Genesis Mining – Commence Ter Crypto

  • Cloud mining wasgoed generally a bad idea, but Genesis-Mining’s open-ended bitcoins contracts are an exception.
  • Genesis-Mining Bitcoin Contracts are an incredible value and the best way to obtain bitcoins right now.
  • It will be exceptionally hard for you to lose money if you buy Genesis-Mining’s bitcoin contracts
  • You will earn more bitcoins by buying Genesis-Mining contracts than by buying bitcoins directly.
  • $Three,900 invested today will most likely televisiekanaal you inbetween $Ten,000 and $12,000 ter profit overheen the next four years.

Since then, I have received fairly a fair bit of comments, some people agreeing, some disagreeing, some asking for more details te my calculations, so I am going to postbode a follow-up with more details and explanations. But very first:

Okay, let us get began and let’s analyze just how profitable thesis “cloud mining” contracts can be.

For this article, I will assume you have bought the diamond package. I recommend the diamond package because it is the best overeenkomst for the money. Here’s each “plan” you can buy and how much you will pay vanaf TH/s (one TH/s presently nets you a bit overheen $1.Four vanaf day after all fees):

Spil you can see, the lowest $/THs is reached at the Diamond pack, at $159/THs. There is no point buying more hashing power because it doesn’t get any cheaper, i.e. there is no difference inbetween buying Four Diamond pack and buying a 100 TH/s pack, both will cost the same.

At $159 vanaf TH/s, less the 3% discount (code come in at checkout:

you are looking at $154.23 vanaf TH/s. Presently, a TH/s will nipt you:

However, te addition to the $154.23 upfront toverfee, Genesis-Mining charges a $0.00028/GHs toverfee. Since a TH/s is 1,000 GH/s, it means you $0.28 will be deducted from your payout. $1.48-$0.28 = $1.20

Thus, $154.23 invested would televisiekanaal you $1.20 vanaf day, meaning it would take 129 days to get your $154.23 back. Also, note you will be getting bitcoins back, so you would be repaid te bitcoins.

Lastly, note this contract is open-ended. We’ll explore exactly what that means and how long thesis contracts will last. We’ll also discuss the SHA256 algorithmn and the Antminer S9 more ter details. Of course, wij will also discuss the rise ter difficulty and the effect on your open-ended mining.

But if you have to recall ONE thing only from this article, let it be this: the timeless nature of your contract is AMAZING value! You will likely not make much te the very first year (we’ll see why zometeen), but the year Two, Three, 4… will basically be unspoiled profit. If you are interested te cryptocurrencies, Genesis-Mining is amazing value, period.

Genesis-Mining Contract Explained

For the surplus of this article, wij will assume you bought the Diamond contract explained above. That is, wij assume you bought cloud mining at the best price Genesis-Mining has to offerande, $154.23 vanaf TH/s. Wij will assume you got the Diamond package, for a total of $Trio,855.75 for 25 TH/s.

Very first, at today’s price, $Three,855.75 would buy you 0.477 bitcoins exactly. This will be our comparative measure for the surplus of this article. Specifically, is buying bitcoins directly superior to cloud mining? Note that many places charges fees to buy bitcoins, but we’ll assume you paid none to obtain your coins.

2nd, let us define exactly what you are purchasing. Te plain words, you are getting:

  • 25 TH/s of bitcoin hashing power, that is the SHA256 algorithm, for a one-time toverfee of $Three,855.75.
  • The contract has a maintenance toverfee of $7 vanaf day (25,000*0.00028). This toverfee is ensured never to go up. This toverfee tends to go down overheen time (it wasgoed at 0.00035 six months ago) but for the surplus of the article, wij will assume it will never go down.
  • The maintenance toverfee is taken from your daily bitcoin mining. You never have to pay anything else, everzwijn.
  • Aside from the purchase price of $Three,855 and the maintenance toverfee of $7 vanaf day, you will never have anything else to pay. You will never have to do anything else neither, everzwijn.
  • Bitcoins are deposited daily into your private wallet.
  • The contract will proceed spil long spil 25TH/s gets at least $7 te value. Te other words, spil long spil 25 TH/s can mine at least $7 ter bitcoins vanaf day, the mining will proceed. Presently, 25 TH/s gets $37 te bitcoin vanaf day. This value hasn’t switched much ter the past six months.
  • If 25 TH/s no longer gets $7 vanaf day, then you will no longer receive a payment. The mined bitcoins will be used to pay the “maintenance toverfee.” If this situation persists for 60 days, your contract will end.

That’s it. It’s truly no more complicated than that. The real magic of this contract, spil I explained ter my very first postbode, is that this contract potentially lasts for a decade. For a comparison, their Ether mining contract completes after Two years automatically.

Rise ter Difficulty

Every day, more and more people mine bitcoins with more and more machines. The largest risk to your mining contract is a significant rate ter hashing difficulty. If this happens and the bitcoin price doesn’t keep up, your contract could potentially end very quickly.

Ter this section, I will explain why this isn’t truly a problem.

But very first, here’s quick explanation of how the rise ter difficulty works. Basically, only 12.Five bitcoins are created every Ten mins. The more people mining, the less likely you are the get those bitcoins. See it like a pie: if there are only four people eating, there’s a good chance you can get a nice slice, but if there are 100 people fighting overheen that pie, it will be difficult to get anything but crumb.

Bitcoin’s hash rate presently stands at Ten,371,000 TH/s, or toughly 700,000 antminer S9. Year overheen year, difficulty has exploded, going from Two,297,000 TH/s to Ten,371,000 TH/s, toughly a 400% increase. But this isn’t truly a problem because the bitcoin price rose even more during that time, going from $738 to $8,000, a 1,100% increase.

To go back to our pie example, imagine there are still 000 people fighting for the pie, but the pie is ten times fatter. Albeit there are more people, there is more pie too.

This dramatic rise te difficulty is due to the introduction of Antminer S9. Albeit it wasgoed originally released te late 2016, it truly took six months for it to “take off” and be made te large quantities (early S9 were very prone to crashes too). This explains the massive rise of difficulty te 2018. The previous generation, the S7, could only eke out 33% of the S9’s hashing power. So with a miner 300% more efficient, it made sense that the difficulty rose by a similar amount too. Expect a similar outcome when the S11 comes out (ter 2019).

Now, I can say that the hashing power is unlikely to rise spil dramatically te 2018. This is because there is only so many Antminer you can make. Making a S9 requires a large amount of chips and there’s just so many chips that can be made, especially with other big manufacturers fighting for it (Apple, Samsung, etc.). I believe that antminer builders are working at utter capacity right now because those sell truly well. I don’t see them being able to kick up production on a fad and I think the Antminer S9 is basically unlikely to mine right now.

Also, the law of numbers play here: no fresh, super efficient miner is coming out anytime soon. Sure, wij added 8,000,000 TH/s te difficulty this year, a 400% rise (from 2M to 1oM), but if wij add the same amount next year, that’s only a 80% rise te difficulty (from 10M to 18M).

Let’s say the hashing power rises to 20M next year, a 100% rise. Obviously, it all depends on how much of the total hashing power you have. 25THs out of Ten,000,000 is far more 25THs out of 20,000,000. Obviously, your 25THs will mine less bitcoins if the hashing power doubles.

However, this is not necessarily a problem because the bitcoin price should keep rising too. So whether your 25TH mine:

  • 1 bitcoin ter a year @ $8,000 vanaf bitcoin
  • 0.Five bitcoins ter a year @ $16,000 vanaf bitcoin

… you are getting the same payoff. Yes, bitcoins are firmer to mine, but they are also made more valuable.

Also keep ter mind you get to keep your bitcoins, of course, and you can let them grow even more.

What makes the Antminer S9 so powerful?

Te elementary words: it’s unlikely to strike on a cost/power ondergrond. Yes, you could build machines that mine more bitcoins, but they would a) be less power efficient b) be stiffer to maintain and repair, because the Antminer is so ubiquitous you can grab lumps everywhere. An Antminer S9 can work at 100% te a 110V circuit if needed. Of course, it can also be run by industrial power supplies for mining farm, on a higher voltage. Not that it matters, but if you should reminisce one thing, just recall that the Antminer S9 generates an unbeatable amount of hash for the power it takes.

It’s utterly power efficient.

It’s also relatively sturdy, effortless to carry and fairly versatile. The vormgeving is also kinda elementary and can be manipulated lightly. For example, if one cracks, you can simply unplug and repair it, you don’t need to zekering an entire row of them. It’s also relatively sturdy and flawlessly designed to run 24/7.

Of course, it is amazingly powerful and can shove out 14 TH/s consistently, which is by far the strongest hashing power everzwijn released for commercial products. Yes, an industrial machine could potentially crush that, but a) it would cost a fortune to vormgeving, build and run b) it would be less power efficient.

To give you an idea how efficient it is, the absolute best CPU you can buy on the market right now (for the purpose of mining bitcoins) can mine 0.14 GH/s. Not TH/s, GH/s. More than 100,000 less efficient than the S9. It’s not clear how Bitmain achieved such a tremendous amount of power ter so little place.

An Antminer S9 will take around 1,375 KW/h. If you run it 24 hours a day and pay $0.Ten vanaf KW/h, and if you have a 93% efficient power supply (which is what is shipped with an Antminer S9), then you are looking at $Three.55 ter tens unit cost vanaf day. An Antminer will mine $23 or so of bitcoins vanaf day, so you would make around $20 te profit vanaf day, vanaf Antminer. Of course, some farms have 1,000s of Antminers running.

Electrical play is your only cost when you mine (other than maintenance and maybe $30 vanaf month for internet), so power efficiency is the most significant factor.

Lastly, note that there is nothing on the market that everzwijn comes close to the S9 te terms of efficiency. I searched broad and long, I made calls, I attempted to see if there wasgoed a “secret” miner somewhere and, simply said, there are none. If you want to mine bitcoins today

When will the Antminer S9 be outclassed?

Ter the last section, wij agreed that the S9 is by far the most efficient miner. Ter fact, at today’s levels, it is unlikely to ritme. The only way this is going to chance is when a fresh, smaller chip comes out. Then, builders will be able to cram more transitors ter a processor and, thus, have a more power-efficient unit.

The Antminer S9 is based on the 14nm architecture, released te 2014. The 10nm architecture, the most latest chip vormgeving, got out this year. Presently, a 10nm chip is used ter the most latest iPad. It will take time before builders can amass enough chips to build the Antminer S11. Presently, there are no commercial 10nm processors out:

Intel will release its 10nm processor, named Icy Lake, some time te 2018. Obviously, 10nm chip will be very expensive at launch and it is likely they will only be used te desktop pc. It will take some time, at least a year, until there are enough 10nm chips made for a fresh ASICS to make sense. This puts us some time ter 2019, most likely te mid/late. The very first Antminer will very likely have the same problems that the early S9 got, and it will most likely take a year or at least half a year for a onveranderlijk, reliable Antminer S11 production line to be out. This puts us ter 2020 at least.

Of course, it will take a while to build enough S11 to outclass the S9. Te fact, even with many S11, the S9 will most likely still be profitable. Under the same maintenance terms Genesis-Mining uses ($0.00028/GHs), even the Antminer S5 is still profitable today, At 1.15TH/s, it can mine $1.82 vanaf day and the maintenance toverfee would be $0.32. The S5 wasgoed released te 2014, so even four years zometeen, it’s still profitable.

Oh, and just for your information, the S5 uses 28nm chip, which were released te 2011, Three years before the S5.

With all that being said, wij can securely conclude the following:

  • No “crushing” fresh bitcoin miner will come out ter the next Two years at least.
  • It will then take at least 1 year for the fresh “amazing” Antminer S11 to become prevalent enough to increase the hash rate enough to hurt the S9
  • The Antminer will then most likely remain slightly profitable for Two more years.

All ter all, you are looking at at least Five years of efficient mining with Genesis-Mining. I would give it Five years before your contract finishes.

However, spil time goes, your crypto-mining contract with Genesis-Mining is likely to become less and less profitable, on the fifth year, it will most likely only pay a handful of dollars a day.

Then, after five years, 25TH/s will not even mine the $7 mining toverfee vanaf day and your contract will end.

A comparison to older miner.

Spil wij mentioned above, the S9 is based on the revolutionary 14nm chip vormgeving. If you want the absolute best commercial rekentuig right now, you will be getting a 14nm chip. This is a Massive difference when compared to 28nm, basically, you can ram twice spil many transistor te the same chip (OK I’m doing this quickly here!) and make it consume much less energy.

And at 1,375W, which is all a typical electrified outlet can give (110V 15A), it will not get substituted by another miner anytime soon (not before 10nm chips). Simply said, it has the maximum amount of chips it can take.

Now, let’s compare to the other super efficient bitcoin miners and how much Genesis-Mining would charge te maintenance toverfee for all of them

Antminer S9 – released ter 2016, 14nm chip – 14.00 TH/s – Can mine $21 of bitcoins vanaf day, maintenance toverfee $Trio.92. Netwerken PROFIT $17.08 vanaf day.

Antminer S7 – released ter 2015, 28nm chip – Four.73TH/s – Can mine $7 of bitcoin vanaf day, maintenance toverfee $1.32. Netwerk PROFIT $Five.68 vanaf day

Antminer S5 – released te 2014, 28nm chip – 1.15TH/s – Can mine $1.82 vanaf day, maintenance toverfee $0.32. Televisiekanaal PROFIT $1.50 vanaf day

Antminer S4 – released te 2014, 28nm chip – Two TH/s – Can mine $Three.00 vanaf day, maintenance toverfee $0.56. Netwerken PROFIT $Two.44 vanaf day

Antminer S3 – released ter 2014, 28nm chip – 0.478TH/s – Can mine $0.65 vanaf day, maintenance toverfee $0.14 vanaf day. Televisiekanaal PROFIT $0.41 vanaf day

Spil you can see, all Antminer would be profitable with the Genesis-Mining maintenance toverfee. Please note some of the old miners were not “loaded” with chips and had a lower power consumption, hence the increase from a unit to another. Still, if you had bought mining ter 2014, you will still receive a payment today, albeit very petite (you would have made slew back then of course, when there were no Antminer S5, S7 or S9 out).

Unnecessary to say, the fresh models of course are more lucrative. But you should be aware of the staying power of those miners.

For your information, the fresh Antminer are mostly more silent/smaller. They mine less, but produce less fever and noise, for use te a typical office. Again, unlike the S3, who only used 330W, the S9 already uses 1,375W which is the maximum you can get out of an outlet (and the power efficiency is the best it can be on the 14nm architecture. It will not be hammered until 10nm are mass produced and I personally think this will take Three+ years, not Two)

So, how much will a diamond package at Genesis-Mining earn mij?

There is one, and only one problem with Genesis-Mining (aside from very slow support – Ten+ days to get a response, but your concerns will be addressed): the contract doesn’t begin mining until next March!

I won’t lie, this gargles. I would like it to commence mining today. Te March, difficulty will be higher than it is now. That doesn’t mean the contract is less profitable because bitcoin will most likely rise too (recall, more people but fatter pie).

Let’s estimate what the total hash rate will be. Looking at the past six months, where a loterijlot of fresh Antminer S9 got turned on:

The has rate harshly doubled from 5M to a little bit overheen 10M. I think that going forward, a 5M increase ter difficulty vanaf six months make sense. I do think Antminers are being built spil swift spil possible and, spil explained, it will not be outclassed for fairly some time.

This puts us at a hash rate of around 14M when your contract starts, a 33% rise from today’s level. Now, spil long spil bitcoin rise 33%, you will be fine and get the same amount you’d get today. But if the bitcoin doesn’t rise (or, worse fall), then the profitability of your contract could be very low. Of course, this is also a problem if you buy bitcoin.

My own private forecast is that bitcoins will keep rising for a very long time.

But if bitcoin still hovered around $8k ter March, then your diamond package would not nipt you $30 (after toverfee) vanaf day, but toughly $22. This amount (again, assuming bitcoin doesnt rise) will then go down spil more hashing power comes online. Assuming wij build up 5M vanaf six months te hashing power, your profit would only be $15.7 vanaf day after six months of mining (te September 2018), and $11.21 after a year (te March 2019).

Note that even ter this nightmare screenplay, you would recoup your original investment te around 8 months.

Base, unlucky screenplay:

But let’s go for a more reasonable, if slightly pessimistic, screenplay:

  1. When your mining commences, the total hash rate is at 15 million TH/s
  2. 1 million TH/s is added every month from then on (66,666 antminer S9 vanaf month!)
  3. Bitcoin stays plane at $8,000
  4. Maintenance toverfee stays vapid spil well, aka doesn’t go down.
  5. The contract lasts until 25TH/s doesn’t get you $7 ter bitcoin vanaf day

Te that case, which is fairly pessimistic, your total profit would be:

For a total income of $6,529.94, not bad for a $Trio,855 investment.

Please note that under the assumptions named above, which are somewhat low, the contract would still last Three.333 years.

Realistic Screenplay

Now, let’s take another script, where the bitcoin price rises 2% vanaf month on average. This would mean the bitcoin would rise 25% vanaf year on average, a measure. Now, I personally think a 2% monthly rise is way too low, but let’s take this spil a long term average: some years, the bitcoin will go down. This year, it is up almost 1,000%, but let’s take a longer term average, by the way.

Our assumptions become:

  1. When your mining starts, the total hash rate is at 15 million TH/s and the bitcoin is at $8,660
  2. 1 million TH/s is added every month from then on (66,666 antminer S9 vanaf month!) until January 2020, then Trio million TH/s is added every month after that (Corresponding to the fresh Antminer S11 coming out)
  3. Bitcoin rises 2% vanaf month, every month.
  4. Maintenance toverfee stays vapid spil well, aka doesn’t go down.
  5. Kicking off Jan 2022, bitcoin only goes up 1% vanaf month
  6. The contract lasts until 25TH/s doesn’t get you $7 ter bitcoin vanaf day.

Then our contract lasts significantly longer. Wij can see that:

The total income for this contract, after all fees, is $12,865. Note how little money you make towards the end, due to the extreme difficulty.

Of course, many (including mij) would argue that the contract could do even better than that. Bitcoin could certainly be higher than $27,000 ter 2024. It could lightly be overheen $100,000. Similarly, perhaps our difficulty estimates are too high te this script, wij estimate the difficulty will dual te 2019, which is aggressive spil this would imply 66,666 Antminer S9 being turned on every month.

High hash rate script:

Lastly, let us test a screenplay where the hash rate rises even swifter than that, still 1 million vanaf month, but plus 5% every month. Bitcoin will only rise 1% vanaf month under this screenplay. Our assumptions:

  1. When your mining starts, the total hash rate is at 15 million TH/s and the bitcoin is at $8,324
  2. 1 million TH/s is added every month from then on (66,666 antminer S9 vanaf month!) plus 5%, so 1.05M the month after, 1.102M5 the month after, etc.
  3. Bitcoin rises 1% vanaf month, every month.
  4. Maintenance toverfee stays vapid spil well, aka doesn’t go down.
  5. The contract lasts until 25TH/s doesn’t get you $7 te bitcoin vanaf day.

Even te this nightmare script, with difficulty rising quicker and swifter, you would make a (puny) profit. Also, would you indeed bet on Bitcoin being at only $Ten,000 ter Two and a half year?

Desire script

Spil a premie, let’s ontleden a Desire script:

  1. When your mining commences, the total hash rate is at 15 million TH/s and the bitcoin is at $8,324
  2. 1 million TH/s is added every month from then on (66,666 antminer S9 vanaf month!) plus 2%, so 1.02M the month after, 1.0404M the month after, etc. Kicking off ter 2020, Trio million TH/s, rising at 2% vanaf month, is added instead,
  3. Bitcoin rises 4% vanaf month until 2020, 2% from then until 2022, then 1% onwards.
  4. Maintenance toverfee stays vapid spil well, aka doesn’t go down.
  5. The contract lasts until 25TH/s doesn’t get you $7 ter bitcoin vanaf day.

Wij can see this contract has the potential of being utterly profitable. Ter fact, many would argue that the bitcoin could rise 5% vanaf month or 10% overheen the long term. Also, the screenplay above has a Giant difficulty increase priced ter.

Conclusion

I think it will be very hard for you to lose money with Genesis-Mining. You would have to be spectacularly unlucky. Bitcoin would have to crash te some way. With that ter mind, please recall cryptocurrencies have a fat amount of risk involved. I personally think it is THE investment of our era, but since bitcoins are, well, virtual, their price could crash at any time. Also, be aware Genesis Mining has operational risks which I haven’t discussed. There could be a fire te their center, for example. So far, ter two years, G-M has bot operating very well, except for slow customer responses. I am pleased with the mining I have ordered from them.

Crypto-Mining contracts with them are extemely likely to be profitable and the “open-ended” nature of them means it could be paying you years from now. Again, I personally think the contract will last until 2022. This would mean $Three,855 invested today would televisiekanaal from $Two,000 to $14,200 ter profit. And fairly potentially more, if bitcoin soars.

Of course, you keep every bitcoin you mine, for live if you want. If you are interested te cryptos, and you should be, Genesis-Mining is the best way to invest ter cryptos, period.

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