Genesis Mining Profitability - Day 60 (2 months)
Cloud Mining Service – Genesis Mining
Number of Days Since Initial Purchase – 30 days
Currency Mined – Bitcoin (auto)
Contract Hash Rate – 2Mh/s (18 cents/kh/s)
Contract Lenght – 1 Year
Payout Frequency – Daily (everyday, but payout time is not constant and fluctuates on a day-to-day basis)
Amount Purchased – approx. 0.7 BTC (payment in BTC)
Time Purchased – May, 2014
ROI (BTC) on Day 60 – 27% (Payout calculated in BTC / Amount Invested in BTC)
(ROI (USD) on Day 60 – 30.2% (Payout calculated in USD / Amount Invested in USD))
Genesis Mining Profitability & Review - ROI of 27% in just 2 months of operations looks very nice, but our biggest concern is that daily payouts are getting smaller by the day. If this trend continues, we will never see 100% ROI with Genesis Mining.
Of course, if bitcoin price rises sharply, which we believe will happen sometime in the future, then we will theoretically recover the initial 360USD purchase price for 2 Mh/s in USD.
However, since our purchase was made in bitcoins, approximately 0.7BTC at the time, we are not likely to see 100% ROI in terms of bitcoins.
Most likely, we will see our approx. 0.7BTC paid to Genesis Mining returned to us over time as 0.35BTC at most, probably a lot less.
Even if the theoretical 100% ROI (USD) is achieved when bitcoin price jumps, one would have been better off to have bought 360USD worth of bitcoins at an exchange rather than to have cloud mined.
To show you where we are coming from, initially, on Day 1, daily payout was around 0.005 BTC. However, by Day 60, daily payout has quickly fallen to around 0.001 BTC. A drop in daily payouts of nearly 80% in just 60 days!!
We see this trend continuing in the future, and we don't see much room for improvement in Genesis Mining profitability after Day 60's 27% ROI (bitcoin).
This must be due to the increasing levels of difficulty in mining though we are not able to specify in which currency, as Genesis Mining automatically selects the most profitable altcoins to mine and delivers payouts in bitcoin (BTC).
To make up for the rise in difficulty and lowering daily payouts, Genesis Mining has lowered their price for 2 Mh/s from 360USD (18 cents/kh/s) to 158USD (7.9 cents/kh/s), although this new price does not apply to old contracts (18 cents/kh/s) that we are on (It would be great if Genesis Mining could apply these new prices to old contracts retroactively! ). If you are considering Genesis Mining as a cloud mining source, their altcoin selection is impressive (DRK, LTC, DOGE, AUR, FTC, LOT, MEC, RDD, BC), and their customer support is quick and friendly.
If you are looking for 100% ROI and you are long bitcoin, make sure to invest in USD, but always consider the fact even if you do achieve 100% ROI with rising bitcoin/altcoin prices, you may have been much better off just buying these coins at an exchange and holding on to them.