Hi everyone: I've been dabbling in cloud mining for a couple of weeks, trying to understand the economics of it. Using Genesis, I bought some small amounts of BTC (sha256), ETH (dagger-hashimoto) and DASH (x11) hash power for the same $ amount, and I am tracking the daily proceeds, both in terms of currency units and in terms of $ value.
Obviously the $ value received trends with the price of the underlying currency, but what's interesting is that the currency units received are negatively affected as well. I suspect this is because the cost of mining is debited to the proceeds, and the cost basically is in $USD (electricity and such). So when the currency price drops, the fixed $ cost of mining takes a larger share of the proceeds, leading to fewer net currency units being credited to me.
It's only been a very short period (a week really), but we've had some currency volatility as y'all know, and I'm starting to see the expected relationships - see attached scatter plots. Dots to the bottom left are today's observation, reflecting the first mining day within the selloff we've seen.
Curious to hear what experience others have had, and if you agree with my view of the underlying economics.
Updates to follow...
Mine on!
Good thoughts
Congratulations @twocents! You have completed some achievement on Steemit and have been rewarded with new badge(s) :
Click on any badge to view your own Board of Honor on SteemitBoard.
For more information about SteemitBoard, click here
If you no longer want to receive notifications, reply to this comment with the word
STOPSame situation here.....the reason why units received is getting more and more negative has to do with the difficulty level of mining.
Hope this help
It's killed gpu mining as well. I'm only getting about half the USD worth of BTC than I was before, but I'm sure this is due to the current market.