You’re probably reading this article because you’re interested in getting some exposure to Bitcoin and trying to decide if cloud mining is for this is the way to go for you. I wrote this Genesis Mining review to share my rationale why I was impressed with what this company is doing and why I decided to purchase some hashing power from them.
I first got exposure to Bitcoin in 2010 or 2011 but skipped the opportunity (silly me). I think the price was around $10 these days, but it all seemed too difficult so I felt very uncertain if Bitcoin would actually make it anywhere.
I got interested again in late 2016 when the uptrend of Bitcoin price was just too obvious to miss and the price I could see Bitcoin price going higher and higher. Trading bitcoins or just holding on to some coins didn’t excite me nearly as much as getting a steady flow of coin flowing into my wallet on a daily basis would. So I had a look at how hard my hardware could work for me.
Even if I have a decent gaming rig with 2x GTX 970 graphics cards, I found out that doing Bitcoin mining on your computer doesn’t even cover the electricity costs anymore.
I had a look at some Antminers, which are computing units dedicated for one purpose only: mining Bitcoins. The only feasible solution was Antminer S9 which would cost more than 2000 dollars. All the other models seemed to have gone unprofitable very fast, so I knew this would be the case with even the latest model soon enough as it was already some months old.
That’s how I decided to investigate cloud mining. I knew there are huge amounts of bitcoin mining scams out there, so I was skeptical in a healthy fashion when I started my investigation.
Not familiar with these scams? Here’s how they work:
Bitcoin mining scams operate in the same fashion as any high-yield investment programs (HYIP) that you can find hundreds or thousands of new ones popping up each month. In these programs, people are investing money into a program, and the program in return pays (usually) daily payout to you, say 2% daily until you have reached 300% in profit for instance.
So the program keeps operating as long as new people are joining and putting new money in.
These programs aren’t doing any actual bitcoin mining themselves. They are only using bitcoin mining as a cover up to make the program seem more legit and trustworthy.
When the cash flow starts to dry out the owners of these programs take the money and run, leaving people who joined too late with losses.
So that’s a bit about my background on this topics.
These kinds of programs are called illegal pyramid schemes and are a form of gambling.
So it’s safe to say I was skeptical, in a healthy way, when I started looking for cloud mining companies. There were a couple of points that struck out with Genesis Mining and now it’s time for the actual review.
Here are a few factors that I was impressed with the corporation:
1. Nice website design
The overall look of the website is very clean and professional. There is a lot of content on the website about the team and information about their operations, so this got my interest first. Sure it is extremely easy to make a good looking website these days, but without good design and content, it is unlikely that the company would be here for the long term.
2. Transparent team and data servers
On the website, you can find pictures of the actual people who are working for the company. By doing a bit of background check, you can also find out these are actual people who you can find from various sources online and not just some made-up characters (which absolutely isn’t out of the question with scams).
The company also has posted photos and videos from their data servers that are doing the bitcoin mining.
Here’s a video about the company setting up their farms in Iceland:
3. Active blog
In the corporate website, they have a very active blog that they have been running since May 2014. This goes to show me the company is here for the long term and are consistently posting new articles.
And the articles are not only news about what is happening inside the company, but there are really good articles about different cryptocurrencies and what is happening in this field. This is not just valuable for keeping the current customers in the loop, but it also helps with attracting new clients through search engines and social media which is beneficial for the longevity of the company operations.
4. Fairly active social media presence
Being on social media is a must thing to do these days. Keeping customers informed is crucial, and Genesis Mining is doing this in a fairly good fashion.
Currently, they are posting stuff several times a month, which could be a bit more, but it’s not terribly bad either.
When the company is as established as Genesis Mining, there is probably not happening something new every day to inform about, but the projects that they are running take a bit of more time to take place, so it takes time before they have something to post about.
5. Lifetime contracts
This is seriously cool.
When you purchase a bitcoin mining contract from Genesis Mining, you get a lifetime contract from them.
This means that once you purchase processing power, the company will generate you bitcoins as long as Bitcoin mining is profitable for the company. Considering they are probably the largest mining company in the world they can take huge advantage of economies of scale (Investopedia: economies of scale).
What is economies of scale about? Like I wrote before even the latest models of Antminers and potential competitors in the future turn unprofitable in a fairly short period. Large corporations, such as Genesis Mining make large orders of equipment from manufacturers, and they might be able to get all the inventories that the manufacturer is capable of producing for a given period of time.
This advantage can create months worth of lag that a solo miner has to suffer before they can get hands to these new miners. In turn, the return on investment will be much smaller from these miners than what it is for the large corporation. That’s one of the main reasons why I believe cloud mining is the way to go in the years ahead.
Back to the contracts.
You are probably asking: how can they give this kind of offer? Wouldn’t it be unprofitable for them? Here’s the deal:
For every giga hash of computing power you rent, they charge a maintenance fee, 0.00028 USD per GHash/s per day. Without this fee, the mining would obviously be unprofitable for them because of electricity costs and other fees.
Let’s do some calculations, yay!
These calculations were on February 24, 2017, so they might not apply anymore as bitcoin price is very volatile and difficulty of mining bitcoins changes from a moment to another.
Now, is this good or bad? It’s up to you to decide. Sure 42% is a hefty fee, but considering how much is done on your behalf it is a fair deal for a couple of reasons.
So you don’t have to deal with:
6. In business since 2013
This was the most crucial point for me, a HUGE deal. This factor alone helped me decide if Genesis Mining is a scam or not. A typical ponzi scheme could’ve not possibly been running for this long. Not even close. Schemes run out of money in a matter of weeks or months at best. But more than three years? Not a chance.
Now all my interest turned into the next question: would it be profitable?
Here is a screenshot about the payments that I’ve got from Genesis Mining (left side). They come in daily and arrive with accuracy to my Bitcoin wallet (right side.)
Gold: $30-337,5 ($150 / TH/s) – The starter pack. Good for checking out the system.
Platinum: $349-1400 ($140 / TH/s, ! price of $349 contract is cheaper with $139,6 /TH/s so consider purchasing several $349 packages than one $700 contract for instance to maximise profits.) A mid level package with much better ROI than a Gold package.
Diamond $1950-26000 ($130 / TH/s) – Serious mining set. Best ROI if you can afford the expense.
Like I said before these numbers cannot be given as a fact as Bitcoin price could go anywhere from here, but we can make calculations from the current price of Bitcoin and Genesis Mining payouts.
Let’s take another paper!
Gold pack ROI time: 378,9 days
Platinum pack ROI time: 352,6 days
Diamond pack ROI time: 328,4 days
These are the numbers as they are today.
Let’s say you purchase the diamond package today for $1891 (discount applied). If the price of Bitcoin and Genesis Mining Payouts stayed the same as they are today, in 328,4 days you would have $1891 worth of Bitcoins in your wallet.
Overall I find this company impressive and the “investment” to be extremely profitable in the long run.
Think about the potential if in 4 years you have tripled your bitcoin amount, and the price of Bitcoin has gone up 10x.
Now we’re talking good money. But of course, these numbers are nothing but speculation.
It is not a quick rich scheme. If everything that is affecting mining difficulty and bitcoin price remains the same as they are right now, you will get initial investment back in about one year. Always use money that you don’t need in the near future so you can reduce the volatility risk of Bitcoin and you are not forced to sell when the price is low.
If you want to start generating some Bitcoins for yourself, I do think Genesis Mining is, a great place to start. I also put my money where my mouth is and that is why I started this website anyway.
You can get a 3% discount on your order by using my coupon code:
If you are new to Bitcoin mining, I made this simple guide on how you can get started and how you can maximize your profits with Genesis Mining.
Get the guide here
Hey hey hey. It's Ville and welcome to my blog. I am a tech enthusiast and always looking for ways to generate new income streams. At the moment Bitcoin cloud mining is one of the most promising ones and that's why I created this website. Hope you like your stay. If you want a quick start guide about making passive income with cloud mining check out this guide.