Different cloud mining investment options (HASHFLARE VS GENESIS)
Mining equipment is expensive to gain access to and can be quite unprofitable when run at home. Two different cloud mining companies; Genesis and Hashflare have created a potential income earning solution which only require an investment into their company and in return, you receive earnings from the mining GPU's for a certain time frame or in perpetuity depending on which contract was purchased. For this case I have only done Bitcoin mining analysis (SHA256) and compared the company's against each other. (I have assumed consistent payouts. This will not be the case in the real world as difficulty varies.)
I have broken down the information and analysis of payouts per company:
Hashflare.IO -
*1TH Bitcoin mining costs $120 USD,
*Payouts average 0.00025BTC per TH
*Re-investment potential due to BTC balance accumulates on the website with no sending fees. (must be withdrawn)
*Costs 0.0007BTC per withdrawal.
GOOD: Higher payouts (VS GENESIS), reinvestment with no send/receive fees, higher payouts compared to Genesis
BAD: Recent website issues, withdrawal fees
GENESIS-MINING.COM -
*1TH Bitcoin mining costs $150 USD
*Payouts average 0.0002BTC per TH
*Free withdrawal
*No reinvestment options
GOOD: Daily withdrawal (Every 2 days currently due to issues.), free withdrawals (automatic)
BAD: Lower payouts (VS Hashflare.IO), no reinvestment options (Can only buy more hashpower.)
Now, lets take a hypothetical situation where an investor has $1500 in Bitcoin to invest into one of these options and will take out withdrawal every once per 2 weeks.
In Hashflare, you can buy 12.5TH of Bitcoin mining, earning 0.04375BTC per fortnight and a fortnightly payout of 0.04305BTC after withdrawal fees.
Calculations of figures above are:
12.5TH = $1500/$120
0.04375BTC = 0.00025BTC12.5TH14 days
0.04305BTC = 0.04375-0.0007
In Genesis, you can buy 10TH of Bitcoin mining, earning 0.028BTC per fortnight. NOTE that payouts are received to wallet automatically on a daily basis (assuming Genesis returns back to normal operations.)
10TH = $1500/$150
0.028BTC = 0.000210TH14 days
In conclusion, Hashflare is better paying over longer periods due to their high withdrawal fees.
I have contracts with both Genesis and Hashflare. An important variable is the contract duration. When I was looking Genesis was 2 years and Hashflare was only 1. Big difference. Also, Genesis have been having issues recently and payouts have become unreliable. Buyer beware!
For Bitcoin mining on both of the websites, it's a permanent contract. The one yr vs 2 yr contracts are the ETH, dash and scrypt contracts which I didn't cover in this. Hashflare has always been good with payouts and their website issues have been the only problem for me.
Good point. Thanks for correcting me, it has been a while since I researched into cloud mining.
My experience tells me otherwise...It is totally unprofitable to use Cloud mining. Take genesis mining as example, they are still haven't problem paying out which is suppose to be a daily event. Secondly as the difficult rises, whatever hashrate you bought will not cut it, and you may have to invest more to increase the hashrate(top up). If you think about it, it is not different from a ponzi scheme with slight modification. At least when you buy the mining rig, the rig belongs to you and you can switch to mine other coins(same algo) which maybe more profitable to bitcoin.
As long as the coin price rises stay ahead of the hash rate and difficulty then the contracts can remain profitable. Other than the payout issues with Genesis I am happy with the my DASH and Monero contracts. Both remain profitable.
How impressive was that recent Monero gain! All because of news that Koreans will be able to trade it
Indeed. Though the coin technology has a lot of unsung merit. In my opinion it has the best privacy tech in the crypto space. If governments ever try to clamp down too hard on crypto, Monero will be the one to use.