Seeing that readers of my blog know, I will only showcase products and/or services that I myself use or buy. I wanted to provide an update to the cloud mining contracts i always recently purchased. Cloud mining works differently than traditional mining in that you do not purchase any hardware to do the exploration for you. This means you do not incur large electricity costs regarding owning your own machine. It is all done by others therefore you are simply buying into a pool. When I started them on May 23rd I wasn’t really too sure what to expect.
Due to the fact two weeks have passed I figured I have a good amount of records and info to provide a solid report. The first contract My partner and i started was with Hashing24. They only offer Bitcoin mining or prospecting. The way it works with them is you buy whatever hashing electric power you want (for more on that see my post “mining”). They get plans that are as low as 100 GH/s and cost as small as $18. Because they offer indefinite contracts, you pay a compact daily maintenance fee of $. 033 per 75 GH/s.
The upside to Hashing24’s model is that when you finally pay your upfront amount you can theoretically collect regular payments forever. In that manner it is similar to buying an instant annuity.
In the interest of full disclosure I purchased 4500 GH/s ($800). After the daily fees are subtracted and, with regards to the value of Bitcoin, I make around $7 per day. If we extrapolate that out it would be about $210 per month with a break even point of just over four months. That’s not too bad an investment because everything after month four would be 100 % pure profit. One thing to also keep in mind is that the mining difficulties will increase in the future which will eat into your profits.
On May 25th I decided I wanted to start a contract to mine Ethereum. Often the Ethereum blockchain technology is being embraced by all the important crypto companies and I actually believe that it will one day cross the value of Bitcoin. It currently about half its size having a market cap of $20, 505, 000, 000 when compared to Bitcoin’s $41, 888, 000, 000.
I purchased my very own Ethereum cloud mining contracts through Hashflare. io. At the beginning I purchased 35MH/s and later to decided to add a different 15MH/s. The contracts are for one year. Hashflare in addition allows you to change the percentage of hash power you want with each pool. If you see one pool performing considerably better, you can put a higher percentage into that one.
The cost to get 50MH/s was $1, 090, but I got more fuck for my buck because I paid in Bitcoins and the value of my Bitcoin purchase appreciated. This recommended that my Bitcoins went further and, in reality, correctly cost me around $900. Let’s go conservative and take the higher amount of $1, 090.
The calculator individual site predicts that at the current price of Ethereum ($223) I would make $2, 358 off my $1, 090 investment. That kind of return makes it worth the risk if you ask me. learn more here
Again, because I am a long term investor in both Bitcoin as well as Ethereum, I view this as a solid opportunity to change course your portfolio and at the same time attempt to make some passive income. Remember cryptocurrencies are extremely volatile and that can wildly impact your likely profit. Do your homework first. If you are a long term investor in cryptocurrency, this appears to be a worthwhile play.