About a two weeks ago I was very interested in starting up a mining operation for cryptos. I stumbled upon Genesis Mining and a few of my friends recommended their services. In this post I'd like to go over what cloud mining is all about and is it actually worth it?

What is Cloud Mining?

In simplest terms cloud mining is buying hashing power from someone else on a contract. For example 5 MH for 2 years. What that means is the company promises you 2 years of uninterrupted mining at a power of 5 MH.

I ran the number in the calculator, is it too good to be true?

Yes it is. When doing analysis on your earnings the calculators will show you the potential earnings if the price and the overall network hash power stay at the specified point.

For example mining Ethereum :

https://steemitimages.com/DQmYmJp2twirGaiqXK9StDpYHjxDbW5pZN4Wijy5Yf3zZkp/ethMiningCalc.PNG

Note : The current price to purchase a 5MH contract is 150$

From this calculation we see that we break even about half way through the year, so we will have one and a half years of full profit!

Well this is there things get a little bit more complicated. If everyone is going to be jumping to mine, we will see an increase in global hash power, and that means its going to be less rewards for everyone. I will use my 5MH example over the past week.

06/01/2017 0.00377164

06/02/2017 0.0039265

06/03/2017 0.00382772

06/04/2017 0.00375862

06/05/2017 0.00353138

06/06/2017 0.00352923

06/07/2017 0.00338528

This is the list of my payouts in Ethereum. As you can see almost every day I have been getting less and less. This is because of the overall difficulty going up. Represented by the graph below :

https://steemitimages.com/DQmaG1tQ6bTYVNyab5H4s1ivSfNWk3FUdFuXckuDxHDvFgy/ethDiff.PNG

Let's say the price stays at about 300$ an ETH but the difficulty rises twice. Overall we will be earning far less than what the calculators show us. In the best case scenario the difficulty stay rather low while ETH moves up in price.

So is Cloud Mining a Scam?

No, cloud mining is legit form of business crypto created. It is rather unique concept but playing the cards right you can still profit from it. The most important thing to remember is planning for the future, because you lock in for 2 years you have to make estimates to the price of the currency and the difficulty in order to see your true profits.

I want to give it a go, where do I start?

Personally I can only recommend Genesis Mining at the moment, based on their track record and overall company size.

If you want to help me out and get 3% discount you can use my affiliate link : https://www.genesis-mining.com/a/908946

Or use the code during your checkout process : DwnAFW

Final Note

Always take everything with a grain of salt, when buying for future profit, it is always risky. You never know when something will happen to the company or the crypto world in general. Always be prepared and plan in advance. Hope this helped someone!