My blog’s readers are aware that I will only endorse goods and/or services that I have personally used or invested in. I wanted to give an update on the cloud mining contracts I recently bought. Unlike traditional mining, cloud mining doesn’t require you to buy any hardware to carry out the mining for you. Because of this, owning your own machine does not result in significant electricity costs. You are merely investing in a pool, and everything is done by others. I wasn’t really sure what to anticipate when I began them on May 23.
Since two weeks have passed, I believe I have enough information and data to produce a reliable report. I started out with Hashing24 for my first contract. They only provide mining for Bitcoin. The way it works with them is you buy whatever hashing power you want (for more on that see my post “mining”). They offer plans with speeds as low as 100 GH/s for as little as $18. You pay a small daily maintenance fee of $.033 per 100 GH/s due to the fact that they provide indefinite contracts.
The benefit of Hashing24’s business model is that, after paying your initial sum, you can theoretically continue to receive daily payments indefinitely. In that respect, it is comparable to purchasing an immediate annuity.
In the interest of full disclosure, I spent $800 on 4500 GH/s. I make about $7 per day after daily fees are deducted, depending on the price of Bitcoin. If we extrapolate that, it would come to about $210 per month with a break even point of just over four months. Given that everything would be pure profit after month four, that’s not a bad investment. The mining difficulty will rise in the future, which will reduce your profits, so keep that in mind as well.
I made the decision to start a contract to mine Ethereum on May 25th. In fact, I think that one day Ethereum’s value will surpass that of Bitcoin because it is being embraced by all the major cryptocurrency companies. With a market cap of $20,505,000,000 as opposed to $41,888,000,000 for Bitcoin, it is currently about half the size of the latter.
Through Hashflare.io, I bought contracts for cloud mining Ethereum. I initially bought 35MH/s, and then I decided to add another 15MH/s. The agreements are valid for one year. Changing the amount of hash power you want in each pool is also possible with Hashflare. You can allocate a larger percentage to a pool if you notice that it is performing better.
I paid $1,090 for 50MH/s, but because I used Bitcoins and they increased in value, I got more for my money. This meant that my Bitcoins were more effective and actually only cost me about $900. Let’s take the higher amount of $1,090 to be on the safe side.
According to their website’s calculator, I would profit $2,358 at the current price of Ethereum ($223) with a $1,090 investment. I consider the risk to be worthwhile given that kind of return.
Again, I see this as a good opportunity to diversify your portfolio while also attempting to generate some passive income because I am a long-term investor in both Bitcoin and Ethereum. Recall that cryptocurrencies are incredibly volatile, which can significantly affect your potential profit. Start by doing your homework. This seems to be a worthwhile play if you are a long-term cryptocurrency investor.