If you use youtube then you must have seen every crytpocurrency youtuber encourages to get a contract or how he earns 100$ per day from genesis,but for a person who don't have 10k follower to get referral bonus is cloud mining like genesis profitable?
The idea of cloud mining is very simple. Instead of spending thousands of dollars on Bitcoin mining hardware, you can pay someone to lease their hardware and keep the profits to yourself. The company that rents out the miners takes care of the maintenance and all of the hassle of setting them up.
First lets how Cloud mining like genesis works
Lets say have 1 TH/s with Genesis mining which would cost a new customer around $150 . This mining capacity generates around 0.00035BTC a day after maintenances are is removed. So at the current BTC price it will take me around 400 days to break even.
The Bitcoin cloud mining contract on Genesis mining is “Open Ended” meaning it will run until it stops being profitable. If you take a look at their customer service page you find the exact definition for it.
I.E. the contract will run as long as it can cover maintenance fees which include electricity, cooling, maintenance work and hosting services. And I think this is the thing most people miss.
Of course you could say that there’s the chance that Bitcoin’s price will explode during the next couple of month and then you’ll be profitable way faster. If for example the price goes up to $10,000 I will be able to get my initial $170 in a few months right?
If price goes up so does difficulty since more people start mining. This means that the Bitcoins you’re making will be worth more but you’ll be making less of them
And the most obvious reason you should not go for contracts as most cloud mining companies are fake and investing in such companies will make you lose your money.
Cloud Mining has numerous of scams where company just vanishes with the user funds overnight, for more info look at the link
https://themerkle.com/top-6-bitcoin-cloud-mining-scams/
Please Upvote and follow if you like the article