As readers of my blog know, I am going to only promote products and services that I myself use or put money into. I wanted to supply an update to the cloud mining contracts that I recently purchased. Cloud mining works differently than traditional mining in that you just do not purchase any hardware to do the mining for you. Which means you do not incur large electricity costs associated with owning your personal machine. It is all carried out by others and you are simply buying into a pool. When I started them on May 23rd I wasn’t really too sure what to anticipate.
Since two weeks have passed I figured I have a good level of data and info to provide a solid report. The first contract I started was with Hashing24. They merely offer Bitcoin Mining Price. The actual way it works together with them is you buy whatever hashing power you would like (for more on that see my post “mining”). They may have plans which can be only 100 GH/s and price less than $18. Simply because they offer indefinite contracts, you pay a little daily maintenance fee of $.033 per 100 GH/s.
The upside to Hashing24’s model is that once you pay your upfront amount you are able to theoretically collect daily payments forever. In this manner it is comparable to buying a sudden annuity.
In the interest of full disclosure I purchased 4500 GH/s ($800). Following the daily fees are subtracted and, depending on the value of Bitcoin, I make around $7 daily. Whenever we extrapolate that out it would be about $210 monthly having a break even point of approximately four months. That’s not very bad an investment because everything after month four would be pure profit. One thing to also keep in mind would be that the mining difficulty improves down the road that will eat in your profits.
On May 25th I made the decision I needed to begin a contract to mine Ethereum. The Ethereum blockchain technology will be embraced by all of the crypto companies and that i actually think that it can 1 day pass the need for Largest Bitcoin Mining. It currently about 50 % its size having a market cap of $20,505,000,000 in comparison to Bitcoin’s $41,888,000,000.
I purchased my Ethereum cloud mining contracts through Hashflare.io. Initially I purchased 35MH/s and then to made a decision to add another 15MH/s. The contracts are for one year. Hashflare also lets you alter the percentage of hash power you want in each pool. If you notice one pool performing better, you are able to put a higher percentage into that certain.
The cost for 50MH/s was $1,090, but I got more bang for my buck because I paid in Bitcoins and the need for my Bitcoin purchase appreciated. This meant my Bitcoins went further and, the truth is, effectively lgwlug me around $900. Let’s go conservative and take the higher quantity of $1,090.
The calculator on their site predicts that in the current cost of Ethereum ($223) I might make $2,358 off my $1,090 investment. That kind of return can make it well worth the risk in my opinion.
Again, because I am a long term investor in Bitcoin24mining I view this being a solid possibility to diversify your portfolio and at the same time make an effort to develop passive income. Take into account that cryptocurrencies are really volatile which can wildly impact your potential profit. Research your options first. In case you are a long term investor in cryptocurrency, this appears to be a worthwhile play.
When it comes to crypto currency and mining for coins, the existing adage of “time is money” holds true more than ever before. This has to be in the forefront of your thought process when deciding how you should go concerning this process. Be sure you select a data center that can understand how valuable your uptime is!
In the long run, a genuine data center may have not only battery backup, but a secondary source of energy, like a generator. They’ll also have network redundancy. These are generally 2 more things which will end up being valuable in your experience. Save the worries of power consumption, electrical consumption and the the fear of downtime for your equipment. Colocate your equipment and start earning your coins!