Genesis Mining: A Mathematical Treatment – F

I’ve spent the last duo of weeks being obsessed with bitcoins and, more generally, cryptocurrencies. This specific postbode is about cloud cryptomining, or simply cloud mining, and more specifically, Genesis Mining.

If you want to obtain cryptocurrencies, such spil bitcoin, you have two options: buy or mine it. Buying is usually mildly difficult and might end up costing you a lotsbestemming (CoinBase charges a 4% toverfee, for example) But mining bitcoins or ether also comes with its cons: electric current cost, fever, noise, etc. Another solution is to buy cloud mining, aka pay someone to mine cryptocurrencies for you. Of all the cloud mining out there, Genesis-Mining is by far the best (wij’ll see why straks). This article will provide a mathematical analysis of the products suggested and whether or not it is profitable to buy.

Okay, now that’s dealt with, for those te a hurry, here’s a TLDR or a “short version” of this article:

  1. Genesis Mining Bitcoins contracts are an AMAZING VALUE (no unwarranted excitation here, wij’ll see why straks) and have the potential to be exceptionally profitable. It will be very difficult for you to lose money if you buy bitcoin cloud mining contracts.
  2. Ter fact, Genesis Mining is by far the best way to obtain bitcoins overheen the long term. If you have any rente te cryptos, which you should, I’d recommend Genesis Mining overheen everything else.
  3. If you use my affiliate code ( hjsazq ) you will get 3% off your order AND I will buy the same amount you did using your affiliate code so you’ll build up Two.5%-5% toegevoegd hashing power. For free.
  4. Last time, Genesis-Mining sold out te less than 72 hours so HURRY UP.

Yes, I indeed believe ter this product. And now for the total article (and mathematical analysis), which is well worth the read if you are on the edge or hesitate buying:

Is Genesis Mining a scam?

No, it absolutely isn’t. Genesis-Mining is spil legit spil can be and you’ll get what you ordered, period. If you buy Two years of Ether mining at 30MH/s, you will get Two years of Ether mining at 30MH/s. No more, no less. Ter other words, Genesis Mining will fulfill its part of the contract. You WILL get your Ether/Bitcoin/Litecoin.

Why is Genesis-Mining potentially a bad overeenkomst?

Here’s the overeenkomst: Genesis Mining sells you a product X at price Y, but ter no way or form does it ensure that you will make a profit on it. Ter fact, most of the times, you absolutely won’t. If you dig a bit, you can find a lotsbestemming of people angry that the contracts they purchased weren’t spil profitable spil they thought or sometimes not profitable at all. Overall, there is a loterijlot of misinformation on Genesis Mining and cloud mining ter general, so I will clarify this once and for all.

Genesis Mining does NOT assure you will make any form of profit from their contract. Overall, it depends on too many factors. Say for example Ether crashed tomorrow and went back to $Ten vanaf ether: everything you would have mined would be potentially worthless.

Looking at Ether more specifically, wij can see thesis contracts are potentially very bad deals. Take the medium Ether cloud mining package for example:

$869 less affiliate code is $840 or so. Please keep te mind this contract has no extra fees: what you pay is what you get. Right now, 30MH/s will grab you around $Two.00 of Ether vanaf day:

This means that to get back the $840 you paid, you would need to wait $840/Two=420 days. Your original contract lasts for 730 days. This means the last “310 days” would be where you would make your profit.

But that’s not all: Ether’s difficulty rises all the time, i.e. it’s stiffer and tighter to mine all the time.

This means you will mine less and less ether spil time goes on. You might get $Two.00 or Ether today, but six months from now, you might only be getting $1.60. A year from now, you might be getting $1.20 or potentially even less. Ter fact, it may toebijten that your 30Mh/s is downright outclassed a year and a half from now.

So this means that out of the 730 days of your contract, it might not take 420 days to get your money back, but 520, 620 or potentially even 720. Ter other words, you have to waterput ter a ample sum of money upfront with no assure that you’ll everzwijn see your money back. At best, you will make a little profit of (730-420)*$Two=$620 overheen the next two years and that’s if everything goes ideally well. More than likely, based on future difficulty, you will be making $50-$100 ter profits. Overheen two years, with massive risks.

All te all, if you want Ether, you are FAR better off buying it today. That way, you get all of it right now (instead of overheen Two years) and you can fully build up if it goes up. You don’t have to gamble on the difficulty and how mining will go. Ter plain terms, I believe Genesis-Mining Ether cloud cryptomining contracts are just not worth the hassle.

Okay, so how is Genesis-Mining a good overeenkomst?

Obviously you aren’t going to buy Ether, Zcash, dash or Monero cloud mining. Spil wij witnessed, those contracts are hardly worth it – if you are fortunate. Recall your contract completes ter two years.

But Genesis Mining also sells bitcoin contracts which have no ending date and, spil wij’ll see, this is where the real magic comes from. This means that a contract you buy TODAY could still be earning you bitcoin five years from now.

Before wij go on, please note that Bitcoin are, ter my opinion, far safer investment that Ether. Ether itself is pretty safe and well-established, but the Bitcoin is on a entire other level. People might not have heard of cryptos, but they’ve heard of the bitcoin. Ter fact, most people don’t even know other cryptocurrencies exist, other than bitcoins. I would feel far more comfy holding bitcoins that anything else and I would bet on bitcoins rising swifter than any altcoin, at least if chosen at random. Yes, Ether is popular now, but there’s no way to indeed say that it will still be there te Five years. Bitcoins, on the other mitt, will.

Okay, Genesis Mining’s cloud mining will pay you te Bitcoins instead of Monero/Dash/Whatever. Already that’s a plus. Almost everyone would bet that, ter five years, bitcoins will be higher than they are now.

But here’s where it gets good:

So for $Three,975 less 3% affiliate code, that is, $Three,856, you get an OPEN-ended contract. Open-ended simply mine that spil long spil the contract is profitable (more on that zometeen), Genesis-Mining will mine for you. This can be Three years, Five years or Ten years. Keep te mind that aside from the $Trio,856, you will have NOTHING else to pay yourself (a maintenance toverfee is taken, more on that zometeen). Yes, ter ten years, your $Trio,856 could potentially STILL GIVE YOU BITCOINS.

Okay, so 25GH/s will televisiekanaal you:

… however Genesis-Mining DOES charge a maintenance toverfee on this contract of 0.00028 vanaf GH/s. This “fee” is used to pay for violet wand, cooling, maintenance and I do believe Genesis-Mining keeps a little part of the profits, which is fine by mij (again, the toverfee is clearly introduced, so I’m alright with it).

For 25 TH/s, this comes at $7 vanaf day exactly. So you aren’t earning $37.92, you are earning $31. To build up your $Three,856 back, it would take 125 days.

  • Ether: it takes 420 days to get your contant back
  • Bitcoin: it takes 125 days to get your contant back

Obviously the bitcoin contract already far, far superior: almost 75% less time to get your metselspecie back.

But here’s where it gets indeed magic:


Okay, not “forever forever.” Genesis Mining states how the contract will end very clearly:

If the Contract Term is an “open-ended contract”, the Service Provider may terminate this Agreement with instant effect if the Coins generated te the preceding 60 days do not suffice to pay the Maintenance Toverfee accumulated during such period.

So ter clear terms, what this means is that your “open-ended contract” will end when 25TH/s will not generate $7 ter bitcoins vanaf day

This will toebijten if either of the two following screenplays toebijten:

  1. The bitcoin price collapses, right now, it would have to collapse from $8,200 to $Two,200 AND stay there for 60 days. So far, the thickest crash wij had recently wasgoed $7,500 to $Five,500 and it lasted two days. Also, please note that many operations are far less efficient than Genesis-Mining, i.e. they wouldn’t be profitable mining with a bitcoin at $Four,000, so they would most likely shut down operations. Even if the bitcoin DID crash 75% and stayed there for 60 days, the druppel te difficulty would most likely make your contract proceed.
  2. The difficulty explodes and bitcoins become much, much stiffer to mine. HOWEVER the bitcoin difficulty – so far – increases very linearly. This is because the current miners are pretty much at the limit of how efficiently wij can mine (more on that zometeen). I personally believe difficulty will AT MOST dual everzwijn 6 months, for example, bitcoin difficulty has toughly doubled since last June. Still, even if difficulty increases, if the bitcoin prices rises spil well (which it has), you will be fine.

Ter other words, it is very unlikely that your open-ended contracts will end te the near future. There would need to be some massive cataclysms te the near future or a total bitcoin collapse (te which case you’d lose money even if you had bought bitcoins instead). Ter fact, your contract is likely to proceed until the next generation of miner arrives.

Until then, you will be mining bitcoins day after day.

When will Genesis Mining Open Ended contract end?

The gold standard of bitcoin mining is the Antminer S9. For toughly $Two,000 USD ($1,400 on bitmain’s webstek, but hard spil hell to buy), it can mine 14TH/s for a daily electric current cost of a few dollars. Private mining pools possibly have other kleuter of bitcoin miners, but it is very unlikely. The antminer is utterly hard to ritme on a zuivere hashing poot and even stiffer to strike on a hashing/power ratio voet. To give you an idea how efficient it is, I have a latest processor and I can Slightly eke out 0.015TH/s. Yep, that big of a difference, the Antminer S9 is a animal.

The Antminer S9 is based on the 14nm processor architecture. The 14nm processor got “out” te commercial products te 2014 and the Antminer S9 wasgoed release te late 2016. That is, two years. But wait: the very first generation of the Antminer wasgoed notoriously unreliable and prone to crashes. It took a good year for it to commence to become stable and efficient.

The next generation of processors, the 10nm, got released this year. Please keep ter mind it takes a while to have enough chips (and at a good enough price) to build a Antminer, which has 189 chips (. ). If wij use the same 2-year schedule, this would mean the Antminer S11 will get out ter 2019. Add a year for testing and safety and wij are looking for 2020 for the Antminer S11 to truly become a thing. This means wij have a good two years of enormously efficient mining with the S9.

But wait, that’s not all: even with the S9 ter total sway (and almost every mining farm will use those, obviously), the S7, the previous generation, is still ideally viable today. The S7 can pull off Four.7TH/s compared to the S9’s 14 TH/s for the same energy (told you the S9 wasgoed a brute). Today, the S7 is still profitable and many people still use it to mine.

This means that even te 2020 when people have the stable Antminer S11, the Antminer S9 will still mine profitably. Ter my opinion, it will be another two years before it is entirely outclassed and not efficient enough to mine.

Ter total, I believe the open-ended contract with Genesis-Mining will end some time te 2022, and that will be when the Antminer S9 will be incapable to mine efficiently enough to pay the maintenance toverfee. Your contract will end and that will be it.

So how much will wij make?

It will take 125 days for you to repay your initial investment. Let’s be fair and say that difficulty will rise and that it will take 175 days instead. The remaining time – overheen 1,000 days – will be zuivere profit for you. Every bitcoin you receive from Genesis-Mining during that period will be your profit.

Now you can see why Bitcoin Cloud Mining contracts are interesting.

What about difficult enhancing?

Much like Ether, the more people mining bitcoin there are, the less profitable it becomes. However, so far, bitcoin has bot rising prompt enough to compensate the rise ter difficulty. I believe this trend will proceed: the fresh hashing power will be compensated by a rise te bitcoin’s price. So instead of mining 1 bitcoin worth $8,000, you will mine 0.Five bitcoin worth $16,000.

It is better to buy bitcoin directly?

It’s a harsh call. If you used your $Trio,856 to buy bitcoins today, you will obtain 0.4673 bitcoins and that would be it. With the open-ended contract, you would receive 0.00376 bitcoins vanaf day that will go down leisurely. Despite that, I fail to see one screenplay where genesis-mining makes you less money than buying bitcoin directly.

Let’s go with a 10% monthly rise te hashing rate. This is something has never bot seen before, but let’s pretend it happens. Since the contract starts ter Four months, you will be getting 0.0025 bitcoins then, then 0.00225 the month after, then 0.0002, etc.

If you do the sum of all those numbers – and keep ter mind this is the absolute worst case I can think of, you’d be getting:

  1. 0.07625 BTC the very first month
  2. 0.068625 BTC the 2nd month
  3. 0.0617625 BTC the third month
  4. 0.05559 BTC the fourth month
  5. 0.05 BTC the fifth month
  6. 0.045 BTC the sixth month
  7. 0.0405 BTC the seventh month
  8. 0.03647 BTC the eighth month
  9. 0.03282 BTC the ninth month
  10. 0.0295 BTC the tenth month
  11. 0.02658 BTC the eleventh month
  12. 0.02392 BTC the twelfth month, for a grand total of 0.4784 , more than if you bought bitcoins originally.

Spil you can see, even if everything is off, even if everything goes against you, after a year of mining, you get more bitcoins with Genesis-Mining than if you had bought BTC directly.

And by the way – your mining contract resumes after that 12th month.

See where I’m going?

WOW! But are there any downsides?

Yes, there are, unluckily:

  1. The mining will only start ter March 2018, that is, four months from now. This means four months of waiting and, well, no mining. Four months of the difficulty enlargening and four months of putting money ter and waiting. I won’t lie, it gargles. I understand why Genesis Mining does it, they need the contant to buy Antminers, but it’s sooooooooo long
  2. Genesis-Mining support is abysmal. I had some Ether missing from one of my contract and it took them 17 days to get back to mij. But, I have to say they did and I got my Ether.
  3. Genesis Mining gets sold out very quickly, usually mere days after listing fresh bitcoin contracts and if you read my postbode, you very likely know why.
  4. Sometimes, some payments don’t get through. You will see those payments missing on your instrumentenbord. It happened to mij once before and I had to write to Genesis Mining. Their customer service, which did improve a lotsbestemming ter latest weeks, is enormously slow te getting back to you. I will say that you should monitor your payment weekly, if not daily.

You should also note that this isn’t a “free rail.” There are some phat risks involved. For example, I mentioned this before, but the bitcoin will crash. If it does, well, you might lose thousands of dollars.

There is indeed no ensure the bitcoin will keep going up. I mean, I think it will, I’m sure it will, but it could certainly crash. Of course, this is a problem you would also face if you bought Bitcoins instead of buying crypto-mining.

Similarly, be aware of operational risks: Genesis-Mining could go bankrupt or zekering existing. That being said, I want to say my best friend has bot investing with them for 1.Five years and has never had any frustration. He has overheen 250TH/s of mining with them and yes, he’s made a ton of money. He can vouch for them being legit and I don’t think Genesis will be going anywhere anytime soon.

Similarly, I won’t like, Genesis-Mining could go bankrupt. If it happens, you would be SOL. Now, thesis guys have bot te business for a while and they seem to be doing fine, but you never know for sure. Just be aware the risk exists.

Oh, and if you want to see what it looks like inwards a Genesis-Mining farm:

Spil for mij, I presently have 30TH/s of bitcoin mining spil well spil a little ether/monero mining. I project to add 200TH/s during this sale.

But te any case, before you invest with them, be aware of the risks. This is a high risk investment, but if you want to get into cryptos, let mij tell you that this is the best thing I’ve found on the entire internet and I spent hours and hours attempting to buy bitcoins and other cryptos.

Why doesn’t Genesis-Mining mine themselves instead of selling it?

For a duo of reasons. You know, this is something I spent a long time thinking about and I came to realize that they are doing this mostly because that’s what they want to do. Yes, they could keep all that processing power for themselves and mine bitcoins for themselves. However, that’s not what they chose to do, plain and elementary. I will have to say that selling hashpower does help reduce their risk since they no longer need to hold a ton of bitcoin. All te all, I think a cloud mining company is what they dreamed to do. Yes, they could perhaps make more if they kept all their power to mine themselves, but there would be added risk, and it would be a different zuigeling of business altogether.

I like to think that there is more te life than money and that those people simply dreamed to embark a cloud mining company for the excellent public. Maybe they sit on 100,000+ bitcoins and are just doing this to promote the ecosystem and promote bitcoins. After all, the more people involved and mining, the better for bitcoins.

Lastly, it should be noted that by raising funds the way they do, they can have the money to buy more miners without touching the bitcoins they already have. Perhaps they keep 25% of their hashing power to themselves or something.

TLDR: It’s less risky, and they most likely are making enough already with what they have. It might be a side venture or for joy. By getting paid te one slok like that, they reduce their operational risks.

Why shouldn’t I mine myself instead and save the maintenance toverfee?

Mining bitcoin is viable too, but please keep te mind that it is very, very, VERY difficult.

Very first, you will have to invoer a miner from China. Good luck, all I’m gonna say. 2nd, you will have to pay the electro-therapy and overeenkomst with the warmth. And overeenkomst with downtimes/network problems/maintenance. A fan violates? Gotta order another one and guess the only country that sells them? Yeah.

Of course, you will have to overeenkomst with the noise too, which is almost unbearable. 85 Db, or a landmower. If you can do all this, then yes, mining yourself will MAYBE (it depends on how much you pay for the electro-therapy) televisiekanaal you more. How much more? Well, if you pay $0.Ten/KWh, which is about $50 more than what Genesis Mining pays, a 25TH/s contract will nipt you an reserve $Trio vanaf day. If that $Three is worth it to you, then by all means do it. Of course, you better hope your Antminer doesn’t diegene after six months or arrive bruised, and you better be able to ensure 100% uptime too.

Te total, how much will that open-ended contract earns mij?

It’s hard to say for sure, but I like to split it into three screenplays. Script 1, the pessimistic one, has your contract ending after two years, with profitability quickly decreasing. Script Two, which I think is reasonable, has a moderate decay, with a 5% monthly decay te the profit/rate ratio and Four years of mining. Optimistic script lasts five years and has a Two.5% profit decay, a. All of those are based on a 25TH/s order.

All scripts are post-fees.

Pessimistic script

With this script, you commence at $25 te March 2018, or $750 vanaf month and go down 10% until below $100, at which point it turns to $0. Under this screenplay, your mining contract lasts for 21 months and you earn $6,680 te total, for a profit of $Two,824

Realistic Screenplay

With this script, you also embark at $25 te March 2018, or $750 vanaf month, but only go down 5% vanaf month, and your contract proceeds until below $50. Under this screenplay, your mining contracts lasts for 41 months and you earn $13,168, for a profit of $9,312.

Optimistic Screenplay

With this script, you embark with $30 ter March 2018, or $900 vanaf month, but only go down Two.5% vanaf month for the very first two years, then 5% for the following two years, then 10% thereafter. The contract finishes when you mine less than $50 vanaf month. Under this screenplay, your mining contract lasts for 58 months and you earn $23,756 for a netwerk profit of $Nineteen,900

Spil you can see, there is a loterijlot of variance ter the earnings and I personally believe the actual screenplay will be somewhere inbetween the “Realistic” and “Optimistic” cases. I fully believe that $Four,00 invested te Genesis-Mining today will televisiekanaal you $12,000-$15,000 ter profits ter total.

Wait, do I get to keep the bitcoins I mine??

Yes! For the purposes of this article, I compared everything ter terms of dollars, but the bitcoins you mine through Genesis are yours and yours to keep. You get paid te bitcoins and you get to keep those bitcoins and do whatever you want with them. For your information, if you want to sell them, you can usually sell them at 5-10% premium to their market priice.

How do I get paid?

I will write an entire guide on this one day, but you get paid like you would for another other bitcoin payment. You send your wallet and they deposit what you mined there, usually on a daily fundament, but sometimes they skip a day or two. You will get what you ordered however.

How does your affiliate code works?

Here’s how it works: when you order, when you are about to pay, inject the code

This is my referral code. You will get 3% off your order. Yep!

Spil for mij, I will get a little percentage of what you bought spil reserve hashing. And to make this even better (for you), I will buy the same thing you buy using YOUR code, so if you buy 5TH/s using this code, I will buy 5TH/s spil well using YOUR code. I’m going to buy 200TH/s, so why not?

Simply text mij at +1 438 300 13(zero)1 with your affiliate code and amount bought. You will get an reserve Two.5% TH/s of mining FREE! While this isn’t a ton, it’s certainly better than nothing.

To be fair, there are other codes you could use at checkouts (they would only nipt you a 3% rebate like mine), but after writing all this, well, I think I deserve it :-). And you’ll get a little bit of free hashing power too, so why not?

Anyway, I hope you liked this little guide, I truly believe ter this cloud mining company and I think their open-ended bitcoin contracts are amazing value. At the very least, I hope you found it informative.

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