What do you need to know about Genesis Mining?
Is cloud mining a minefield? Something to be avoided? Or does it have the potential to be a worthwhile investment? These are the questions we want to answer by looking at Genesis Cloud Mining; a company claiming to offer real investment opportunity for miners in the cryptocurrency world. We’ll walk you through the basics of what mining actually is, and discuss how it is currently taking the world by storm through innovative and technologically-savvy companies like Genesis Cloud Mining.
So what is Genesis Mining?
For those of you new to mining, or cryptocurrencies in general, we must first explain what mining means. It is a service that can be carried out by anybody to the cryptocurrency community. Miners add information regarding payments to the blockchain in return for digital currency. This is a necessary service and it is the fundamental underpinning of the benefits of cryptocurrency; everybody can track everything rather than having a bank doing it for us and taking a cut. To complete this work, specific hardware is required that needs to be maintained and cooled which can be costly. Instead, people are leasing hardware from mining farms to avoid these costs; this is known as cloud mining.
Genesis Cloud Mining was established in 2013 and operates mining farms over three continents although their exact locations remain undisclosed due to security reasons. They offer mining opportunities in either Bitcoin or other cryptocurrencies (altcoins) – these may be more worthwhile but can also be traded back for Bitcoins. Miners will have to purchase mining contracts with a set time period of how long they can mine for. It is the aim of the miner to make enough money during these contracts to make back their fees as well as a profit. Genesis Mining is convenient in allowing miners to buy contracts using debit cards, credit cards, Dash, Dogecoin, Bitcoin, or Litecoin. Some of their most popular packages include a lifetime Bitcoin mining contract, a two-year Litecoin mining contract, or a two-year X11 contract. Genesis mining offer profiles and immediate mining which will be rewarded within 48 hours of setting up your profile. Regular customers are rewarded with bonuses for their hard work.
The Small Print
When something sounds too good to be true, it usually is, right? There are a lot, and we mean A LOT, of scams out there promising high payouts for mining bitcoin and altcoins. Genesis Cloud Mining may be one of the good ones. Nevertheless, there is still a lot you need to look out for, so read on to find out how to stay safe in this new world of online mining.
To be blunt, the calculations of investment and return really do not add up. To mine enough bitcoin to get back the money you spent on a profile/package can take over a year to regather. Not to mention, the time you will invest in doing so. It gets even less lucrative as mining bitcoin has become progressively more difficult to do. If you forecast a specific time period for recuperating your investment, you may be making significant misjudgments. Mining Bitcoin almost tripled in difficulty in a one year period so you could even have to triple the time and effort required to get back your initial investment.
So what if Bitcoin blows up (metaphorically speaking) during my mining expedition?
If the price of Bitcoin suddenly skyrockets, this automatically means that you will get your investment back in no time at all, right? Wrong! The difficulty in mining also increases dramatically with the increase in a Bitcoin’s worth because more people start mining for them. It is a bit like a special offer at a supermarket. When something has an amazing discount everybody wants some, making it harder to get. Demand outweighs supply. It has also been noted that mining difficulty also increases when Bitcoin price goes down so there is only a lose-lose situation when considering mining difficulty. Note, these points refer to Bitcoin statistics only and other digital currencies may be more beneficial – but we highly doubt it.
Conclusion: Is Genesis Mining Profitable?
Whilst Genesis Mining appears to be a legitimate mining farm, they do not appear to offer miners a real possibility of investing into a profitable venture. However, they cannot be written off completely because mining is only one aspect of cryptocurrency, and this company has real potential in other areas if it fails to succeed in it’s initial long-term ambition.
In actual fact, there is probably a better chance of making money from buying cryptocurrencies rather than mining for them – for the time being at least. The odds just do not stack up and mining may be a worthless exercise in the grand scheme of things.
It is surprising that Genesis Mining do not share much information concerning mining performance, especially considering they project a real ambition for their investors to make considerable money. By refusing or hiding these statistics, it casts a shadow over their intentions and it might be just a little while until they are found out as a dead investment and axed out of the mining game altogether.
Genesis Mining are receiving a little bit of a backlash here, but this could be said about any other legitimate mining farms. In fairness, Genesis Mining are a genuine farm, unlike the many mining farm scams that continue to flood the internet and catch out hopeful miners.
Mining seems to be a dead end for those hoping to earn a few quick bucks, at least in the world as it stands. Human investment in something is always beneficial, but like so many other areas of society, we are quickly finding that computers are still able to out-do us- especially at menial tasks such as mining. Maybe this was a great scheme to earn bitcoins in the past, but the golden era of mining in the years gone by, may have also left us in the online world as well.