I'm a networking and crypto enthusiast but I am definitely no expert. So feel free to point out where I may be wrong
Minimum payment for credit/debit cards is $50 and the cheapest dash plan I could get was $60 for 2 years.
After paying the credit card fee the total ended up being $63.20 for 10 MH/s of X11 hashing.
The mining profit calculator from Cryptocompare shows that at current rates I can expect to earn:
$ 0.4442 per day / $ 13.33 per month / $ 162.14 per year.
Sounds like I can almost triple my money in a year.
Here's the catch
The mining calculator has a little disclaimer at the bottom.
Disclosure: Mining metrics are calculated based on a network hash rate of 4,478 GH/s and using a DASH - USD exchange rate of 1 DASH = $ 106.08. These figures vary based on the total network hash rate and on the DASH to USD conversion rate. Block reward is fixed at 3.602951909415424 DASH and future block reward reductions are not taken into account. The average block time used in the calculation is 80 seconds
That means I will start to earn less with my hash-power:
- as more people start mining Dash
- if Dash declines in value
- when Dash block rewards are reduced
- when average block time goes up
I have found many reports from people that have bought Genesis-Mining contracts and did not receive any return on their investment. Lots of people seem to barely break even or actually make quite a loss.
Basically buying a mining contract is a gamble.
"The house" (Genesis) is counting on the fact that they will make more money by renting you their hardware than they would make on actually mining for themselves.
One could say the same things about companies selling you actual mining hardware.
One would assume that they are counting on making more money by selling you the hardware than they could make by just plugging in the hardware themselves. In many cases that's probably true since successful mining for profit mostly requires extremely cheap electricity.
