My One Regret About Genesis Mining

Further to my article on Genesis Mining in January 2017 which you can read here, I think it is time to give you an update of my ongoing experience with Genesis Mining.

Maximum Return

There have been a number of cloud mining scams in the past so I was naturally cautious. Nevertheless, after carrying out a thorough due diligence investigation and reading the “small print” my instinct was to use a 3% discount code like mine: 4bY6sc and go with the Diamond contract for 15 Tera hashes which would give me the maximum return.

Antminers Are Hard To Get Hold Of

A 13 TH/s Antminer S9 currently retails for about $2,700 from Amazon here, plus extra for import duty, a 1600Watt power supply, carriage insurance and freight. And that is if you can actually get hold of one!

One year on and the S9 is already being replaced by the T9. Therefore, the Genesis Mining contract looked a bargain at a mere $1,950 with no further costs nor hassle!

But Was It A Bargain?

“He who dares, wins” as the SAS say but I could not quite bring myself to invest all of the proceeds of pawning the wife’s jewellery and so I made an initial investment of a modest amount as a trial with the intention of topping up more later. Was this the right strategy?Minergate

Mining Difficulty Increases Constantly

A key point to remember in mining almost any crypto currency is that the mining difficulty is designed to increase with time. For example, those mining Ethereum with a standard 150MH rig in 2014 were receiving perhaps 30 Eth per day. Now, the same rig will yield perhaps 1 Eth per month.

It is also true that 1 Eth now is worth far more than those 30 Eth were worth three years ago. But what if you had managed to hold onto all those Eth tokens? For home mining, that boat has long ago sailed but is Cloud Mining still worth the “Ether”?

Return On Investment Analysis

Here are my returns on my initial plan of a 1TH bitcoin contract, costing $145.50 after discount (please use this promo code to get your 3% discount 4bY6sc). A discount is key to making a good return.

Here are my returns according to Genesis Mining:

ROI GM.png
Earnings Chart – Bitcoin

This shows the cumulative returns paid out at historical prices. Even though the level of mining difficulty is gradually increasing, the chart is heading to a projected break-even point at just about the six-month mark.

Explosive Rise In Value

In actual fact, 8th May was ‘D-Day’. The graph shows what Genesis Mining paid out and does not take into account the explosive rise in the value of bitcoin and other crypto currencies.

Do not forget that Governments around the world are desperate for your money. Profligate spending is rampant and money printing and theft from the industrious few is their only way out. The people of China, India and Japan know this very well and that is partly fuelling the rise in popularity of crypto currencies.

I Should Have Gone All In!

So, I received my money back in just four months and with a life-time contract, I should enjoy many more months of income. Bugger! If only I had followed my instincts and bet the farm at the outset!

It is true that mining difficulty is rising so the pay-out in terms of bitcoin has fallen but those coins are worth double what they were four months ago. Also, the bitcoin miners have greatly increased their charges for processing transactions so that it is not prudent for Genesis Mining to pay out very small amounts every day but to accumulate them and then pay out.

Here’s A Tip

So here is a tip, but don’t tell everyone. Bitcoin and Litecoin both use the SHA256 algorithm. That means that you can buy a bitcoin contract and then use the auto trader feature in your Dashboard to be paid out in Litecoin which has lower transaction fees.

Alternatively, you could buy, say an X11 contract and use the auto trader to be paid out in bitcoin. The more hash power you have, the more efficient it is as there is a fixed element to the network transaction fees.

Payment Directly Into Your Wallet

A wonderful thing about Cloud Mining is that you receive the coins directly into your wallet each day with no further costs. Buying bitcoin on an exchange can actually prove to be fairly costly.

Although transaction fees for moving crypto currencies around the network are a fraction of the charges that banks impose for moving fiat currencies (‘bank notes’), acquiring the coins can be expensive.

Use Remitano

Opening an account is not at all easy. In Britain, no banks will even open an account for a Bitcoin exchange meaning that there is often little choice but to send currency off shore through the banking system and pay their fees. Contrast that with Japan where bitcoin is now recognised as a legitimate currency.

If you do need to buy bitcoin and do not want to jump through many hoops to open an account then I recommend Remitano who facilitate buying and selling in many different countries.

You can sign up from this link and choose your country and language:

My One Regret About Genesis Mining

In conclusion, my one regret about Genesis Mining is that I did not bite the bullet and invest ‘big time’. I am now ploughing back my Litecoin payments into buying more hash power with Genesis Mining but I have lost valuable time in a game where time is everything. Moreover, as an existing customer, I no longer receive the 3% introductory discount.

Take my advice and buy the most you can afford, if not more and use this discount code to get 3% on the lot: 4bY6sc.

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