Bad New for existing cloud mining contracts right? Please advise, thanks!
So I have been looking around trying to find how much the difficulty rate for DASH will go up once these super powerful X11 ASICs hit the network. Will it be comparable to bitcoin mining once more powerful ASICs were released around 2014? This is a concern to those who are holding 2 year cloud mining contracts with genesis mining or hashflare.
It looks like for the price to get 1000GH before X11 sold out on Genesis, the cost was about $4500. The new ASIC shipping in September will generate 38,000 Giga Hash per second when overclocked and only cost $9999 for the hardware and 1250W of energy. What the heck. So for 5% of the hashpower we paid as much as the the new miners coming out…
At this point, that means the only profitable contracts still available on Genesis would be the lifetime bitcoin SHA 256 mining. The new ASIC miners are not on the network yet so difficulty has not yet adjusted for DASH. Based on the number of units sold and combined hash power compared to existing hash power, there has to be a way to project the future difficulty. No doubt the A5 will sell out almost instantly but let’s look at difficulty if it triples or quadruples after the additional hash power hits the network.
Using a random mining calculator for dash we see that the current difficulty is about 600,000. I only have 163 MH/S in contracts that cost me about $800 and looks like a measly $1.80 per day in returns. I don’t even want to know what it is going to be once the ASICs are plugged in. Here is what it would be if you got your hands on one of these today with the current difficulty, $412 a day, very nice and would quickly pay back the hardware costs. Mining difficulty triples, profit down to $135 with the new ASIC. Quadruple todays difficulty, still $100 a day. Difficulty times 5, still $73 and about $2200 a month, not too bad. Difficulty times 10, about a $1000 per month with the new miners. Times 20 current difficulty, would only see profits of $386 a month. So these miners would be a way better investment than cloud mining, unless somehow they start offering contracts for X11 that are proportional to the new hardware.
This is just one of the risks taking with cloud mining. It seemed safe to invest in Genesis X11 but now it is not looking so good. I am no expert on this subject but am learning as I go, but using simple math the difficulty for DASH will increase drastically with these new machines and those locked in to contracts will begin to see their profits drop a lot around October 2017.
The best case scenario is that the price of DASH will skyrocket as well, keeping the profits somewhat proportional to the hash power, we can only hope.
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Hi thanks for this I have a Dash minimal contract with Genesis as they ran out before I could upgrade - I saw these new miners coming in and sighed lol -
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