Is Cloud Mining On Hashflare Worth It?
Recently I've been researching about mining cryptocurrencies and am thinking of jumping into it. I looked into the costs and logistics of buying or building a mining rig and though I feel confident I could build one, I'm not sure I want to be tied to one location as I would need to be if I had a rig plugged in somewhere.
That's when I discovered cloud mining companies that offer mining contracts. The two main companies I looked into were Genesis and HashFlare.
Genesis comes highly recommended but the only contracts they have left at the moment is for mining Monero. I want to mine Bitcoin so I looked into HashFlare and they have mining contracts for Bitcoin.
Their site looks very simple to use and you could start mining right away. Buying a cloud mining contract versus buying your own rig has it's pros and cons but that is a topic for another post.
What I want to know is, is anyone here on Steemit cloud mining, and if so, what can you tell me about this company, HashFlare?
It seems reputable from what I can gather online about the company. The only problems I have heard about them is they use a 3rd party to make the daily payouts and sometimes the payments get backlogged.
This is a little strange. The 3rd party they use is called block.io who brag on their homepage about the instant transactions they offer in their payment systems. This is bitcoin transactions we're talking about and while there are sometimes delays in transaction times it shouldn't take a week.
Customer reviews say they usually pay daily but sometimes there are delays of up to a week waiting for a payout. When I went to the Hashflare dashboard there is a notice the says payouts are temporarily suspended. Not a very good way to get more business.
From what I can gather on the company though people are making money with it mining Bitcoin and no one has complained about not getting paid.
I plan to reinvest earnings for the first 6-months into buying more hashing power so an immediate payout is not a deal breaker, but I want to know if this is really a temporary suspension or has this been a reccuring problem with the company.
They claim that it's out of their hands once the payment goes to block.io but choosing a 3rd party to handle their payouts that commonly have these delays seems like a bad business decision.
Does anyone on Steemit have experience using this company?
If so, what are your experiences using Hashflare? Any info you can share about them or suggestions of other companies would be appreciated. Thank you.
Here’s why you might want to consider cloud mining:
Pros
- A quiet, cooler home – no constantly humming fans
- No added electricity costs
- No equipment to sell when mining ceases to be profitable
- No ventilation problems with hot equipment
- Reduced chance of being let down by mining equipment suppliers.
Cons
- Risk of fraud
- Opaque mining operations
- Less fun (if you’re a geek who likes system building!)
- Lower profits – the operators have to cover their costs after all
- Contractual warnings that mining operations may cease depending on the price of bitcoin
- Lack of control and flexibility.
Genesis Mining for BTC has been outstanding for me. I also have an ETH contract which has been pretty good overall, factoring in ETH's mining difficulty decay.
Hashflare's contracts are only for 1 year as of their recent backstab of customers in August. They selfishly terminated their "open-ended/lifetime" contract terms of existing contracts (capping them at 1 more year out from that sad day), and made all new contracts 1 year max at a higher price as well. Definitely read up on this awful strategy backlash and the people who were misled to buy lifetime contracts only to have their terms switched out of the blue... no warnings, no compensation, no refund, nothing. That lost my respect for them as an organization, even though they're potentially the best of what's around as a leftover option. New marketing can only cover up so much...
Genesis is worth waiting for as their contracts last as long as they are profitable. If you want to get into cloud mining, Hashflare could be a start, but I'd jump on Genesis when it offers more services. Supply and demand. That's why Genesis is always sold out and ordering new equipment, and Hashflare is having Black Friday sales...
With Genesis, you have to pre-order these days, so you have to pay up front and wait for the new hardware to come and be set up about 2-3 months out. I'd try Hashflare potentially for a small stake, and pounce on Genesis when it's time. Just my thoughts being pretty involved in it.
Genisis is my first choice as well but they only have Monero contracts right now. I did hear about Hashflare repealing their lifetime contracts and that really sucks. They also seem to have suspended daily payouts temporarily. I was planning to reinvest earning for the first 6-months anyway.
How long have you been mining with Genesis?
The better question is, why not investing in Monero mining?
Are there better more anonymous cryptocurrencies?
wow that is horrible. hope someone sues them.
I will start by saying that I haven't exactly been researching this for long - pretty much from when I discovered this post.
Those that say it is not profitable - it is not really hard to work out that it can be profitable. It takes about a minute to punch the numbers into CryptoCompare. the $830 Monero plan would yield about $1304 based on todays prices.
My main concern is the risk of your investment. in a few different ways. required hash rates could increase, or the company you're engaging could go bad.
$830 would buy you around ~2.35 XRM today.
If you mine, all things being equal, you would end up with around 3.8 XRM in a years time.
The benefit of buying today liquidity, and your XRM balance is certain.
having said that, the difference of 1.5XRM in 12 months time could be worth a couple of thousand.
It's very interesting whichever way you look at it. I'd like to know if there are any cloud mining operations for other minor alt coins. i'd love to min something like vertcoin.
Edit: ha since i made this post i ended up buying a little bit of BTC haspower on Hashflare - an amount that I'm happy to write off.
It'll take a couple of days for the transaction to hit my credit card so i can do the verification - but we'll see how we go.
Please keep me posted on how things progress on Hashflare for you.
How much hash power did you purchase?
Are you reinvesting the daily proceeds into more hash power or withdrawing it?
These are the two main risks with cloud mining but it also appears that the price going up on the coin would more than offset the incremental increases in mining difficulty. It comes down to trusting the company you're dealing with to still be around long enough to make good on your investment.
I have a good amount of Vertcoin too and would like to mine it. It's easier to mine than most coins and is designed to stay that way.
only 150GH/s.
If my calculation is correct - it should take me 6-8 weeks to earn back my initial outlay - based on todays current BTC prices. If it is looking that way in the first few weeks i will likely invest further - so to answer your question - i'll be reinvesting if it is looking like the numbers add up to tell a good story.
I would love to mine vertcoin - i'm very excited about where this coin is heading - but they're asic resistant so it is likely that cloud mining companies wouldn't find benefit in setting up those kind of service. I guess that's the "drawback" of being decentralised.
I am not sure whether i read it correctly, Are you assuming the numbers mentioned in CrytoCompare are accurate? Are you aware of the difficulty increase? CryptoCompare doesnt consider the increasing difficulty.
In the past 12 months, the difficulty increased from 7.1G to 115G. Meaning, monero mining became 1500% tougher. So you would end up getting far lesser XMR than crypto compare predicts after 12 months. You might earn more $ values than invested. But your XMR value would be far less. Meaning, You would have earned a lot more through buying XMR and holding it for 12 months, instead of investing in Cloud Mining.
Well they are accurate - at that point in time
If you're talking about a 12 month period then you have to also realise that the increasing difficulty happens for a reason, and that reason is usually increasing price. So the coins earnt when difficulty was low would now be worth more.
Anyways this post is very old, and I never ended up pushing forward with my trial of cloud mining
My point is if you buy the coin directly instead of buying hash, you would get more coins and your profits would get multiplied due to price increase. Instead if you get a contract, you would end up getting lesser coins than the projection due to difficulry increase. Which will result in far lesser profit than buying and selling.
except that isn't necessarily always true. it may be in some cases, but not always.
And difficulty doesn't always increase. It can also decrease.
When I did my bitcoin calculation, it worked out that I would likely hit break even point on a 12 month contract within 2-3 months.
Yes it is true every time. I am yet see proof of someone who earned more through CM(without referral bonus) than holding, in the same period of time. Difficulty decrease is such a rare occasion that you wont able to notice it in a 12 month contract. When you did your calculation, you wouldnt have considered the difficulty increase. It is the main criteria which cannot be predicted. Also you should not calculate it in dollar value instead the relative coin count/price on the day you bought the contract.
Say for example, in 2017, a 1500 dollar hashflare investment would have returned $4300 by the end. But the same investment directly in bitcoin, would have returned $19,600. This is always the case with cloud mining. Cloud mining would always give lesser profit than Buying and holding.
Is it also possible to mine BCH at hashflare?
I didn't see BCH available on their site but I sure would like to mine it if anyone knows a place to get a mining contract for that.
ideas somewhere?
If you really want to start mining. Start it with big hashrate save you alot of time. I believe bitcoin in long term so Im investing all contracts in it. As all the altcoins use btc as the base currency of exchange. I suggest you go for genesis mining as it offers you lifetime. And the contract is around 179 dollarlast time i bought it. Hashflare is not bad in profit, i think i broke even in 2 months which is insane... Now im just reinvesting the free money to get bigger hashrate. Its like snowball. The downside with cloud mining is if it get hack so does your profit. If you want to join genesis mining i wish we can swap promo code as each of us can get free terahash.
I wanted to mine bitcoin with Genesis but they are sold out of all contracts except Monero. Do you have a way I could get in at Genesis?
Comparing your profits earned from Genesis and Hashflare, assuming equal hash speeds, how much more profitable is Genesis over Hashflare?
I think Genesis will offer Ether soon...do you want to show you promo code here?
I don't really have a way for you to get in Genesis haha. I hope I am cousin of Marco streng in someway lolz. But you can always follow genesis mining twitter. They will post there once they have contract btc on sale. Hashflare has higher maintenance fee of 0.00035 USD per gh while genesis has 0.00028 USD per gh. So in long term, genesis will make you earn more btc. But you'll pay higher upfront fee. I made a post about my experience with genesis mining. Hope you can check it out. https://steemit.com/bitcoin/@tngflx/passive-income-with-crypto-not-trading-but-mining
Funny you should mention this today. I actually just started mining today on Hashflare. So far so good. I waited a day just to be sure about the domain also. But really figured it was not going to be an issue, as in many cases, the domain info is not updated immediately on the domain checking sites. Plus, Hashflare participated in Moontec 2017 on December 5th. So I figured they weren't going to participate in front of all these people and then disappear. I will probably be doing some videos/posts on my mining experience.
The two best cloud mining company's are Genesis Mining and Hashflare in my opionon. I'm sure others may have different views on this.
All these people saying it isn't profitable. Have done NO research or are crypto haters. Most generally one or the other and in some cases both. Crazy the amount of advice being given out with NO personal research or due diligence at all.
It is staggering to receive recommendations against cloud mining from people who have never tried it or know anyone who has, but they made sure to upvote their useless comments. Thanks for your useful comments. Take note newbies, this is how you get upvotes on your comments from others
I want to get a Genesis contract but they are all sold out except for mining Monero. Please keep me posted on how your project develops. Thanks for your help.
Yeah, I just ignore those recommendations, it is crazy! I will keep ya posted, just made another $400 purchase today on Hashflare. And thanks for the upvote. Wasn't even expecting that.
Also, I just received this Hashflare update...
Update: We are planning to restore BTC withdrawals during Monday, 18.12.2017.
Thanks for the update.
I am not sure what kind of research you are talking about. Most of the times, cloud mining is not profitable than buying and holding.
Say for example btc,
1 Btc was 1k at the beginning of 2017. With 1.5k investment, you would get 1.5 btc. If you have invested in cloudmining, you would have earned 12.5 T hash power which would have generated .33bTC(Website shows .45 btc) due to the mining difficulty.
At the end of 2017, BTC was $13,200. So through hashflare, you would have earned 13,200* .33btc = $4,300
Whereas, if you would have bought btc and sold it on Dec 2017, u would have got 13,200 *1.5BTC = $19,800.
Increasing difficulty level is a major concern in Cloud mining. If you look at the Hashflare site, their calculation wont include increasing mining diffulty. BTC, eth and monero difficulty increased 490%, 468% & 1500% respectively. Hence, less coins will be mined than mentioned in the cloud mining website.
Cloud mining websites and CryptoCompare wont have the difficulty increase in consideration as noone knows how much the difficulty is going to increase in future.
From the convo we just had hell yeah!!! Already learning lots with the new creation of Team Steem Cancun!!!!
https://steemit.com/steemit/@donnaincancun/the-first-ever-steemit-cancun-meeting
Yes, @donnaincancun! The growth of Steemit in Cancun begins with us. Which is great because I know us and what we can do. If anyone can get a party started around here it's us.
hey frank, i would personally take a look at https://giga-watt.com instead, as much as hashflare would be one i'd go for with all the temp issues with payouts etc you might be better off over there, i also like their ico structure of renting out space/power for the mining kit. it's more expensive maybe but i'd say solid for a few years instead of say six months.
I have heard of them too and will check it out. Thanks for the tip.
Seems like a good idea @luzcypher. I've been thinking of getting into mining Bitcoin myself and wondered if there was an easier way of doing it instead of buying the whole expensive rig yourself. Could mining seems like a great alternative as it's not location specific and you can do it from any part of the world. Will definitely look into it a bit more. Thanks for the info!
I was about to pull the trigger on Hashflare when I noticed yesterday was the expiration date of their website domain registration. So I waited another day, today, and sure enough, they renewed their domain registration.
I thought I would make this post to see if any Steemians have experience using them. If you do start, let me know how it's going for you.
Sure. Maybe I'll do a bit of research and might give it a go. Seems legit so far but you never know. I'm still not convinced with the Block.io bit. Anyway, will let you know.
With ~60 day return cloud mining, especially with a reputable company, is really a no brainer. If you do decide on cloud mining would be nice if you used my code: 6426E6AC. Good luck!
I think cloud mining it's not more worth it. It's better have the money and wait the value goes up.
There are many that would agree and others who would disagree. Have you tried cloud mining yourself?
The truth it's not, I have seen like you the website genesis mining but when I saw that had too low contracts and the investment was a little high, I abandoned the idea. And I just haven't seen other webs because genesis it's the only one I have trust into.
Everyone I talk to who have actually mined with either Genesis or Hashflare all say they broke even in about 60-70 days. Everyone who has told me that cloud mining is not profitable have not personally tried it themselves.
Sounds like you have not tried it so how do you know it is not profitable?