#1 | Genesis Mining - Profitable?

Good day Steemians! How are you guys doing? Hope all is fine.

Today I'm gonna share my finding about Genesis Mining, a Cloud Mining Company. For those of you who wants to know more about the company or cloud mining, please feel free to browse through their website here > https://www.genesis-mining.com because I'm not gonna cover that in this post.

So, lets get on with it!

As with everyone else, before I started investing my money in this cloud mining activity, I wanted to make sure if it is really profitable or if the company is even genuine. So, I did a few research of my own about the team, their services, bla ... bla ... bla ... (the usual stuff). From my findings, I could say that the company looks real (not some MLM scheme or such) but I could not find whether this cloud mining is worth it because both positive and negative reviews were quite equal. Some agree and some were disagree. Plus the company doesn't provide you with tables or figures because they claimed that

"It would not “look right” if we provide data on the bitcoin mining profitability and selling contracts at the same time".

Hence, I decided to test it for myself. I bought the Gold Starter contract for USD 30 which offers 200 GH/s and the contract is an open-ended, meaning that the company will keep mining for you as long as the contract is profitable. Below is my finding.

As you can see from the table, it took about 37 days to receive my first minimum payout which is 150,000 satoshis (I did received the payout to my wallet). And the average daily payout amounted to around 4185 satoshis. Take into account the current bitcoin price USD 4,200 (at the the time of writing), meaning each day I will get around USD 0.18.

If you notice, the payout was below the average starting from 9th of August until 27th of August. During that period, they claimed that they were having some technical issues with the payout system but I'm not really sure whether that has anything to do with the reduction. After they solved the issues, the daily payout started to increase by around 500 satoshis. If that were the case, then the daily average should increase but as of now I don't have enough data to conclude my hypothesis (need to track the payout for few more weeks).

Please also note that, as time goes by the difficulty to mine bitcoin increases. So, the daily payout might be reduced. Also, consider that the bitcoin price overall is on an uptrend right now (and hopefully it stays like that! I mean with the recent news about China plan to ban exchanges and stuff, anything could happen).

Nevertheless, if all the variables mentioned were constant throughout the period, then based on the data that I have and my superb math skills~ it will take approximately 167 days or around 5.5 months to get back the USD 30 invested.

Equation 1: 1 Day = USD 00.18
Equation 2: X Day = USD 30.00

Solve for X = ~167 Days

After that, the contract will start generating profit and continue to do so as long as it is profitable! Booyaaah~

In my opinion the contract looks fair enough to me considering you don't have to do anything other than monitoring your payout on daily basis. With as small as USD 30, ROI will be more or less in half a year and you will get another USD 30 profit in the same year (provided that the variables were constant). If you are investing in the long run, I might suggest that you reinvest back the USD 30 profit to purchase more hash power and claim twice as much profit in the next year. Please note that, my assumption here is that the hash power is directly proportional to the daily payout but I can't really say for sure if that were the case.

If you are more into trading, then I might suggest you just buy bitcoin with that USD 30 and trade them on exchanges. I'm pretty sure you will generate more profit from that. But beware, trading cryptocurrencies carry significant risk. Make sure you know what you are doing and have sufficient knowledge before attempting to do so.

Anyway, If you want to make passive income from this, then the USD 30 contract is probably not the way to go. You may want to purchase more expensive contract that offer higher hash power. You know what they say;

"Invest big, Win big", "Risk taker, Money maker", and the saying goes on and on and on ......

But my suggestion is that you invest in increment (by judging on their performance yourself), just so that you don't lose all your money in one basket. I mean, even though the company looks genuine, the marketing, the team, the mining factory, they have all the you can think social media account - facebook, twitter, etc. with regular updates but heyyy, no one knows what will happen in the future! If I know, then I would have bought 10000 bitcoins when it first started.

Last but not least, a word of advice - "Never invest more than you can afford to lose"

That's it Steemians! I hope you find my review helpful and refreshing. Till we meet again in my next post.

Sayonara~

P/S: If you plan to purchase any of the contracts, please feel free to use my affiliate code > 98ReEN. You will get 3% discount on top of your purchase.