https://steemitimages.com/DQmd5JpXimW7GR4AXUaGPEYgcdwEPjj1GwaajRyhKXfcdFu/step1.png

I was interested in cloud mining. That is why I decided to calculate what I could make buying an ethereum mining contract at gm.

Step 1.

I started by looking at how much an 1m/h contract would cost me. At the time of writing this post, it would cost me 30USD. Wich would translate to 0.114725847 Ether. Keep this number in mind.

Step 2.

The second thing I did was write down the difficulty of Ethereum mining at every first of the month starting from 2015-08-01.

Step 3.

I calculated the percentage the difficulty increased every month. And calculated an average of 26% a month. Keep in mind that this average is much higher looking at the last few months.

Step 4.

I then took the latest know difficulty and added 26%. I did the same for the coming months to make a rough prediction to what the difficulty would be in two years.

Step 5.

The last thing I did was take all the difficulty's of each month and calculated how much Ether I would get that month. I then took all of the ether rewards for a 2 year period and added them all together. This results in a net reward of 0,11333144 Ether.

Note: This is less that what a two year mining contract would cost me.

Conclusion:

I would be better off saving all of my ether. A mining contract would cost me more that the return would be. And this is with the difficulty increasing with 26%. I think that the difficulty that I calculated for each month could be even higher. That is why I decided not to invest in a mining contract.

Iff you guys disagree with me, please let me know.

p.s.

Even iff my calculations are off. Ethereum will change to POS in the future with leaves me with a contract that can't be used anymore.