Today I’m going to review Genesis Mining. It is a company that was around for some years now. Let me share my own experience with it, as well as some useful info I’ve gathered about it from other sources.
Genesis Mining is a crypto currency farm that has their facilities in North America and Asia. They have huge mining rigs and they rent cloud mining hashrate.
Now, before we continue, let me briefly explain what hashrate rent is about, how the whole process works and why people rent their rigs. It is crucial to understand these things before we move on to the company itself and my experience with it.
Why Do People Rent Mining Hashrate and How Does It Works?
Let’s be honest – it is not always easy to have your mining rig at home. This kind of equipment occupies lots of space and produces huge amounts of noise and heat. If you are lucky (or unlucky) enough to live alone, then you might be okay with that. Now, if you are not, then your roommates might simply not allow you to have such a noisy piece of tech at home.
High power consumption is another reason why many people prefer to avoid crypto mining at home. Some cities are infamous for having expensive electricity rates. There are also some other reasons why crypto mining at home might have its downsides. Crypto currency mining is a good occupation; in fact, it might be quite lucrative, but only if certain conditions are met.
So, what happens if for some reason you cannot have a mining rig at home? Giving up on crypto currencies might be an option. Now, would it be a wise one? According to economists, crypto currencies are the future. Well, at least as for today, crypto currencies rank among the most stable and inflation-resistant kind of financial goods.
All of that means that paying someone to mine for you might be the best option. There’s a reason why there are dozens of companies that allow you to rent their mining rigs. In most of the cases, you pay them a certain amount of money for the right to have a share of the hashrate for a limited amount of time. Other contracts even last a lifetime. This results in a passive income for many years on. How cool is that. And how can that be possible?
Why Would Someone Rent Their Rigs?
This was the first question I’ve asked when I first heard about hashrate rental companies. Yeah, why would you rent your gear to someone if you could use it to mine for your own profit?
Eventually, the reason is quite simple. Technologies evolve every day, especially when it comes to mining rigs and mining algorithms. Most of the time, momentum is what matters the most. Every time a new GPU hits the shelves, you need to be among the first miners who get their hands on it. Otherwise, you might end up lagging behind your competency.
Mining crypto currencies is lucrative, yet as you surely know, it is a slow process. The steady flow income from mining is often not enough to provide you with enough funds overnight. Also, as we are going to discuss a bit later, it is not always a good time to sell crypto currencies. That’s why renting hashrate makes sense — as a rig owner, you might sacrifice part of your steady income in order to get that instant cash you need to keep up with the newest innovations.
Understanding this is extremely important, in my opinion. Otherwise, it is not clear why someone would rent their hashrate to random people and thus their offer might seem scam.
Why Genesis Mining?
As you could imagine, I’ve spent some time researching about the topic. No, I haven’t personally tried all the companies out there, but I did read reviews and observed the market for some months.
What I realized is that sadly, many hashrate renting companies ended up being a scam. You could easily spot a fake by looking at their low prices and extremely fast leverage. Companies that grow too fast tend to fall down fast as well.
Genesis Mining, on the other hand, had an acceptably good launch and from there it started to live and evolve like any other normal company. At least that’s what I’ve observed from the outside. Just like any company, GM has some amount of haters that keep calling it a scam. Looks like it is inevitable, after all you cannot please everyone.
What Are the Risks?
Let’s be honest – we always risk our money when we join a company. Genesis Mining is no exception. There is some trash talk about GM, but there are many positive reviews too. I’ve decided to take the risk and purchase one of their packs.
What is good about Genesis Mining is that you can purchase a small pack and risk only 20 dollars or so. You don’t have to buy an expensive package or a monthly membership in order to get started, and that’s something I liked. They don’t pressure you to spend a lot of money, which is a good sign, in my opinion.
I Signed Up
So I signed up two days ago. My main aim is to test the profitability and the customer service quality. Also, I want to check whether their claims are reasonably close to what you really get.
I’ve purchased a package worth $220, which granted me 1.5 TH/s on bitcoin mining. In theory, the contract has no deadline (it’s a lifetime contract).
The return on investment you get with Genesis Mining mainly depends on two factors: the mining algorithms difficulty and the price of the crypto currency you’re mining. Genesis Mining provides you with pure hashrate, so there’s no way they can include any hidden fees there.
The only additional fee I have to pay is electricity. This applies only to lifetime contracts, though. The other ones require one time payment for one or two years of service, depending on the plan. Electricity fees are based on the amount of hashrate you’ve purchased. According to my calculations, it takes about 20% – 30% of the income.
My First Two Days
Genesis Mining accepts either credit card or coins as payment. I’ve decided to pay with my credit card, and now I regret doing that.
As you probably know, bitcoins do not allow you to make any kind of chargeback. Therefore, users can’t purchase an expensive pack, enjoy some amazing income stream for two weeks and then ask for a refund, just to repeat the process again and again.
On the other hand, credit cards do allow charge backs; that’s why GM freezes your earnings for somewhere between two weeks and a month. This is the reason why I don’t see any movements in my ‘reports’ graph. According to the contract, they will not send the funds to my bitcoin wallet until the chargeback period is over.
The funds are accumulating on my Genesis Mining account for now, and they should be released to my bitcoin wallet as soon as the period ends.
That being said, the customer support was really professional and friendly. They replied in less than two hours, and they have answered my question, rather than redirecting me to a FAQ.
How Much Can You Earn With GM?
While I haven’t had the chance to try it for a long time yet, I have made my research before opting in. I will be honest with you – there are a number of complaints about the low ROI – people invest money and then they have to wait about a year or more to have it back.
This is realistic since as I’ve mentioned earlier, ROI depends on two aspects: mining difficulty and the currency cost.
According to my calculation and CryptoCompare’s Bitcoin calculator:
Mined/day: Ƀ 0.001342 – $ 0.9930
Mined/week: Ƀ 0.009391 – $ 6.95
Mined/month: Ƀ 0.04025 – $ 29.79
Mined/year: Ƀ 0.4897 – $ 362.45
With the first calculation it looks good, in 1 year my profits for $220 invested is $142.45 (362.45-220=142.45), anyway will see how that goes and what is the real return/mined daily. I WILL KEEP THIS POST UPDATED WITH THE EARNINGS!
Nevertheless, Genesis Mining offers a rather unique feature. It allows you to boost the ROI significantly, when used the right way, by letting you choose which coins to mine. You can allocate the hashrate between seven different popular crypto currencies, with BTC being one of them.
This is a pro feature and looks like only few people give it a good use. If you want to enjoy its full potential, then all you have to do is keep an eye on the values of the altcoins. Do it as often as you can, and try to allocate more mining power to the coins that have a good outlook.
The process of allocation is made really simple in Genesis Mining. Once logged in to their website, you will find a user-friendly (or shall I say, “noob-friendly”) control panel. From there, you can change the way you spend your hashrate easily with lots of visual cues to aid you.
Genesis Mining might work as a passive income generator, but it performs way better if you’ve got the mentality of a stock trader. Ideally, you want to keep a constant eye on the crypto coin market, and sell the coins only when they achieve their highest value.
A common mistake most people do is that they (a) mine only one type of coin and (b) convert the coins to dollars as soon as they can. Crypto currencies are an investment rather than cash. If managed properly, they might bring some amazing profits. Genesis Mining is a great way to get crypto currencies without the need to own a mining rig.