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Is cloud mining for real or is it a scam?
Most people seem to believe that 99.99% of the people who offer cloud mining are scams. Are these companies just taking the Bitcoins you give them to pay out other investors until they run out of money and disappear? Do these companies really have mining, hardware setup to mine Bitcoins? What about Genesis is this a safe investment or not? Let us take a look at who they are and what they have to offer you.
About the Company:
Genesis was established in 2013 and is one of the oldest Bitcoin companies around today. This company has a well-known mining, farm that is set up in Iceland. Here you can mine Bitcoins, Ethereum, Dash, Omero, Litecoin and even Zcash.
How Does it Work?
If you wanted to mine Bitcoins you'd need to invest thousands of dollars in hardware to do this. Genesis will lease you their mining, hardware so that you can keep the profits for yourself. The company incurs all the hassle and maintenance of setting this up.
You will make an investment with Genesis. This should cost a new user around $170 or maybe a bit more at today's rates. The company generates the Bitcoins at a rate of 0.00035BTC each day. This is after the maintenances charged have been removed. At this rate, you are looking at 400 + days in order to break even on your investment.
The contract you have on the site is open-ended. It will continue to run until it stops being profitable. Then it stops and your contract is ended.
Just keep in mind that in the past 3 years Bitcoin has more than doubled and in some years tripled. Therefore, if it continues on like this you could see a 30 to 50% profit on your investment.
Is Mining At Home Profitable?
Yes, it is profitable to mine Bitcoins at home, but the profit margin isn't that much higher than using a company to mine your Bitcoins. At home, you are still paying for the hardware, cooling system and enduring all the maintenance costs yourself. Unless you rent out your system the profits aren't that much greater than if you invest in a mining company.
Take A Closer Look:
In reality, you can earn a profit. But how much? According to some people who have invested in this company they did earn a profit. But if you closely examine the rates you'll see they could have earned a higher profit if they had never invested at all.
Online Review: This person claims to have invested 1MH/s in ETH mining. He said that he paid 0.11BTC or $45 for this investment. At the end of the year when the contract ended, he received 2.38ETH or $69. So yes, he did make a profit from the company.
However, let's take a look and see what would have happened if he never invested in this company. If he had decided to keep his 0.11BTC, at the end of one year, his coins would be worth $138. What would have happened a year ago if he bought the ETH coins using his 0.11BTH? He could have had 3.66ETH coins right now. This is 1.3ETH coins more than what the company handed him back.
Conclusion:
This is a high-risk investment and you are paying out high maintenance fees on your return. From what I can see it is better to make the investments on your own and hold on to your coins? It appears that you can earn a higher ROI on your investment.
Has anyone ever mined coins with this company and actually seen a higher ROI on their investment? I'm curious to know if mining coins are actually profitable or is it better to just buy the coins and hold on to them yourself?
