Genesis Mining… a in depth look into my investment… so called “open ended” BTC mining contracts will be terminated soon!

bitcoin

#1

Genesis Mining… a in depth look into my investment… so called “open ended” BTC mining contracts will be terminated soon!

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I think sharing this here maybe could be helpful for some.

In June/July 2017 I thought about doing something with some of my LTC I had sitting around since 2014.

Between early 2013 and late 2014 I ran a little LTC mining operation. Before I lost faith in future LTC prices, when my overall mining cost already had knocked down my profitability significantly in this for a few months, I had a bag of LTC that I left sitting in my wallet. After I had dissolved my rigs, I sold most of the stuff on Ebay, and licked my wounds from the MT GOX disaster for a while (yep… stupid enough I had some BTC sitting in there when things got ugly). I speculated on rising LTC prices and this turned out to be fine. I didn’t bother too much about crypto again until mid 2017.

Until then I had calculated that I had unrealized gains on my LTC of about 400% (after deducting mining cost).

Around 06-07.2017 I looked at different possible investment opportunities and also straight out gambles (see some older post from me regarding USI Tech for example) in the crypto space.

One of them was Genesis Mining.

After doing some calculations I dropped a few of my LTC into Genesis Mining for three different contracts. BTC (“open ended”), ETH (2 years), DASH (2 years).

To sum it up… as of now (09/28/2018) I made a whopping 256 USD with my investment of 90.47 LTC or 4,228.57 (USD based on LTC prices of 07/21/2017)!

The so called “open ended” BTC mining contract will be terminated in a few days.

The details follow further down but here the numbers (based on historical prices – daily close – of the involved currencies).

• My Genesis mining investment was 90.47 LTC which at the time was 4,228.57 USD.

• Until the 28th of September 2018 the mining income (BTC, DASH, ETH)in total was 4,485 USD.

• For the initial invested 4,228.57 I’ve could’ve bought BTC at 2,675.10 USD per BTC. A total of 1.58 BTC.

• On September the 28th these 1.58 BTC were worth 10,485.02 USD. Buying BTC would have made me 148% or 6,256.45 USD.

So simply investing this USD amount in BTC would’ve been by far better than my Genesis Mining investment also sitting on the 90.47 LTC in this particular timeframe would have produced a 33% or 1,375.14 USD gain still. So even leaving these 90.47 LTC untouched would have been better than investing them into the Genesis Mining contracts I’ve purchased.

The details…

Purchased mining contracts:

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Like I wrote before my BTC “open ended” mining contract will be terminated in a few days for not making enough profit to cover the maintenance fee of 0.00028 BTC per GH/s.
Part of this contract is the following Term:

“4. Term

This Agreement is entered into for the term as described in Services and cannot be terminated early or canceled otherwise. If the Contract Term is an “open-ended contract”, the Service Provider may terminate this Agreement with immediate effect if the Coins generated in the preceding 60 days do not suffice to pay the Maintenance Fee accumulated during such period.”

To cover the accumulated maintenance fee out of the mining operation the BTC price would have to be around 8,500 USD in a few days. That doesn’t seem to be very likely at the moment.
To prevent the termination of this contract I could throw some more money at this 15 GH/s contract in form of either

• a paid forward maintenance fee (would cost me 756 USD for 180 days for my 15 TH/s BTC contract)
• or changing the contract to a “RADIANT upgrade” (cost 2,700 USD / cutting maintenance fee in half for 5 years, again for my 15 TH/s BTC contract).

Both of these options do not seem viable to me so it’s time to look at the overall numbers so far.
Given that with the now relevant difficulty and even possibly parabolic BTC price movement in the near future :wink: it seems much more attractive to use this money to simply buy MOAR BTC.
My other 2 year contracts (ETH/DASH) do not have such a termination term so they’ll run for another 10 months. Depending on the ETH price when these contracts run out there is a small chance that I won’t lose too much on my investment (comparing Dollar values at the time of the investment vs. Dollar values at contract expiration). But… the DASH contract won’t produce more than a few penny’s and the ETH Hash contract probably won’t drive the calculations into a solid green anymore either.

Some calculations…

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Regarding the USD values that Genesis Mining shows in the Dashboard I’m not sure how they calculate these numbers. So to clarify further I’ve used two additional approaches to calculate the BTC to Dollar Values.

a. Based on the BTC price of the transaction (time/date the BTC hit my wallet)
b. Based on the BTC price of my review (09/28/2018)

In both cases I’ve used the closing price of BTC on these particular dates (investing.com).

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(In all the spreadsheet screenshots , = .;.=,)

Screenshots of output of mining in USD for my contracts:

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Clearly all this is not financial advice! These are my personal experiences and my way to look at them.

So… you’ve heard it and read it countless times DYOR – which I did before I’ve invested but still my estimation of the performance of the mining contracts was off big time - and for my part I can say that everything else than simply DCAing and HODLing BTC – and some other coins – seems a lot more lucrative to me than all the investment experiments (which these Genesis Mining contracts were a part of) I’ve tried in 2017. I’m sure some of you are gifted traders that can make a lot more by trading for instance.

For me it’ll be DCAing mixed with some BTD when some extra cash flows in for the foreseeable future.

Also… on a side note… in general reflecting on too risky gambles with hard earned money …
Even if these were just small figures compared to my overall investments they sum up to quite some money. IMHO maybe taking to many high risks possibly shows a lack of respect for the effort that went into earning the cash in the first place?

So what do you think? Have you made similar experiences with Genesis Mining or other Cloud Mining services?


Should i buy genesis mining?
#2

I have a similar experience with Genesis, but with a Dash contract. The total return after one year is 1/5th of my initial purchase of the contract. I won’t be doing that again.


#3

At least I can say I made a little on my contracts. But still no match for simply buying BTC or even holding my LTC I’ve used for the Genesis Mining contracts.