Hello fellow steemians
Since my interest in cryptos started 3 months ago, i have had an urge to invest in something that with low risk will yield a decent profit. Hence my interest in mining. A secure way to slowly but surely grow your wealth.
I started looking into cloud mining because of its low initial costs, and was very close to investing half of my newly acquired crypto currencies into Genisis Mining. This was early april, and the Dash x11 mining contracts were very popular at the time because of the high returns.
Fortunately, in the mist of this hype, the disclaimer below the online mining profitability calculator stood out to me.
Disclosure: Mining metrics are calculated based on a network hash rate of xxx GH/s
This made me dig a bit deeper into it, to see if there were any mining calculators online, that somehow estimated the difficulty and incorporated this parameter into the profitability calculator. (please tell me if you know of one which does this)
After not finding a satisfying answer, i decided to buy the smallest dash x11 contract, with an initial investment of 0.402 Dash for 5 Mh/s, and log my earnings to the profit.
It has now been 2 months and here are my payouts:
The X axis shows number of days, and Y axis shows payouts in Dash.
This chart shows that my daily payouts have gone down from around 0.0013 to 0.0006 Dash pr. day.
Earnings:
Month 1: 0.0396 DASH
Month 2: 0.0279 DASH
This is a 29.5 % reduction, and if we use this reduction as a rule moving forward, my total expected earnings after month 24 will be:
0.296 DASH
With an initial investment of:
0.402 DASH
Conclusion
After conducting a test based on my payouts from Genisis Mining the last two months, i have shown that my initial investment will not be reached when the contract expires in 24 months. The sample size is very small, however a strong trend in the chart supports my claim.
Therefore my conclusion is that the Dash x11 contract from Genesis Mining is not profitable unless you get referrals.
So people, i would advise you to not buy the x11 contracts on Genisis Mining.
Yes, DASH X11 should only be reserved for the Experienced Heavy Hitters.
Scared Money needs to stick with a buy and hold strategy.
And that's exactly what i am going to do. :)
Many thanks, i have been considering to take on a dash contract in genesis mining, but do you mean that the current payout is not in line in what being shown in calculator such as coinwarz? To me eth mining does mimic the payout, hope to hear more from you on this.
Yes, the overall mining hashrate in dash has grown around 24% pr month, which means a 24% increase in difficulty.
Take a look at this:
https://steemit.com/cryptocurrency/@dafamousdj/why-genesis-mining-is-not-profitable-in-my-opinion
He has made several videos on the matter on youtube.
I will do an additional post on the matter once i have gathered more data.
Thanks @ugaard. I also plan to address the point by projecting the future difficulty and such that it will give me a brief look what it will look like in 2 years. People may not like it but it is just a piece of information to consider. Thank you for your support :)
Thanks for this friend. I'm considering doing bitcoin again. The ETH mining is horrible and recently tried dash but hopefully something's happens there
I would be very careful when throwing money at cloudmining, the overall profitability is reduced in correlation with the difficulty.
Here is a link for difficulty charts for most minable coins, and as you can see, it is growing exponentially fo all coins. The exponential growth is due to a increased in efficiency by new algoritms and new hardware. Big players like Nvidia are working on new products all the time specifically for mining.
https://bitinfocharts.com/comparison/difficulty-btc-dash.html
It is therefore highly likely that it is more profitable to just buy and hold.
Thanks for sharing a critical opinion as a contrary position to all the x11 genesis hype here.
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STOPDude why are you writting about shit you clearly know nothing about. First of all genesis is the only legit cloud mining company out there. Your worried because your payments have gone down in 2 months when you have 22 months to go. You spent $30 on 5-m/h, you will make a profit relax. Also the hashing powung being calculated in g/h doesnt mean anything. If you did your reseach you would realuze that g/h is just a high hashing Metric than m/h. For the next 22 months your hashing power will get raised as difficulty gets harder but overall genesis makes sure you make a profit however what genesis cant do control the market price. Dash has declined along with all the currencys as its in a correction and will eventually go back up. Your buying a long term investment, read the website one more time and think before you speak.
You clearly do not understand my point. I am not all questioning the legitimacy of Genesis Mining, i am merely pointing out that the current trend shows, that i will not receive my initial payment back in Dash within 24 months, due to higher difficulty levels of the network.
Therefore it would be a better investment to buy and hold rather than invest in cloudmining.
I am not at all considering the market price, nor the recent correction.
I agree. By personal experience, i'm getting less frequent payouts.