Hello, amazing community,
In this post, I want to write about another cloud mining service that is out there and quite profitable if you know how to use it.
I am currently using it and this post will be an analysis based on my journey so far with them. I will not be posting any referral links as I do not like when I see referral links. If you think that this is for you and you want to invest in this, I'm sure you can find the link by yourself and don't need a referral link. If you can't find it (for any reason) let me know in a comment and I will help you find it. Also, like I always say if you want to invest in something make sure you do your own research on it and always be ready to lose the money you invested.
The intro is done, so let's get on with our subject. The actual cloud mining service is called Hashflare. I'm sure many of you have already heard of it, or are even using it.
Their contracts are overall profitable, however, what I am doing to get the most out of my investment is to reinvest every day. This way I am building up my hash power and every day my payout is increasing.
I have started with them in December with a sha256 contract and I have reinvested every day so far. Before this, I have built an online calculator to help me figure out what is the best strategy in the long term. Yes, that is correct - in the long term. My plans are to keep the reinvestment strategy until mid of 2019 and then leave it to run and generate profit until all the hash power will be gone.
Contracts on Hashflare (sha256) are for 1 year and each time you reinvest you get a new contract for the newly purchased hash power. You might ask yourself now, how can this work, if the contract is only for one year? Shouldn't the contract that you first bought and the ones following that start to expire next year?
Yes, that is correct. However, because I reinvest every day, a new contract is created each time, that has a one-year expiry date. Because I keep reinvesting each day, the payout keeps increasing and by the time my first contracts will start to expire, new ones will be created.
As a quick example, let's say I reinvest today and buy 0.03 TH/s. If I keep doing that, in one year my daily reinvest will go up to 0.30 TH/s. So each day I will lose 0.03 TH/s and I will purchase a new contract that will expire in another year for 0.30 TH/s.
Let's have a look at my history graph for hash power from the beginning until today.
We can see from here that every day the hash power is going up constantly. This is not a linear rise as each day the payout is increasing based on the new hash power. So this rise is exponential.
For example, let's put the start date 4th of January this year. On that date, I had 5.52 TH/s in Hashflare contracts. By using the calculator that I've build today I should have 6.15 TH/s in hash power (based on the latest payout and current BTC price - none of them are that great at this point). If I look at my Hashflare account I currently have 6.33 TH/s. This means that overall I am one step before my calculator (this is due to changes in daily payout and BTC price). All good so far, the reality is better than the calculator prediction.
Let's now try the following.. 5.52 TH/s on the 4th of January, reinvest until end of July 2019 and then leave the profit to build up until all contracts expire.
By the end of the reinvest period, I should have 75 TH/s in hash power. After I stop the reinvestment process we can see that every day my hash power is going down (based on the contracts that are expiring). Also, we can see that the account balance is increasing.
By the time all my contracts will expire I should have around $19,000 in my account.
Note, that this is just speculation. I can double that or even more or I can lose everything if hashflare decides to pack everything and leave.
If you want to use the calculator you can access it here - Hashflare reinvest calculator. The default values are the ones from today, however, you can change them if you want to calculate different scenarios. If you don't know how to use it, let me in know in the comments and I will post a detailed tutorial on how to use it.
If you are thinking of starting with a cloud mining service, be sure you check out my other post about CCG Mining.
I hope you enjoyed reading this post, don't forget to follow me for more posts in the crypto space.
Thank you all for reading and have a good one.
Until next time, peace!