This is my review after upgrading my BTC mining to 57.805 TH/s with Genesis Mining. This post is based on my experience and results thus far with Genesis Mining. This post is not meant to be investment advice. Your results may vary based on the many factors associated with crypto-currency mining contracts. This post is an update to my "Genesis Mining Update #2: 22 Days After Upgrading to 50.205 TH/s Open-Ended Bitcoin Mining" post made 3 weeks ago.
Created Using MS PowerPoint and Snapshots from Genesis Mining
Why Bitcoin Mining
Bitcoin mining will continue until the number of Bitcoins reaches 21 million. It is estimated that the last Bitcoin will be mined in the year 2140.
The Bitcoin mining contract offered by Genesis Mining is an open-ended contract. According to Genesis Mining the Bitcoin mining will continue as long as it is profitable.
Created Using MS PowerPoint and Snapshots from Genesis Mining
Next Halving
Bitcoin halving events occur every 210,000 blocks, roughly every four years. The Bitcoin Block Reward Halving Countdown clock current has the next having occurring in June of 2020.
I was Bitcoin mining during the last Bitcoin halving. Yes, my payout did get cut in half.
Daily Stream of Income
I have been mining with Genesis Mining since June 2016. Mining with Genesis has given me a daily income stream. And that is my goal to have a daily income stream.
Current Hash Power and Returns
I initially started Bitcoin mining at Genesis Mining with 0.15 TH/s. After about 6 months at this rate to assess the viability and reliability of Genesis Mining, I decided to upgrade my hash rate. I bought a contract to add 10 TH/s to my overall hash rate for mining Bitcoin. A fellow Steemian was kind enough to use my affiliate promotion code, Q1MYO7, for a 3% discount off their upgrade purchase. Their upgrade purchase gave me another 0.01 TH/s of hash power. Since then I have done several more upgrades.
On 9 April 2017 my total hash power stood at 57.805 TH/s for a total cost of 6.501 Bitcoins. Here are the results and projections based off of 21 days at the hash power of 57.805 TH/s.
In the following graph I plotted the individual daily payouts with the mean and upper/lower statistical limits (USL/LSL) three standard deviations from the mean.
Created Using MS Excel
The Bitcoin payouts from 16 April thru 29 April 2017 coincide with the Bitcoin price rise. Since 9 April 2017 the Bitcoin mining payout has been relatively consistently staying within the upper/lower statistical limits.
| Daily Average Payout (BTC) | Monthly Projected Payout (BTC) | Yearly Projected Payout (BTC) |
|---|---|---|
| 0.01570777 | 0.47123307 | 5.73333570 |
The average daily payout with 58.805 TH/s is 0.01570777 BTC. Based on my accumulated Bitcoins since I started Bitcoin mining in June 2016 and using the current average daily payout my break even date is 15 April 2018. This is well ahead of the next halving in June of 2020.
My Goal for a Daily Income Stream
I am currently exceeding my goal of $20 USD per day. My next goal is to have a daily income stream of $25 USD a day. For that I estimate I will need to upgrade my BTC mining hash power by a bit more than 10 TH/s.
Starting today through the first part of May I plan to start upgrading my BTC Genesis Mining hash power again. After my next upgrade cycle I will monitor the payouts again to put together another review post.
Pitfalls of Cryptocurrency Mining Contracts
Based on my experience with cryptocurrency mining contracts here is what I have learned from the school of hard-knocks:
- Do not start a Bitcoin mining contract before a halving event. This is a sure way to at best lengthen your period of time before you break even and at worst ensure you do not break even.
- If the price of the cryptocurrency being mined declines, then your period of time to break even will be lengthened. If the price never recovers, then you are extremely likely not to break even.
- Because a daily fee is associated with some mining contracts like Genesis Mining's Open-Ended Bitcoin mining contract ("USD 0.00028 per GH/s and day, deducted on a daily basis from the generated Coins"), it is possible for a mining contract to go underwater. If this happens you will cease to see a payout until the fees are covered. This typically happens when the price of the crypto-currency is in a prolonged and extended downturn.
- Genesis Mining represents a percentage of the total global mining hash rate. As the price of the crypto-currency increases the mining competition is likely to increase.
Genesis Mining
If you are interested in learn more about Genesis Mining then click here to visit their website and use promo code Q1MYO7 for a 3% discount on
your first mining contract purchase.
If you have an account at Genesis Mining, you will recieve a 3% discount on your next upgrade using promo code Q1MYO7
You can pay for your mining contracts at Genesis Mining using Credit Card, Bitcoin, Dash, Litecoin, and Dogecoin.
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Genesis Mining Enigma "The Largest Ethereum Mining Facility" (2 minute) Video
Coinbase
I buy my Bitcoins through Coinbase. For me, buying Bitcoins through Coinbase is fast and convenient.
Sources
Bitcoin Wiki: Controlled supply
Bitcoin Block Reward Halving Countdown
Nice artical Mike, I learned a lot.
Now I understand what it means and how the bitcoin mining contract would no longer be profitable.
They basicaly charge us for the power used to mine the coin and when that cost gets higher than then the mined value on say a daily bases, then the jig is up for both parties.
Wish you would give us some figures of how much U.S dollars was put in to get your currwnt hash rate. Im kinda new to this so I dont know much of the cost per hash.
I did get a 500.00 dollar litecoin contract just days before it sold out. Its doung very well, I wish I could get more.
Anyone hear if more litecoin contracts coming to Geniesis, I heard it was but I dont see it available on the website. Maybe I missed it.
Funny they advertise it with pop-up ads then you go there and nothing. Am I missing somthing?
Thanks again Mike. Ill use your promo if I get more.
Thank you!
In this post I went into a little more detail about my BTC mining contract and the upgrades performed including my total cost at the time.
https://steemit.com/review/@etcmike/genesis-mining-review-6-11-days-after-upgrading-to-70-9525-th-s-open-ended-bitcoin-mining
Have a great weekend!
Steem on,
Mike