As readers of my blog know, I is only going to promote products and/or services that I myself use or invest in. I wanted to supply an update to the cloud mining contracts that I recently purchased. Cloud mining works differently than traditional mining for the reason that you may not purchase any hardware to accomplish the mining for you. What this means is you may not incur large electricity costs related to owning your own personal machine. It’s all done by others and you’re simply buying in to a pool. When I began them on May 23rd I wasn’t really too sure what to expect.
Since a couple of weeks have passed I figured I’ve a great deal of data and info to supply a good report. The initial contract I began was with Hashing24. They simply offer Bitcoin mining. The way in which it works with them is you purchase whatever hashing power you need (for more on that see my post “mining”). They have plans which are only 100 GH/s and cost less than $18. Because they feature indefinite contracts, you pay a tiny 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. For the reason that manner it is comparable to buying a sudden annuity.
In the interest of full disclosure I purchased 4500 GH/s ($800). After the daily fees are subtracted and, with respect to the value of Bitcoin, I make around $7 per day. When we extrapolate that out it would be about $210 each 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 pure profit. A very important factor to also keep in mind is that the mining difficulty will increase later on which will eat into your profits.
On May 25th I decided I wished to start a contract to mine Ethereum. The Ethereum blockchain technology has been embraced by all the major crypto companies and I actually believe that it will one day pass the worth of Bitcoin. It currently about half its size with a market cap of $20,505,000,000 compared to Bitcoin’s $41,888,000,000.
I purchased my Free ethereum Online cloud mining contracts through Hashflare.io. At first I purchased 35MH/s and later to decided to incorporate another 15MH/s. The contracts are for one year. Hashflare also enables you to change the percentage of hash power you need in each pool. In the event that you see one pool performing better, you are able to put a greater percentage into that one.
The cost for 50MH/s was $1,090, but I got more bang for my buck because I paid in Bitcoins and the worth of my Bitcoin purchase appreciated. This meant that my Bitcoins went further and, the truth is, effectively cost me around $900. Let’s go conservative and take the higher quantity of $1,090.
The calculator on the site predicts that at the existing price of Ethereum ($223) I would make $2,358 off my $1,090 investment. That sort of return makes it worth the chance to me.
Again, because I am a longterm investor in both Bitcoin and Ethereum, I view this as a good chance to diversify your portfolio and at once attempt to produce some passive income. Keep in mind that cryptocurrencies are extremely volatile and that could wildly impact your potential profit. Do your homework first. If you should be a longterm investor in cryptocurrency, this appears to be a worthwhile play.