Genesis mining....Is it a scam or legit? Is it a good investment or bad?
So listen, I just looked at the "hot" section of Steemit, and saw @trevonjb do a really cool video about his experience at the Genesis mining farm. While this is a great video and seems like it was a really fun trip, and he's getting a ton of up votes on it...that doesn't mean his information is correct. My guess is he's promoting Genesis the way he is because of all the referrals he's been getting by giving his 3% discount code (which you can can get the exact same code if you just google "genesis mining discount code") but I'm quite certain he wouldn't be promoting Genesis had he actually been mining with them as long as I have been. I started mining with Genesis when BTC was trading at about $200. I invested thousands of dollars in mining bitcoin over a couple years and did ok...but that was only because the price was rising...had the price of bitcoin stayed the same, I would've absolutely lost money. As bitcoin rises, mining difficulty increases, and you mine less...but your account value goes up so it seems like you're doing good. Here's where I really figured out that Genesis is an absolute waste of money. When Genesis started offering mining contracts for Ether, I jumped in. Ether was trading at $10....follow me now on this. I invested $500 into mining with Genesis. Had I just bought Ether for coin value, I could've had 50 Ethereum. During the whole Ether run up, I was still mining. but as the value went up, so did difficulty, and my mining profitability went down. My Ether contracts ran out at about the same time Ether hit $400. When Ether hit $400, I had a $12,000 Ether account. Remember how many Ether I could've bought with my $500??? 50!! I would've had $20,000 dollars had I just done that. I would've made $8,000 more had I just bought Ether over mining with Genesis. Is Genesis a scam? No, absolutely not..they pay me out every day every time....is Genesis profitable whatsoever in any regard? NO...NO WAY. Their fee is too expensive, and you obviously want the coin value to go up, but the mining difficulty becomes too great so you're mining less and less, and eventually making $0 in mining. Genesis should be much more transparent in what they can actually do for you...which is basically nothing. They exist because the value of these coins has gone through the roof. If bitcoin and Ether were still at the same price they were at 2 years ago, there's a 100% chance Genesis would be out of business. I will never give them any of my money again, and you shouldn't either....not a scam, but it's a joke. If you really want a coin, just buy the coin with whatever money you were going to invest in mining..you'll be happy if the coin goes up as much as bitcoin and Ether have. I've talked to others who have had the same experiences I have had with Genesis....between myself and my other friends, we've sent tons of emails to them, and they always come back with some copy and paste answer about how we're responsible to use a mining profitability calculator. They know they're the only ones making money, but obviously with what you saw in Trevon's video, it looks really cool, which it is, but just because something is really cool, doesn't mean it's a good investment. Stay away from Genesis...biggest joke I've ever seen in the crypto mining world. I'd be really interested to know when Trevon started investing in Genesis...I'm really not a fan of people endorsing something they don't really know about, for the sole purpose of personal monetary gain. I don't think Trevon is doing this, but I do think he doesn't know enough about it. Just because he went into their farm and saw how amazing the setup is, doesn't mean it's a valuable investment for others. I bet Enron gave some tours as well, and people thought what they were doing was amazing from the outside...but look what happened to them. It's a little different, cause they were actually a scam, but never judge a book by it's cover is the point.....never judge a mining company by a video of it without knowing the inner workings of it. Let me give you an extreme example, but something that's very possible when you're mining with Genesis. Let's say you start mining with genesis today and invest $2700, and let's say BTC is at $2700. Now, let's say tomorrow, BTC goes up to $3200, and by the end of the month is at $5400. I don't know the exact calculation, but if you invested $500 in mining with Genesis today, in one month, you MIGHT have .2 BTC. So your $2700 would now be worth maybe $27,050 day 2, and around $3000 at the end of the month...had you mined. Now, had you just bought BTC when It was at $2700, you'd have $3200 the next day, and $5400 at the end of the month. So how is investing with Genesis a smart idea? It's absolutely not!
you did the big realisation that mining isnt a scam, but you make way more money buying the coin then mining the coin
Hey @queeneleanor I've been using Geneis mining for sometime now and it's definitely not a scam, I'm getting about 50 dollars a day for mining dash. I use it like a revenue stream so I can take the dash and buy more smaller cryptos. Anyways great post, keep up the great work.
Yeah, I know it's not a scam. My whole point was that I could've bought the coin at the time I started mining with my sane investment and made more from the coin going up. Not a scam, not a good investment in my opinion. 4 years I've used them for...they charge way too much and I really just don't trust they're paying out what they're supposed to, but I'm glad it's working for you! :)
Ya understood, I did the math and compared to the coinwarz payout without electricity they are paying out about 80%, I'm assuming the 20% is overhead like maintenance and such. I do noticed when the amount of the coins go up the payouts lessen magically lol.
Great post well explained.
I have taken Genesis mining contract I don't do that any more. Of-course its not a scam unlike some UK registered companies floating on internet but believe me you would be better off buying some coin over a period.
brother you save my hard earned money. I was getting promotional mails from genesis and I was thinking about making some investment in it. Thank you brother. keep posting this kind of information
@queeneleanor
I prefer to invest my money directly into a currency instead of buying GHs.
That is amazing, I have a long-term plan that I can save up enough money to start my dream journey :) I hope I will achieve my plans just like you did! I will be happy ıf you check my page , I am beginner in this community :)
I agree with you ROI and associated risk should be the basis for evaluation and selection of investment options. Unfortunately, some times theres not enough information or misguided information either deliberate or intentional being peddled around. Folks just need to be more savy about the choices they make.
thank you
If u know how to keep up with the difficulty increases u can profit from genesis mining. The uninformed noob will get run out on difficulty even on a 2 year contract in 14 months or so. But it is definitely a longer term investment. Anyone interested in it should use my code fUkLmh for 3% off. And don't believe everything that u read. You'll get a parking violation and a maggot in your sleeve.
Anybody who can use a profit calculator can figure this out. You are thinking in terms of dollars and not crypto-currencies though, I personally have my own mining rig and am building them as fast as I can get GPUs, I understand that the difficulty will increase and 2 years from now the likelyhood of being able to mine the same currency with my current rigs is practically none, but what I can do at least is switch to whatever currency I can mine with GPUs. Now what I mean is don't think of your mining contract like it pays out dollars, because it doesn't it pays ETH, BTC, ETC. Right now my rig mines about 2.4 ETH a month, that comes out to 28.8 a year (Not accounting for difficulty increase but even if i end up with 15 at the end of the year because it doubles thats fine with me). The way you see it that would be about $8,064 in a year but the way I am looking at it is, BTC is hovering around 2k and has historically hit 3k, in the near future one bitcoin could be worth 10k each, I believe that ETH is going to overtake BTC in that case the price of ETH could reach upwards of $1,000 each in the next year or two, that means that when my investment in mining and holding ETH matures I will be able to cash out for about 15-28K a year on each computer with only a 3k investment. As opposed to buying 30 Ethereum now, I will be able to mine it, and continue to mine other currencies for years to come. I agree Genesis mining isn't as profitable as people make it out to be but its a good way for people to get their foot in the door and as an investment it has a better ROI than most things in this world if you aren't computer savvy.
You can get your foot in the door by just using whatever money you were going to pay genesis to mine, and instead buying btc, eth, Monero, whatever for whatever it's at. How annoying would it be if someone pays Genesis $500 to mine and in a week btc shoots up $500 a coin. That person will hate mined basically nothing, and if they would've just bought bitcoin, would be up 20%. Ether is still profitable if you do it on your own which most people will never do. Bitcoin is not profitable even to do on your own. Mining on your own has nothing to do with what I'm saying regardless. Mining with genesis is a joke and you'll never make as much money as if you'd just buy the coin. That's my point
I guess I lost my train of thought in my essay but I understand what you are saying, let's do some math, GPUs run about 300$ for a good miner that hashes 25Mh/s that will produce about 4 ETH a year (baring insane difficulty increase) on genesis mining you can buy a 25MH/s contract for $750, so clearly they over charge you on hardware, but on the other hand you don't pay for electricity and you have 0 hardware downtime. So in one year a rig with one 25MH/s GPU would make you about $1139 by todays prices and difficulty. If you were to invest $750 into ETH you could buy 2.84 at $280 per ETH. and maybe the price will double but the only way you will have made any money buying ETH is if you got it at 280 and it jumps to 600 or so, now I totally think thats possible but in the same amount of time you would have been mining more ETH with genesis for the same amount of money.
I just mine with what hardware I currently have. I use my gaming pc to make me a little money on the side, so I did not build it to just "mine"
I lost my google authentication key and I lost my money with it too. I lost a lot of money with bitcoin cloud mining. and now I don't even investor in cloud mining any more.