The cloud mining provider that I would like to review is the www.genesis-mining.com. Genesis-mining is the most famous ETH cloud mining provider I ever known. The price of their services for 1 year contract of ETH cloud mining is 33USD per MHS. So, we can do a simple calculation. A simple physical R9380 CPU x 4 miner with about 80 MHS. The cost will be about USD33 X 80 = USD2,640. Th miner e hardware cost for a 4 x R9380 GPUs would be about USD1,925. This is the cost I buy it from an ebay reseller.
Roughly, it is about 2640/1925 = 137% of the hardware cost.
Clould mining has several advantages.
(1) You need not worry about the space cost. When I count the hardware cost, the rental cost did not count into the cost structure.
(2) You need not worry about the technical difficulties. What you have to do is just to buy some bitcoin or pay with your credit card. Then you can receive the mining output ETH everyday. Genesis-mining.com will send out the mined ETH to your ETH wallet everyday. No repair issue of the computer parts you need to worry about.
(3) A very clear dashboard is shown in the screen when you login the website.
Everything in the world has its own advantages and, at the same time, it has its own draw backs. I try to talk about the drawbacks.
(1) You put your money in the services provider and, in contract, it will send you the reward. However, they will deduct their own cost including the electricity cost, space cost, repair cost and administration cost before they send you the reward. So, if the price of the ETH drops to a level just cover the running cost, your reward is meaningless.
(2) You put your money in the services provider. You believe it is honest and keep your money well. However, it is in fact you risk your capital on somebody you don’t know. You need to aware it is the dangerous time for the financial world in which the international banks are in fact insolvency. The economic collapse are moving ahead. You can reference to Jim Willie, Webbot Chif High ALAT report, Bix Weir Road to Roota Theory…etc. Now, it is here in the point that if Deutsche Bank fails, it will bring down 5 to 10 then to 15, 20 big banks. Then, hundreds of companies will fails.
(3) The mining difficulties increase rapidly. I checked my own transaction record in Genenis mining. I bought 59MHS and I received 0.928 ETH on March 2016 and it falls to 0.32 ETH on August 2016. It lost 2/3 on 6 months.
(4) Besides, it is a time-limited contract. It means one years later after you bought the contract. You have nothing left. You do not know the detailed technique on setting up the miner. You have no hardware about the system. You cannot resell those hardware and you cannot use it to mine other X11 coins. You have nothing after one year contract.
Thank you for your review of Genesis Mining, I have been contemplating doing a review too.
With Genesis Mining it takes a long time to recoup your principle and make a profit. It is not a get rich quick scheme. Genesis Mining does provide charts for each category of mining contract bought into so you can track your total payout as it accumulates.
I would also say that Genesis Mining does not guarantee a return from mining activities.
Overall in my opinion Genesis Mining is legitimate, but whether you make money buying into their mining contracts is a risk.
Steem on,
Mike