Thinking of cloud mining with Genesis? Get your head out of the clo...

You want to generate steady income for the next 2 years with a Genesis cloud mining contract? Get your head out of the clouds! I am here to tell you that this isn't exactly the most profitable investment, and I speak from experience. When I signed up for a Genesis cloud mining contract, I did some quick math and with a mining profitability calculator decided that it would take about 4 months to break even. At the time Ethereum was trading around $240, thus I must have calculated that I would get well over 1.5 Ethereum in about 4 months. At the time difficulty was roughly 600T.

In the past 2 months, difficulty has more than doubled at over 1350T. This current doubling of difficulty and drop in price puts Ethereum mining out of profitability range within a couple of months, maybe even less. Thus a two year contract purchased for Ethereum will be worthless VERY soon. Ethereum is going to be switching over to Proof of Stake in the near future as well, therefore mining will be obsolete.
You may be thinking about a Bitcoin contract because it is open ended, but the fine print states that it will mine as long as it is profitable. Bitcoin difficulty is increasing at a slightly slower rate, but the probability of profit still remains ridiculously low.

Dash difficulty seems to be increasing the slowest, but x11 currently is one of the least profitable algorithms to mine.

On 6/3/17 I spent what at the time was $436.38 worth of litecoin or 15.8 LTC for a 15 mh/s 2 year Ethereum mining contract at Genesis mining. This calculates to about $30 per mh/s. At first the payouts were decent, coming in at about 0.01100083 Ethereum per day. My most recent payout came in at 0.00488596 on 7/22 (payouts delayed due to hack, which is another story altogether). So in a total of roughly 54 days, my mining contract has generated 0.39260898 Ethereum. So currently I have ETH payouts amounting to a total of $72.1677689609, and may squeeze in roughly 1/4 of that amount in the next month or 2..Lets give a generous estimate of about .6 ETH at current prices and I will have a whopping $110 worth of ETH. To put this into perspective I would have been sitting on $619.7414345196 in LTC if I had just held the coins.

Ethereum daily payouts chart I threw together

As it currently stands, the entire cryptocurrency market is Bearish, but at the time the price of Ethereum was on a bullish path and broke $400 momentarily in a period of about 8 days. Things were looking bright, and if there was a continuation of the bullish market, these contracts may have been profitable.

After my hasty decision to enter into the cloud mining world, I ponied up around $400 a piece for 2 Gigabyte 1070 Founder's Edition video cards, which mine consistently at around 30 mh/s. This calculates to around $13 per mh/s, not including the cost of electricity. Therefore, I am getting double the hash rate for around the same price, and with the difficulty levels increasing at the current rate, and current prices, may still not break completely even. But, at least I come out of the deal with two bitchin' GPU's that can be used to mine other altcoins with lower difficulty levels, or for video games if nothing else. At current difficulties, my two GPUs are generating around $2.15 in profit per day in ETH when you calculate power costs of around $35 per month. This generates a total of about $64 profit per month and has already netted me more than $200 in mining revenue in less than 2 months.
There is no way you are going to find any video cards that are perfect for mining right now unless you are willing to shell out over 2x fair retail price for them.

If you are contemplating purchasing a cloud mining contract, I wouldn't recommend it at this moment in time!. Difficulty and time are against you, so think about other ways to invest your money. Just purchase some coin outright since the price is low. I am no financial advisor, but I would also recommend easing into a position and watch for support and resistance levels to serve as entry points.

If none of this has convinced you to stay away from cloud mining, feel free to use my code wE0q1X for a 3% discount because I do still have active contracts and free hashpower wouldn't hurt. But I seriously wouldn't recommend it!