Altcoin Mining Profitability at Genesis Mining - Sept. 30th at 1.23% daily ROI - TOTAL ROI at 18.24% After 2 Weeks！
Altcoin mining profitability at Genesis Mining resulted in 0.03902062 BTC on Sept. 30th, 2014. Today's daily return was 1.23%.
Our total earnings with Genesis Mining (Account 2) is now at 0.58007436 BTC, which is a TOTAL ROI of 18.24% after 14 days of altcoin mining at Genesis Mining with bitcoin autotrade option.
An 18% ROI in 2 weeks is very good, but only as long as the value of the principal is secure.
In our case, we purchased 100MH/s when it was priced at $1,499, and since it is still priced at $1,499, we should be able to find buyers for 90% of the retail price, which is $1,349 or 2.86214358456 BTC.
So, if we decided to sell our current contract to a new buyer, which we don't know if it is actually possible or not at Genesis Mining (we know it can be done at GAW Miners' or LTCGear), then we would be left with
2.86214358456 BTC (principal at 90% our purchase price) + 0.58007436 BTC (our accumulated payouts) = 3.44221794456 BTC
3.4221794456 BTC is our pure equity, in our view.
Our investment of 3.1801595384 BTC would have grown to 3.44221794456 BTC in 2 weeks - that's a return on investment of 8.2% in 2 weeks - not bad considering that 8% is a good return on an annual basis!
While this is the status quo, the inherent risk related to our investment and in cloud mining contracts in general is that the value of the principal would most likely not stay the same for long since Genesis Mining would most likely discount their pricing further in the near future.
If they discount their 100 MH/s by 50%, then the second-hand market rate for 100MH/s at Genesis Mining would plummet, and the value of our principal would have been eroded by more than 50%.
Despite our TOTAL ROI at around 20 or 30% then, we could still be in the red, in terms of real time market value that takes into account our principal value at second market rates.
So, the question is when will the next price discount take place and by how much?
Unfortunately, this information is only available to the cloud mining service providers, but it's an important point to consider when purchasing cloud mining investments.