: Just like last year, this year also is better for buying and selling. Could mining was/is/will not (be) profitable than buying and selling directly.
I did a profitability calculation on Genesis mining DASH contract. It's not profitable unless the mining difficulty decreases significantly. I believe there are many similarities with DASH and ETH in terms of their profitability. Here's my foundings:
https://steemit.com/blockchain/@danzu51/genesis-mining-dash-mining-profitability-analysis
Great post! upvoted and followed you. I test and compare all the largest cloudmining contracts in a google sheet file which I regularly update so everyone can get the best deal for their money at any time! I also describe all the criteria you should take into account before buying a cloudmining contract. If you are interested you can find it on: https://steemit.com/cloudmining/@circularitylabs/everything-you-need-to-know-about-bitcoin-cloud-mining-comparing-genesis-mining-vs-bitcoin-pool-vs-hashflare-vs-minergate
Good points in this post. Interesting to see I'm not the only one that is thinking about this. The decision to buy a coin should be based on real analysis of the coin. I found that people keep buying coins without have any knowledge of them. This is considered high risk. Besides coinmarketcap.com there is: https://www.coincheckup.com Every single coin can be analysed here based on: the team, the product, advisors, community, the business and the business model and much more. For example: https://www.coincheckup.com/coins/Ethereum#analysis For a complete Ethereum Investment research.