There are a plethora of cloud mining companies available. Most are complete scams while others are ponzi schemes, rarely one can find a diamond in the rough where a cloud mining company isn’t going to exit scam or offer contracts which are impossible to make profit on. Genesis-Mining is an old player in the cloud mining game and in this review we will go over some of it’s features / contracts and let you know if you can make a profit by using them.
The available contracts genesis-mining offers range from 200 GH to 15,000 GH, and a custom plan which can go up to 200 TH. These numbers may seem meaningless to you so lets make sense of them.
The 200 GH (Gigahash) plan costs $30 plus maintenance fees. According to the alloscomp bitcoin mining calculator, 200 GH of mining power will net one approximately $4.50 per month, assuming neither bitcoin prices changes nor the difficulty jumps (which is highly unlikely) it would take one at least 6 months for one to achieve ROI. However, you would be surprised how much the difficulty will jump in the next few months and how much bitcoin’s price may fluctuate. We even forgot about the extra “maintenance fees” which the mining company charges per contract.
Lets say you were a big fish and went for the Diamond contract of 15,000 GH for $1950. Do the math and you are looking at most at a profit of $337 per month, hypothetically achieving ROI in 5.7 months. The trick to these contracts is that they feed on your cluelessness to the fact that bitcoin’s difficulty constantly jumps. Just in the past month bitcoin’s difficulty jumped atleast 19%, if you had a lifetime contract that’s 19% of your profits gone poof! Take note that bitcoin’s difficulty won’t always jump 19%, a 9-10% jump is a more appropriate figure.
In conclusion, these contracts aren’t profitable enough to take the risk investing in them. You are better of simply purchasing $30 worth of bitcoin and holding it.
While the available contracts may not be the most profitable out there, the company is indeed legit. It has been around for multiple years (since 2014) and the genesis-mining bitcointalk thread hasn’t seen any scam accusations.
crazyivan from bitcointalk described genesis-mining best:
Its not a scam in a classic way where they will run away with your money, no, they re 100% legit and they will provide everything they state. The only problem is one cannot make money, their products re simply that bad. By investing in genesis-mining all you do is provide them an interest free loan for them to expand their farms and that is all.