I feel bad for you guys that are getting ripped off so badly. Sadly you will get no takers on your offer as you can easily put together a 812+ sols rig for around 2 BTC ($1,400). Even accounting for electricity (~$450) for a year you would be only looking at that amount of hashrate being worth about 2.5 BTC. And keep in mind, I am being overly generous for comparison purposes as you will most likely be getting 1k+ sols from that 2 BTC rig.
So Genesis Mining would need to increase your hashrate 10 fold (~8,100 sols) to even be somewhat competitive to current home-brew rigs. And thatās only to be competitive with your reduced 22 BTC offer. You would still be losing money over your original 30.85 BTC investment. To make you whole they would need to be offering a 30.85 BTC investor around 12,000 sols at current performance levels. So yes, Genesis has a lot of room to go before they can even begin to be able to call themselves a legitimate business.
OK I did the maths - letās take the 1000 H/s contract which is $12,500 or 16.7302 BTC
For that currently you can just buy ~220 ZEC
With 1000 H/s for 15 months (Iām not sure what the +3 month free means so Iāll assume it means I get 15 months) I can expect, given the current hashrate and ignoring what is left of the slow start, youād expect ~146 ZEC.
So you are already looking at a 33% loss before you even begin to factor in an increasing hashrate. A 33% loss would in fact be a surprisingly good outcome! Given this pricing in other words donāt buy cloud mining contracts buy the ZEC directly.
Are you sure about your maths? 1 ZCash is currently about 56 USD. With 1,250 USD I would be able to buy about 22 ZEC. I expect to be able to mine around 12 ZCash with the current performance I see; however, I believe with the doubling that they are planning soon (improvements in software) and with the end of the slow-start I will be able to mine closer to 30 ZEC over the 15 months (you are correct about the extra months, that is what I see in my contract). And that is just based on where they stand today. I am certain they will improve even further. Ultimately, the more customers they will get the better their infrastructure will become. They are in it for the money and they will of course aim to be winners. Look, I am a big supporter of entrepreneurial spirits, and these guys have a track-record. For my part, I am a happy customer and I will invest more. I believe in them and based one what options I have on the market, I am comparing with other miners, I believe this offer is solid and without competition.
So they may very well increase their performance however the hashrate will almost inevitably go up (it isnāt guaranteed) nullifying any increases in performance. People should just do their research before buying and be aware that they can get better performance from simply buying ZEC directly.
The only way cloud mining like this would ever make sense would be either if the cloud miner has a huge competitive advantage ( i.e. proprietary software that greatly outperforms existing available implementations) or if there is a huge disequilibrium between the market price and the hashrate.
Most of these contracts were sold on the basis that such proprietary software existed and whilst this advantage may have been true almost right up to launch it almost definitely no longer holds.
There certainly was a huge disequilibrium between market price and hashrate at launch but ironically almost all cloud providers had an issue making timely payouts during this time. Itās unlikely we ever see such a situation arise again which is why itās almost certainly best to buy ZEC instead of investing in cloud mining. If you want to mine then the only realistic option is to do it yourself. If it isnāt feasible to mine yourself (say due to electricity costs) then just buy the ZEC!
edited to add that is is of course possible to achieve a positive ROI from cloud mining but that is more a function of the underlying ZEC rising and almost nothing to do with the cloud provider.
Ah, but only if a person has $1,400 to put into it. If all I have is ~$300 and I want to mine a little bit, thereās really no option except cloud mining.
Not to sound too demanding but itās still not enough. My r9 390ās hashrate are 11x since zcash launch (From 19H/s to 216H/s) . Mining contracts are only 3x since then (From 500 H/s to 1625 H/s).
As you have already noticed, as a result of continuous work on improving the mining algorithms, we have doubled the Zcash hashrate again for our customers. Our teams are working at improving efficiency further.
In addition, it was already possible to have the mined ZEC (AUTO)-exchanged into BTC or ETH for payout via our āGenesis Mining Advanced Autotraderā. Now it also possible to choose Zcash payout via the Autotrader for X11, SHA256 or Eth mining returns. Please visit the Mining Allocation pages to make any changes to your hashrate allocation if you wish. As always, before you can choose a specific coin for payout, you will need to have a wallet address for that coin in your profile.
Well, I bought the contract at CPU Mining for 50 H/s at a price of 1,250 USD for 1 year plus 2 months free, i.e. a total of 14 months. I bought it last Friday. They have since doubled my contract for no extra fee to 100 H/s and have today announced they will double it again in a few days. Ultimately, I paid 1,250 USD for 200 H/s once the upgrade happened. And that is for 14 months of mining.
The owners are very interested in continued improvements and will continue offering upgrades to the hashrate for their customers. I am happy. And as I mentioned earlier, I have this promotion code that gives another 5% on top for free:
EN458RF
I feel it is a great investment and I am planning to put significantly more money into my contracts with them. I believe in ZCash and I believe in the company CPU Mining. Though being a busy bee, cloud mining is the only option I am interested in. And amongst the available offers, these guys win hands down.
What do you mean? At CPU Mining all customers got upgraded every time there was an update. That is my understanding and the way they communicated the improvements.
Whilst it is very good that they are at least increasing the hashrate please be aware that even after the doubling now 14 months @ 200 H/s will yield you approx 23.8 ZEC even if you started a new 14 month contract today (at current hashrate of 25MH/s and ignores the slow start). You can buy right now 18.4 ZEC for that 1250 USD. If you think global hashrate will stay here or decrease then go for it but Iād happily take a wager that this contract yields less than 18.4 ZEC
[In 14 months youād expect 245,280 blocks to be found which is equal to 3,066,000 ZEC (assuming 12.5 ZEC per block). Your % of the global hashrate is 0.0007768% so youād expect 23.8 ZEC in 14 months.]
Great! Gareth, I very much like the detail in your response. As a programmer myself and being in investment banking, this is exactly the level of detail I love. Thank you! Two thumbs up.
For me, the offering from CPU Mining was exactly what I wanted. We are all geeks. And when I am writing trading and risk management software for Tier 1 investment banks, of course I am not going to use some off-the-shelf product, just because it is more convenient. It is like ordering pizza instead of cooking yourself. Of course it is much better and much more tailored to your needs, if you make it yourself. Of course.
All I am saying is that you have to factor in the time and effort. Buying a 14 month contract with a cloud provider? A few minutes. Setting up a mining rig, even if it is pre-configured and pre-built, will probably take days, or at the very least hours. And then you have the maintenance. And electricity costs. And the space. And the noise. And the bugs. And theā¦
You know what I am saying!
Seriously, cloud mining wins for me mainly because of convenience. Could I simply buy ZCash coins? Sure. Though where is the fun in that? I enjoy checking my growing balance every day. And also, with mining there is a chance, even if it is a small one, that I might make more.
Maybe you are right and I will make less profit than I could have with mining myself or buying coins instead of mining. Though I like the potential. And I decided to take a shot and trust these guys at CPU Mining. I look at it from a risk point of view. And I think there is an upside.
