Genesis Mining Review – Is It Profitable to Mine With Genesis Mining?
This Genesis Mining Review will cover general information about Genesis Mining and answer the question whether it is profitable mine bitcoins with Genesis Mining.
1. What is Genesis Mining?
Genesis Mining is a cloud mining company offering its services entirely online to users all over the world. Cloud mining is a term used to describe collective investment based mining of bitcoin and other cryptocurrencies. Cloud mining companies usually purchase hundreds to even thousands of mining rigs and other much required mining equipment. It is a costly process in which expenses for electricity, renting the facility, and other minor and major costs are covered by ‘investors’.
Investors in this case are the customers who purchase a contract with the cloud mining company. By covering their hectic expenditures used for mining, investors are provided with rewards from their mining. This often led to reasonable profits for investors whilst also ensuring cost-effective business for the cloud mining companies.
Genesis Mining has been in the industry for a long time and it used to be one of the most trusted cloud mining companies offering investment contracts to all users of digital currencies. The website is available in seven different languages in which they are English, Spanish, Arabic, Portuguese, Chinese, Russian, and German. They promise 100% uptime, using 100% green energy, and no hidden fees.
2. Should You Do Your Own Bitcoin Mining?
Why even bother cloud mining and not just mine yourself? Well, if you have a lot of money, a good place to put your mining rigs, enormous fans to cool your mining rigs down, and also cheap electricity, then maybe consider mining yourself. Don’t forget that you need to be extremely cautious with these mining rigs and also the fact that you need to be very tech-savvy with in-depth knowledge in cryptocurrencies. Well, not many people meet all these requirements and this is when cloud mining really comes in handy.
Genesis mining facilities are scattered mainly in Iceland. They currently also have the largest Ethereum mining facility in the world. More information about their data centres can be found on their webpage, https://www.genesis-mining.com/datacenters.
They used to offer mining services for various altcoins such as Litecoin, Dogecoin, Darkcoin, Reddcoin, Blackcoin, Feathercoin, Auroracoin, Lottocoin, Megacoin, Novacoin, Potcoin, Vicoin, Dnotes and Worldcoin. However, they have stopped services for these altcoins as they are very unstable in their value whilst their future are not really promising. Therefore they are limiting their services to mining Bitcoins and Ethereums only.
3. Genesis Mining Investment Options
Genesis Mining has various investment options readily available for customers. They offer lifetime bitcoin mining contracts (slow and steady profits), 1 year ether mining contacts, and 1 year X11 mining contracts.
Consequently, their mining contracts are further divided into three different types as we further explore their contracts. For lifetime bitcoin mining, they offer $26 Gold (100GH/s), $499 Platinum (2000GH/s), and $2400 Diamond (10,000GH/s). For Ethereum mining, they offer $37 Small (1 MH/s), $925 Medium (25 MH/s), and $3700 Large (100 MH/s).
4. Is It Profitable to Mine With Genesis Mining?
The question is will investors make profit and get a return on their investments by buying these contracts? And if so, how much profit will investors make?
Genesis Mining is not willing to answer these simple 2 questions above, the company claims that it is difficult to clearly state how much profit the investors will be getting as the value for bitcoins and ethereum are constantly changing – a lot of volatility still exists. Instead they advise investors to do their own profitability calculations using a 3rd party website suggested by them - www.coinwarz.com.
This approach poses a serious difficulty for a potential investor because if you invest with them and you don’t make any profit, or lose money, then you cannot hold Genesis Mining accountable as they would have not have promised you any profits. They would have just offered to mine bitcoins or Ethereum on your behalf.
Indeed, a few of my colleagues who invested with Genesis Mining last year (August 2015) have been making profits of a measly 0.5% per month. According to their calculations, they had expected to easily profit at least 5% per month. At a growth rate of 0.6% per month, it will take them at least 7 years to recover their initial deposits. It is quite possible that they will lose a big chunk of their investment as their contracts will be cancelled once they become too unprofitable.
Genesis Mining Facebook Page reveals a lot of unhappy investors, some of whom are demanding to have their contracts cancelled.
Though Genesis Mining started off as an excellent cloud mining company, it seems some members of the bitcoins community forums are starting to have doubts about the authenticity of Genesis Mining operations, with some forum members labelling the company a scam in this Genesis Mining Scam Alert thread. In another social news website and forum, Reddit, a member created a short thread warning other members not to sign up for cloud mining contract with Genesis Mining. He claimed that Genesis Mining had become a huge Ponzi scheme because all their mining contracts were not profitable at all.
If you are a fan of Bitcoin and Ethereum, and you think that their futures are really promising, investing with Genesis Mining is probably a bad idea.
I know that Genesis Mining runs a massive advertising campaign and people who are new to cloud mining are probably investing in droves. If you still think you can make profits from Genesis Mining and would like to become one of their many investors who are losing money, then sign up with Genesis Mining.
5. Final Thoughts on Genesis Mining
I would advise investors to stay away from all cloud mining companies, and Genesis Mining in particular, as 99.9% of these companies are either scams, or not profitable at all. For those which are profitab le, the risk of losing your money is just not worth it.
If you want to invest in bitcoin, do not mine it, buy it. Experts believe bitcoin has a bright future; its price is expected to skyrocket in the next few years.
Therefore, making bitcoin part of your investment portfolio is a great investment strategy. You can invest in bitcoins by buying them
I have found My Paying Crypto Ads to be a much better investment for your bitcoins, that is if you don’t like the buy and hold strategy for investing in bitcoins.