This is my review after upgrading my BTC mining to 84.035 TH/s with Genesis Mining. This post is based on my experience and results thus far with Genesis Mining. This post is not meant to be investment advice. Your results may vary based on the many factors associated with crypto-currency mining contracts (see the Pitfalls of Cryptocurrency Mining Contracts below).
Created Using MS PowerPoint and Snapshots from Genesis Mining
Why Bitcoin Mining
Bitcoin mining will continue until the number of Bitcoins reaches 21 million. It is estimated that the last Bitcoin will be mined in the year 2140.
The Bitcoin mining contract offered by Genesis Mining is an open-ended contract. According to Genesis Mining the Bitcoin mining will continue as long as it is profitable. I do not expect the Bitcoin mining to be profitable up to the year 2140.
Created Using MS PowerPoint and Snapshots from Genesis Mining
Next Halving
Bitcoin halving events occur every 210,000 blocks, roughly every four years. The Bitcoin Block Reward Halving Countdown clock currently has the next having occurring in June of 2020.
I was Bitcoin mining during the last Bitcoin halving. Yes, my payout did get cut in half. This is just another factor which may make a mining contract unprofitable.
Passive Stream of Income
Payouts were daily until the most recent Genesis Mining hack (see Pitfalls of Pitfalls of Cryptocurrency Mining Contracts below). This has caused Genesis Mining to change its payout schedule.
Snapshot from Genesis Mining
And you must remember that proceeds from mining contracts must meet the minimum payout before a payout is distributed.
Snapshot from Genesis Mining
I have been mining with Genesis Mining since June 2016. Mining with Genesis has given me a passive income stream. And that is my goal to have a passive income stream that is profitable.
Current Hash Power and Returns
Snapshot from Genesis Mining
I initially started Bitcoin mining at Genesis Mining with 0.15 TH/s. After about 6 months at this rate to assess the viability and reliability of Genesis Mining, I decided to upgrade my hash rate. I bought a contract to add 10 TH/s to my overall hash rate for mining Bitcoin. A fellow Steemian was kind enough to use my affiliate promotion code, Q1MYO7, for a 3% discount off their upgrade purchase. Their upgrade purchase gave me another 0.01 TH/s of hash power. Since then I have done many more upgrades. I may do more upgrades to attain my goal of 100 TH/s of hash power by November 2017.
Created Using MS Excel
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On 12 August 2017 my total hash power stood at 84.035 TH/s for a total cost of $9,680.94 USD.
The following graph is from the Genesis Mining payouts section showing the last payout on 10 August 2017.
Snapshot from Genesis Mining
Since 6 June 2017 the total Bitcoin mining payout adds up to $10,425 USD as of 10 August 2017.
Snapshot from Genesis Mining
The 10 August 2017 two-day payout at 84.035 TH/s was 0.03347294 BTC or $122.35 USD.
Passive Income Stream Attained
I have recieved passive income from my Genesis Mining Open Ended Bitcoin mining contract since June 2016.
Snapshot from Genesis Mining
As of today my accumulated payouts from my Genesis Mining Open Ended Bitcoin mining contract since June 2016 is $10,425. The total cost for my Open Ended Bitcoin mining contract is $9,385. I have broken even on my Open Ended Bitcoin mining contract.
Assuming my average daily payout remains constant up through the next Bitcoin halving in June 2020 (THIS IS A BIG ASSUMPTION), my return on investment will be 575%. However, I would conservatively hope for a 100% return or slightly more.
Pitfalls of Cryptocurrency Mining Contracts
Based on my experience with cryptocurrency mining contracts here is what I have learned from the school of hard-knocks:
- Do not start a Bitcoin mining contract before a halving event. This is a sure way to at best lengthen your period of time before you break even and at worst ensure you do not break even.
- If the price of the cryptocurrency being mined declines, then your period of time to break even will be lengthened. If the price never recovers, then you are extremely likely not to break even.
- Because a daily fee is associated with some mining contracts like Genesis Mining's Open-Ended Bitcoin mining contract ("USD 0.00028 per GH/s and day, deducted on a daily basis from the generated Coins"), it is possible for a mining contract to go underwater. If this happens you will cease to see a payout until the fees are covered. This typically happens when the price of the crypto-currency is in a prolonged and extended downturn.
- Genesis Mining represents a percentage of the total global mining hash rate. As the price of the crypto-currency increases the mining competition is likely to increase.
- Increases in mining difficulty does affect payouts.
- Genesis Mining gets hacked. In a 26 July 2017 press release from the CEO of Genesis Mining the CEO discuss the recent hack and the delay of daily mining payouts.
Genesis Mining
If you are interested in learning more about Genesis Mining then click here to visit their website and use promo code Q1MYO7 for a 3% discount on your first mining contract purchase.
If you have an account at Genesis Mining, you will receive a 3% discount on your next upgrade using promo code Q1MYO7
You can pay for your mining contracts at Genesis Mining using Credit Card, Bitcoin, Dash, Litecoin, and Dogecoin.
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Coinbase
I buy my Bitcoin, Ethereum, and Litecoin through Coinbase. For me, buying them through Coinbase is fast and convenient. Plus, you will get $10 in Bitcoin when you signup at Coinbase using this link and you buy $100 or more of crypto-currency.
Sources
Bitcoin Wiki: Controlled supply
Bitcoin Block Reward Halving Countdown