Genesis-Mining Review - Day 90 (3 months)
Cloud Mining Service – Genesis Mining
Number of Days Since Initial Purchase – 90 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 90 – 31% (Payout calculated in BTC / Amount Invested in BTC)
(ROI (USD) on Day 90 – 30.3% (Payout calculated in USD / Amount Invested in USD))
Genesis-Mining Review - Genesis-mining payouts still come in every day, but it is now so small that we are now confident after giving this service 90 days of trial that achieving 100% ROI is not possible.
While a ROI of 31% in just 90 days looks amazing, and it would be amazing if payouts remained constant, unfortunately, payouts are getting smaller by the day.
To illustrate this point, if the payout on Day 1 were 100, we are now getting 15 on Day 90.
Since this drastic downtrend in payouts is likely to continue, we conclude that achieving 100% with the plan we purchased (2Mh/s at approx. 0.7BTC, paid in BTC) is not possible.
Of course, IF the price of bitcoin goes through another spike, it is possible that we would achieve 100% ROI in dollar terms since the price for 2Mh/s was priced at 360USD back then when we purchased the plan - we already have over 0.2BTC of accumulated payouts, so if bitcoin price reaches 5,000USD per bitcoin, 0.2BTC would be 1,000USD, and we would have nearly tripled our investment.
But, unfortunately for us, the plan was purchased in BTC, so price fluctuation in bitcoin doesn't affect our results much, and the chances of seeing those approx. 0.7BTC paid to Genesis-Mining back is minimal.
Even if we had paid in USD, it would have been better to have just bought bitcoins in an exchange and held on to them rather than investing in cloud mining with Genesis-Mining, because approx. 0.7BTC after a price hike up to 5,000USD/bitcoin would be around 3,500USD, a much nicer number than the 1,000USD we would have ended up with using Genesis-Mining.
So, this is our experience with Genesis-Mining - not a very positive experience so far, no, but it doesn't mean we outlook is all that negative.
There are many good things to say about Genesis-Mining such as
-The fact that their price for 2Mhs has been reduced from 360USD to 158USD (7.9 cents KH/s)
-They keep expanding their mineable altcoin selection - now you can cloud mine DRK, RDD, BC, LTC, DOGE, AUR, FTC, LOT, MEC, NVC, POT.
-They have recently added pure bitcoin mining (as opposed to converting altcoins to bitcoins) - their best price is 2.15USD/GH/s, which is not the cheapest (and not nearly as cheap as PBMining's 1.39USD/GH/s at 1BTC=480USD), but still fairly competitive
-Their operations are more transparent than other cloud mining services
Among these positive things to say about Genesis-Mining, their altcoin selection is especially attractive, since some of the coins are ONLY available for cloud mining with Genesis-Mining.
So, if you're interested in mining a niche altcoin such as POT, going to Genesis-Mining may be a wise choice.
Our mistake in our first Genesis-Mining trial was paying in bitcoin - we should have paid in USD!
We would like to give Genesis-Mining another try with an altcoin, paid in USD, after they drop their price again by more than 50% - current best price of 5.9 cents/kh/s is still expensive in our view, and although they are able to charge that price since competition is limited, we would like to see a drop in kh/s considering the rise in mining difficulty for most altcoins.