Hi everyone,
As most of you may know Genesis Mining offers cloud mining contracts in a few currencies (currently BTC and Etherium). I purchased a contract for both of them and after some research I came to the opinion that their BTC contract is sketchy and not that much of a good investment...
Here it goes: Their BTC contract is advertised as a lifetime contract. However, there's a very important clause in the contract saying that: if the daily mining revenue lies below the daily maintenance cost of the contract for 20 consecutive days, they will cancel the contract. So what does this really mean?
The daily maintenance cost is $0.00028 per GH/s purchased. Say you have a 2.5 TH/s contract, the daily maintenance cost is $0.70. For the current difficulty levels and the BTC/USD rates, the revenues look good. I got 0.00074142 BTC for my 2.5 TH/s contract "after the maintenance fee" on June 16, 2017, which converts into $1.8 per day for a $350 investment - roughly 7 months of turnover, not bad... However, things don't look good for the coming months considering the difficulty increase and the pressure that it will put on the BTC prices.
I've made a quick calculation that you might observe in the table below ↓. I'll make a detailed analysis on future outlook of the Genesis Mining BTC Contract when I have the time.
That being said, their Etherium mining contract is really promising considering the potential of Etherium in the coming year(s). I will also write a detailed analsysis on their Etherium contract in the future. You can use below links to get 3% off your purchases at Genesis Mining.
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Here's the table that I worked on. For the future BTC price forecasts, I used the values that just make this contract survive (considering the daily maintenance fee and 20 days clause) You can see that after 1 year, this requirement puts a lot of pressure on the BTC price it is highly probable that your contract will be canceled.
I'll detail and explain my calculations with a refined table in my next post. Cheers!
