Genesis Mining -- 55 Day Update
It's been now already 55 days since I'm mining Bitcoin with a 40 TH contract on Genesis Mining.
I have to confess that I was very suspicious of Genesis Mining before buying the contract and even afterwards I was. The time, when I bought the contract, just fell into that period when they had massive payout delays of 3 or more days.
Basically I wasn't sure whether GM was a scam and whether we would ever be able to reach a break-even point and get back our investment.
I did research but I couldn't find many longtime studies which showed the effect of increasing mining difficulty on the mining rewards.
Therefore I decided to do one myself and luckily the picture gets clearer after 55 days of mining with GM.
Let's have a look at the daily payout statistic:
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Well, what should I say? Overall, I find the experience to be very pleasant. If we'd draw a trend line into the graphic, it would yield a slightly descending slope (-0.00002 BTC per day).
With other words: during the whole 55 day-period I mined almost constantly around 0.008 BTC per day.
There was only once some sort of major setback which can be explained by a strong increase in mining difficulty.
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What I found, however, to be rather puzzling is the seemingly random increase/decrease in payouts, while the mining difficulty stayed the same.
I can only hypothesize that the payouts went up, when contracts of other users came to an end (causing the cake being divided between fewer parties) and that the payouts came down, because we just had "bad luck" with mining and we found fewer blocks.
Overall, I'm very satisfied with how things are going:
My initial investment was 1.28 BTC (which equaled roughly $5400 at the time). I earned so far 0.45 BTC, which is about 1/3 of my initial investment.
If things continue that way, I will reach the break-even point after 133 days and the total contract duration would be roughly 445 days until the daily payout reaches 0.
I would receive a total payout of roughly 2 BTC, which equals a Return on Investment of 158%.
I'd be quite happy with such a result, because it means, that I've got more Bitcoin back, than I've put in.
I've seen some people making the mistake and calculating their returns against the amount of USD that they've invested ("I mined Bitcoin that are worth $2'560").
However, by doing so, they forget that they could have bought Bitcoin with the money that they've invested in Mining instead. It follows that your goal should be to earn more BTC and you've invested and not earning more USD than you've invested.
But never mind.
The important question is how things will develop after the new Bitcoin mining contracts get activated on the end of October.
It means that the same cake is going to be distributed between more parties and therefore I'm afraid that payouts will go down significantly.
But that would be the subject of the next update ;-)
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I doubt GM is a scam but they are not well organized - for instance, my ETH contract is a mess, they have delayed payments for weeks and seem to be in no hurry to address it. My much bigger BTC mining contract seems to be fine.
How did you distribute the coins you are mining?
Well yes, they're unorganized and their helpdesk is just ridiculous. Two months ago I asked them a question and yesterday my question was...answered but in a completely unsatisfactory way :D but never mind.
Not sure if I've understood your question properly, but basically I'm holding the coins on my ledger wallet. I won't spend them until the two hard forks are through.