CLOUD MINING, IS IT POSSIBLE AND PROFITABLE?

(1-Sep-2017) Attention: 

Starting from September 1, 2017, SHA-256 and Scrypt contract terms from HashFlare will be changed. More information available here

When it comes to the term cloud mining, many of our companions will first think twice before signing up for such services. Cloud mining services was supposed to be a solution to ease the users who are unable to purchase mining machines which cost them a grand or more. Your spouse may throw you out from the house with your mining machine since it makes a lot of noise and heat pollution. However, there are a lot of bad people on the internet abusing such services to scam other people's hard earn money, just for the sake of their own greed. How shameful such act is. This had caused a lot of distrust towards those who tried out cloud mining services and ended up being scam.

Since I was quite fascinated about the idea of cloud mining services, I had landed myself into the tiger's den despite doing much research and due diligence. I recalled that last year I signed up for 3 popular high yield income program (HYIP, paying ridiculously high interest at 7% per day, 210% per day) which are MINR, BitSEA and BioBTC. My experience with them was an awful one. Knowing that they are not a long lasting company, I thought that "I could out smart them". Because of my own greed as well, I was heavily defeated. I won't take this experience as my final engagement with cloud mining services, as I would continue on with much better strategies. Not that I fully trust those that are long running in business, I am investing a small portion amount which is affordable to lose, and time will tell if this company is worth the time for the investment to grow. 

The purpose of this article is to show that small amount of investment could turn out to be a good return and also minimize your losses when the investment turned out to be sour.

DISCLAIMER: The proceeding article written is solely base on the contributor's experience of the product and deem useful for the audience. This article will contain links that will be affiliated to other cloud mining investment services. Even though it is base on the contributor's experience and filtered picks, it is advised that the audience would do their own research and due diligence. This article will not act as an investment advice nor educational purposes for the audience. Any investment made by the audience through this article will not deem responsibility of the contributor.  There are also affiliated links to the Antminer S9 sales made through Amazon. Though the links are affiliated with Amazon, audience are advise to counter check the seller's profile before purchase being made. The contributor bare no responsibilities to any erroneous conduct by the seller. Please note that this disclaimer is only applicable to this article and does not apply to any other or future article released. Each article will hold its own disclaimer statement accordingly for audience awareness of the purpose of the article published.

Types of Cloud Mining Services

On the internet, there are two types of cloud mining services, one with a normal return rate which is according to the purchase of a real mining machine, and another is known as High Yield Income Program (a.k.a HYIP) which gives a ridiculous return of more or less at 7% a day and some would go up to 160% per day. 

Since we are filtering out HYIP lists or any cloud mining services with return more than 1%, we will be focusing on those that are paying generously. On my pick, there are 4 cloud mining services which are considered invest-able. not because they are considered "legit" but due to their payout model which is less than 1% and also had been operating for a few years.

1. EOBOT

EOBOT claims to be cloud mining service company which had been operating since 2013. It has 19 types of cryptocurrencies to mine. The concern about investing in this cloud mining service is that, they only provide 5 years contract and will expire after that. Though it is a concern to the users, it is one of a way to manage their cashflow. They claim they own mining machines which can be seen here.

2. Minergate

Minergate is a partial cloud mining service company which on offer cloud mining for Bitcoin. It has crypto mining  user interface software available for download, turning your normal computer into a mining rig. It has the availability to allow users to mine: Aeon, Bytecoin, Dashcoin, Ethereum, Ethereum Classic, Fantomcoin, Infinium-8, MonetaVerde, Quazarcoin, DigitalNote and Monero. I am using this software to mine Monero, merge mining with Fantomcoin, and Ethereum Classic. 

3. Genesis-Mining

Genesis-Mining is one of the well known cloud mining services which people tend to trust base on their credibility of providing proof of their mining operation in Iceland. They provide a few videos shoots of their mining facilities, claiming that they have a legitimate cloud mining services. They offer cloud mining contracts for Bitcoin (lifetime), Ethereum, DASH, and Monero (2 years).

4. HashFlare

HashFlare is a subsidiary company of HashCoins and sister company of Polybius. With HashCoins being known for their contribution in blockchain technology and development of their own mining equipment, it could be a good backup for HashFlare to be a reputable cloud mining service company. They provide cloud mining services for Bitcoin (lifetime), Ethereum (lifetime and 1 year), DASH and Z-Cash (1 year).

Cost and Profitability Comparison

Due to the several options available of cloud mining contracts, our first objective is to have a lifetime income upon our investment. With this set in mind, we are left with the option to only buy Bitcoin cloud mining contract. Since EOBOT only provide 5 year contract for Bitcoin cloud mining, we have to exclude it from our comparison. Below are the comparison made among the 3 cloud mining companies with the inclusion of buying a physical mining rig. 

All hash-power cloud mining contracts will be based on 200GHs

Antminer S9          $16.30 (Control)

Minergate             $42.00  (158% more expensive than buying Antminer S9)

Genesis-Mining      $30.00  (  84% more expensive than buying Antminer S9)

HashFlare             $24.00  (  47% more expensive than buying Antminer S9)

Since HashFlare had been proven its price to be reasonable among all other cloud mining services, this doesn't mean that we can pour all our money  to make it our cloud mining Antminer at 13.5THs or more. Just imagine that someday, HashFlare decided to ceased its operation without any refund to their investors, you will lose US$1,620.00 in a blink of eye. So, please never ever have your greed kick in and loss that amount of money. If you are planning to do so, I'd ask you to think over it and contact me immediately! Your money will be much safer with me. :D

Speaking about profitability, no matter how you calculate it, it is still more profitable to have your own mining machine. I mean seriously, cloud mining services compare to an asset that you have, you don't need to have a 5 year old kid to tell you that having your own mining machine is much more profitable. You can always sub-sale your mining machine whenever you are planning for machine upgrade right? 

Minimizing Your Investment Risk

Now, lets talk about investing in cloud mining services. As previously mentioned, you do not want to loss anything more than US$50 right? You heard me right. Just invest US$50! With that amount, you can purchase 410GHs worth of cloud mining contract. With that hash-power, you will get about US$0.40 per day which is also equivalent to 0.8% ROI per day. Though the initial return is small, do not underestimate the power of compounding. You will not be withdrawing your profits for as long as 3 years. Trust me, you will see 2 types of result. Either you will be earning US$213.00 per month at the end of 3 years compounding, or you just loss that US$50. Fair enough?

Since I'm doing the talk, am I making the walk? Below is what I have invested. See that line graph drop? I reinvested in the hash-power with the re-invest command button seen at the corner right on top of the profit chart. When you choose to re-invest, make sure you select 'Re-invest in SHA-256'.

Remember, there are a lot of bad people out there that want your money for free. Do your due diligence before making any decision to invest. If you can't afford to loss US$50.00, then my advise to you is to own a mining rig instead! ;)


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Antminer S9 ~13.5TH/s @ .098W/GH 16nm ASIC Bitcoin Miner