Genesis Cloud Mining Review – It’s Not as Profitable as You’d Think

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About every other Bitcoin question I get is “should I invest in cloud mining?”

I’ve talked a lot about Bitcoin investments in the past. One of the things I always tell people who ask me about cloud mining is that I think 99.99% of the companies who offer cloud mining services are probably scams.

Meaning, they don’t actually mine Bitcoins with the money you give them, they only use it to pay out other users until the owners run out of money and vanish. However there is 0.01% of companies who actually do run mining hardware and mine Bitcoins for you. Genesis Mining is one of them.

Genesis mining was founded in 2013 an is one of the oldest Bitcoin companies around. It’s definitely one of the most well known companies when it comes to cloud mining. Genesis has a publicly known mining farm set up in Iceland as shown in this video:

The miners on the farm are able to mine Bitcoin, Ethereum, Dash, Monero, Litecoin and Zcash. However all of the information I brought in this post up until know is somewhat general knowledge. Today I want to dig in deeper into the cloud mining business model and try to answer the question – is it profitable to cloud mine Bitcoins?

Since there are six different currencies that can be mined I want to focus only on Bitcoin cloud mining for the moment since I believe it’s the most popular product on Genesis Mining. Before I begin I just want to mention that I did a previous write up on this matter almost 2 years ago.

How does Genesis Cloud Mining work?

The idea of cloud mining is very simple. Instead of spending thousands of dollars on Bitcoin mining hardware, you can pay someone to lease their hardware and keep the profits to yourself. The company that rents out the miners takes care of the maintenance and all of the hassle of setting them up.

However, you are required to pay a fee for their service but we’ll get to that in a minute. To begin with, I wanted to determine what’s the difference in the ROI (Return Over Investment) between cloud mining and “normal” Bitcoin mining.

At the moment I have 1.19 TH/s with Genesis mining which would cost a new customer around $170 (0.139BTC at today’s exchange rate). This mining capacity generates around 0.00035BTC a day after maintenances are is removed. So at the current BTC price it will take me around 400 days to break even.

In the screenshot below you will see different BTC earnings from different contracts. It took me a while and several emails to the company’s support to understand exactly how revenues are calculated and displayed. I would appreciate it though if the fees were mentioned as well so I would be able to see how big they are in relation to the actual payouts.

genesis mining payouts

each line of BTC payout refers to a different contract. Some of the lines are totals of previous payouts so there are some duplicates listed here. If you’re having a hard time understanding this table (as I had) let me know in the comment section and I’ll do my best to explain.

The Bitcoin cloud mining contract on Genesis mining is “Open Ended” meaning it will run until it stops being profitable. If you take a look at their customer service page you find the exact definition for it:

In the event of a contract becoming unprofitable (i.e. the payout can’t cover the maintenance fee), the resulting daily payout will be zero. After that, the contract will continue to mine for 60 days. This means that we will take care of the maintenance fee in the hope that your contract becomes profitable again. This may happen if the mining network difficulty decreases and/or Bitcoin price increases. If the contract does not return to profitability in this period it will be terminated because the mining machines are consuming resources (electricity, cooling, hosting, servicing, etc.) which cannot be paid with their generated payouts.

I.E. the contract will run as long as it can cover maintenance fees which include electricity, cooling, maintenance work and hosting services. And I think this is the thing most people miss.

Bitcoin’s difficulty has been more than doubling itself every year for the past 3 years or so. In fact, between 2016 and 2017 it tripled. This means that if you buy a certain package expecting a certain reward, in a year or so you’ll probably be getting anywhere between 33%-50% of that reward. In my case I’ll probably be making 0.00014BTC per day a year from now.

Bitcoin difficulty

Bitcoin difficulty rate throughout 2014-2017

So my previous calculation of how much time it will take to recover my initial investment is actually wrong. It would take a lot more than a year, and that’s just to break even. There’s a fair chance my contract will stop becoming profitable before I earn any profits, or that the profits I earn will be very minimal.

Of course you could say that there’s the chance that Bitcoin’s price will explode during the next couple of month and then you’ll be profitable way faster. If for example the price goes up to $10,000 I will be able to get my initial $170 in a few months right?

Not so sure about that..

If price goes up so does difficulty since more people start mining. This means that the Bitcoins you’re making will be worth more but you’ll be making less of them. That’s exactly what happened in 2016 and why the difficulty more than tripled. Here’s the change in price vs difficulty for the past 3 years:

2014-2015 Bitcoin difficulty vs. price

Bitcoin price: down 2.45x

Bitcoin difficulty: up 34x

2015-2016 Bitcoin difficulty vs. price

Bitcoin price: up 1.36x

Bitcoin difficulty: up 2.5x

2016-2017 Bitcoin difficulty vs. price

Bitcoin price: up 2.29x

Bitcoin difficulty: up 3.05x

As you can see the difficulty is always going up, no matter what’s happening with the price. And for the past 3 years it’s been going up more than what the price itself has.

So should I mine Bitcoins at home instead?

If you mine at home with the same hash rate at today’s difficulty you’d be making twice as much (according to our Bitcoin mining calculator). However, you will be paying for the hardware, cooling and maintenance for yourself. So it’s not safe to say that mining at home would be profitable as well.

In the past I’ve written a very detailed post that discusses Bitcoin mining profitability. For now let’s just say that if you don’t have any access to cheap electricity and cooling systems I suggest to avoid mining in general and just buy coins instead.

What other users are saying?

As part of my research for this review I tried to find as many user reviews as possible to get different perspectives. Most, if not all, of the positive reviews I found were accompanied by a promo code. Promo code reviews are questionable in my opinion since the user reviewing gets a commission if you sign up with his promo code, so they have an incentive to write a positive review.

One interesting review was from a guy who actually used Genesis Mining to buy Ethereum. He states as follows:

I bought a 1 year contract for 1MH/s ETH mining. I’ve paid 0.11BTC for it (equivalent of 45$ at the time). In one year, Genesis gave me back 2.38ETH (equivalent of 69$ now), so you could say that I’ve made a profit. But you would be wrong!!! That’s just because the price of ETH is high now (29$ versus 12.5$ one year ago).

If I would have kept my 0.11BTC, now it would be worth 135$.

If I would have bought ETH with the 0.11BTC back then (I would have gotten 3.66ETH, that’s 1.3ETH more than what they gave me back), now it would be worth 106$.

So even though he could have made a better deal by not investing in Genesis Mining he still made a profit. Please keep in mind that his profit was with Ethereum mining and not Bitcoin mining. In this post I concentrate mostly on Bitcoin mining. Some other altcoins may still be profitable to mine, but I will review them in a different post.

There are also several BitcoinTalk posts about the company. It seems that most people claim that you can’t make a profit with their contracts however few supply evidence of actually trying. Bittrust shows some positive reviews but I will let you judge for yourselves on their legitimacy.

Genesis Mining – The bottom line

Finishing up my review about Genesis Mining all I can say is this – The company seems legit but I doubt if it’s a good investment. Seems like I would be much better off just using my money to buy Bitcoins instead of using it for cloud mining contracts. If Bitcoin’s price goes up – I would be making more money, and if it went down, I would be losing less.

The one thing that really bothered me though is that Genesis Mining doesn’t seem to share a lot of info regarding my mining performance. I’d except a company that is serious about making money for their investors to supply additional information such as:

  • Cloud mining calculators
  • Service fee statements
  • Which blocks were mined and how much was earned on each block (including mining fees)

One might suspect that these pieces of information aren’t supplied in order to keep the questionable profitability of cloud mining obscure. If you are invested in Genesis Mining I urge you to contact their support and try to get answers for this (they answer fast from my experience).

On a final note, this review is about Genesis Mining but I think you can probably copy and paste its characteristics to most legit cloud mining companies out there. The not so legit mining companies will probably show greater profits because they usually hold stop paying at some point.

Keep in mind that this review was made especially for mining Bitcoins, other currencies may still be profitable in these cloud mining schemes.

Ofir Beigel

Owner at 99 Coins ltd.
Blogger and owner of 99Bitcoins. I've been dealing with Bitcoin since the beginning of 2013 and it taught me a lesson in finance that I couldn't get anywhere else on the planet. I'm not a techie, I don't understand "Hashes" and "Protocols", I designed this website with people like myself in mind. My expertise is online marketing and I've dedicated a large portion of 99Bitcoins to Bitcoin marketing.

Genesis Mining

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Genesis Mining
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    Transparency

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        Reputation

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          Pros

          • Fast support
          • Easy to set up
          • Reputable company

          Cons

          • Doesn't seem to be profitable in the long run
          • Doesn't supply full information to users

          92 Comments

          1. Alright so here it is, don’t ever invest in genesis , there is no way to make a profit, even have your money back, I bought a 2 years contract and 3 months in is almost not paying and will stop paying in 2 months if I’m lucky. It was an 18 000 $ investment, I will lose around 5-6 k on it. If you invest less money it’s gonna be even worse.

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            I’ve been using Genesis Mining since almost the beginning and have had to learn a lot along the way. One thing they aren’t very good at is making it clear to customers what is happening with their contracts. As has been said by others here, it’s difficult to know how fees are calculated, for one, and the general experience is just very confusing at first.

            The biggest point I would add to this discussion is that you can’t talk about lifetime and finite contracts in the same review. If you’re mining Ethereum for a year we’re talking about something completely different to potentially mining Bitcoin for decades to come.

            Of course, any time we talk about cryptocurrency we are assuming a high degree of risk. So let’s put that aside. But if you believe that Bitcoin will be around for decades, and that the price will go to the moon during that time, and that Genesis will continue to profitably mine your lifetime contracts for that time, then this seems like a no-brainer.

            My first lifetime contracts amortised in about 8 months. Since then I’ve been making pure profit from consistent payouts for about two years. Whether it takes a year or three to pay off your contract is really not relevant if you’re going to be receiving payouts for 10, 20, maybe 30+ years. This might be unlikely – but, again, this is a high risk game at this stage no matter how you play it.

            So my advice is to ignore anything except lifetime Bitcoin contracts. How well those will perform is impossible to say at this stage since we can’t predict the future. You can review a year or two year contract in hindsight, of course.

            The other thing to know is that fees are going to be higher on the coins you earn from Genesis, for the reasons others have already explained here. This is unfortunate, but change in time too as segwit comes online, difficulty is adjusted, etc. – but it’s important to know as currently I can’t afford to move my coins earned from Genesis because it would cost too much.

            We live in hope.

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            Thanks for the post, there is not a lot of “fair” articles about GM.
            Bought 0.25TH on april 2016. I’m quite happy with the final results (although payments have been rare these days, and appear stopped since july 23rd). For 70 USD spent, 140 USD worth of BTC were returned, which is quite good. Like many of you pointed out, the lack of information about returns and how they are calculated is frustrating. I’m sure GM would benefit from going public with every details, even if the overall trust is already fair.
            Profitability : 7 => 200% of investment, but how is this calculated ? What would have happened if the BTC price didn’t rise ?
            Transparency : 3 => GM teams have made efforts to inspire trust in a world of scammers, but they keep part of their activities hidden from their customers.
            Support : 6 => Never had to deal with the support team, I couldn’t really say. However, the payment processing was quite secured and clean.
            Reputation : 4-years-old company / Good icelandic videos / Good website.

            • Have you received any payouts since July 23rd? Following review of comments here, I went to their website. There was a message stating that they were experiencing difficulties with payouts and thanked everyone for their “patience.”

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            Hi,

            Great article!
            The only neutral one I could find.
            All others are like “It is great use my promo code”.

            I strongly agree on statistics part.
            It should be more transparent to the customers (live stats, closed blocks…).
            Otherwise it looks like a more sophisticated scam, as you don’t have a clue what is going on in background.

            I recommend investment with a credit card, if you own coins it would be stupid to invest it back in (cloud) mining.

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            There is a difference in contract rates, ex., 1 TH is $150, 20 TH is $2600 ($130/TH), so there is definitely a volume discount there (13.4% to be exact). There is no additional volume discount above that $2600/20 TH line currently. I went with the 38 TH plan (highest you can buy with a credit card), will report back in a few months on my results.

            • Andrey, I think that the most you invested, the most faster you recover it and get sustancial earnings. I want to invest on 15 TH.

          6. FABIO ALVES BORGES RODRIGUES on

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            Genesis is a reliable company, however it is not a good business to invest in mining there. Payments always decrease day after day and it does not matter if the market is going up or down.

            Do not waste your money on mining at Genesis Mining

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            have been mining with genesis for 3 months , yet got back half of my money , difficulty is rising so it get less profitable but still a good investment compare to whats outside cryptos

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            hey

            ive had awesome results using genisis mining, have been consistently good returns for 8 months now…

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              I wanted to just touch base after logging in to Genesis last night. I invested slightly more than I initially stated, around $90 total for ETH mining. The ETH I received for the duration of my contract is currently valued at $3200. So, yeah, you just gotta keep your ear to the ground and research. Homework is important, and if you give a little it can definitely pay off.

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            I bought a year long ETH mining contract for around $65-70USD, and ended up with something like 20ETH all told. I got a pretty sweet hash rate as I bought the contract less than a week after they started ETH mining. ETH I think was trading at around .004BTC at the time. Here recently. I sold 15 of those ETH for almost $400USD each. It really is all anecdotal, so my results should not be considered typical, but if you keep up with Genesis, you can almost always count on their newest offerings to be well researched and vetted for stability and posterity. The guys do their homework, bottom line. Not to mention if you treat their services like a forgotten savings account and every chance you get to put a little more in the piggy bank so to speak, your gains are cumulative, and they always catch up if they fall a little off. I didn’t mine a lot of BTC with them, I think I bought a lifetime contract and an X11 yearly deal, but it wasn’t negligible. I spent less than $250 across all currencies and ended up with a nice return after a year’s time. As stated, I got lucky and gambled on ETH, as programming language and smart contracts made it an obvious choice for me, but it’s not like I sold a Papa John’s pizza for 10,000BTC or anything. I am going to have a look at their current offerings and see if they can get me back in through my 2FA after losing the key earlier this year. Think of GM in the cloud mined cryptocurrency world as sort of like the Mercedes S-Class in the automotive world. If you want to see the cutting edge of consumer automotive technology, you need look no further than the S-Class, as all the new bells and whistles always start there. So it is with cloud mining and Genesis Mining. They are always going to be the leading innovators, and they will always do their due diligence with any new offerings

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            Here’s the math of Genesis. Lets use a contract mentioned a few times in comments. 100 MH/s. Currently $2799 or $2715 with 3% discount (which one can always get without a code by typing “REVIEW” in order). Currently (July 4th) each MH/s earns 0.000424963 coins. Over the last month coin decay has been roughly 1.5% daily, but I am going to be generous in my calculations and say just 1% decay daily. After 2 years each MH/s will collect 0.042468628 coins, or 100 MH/s will collect 4.246862783 coins. This means that in order to break even after 2 years the price of ETH will need to be $639.30. Break even only comes with coin appreciation which proves that the mining never makes a profit. If the same money was put into buying the coins then a rise to $639.30 would be more than 100% gain.

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              Hi Glenn,

              Firstly I’m sorry to disappoint you but you’re so wrong with the calculations. For the sake of newbies that are researching the net and are planing to invest I’m gonna give some examples of my own experience with the GM.

              Two months ago (06/15/17) I got the 2yr dagger-hashimoto contract in GM (that’s pure Ether mining hashpower) with 100MH/s at $2799 (minus 3%)

              I’m just gonna give you an example randomly from my GM 5 day balance statement:

              ETH balance of 0.04510636 added to your account on 2017-06-29 T12:00:00+00:00
              ETH balance of 0.04451503 added to your account on 2017-06-28 T12:00:00+00:00
              ETH balance of 0.04745982 added to your account on 2017-06-27 T12:00:00+00:00
              ETH balance of 0.04350255 added to your account on 2017-06-26 T12:00:00+00:00
              ETH balance of 0.04601611 added to your account on 2017-06-25 T12:00:00+00:00

              That’s 0.22659987 for only 5 days of mining with GM and if we calculate for a month that’s 1.35959922 ETH. Ofcourse this will change over time due to difficulty increase.

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            I was ok with Genesis Mining until they missed an ether payment last week. I’ve contacted them multiple times but they always give me a different excuse for why I didn’t get payed. I assumed the Status ICO caused some technical issues with payouts but now that the ethereum network has recovered they never got around to completing those failed/missing transactions. There is a ton of complaints on social media and forums with people with missed payments and found it impossible to collect those lost funds after contacting customer support. It is unacceptable and illegal for a mining company to be skimming customers’ profits in this manner.

          12. Wayne Johnson on

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            I keep my investment in Genesis using Google Sheet I invested 0.04BTC which is about 99$ as this posting.

            I mine ETH and so far after 10 days mining made $5.07 which equals $253 once contract end if ETH stays at this price.

            This is my exp so far can I post like to the google sheet others may find it interesting?

            • I have done the same for 30 days and I can tell you it doesn’t stay the same. I am making 55% of the coins compared to day 1. My contracts will never hit profitability unless ETH hits the $1000’s. And that’s profit from appreciation, not mining. Tell us, in your spreadsheet, how much does your coin take decay every day?

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            “Genesis * BITCOIN * Mining – Not As Profitable As You’d Think”

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            I think Cloud mining is the best online investment nowadays.
            Remember that bitcoins will get over soon because the algorithm can generate only 21 millions bitcoins and mining becomes every day more difficult while the value grows very fast..
            Maybe this is the last chance to get some bitcoins in our wallet.
            I invested about $400 in Genesis Mining because they are market leader worldwide and I’m willing to increase the investment.
            I got my ROI back and I’m still receiving bitcoins in my wallet every day, FOREVER, because the contract has lifetime duration .
            Genesis Mining is NOT a ponzi system beacuse the affiliation has only one level, there is no multilevel.
            I’ve also received some bonus from referrals.
            I can provide payment proofs.
            Have a nice day and good luck!!

            • Its a waste of money. You are better often to buy coins. Genesis is nothing but a scam!!! I spent 4700.00 for ethur and the difficulty rate as we all know changes daily but they take what they want. I will not even have my ROI at the rate they are deducting my daily payouts. For those that think they have a forever contract lets see how you feel on that subject in a few months when they cancel the contract because they say its not profitable for them anymore, thats the loop hole to get out of screwing you!!! BEWARE ITS A SCAM!!!

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            To me, It is profitable. I got ROI in 5 months. It will be different as the Coin price.

          16. Steven Davis on

            I’ve had contracts with GM for quite a while. Finally tired of not making the ROI on my Bitcoin or Ether contracts. Now having a problem getting the final payout of my ETH contract, less than $12 and it is now going on over two months. Customer Service is a joke, I don’t recommend them to anyone.

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              Genesis Mining is a very clever business model but you do need to be careful how you use it and you need to understand the underlying maths behind mining difficulty, YouTube is littered with people buying and upgrading contracts with the very coins they have mined, this is a mistake, great for genersis though as they get to keep the very coins you paid them to mine for you.

              The underlying value of mining comes from the asset you mine, the coins, not its equiverlent dollar value, as mining by it’s very nature is designed to get harder, then the return you get for dollar investments reduces, hence lifetime contracts become unprofitable over time, so upgrading contracts with mined coins will only ever reduce your profits, as the profits come from the value of the coins, so if you do open a contract, as I have then never use the coins to upgrade a contract, hold the coins in a secure wallet preferably offline, only use cash to upgrade or buy contracts, coins go up in value, cash does not.

              Now for the confusing part, l’m mining Etherium to transfer into Bitcoin because the Bitcoin maintenance fee although small massively eats into profits over time, along with very high Bitcoin transaction fees for small amounts of Bitcoin, Etherium has no mining fees but is only a 2 year contract, with some rough maths this contract will yield about 40% profit, which sounds great, however in the real world with increasing difficulty this figure will be halved to around 20% of the money you invested, if and it’s a huge If, the crypocurrency market does not crash from its current all time highs.

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            hey there, Ive been mining for awhile now.

            All went well until 6 months later i decided to spend some of the Btc I mined and found out that my transaction fees gone up double the amount i wanted to spend !!! its ridiculous !
            to send 0.12 btc, my fees are 0.21 – total= 0.33 while im only wanting to use 0.12

            if you know a way around this, please share.
            otherwise its so not worth it.

            Was really excited until i tried to use the coins that Genesis have been paying me daily.

            Watch out for this guys, dont be dumped like me.
            Genesis is great, but Genesis daily payouts will kill your wallet. ull end up with the big surprise of such high fees !!! no joke

            the more input your wallet has – the higher fees ull end up with, whenever u suddenly decide to spend it.
            im only at a loss with Genesis.

            well if you beleave you have a way around ur wallet future fees

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            Recently I came across cloud mining and Genesis mining appeared, happy to be able to read this article before I consider to sign up with them. To my surprise, when I tried to explore more with them, I found that Bitcoin cloud mining was not available, then I read all the negative comments from various sources that cloud mining Bitcoin with them is not profitable and they even terminated their contract (probably they have a lifetime account with them, I’m not sure about this).

            One thing came to my mind is that they provide the service they promised with the agreement that most of us neglected, there is an area clearly stated that when the mining is not profitable, they will terminate the mining. Before I sign up with them, I compared each currency’s agreement and find that Bitcoin mining package does come with maintenance fee, depending on your hashpower. The best part of this new package for Bitcoin mining is that they will let it run without a contract (lifetime contract maybe?), provided it is profitable. I signed up to give it a try and I might consider investing more if the service meets my expectation.

            • Zsofia - 99Bitcoins support on

              Thanks for the review and feedback Alex. I have removed your affiliate from the comment as we do not allow referral links.

          19. Jody Cartier on

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            I am not an expert, but I believe the level of difficulty for bitcoin is too high for mining to be that profitable. I did buy a 2-year contract with Genesis-mining, but I selected Ether Mining as it is easier to mine. At first I bought only 1MH/s for 30$. I wanted to try it before investing more. I calculated I would break even after 6 months, so I decided to invest more. I got 100 MH/s for $2800. I actually paid $2716, because I had a 3% discount code. Right now, I get a little more than one Ethereum every 12 days. If it remains the same, I will have collected 60 Ethereum by the end of the 2 years. At today’s value, this is $14,760. However, many experts believe the Ethereum will be worth $1000 by the end of the year… Could I end up with $60,000 by the end of my two years contract? I will let you know for sure, but they are two factors that will affect my gain: the value of the Ethereum and the amount of Ethereum the mining will provide me with. One thing is sure, I want to buy another Ether Mining contract before they are sold out, which will be very soon according to what I read.

            • Zsofia - 99Bitcoins support on

              Hi Jody, thanks for the feedback, I have edited your comment as we do not allow referral links.

            • Hi Jody

              I too bought the 1MH/s for 30$ for Ethereum only

              How do I know that it is activated? there’s no data analytics to gauge if it activated or not?

              I only bought it last night and need some advise?

              Thanks

              • Look at your payout, they will make a deposit every day, but the first deposit takes 48 hours to show on your account.

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              Sorry to burst your bubble..
              I have the exact same contract, which I bought thinking in the same way as you, but the hash rate on Ether is growing exponentially. If the rate continues to grow at this rate we will only mine 4.3 coins, at $330 that gives you about half of the invested money. The only way this would be profitable if ETH reaches to $700 ~$800

              To confirm this. Your first month you will make 2.2 ~2.3 Your second month you will make 1 ~1.1 at most…

              • twistsmyth on

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                Im on the same contract. A loop hole .. POS goes live in November , when this happens genesis will switch you to the most profitable coin at the time. 2 contracts for the price of one :) im banking on that the move to POS will trigger the third crypto bubble allowing us to sell our ether at close to $1000 a pop. bOwVvp , this is my la la land.

          20. I’m wondering whether the miner fee aka transaction fee for Blockchain is borne by GM or User?
            Ex: If GM sends me daily payout of 0.001, Will I receive 0.001 in my wallet or 0.000844 like something after deducting miner fee (GM-Genisis Mining)?

            • Ofir Beigel on

              Good question, I don’t know….Seems like it’s incorporated in their overall fee taken but you’ll have to ask them directly I guess.

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            I do not know whether Genesis Mining is scam or not, profitable or not. But I know it is Good company. It has a good service, full of offerings from bitcoin to zcash.

            While the price is rising up because I “watch” it via CoinMarketCap, I need to determine what cause to rise the price of cryptocurrencies, maybe it’s a people who buy the cryptocurrencies a lot, the expansion of market activities related to cryptocurrencies in different dimensions both in real world and virtual world, the maximum supply of cryptocurrencies or both.

          22. Steve Miller on

            Profitabliity

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            NEVER HAD ANY PROBLEMS WITH GENESIS – in fact, now that the BTC
            prices are skyrocketing – my investment in lifetime mining is paying back much quicker!

            BTC is going to break $2500 soon! $5000 end of the year.
            Get involved in MINING BITCOIN with cloud mining contracts.
            Genesis-Mining com has been around for 10 years and has
            LIFETIME mining contracts! CHECK THEM OUT!

            Mining Contracts bring DAILY PAYMENTS to your account.
            Calculate your daily payments when BTC is $5000!

            • Zsofia - 99Bitcoins support on

              Hi Steve, I have remove the referral links from your comment, thanks for the feedback.

          23. Genesis Mining is a BIG SCAM company!!!! I have lost 32 BTC on that service with Bitcoin Mining Lifetime Contract
            (start on 02/04/2015) the last daly payout for 32 BTC investment was 0.001627 BTC…. WTF! Now my account is closed from genesis (Because the payout is lower than the electricity costs) and my money is gone.
            Fu…. this BAD Company and buy your own equipment this is better than you have the control!!!!!!

            • John,

              You are saying Genesis was not profitable for you ? I am searching for a profitable company to mine Ether. What occurred for you to loose your investment with them ?

            • Jody Cartier on

              What kind of contract did you get (hash power) ? How much money did you pay for your contract (USD)? You wrote that you lost 32 BTC, but do you mean you were hoping to make 32 BTC out of your investment, but you did not get them (I do not believe anyone would be crazy enough to invest 32 BTC in mining). Or, maybe you just figured out that you would have made 32 BTC if you have invested somewhere else instead… (all the investments you never do are always the ones that had made you rich!)

          24. Joshua Butler on

            I feel like the problem with the profitability argument is those who are complaining are buying 100 dollar contracts.

            buy a 13,000 dollar contact getting 100TH/s and see the difference… that’s a current payout of 2400 a month roughly. now the maintenance fee for that H/s is about 28 bucks a day… but that’s still 1600/mo in your pocket. That’ would take 8 months to break even and for the remaining 17 months of the 24 month contract you COULD pull in about 27K… or round down to 25K in case of increased challenge.

            OR… you could mine ETH… and make 1500/mo with no service fees (at current value) if ETH rockets like BITCOIN (which it’s projected to do) all those coins will be worth a lot more… so you could cash in monthly for income or mine and hold and see what happens

            • Ofir Beigel on

              That may be correct however it’s a REALLY big risk to take without knowing if Bitcoin’s price will head up or down at that time. I remind you that if the contract becomes not profitable it terminates. That’s an Ace I don’t want Genesis to pull from their sleeve if I have such a large amount invested in them.
              Is the above description something you did yourself or just in theory?

              • Tino Collias on

                Wait,

                I have done some theoretical calculations (only for the bitcoin mining contracts) and what i have found is that at around 300 days you are either in profit or break even, Like what Joshua has said, the more hasing power the more return and yes the daily costs are expensive, but it does eventually pay out (theoretically!!!!) i am temped to buy a cheap contract and track the performance.

                BUT

                I just read your post saying “if its not profitable, it terminates” WTF does that mean exactly? does that mean unless i invest every month (example) $50 to get 0.35 TH/s (FYI im broke as F***) to eventually get up to 2.8 TH/s etc etc. they could deem it as non-profitable till i have 20 TH/s?

                I really want to know a lot more about this company and the info you provided here is the most i can find….. i’d be happy to share the excel chart i made to try see if my thinking is correct or completely wrong: the reason i am looking is because my power cost in London is too expensive….

                And FYI – the post below by Anonymous is why i wont invest just yet… “great so far” full star rating too. WTF give some info dude.

                • Ofir Beigel on

                  Hey,
                  I think it’s impossible to give more info without actually investing the money. I’ve tried to do the best possible theoretical analysis in this post. However I’m reluctant to invest money in Genesis Mining at the moment.

                  Regarding the termination of the contract – I think it’s left vague for a purpose. The idea is that if you don’t have enough hash rate to cover the expenses, your contract terminates. However in no place is there a breakdown of the expenses as far as I can tell.

          25. Anonymous on

            Profitabliity

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            Thanks for the article. Just signed up a few weeks ago and going great so far.

          26. Profitabliity

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            To a new person who wants to try mining, Genesis has exceeded my expectation.
            The customer service is phenomenal. Always next day reply and not a bot.
            They try to answer the questions and resolve issues.
            Profitablity depends upon your outlook.
            if you expect the price to rise (as we all do and hope), you really can’t lose.
            A vanilla 256 contract will pay what it will pay and the graph looks good overnight.
            Basic 7.5 TH/S about $3/day.

          27. Profitabliity

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            Hi All, I recently took 2 contracts from Genesis Mining. For around 1900USD each. I did open because some workmate talked to me about them. Payments are actually coming daily. But the payments are ridiculously low. I receive around 5USD per day per contract. no matter the price and fluctuation of the coins which is strange. (it will take more than a year only to see my money back if the incomes are stable) It seems the rate of payments are fixed and there is nowhere we can get the calculation details about the payment we receive in coins. Then I know that the incomes can only reduce because the difficulty of gaining coins increases regularly, so the incomes will be smaller and smaller months after months, until contracts die due to non profitability….
            Finally we cannot see actually how many coins GM are really mining in total on daily base nor the total hashrate they use for mining. so we never know exactly how much coins they mine and how they divide the incomes between all their customers. This is a lack of transparency.
            In my opinion, the day I signed up the contract, I should have better bought Bitcoins and ethereum with the same amount of cash and keep them for couple of years… But it’s done, now I have 2 contracts still generating some dust of cryptocurrencies and I am not sure I will get one day my money back… I like gambling anyway ;) Good luck!
            If you are still willing to take contract from GM after reading that then you can use my code to help me and you get 3% discount : AF9urI

          28. William Teh on

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            Genesis is genuine, and I actually support investing in Genesis. I’ve been doing research and calculation on genesis payouts for few months already and after investing in it myself, I’ve calculated a prediction of annual return of investment is more than 75%. To me is a good long term investment.

            • Zsofia - 99Bitcoins support on

              Hi William, thanks for sharing your experience, please note we do not allow affiliate links, so I have removed that from your comment. If you can, could you please share how did you calculate the 75% annual return?

            • Profitabliity

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              Transparency

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              Support

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              They pay out according to the contract, but the contract itself in not profitable for BTC … If you don’t want to lose money do not invest in BTC mining. It can be profitable if you abuse the affiliate system and bring other people in the shi…

              May be profitable for DASH at the moment though.

              • Zsofia - 99Bitcoins support on

                Hi Aljosa, thanks for sharing your view. If you want to share, why do you rate the reputation and transparency so low for Genesis? I understand the profitability part.

          29. I’ve been looking at Genesis Mining for a while, one guy I follow a lot who’s been with Genesis Mining for some time said he had stopped promoting it because is not profitable enough for him, it took him 18 months for him to break even. Another guy said he broke even because he got a lot of people to use he’s Code, but if you look at it is not profitable if it would require you to promote your code.

            Another concern is that Genesis Mining does not tell us how many blocks they have mined, for a company that is been there since 2013 it should now show their blocks on blockchain

            • Zsofia - 99Bitcoins support on

              Hey, thanks for sharing your view, we agree that it just takes too much time to get to the breakeven point, if you even manage to reach that because of the continuous difficulty increase,.

          30. Profitabliity

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            I use genesis mining for ETH and find it is profitable

            • Zsofia - 99Bitcoins support on

              Thanks for the feedback Sunny. If you can, could you please share with us what type of contract are you in that is profitable for you?

          31. One rather important point is how much it costs to actually spend the bitcoins you get.

            Genesis Mining pays out daily to _a lot_ of customers in each transaction.
            This drives up the transaction fee because your transactions need to refer to _many_ input transactions, and those transactions are huge since they go to so many customers.

            And who benefits from this? The miners, of course!
            It is actually in Genesis Mining’s best interest to pay out as often as possible, because their mining will get some of the bitcoins they gave you back.

            Your money is much better spent on buying actual bitcoins.
            If you want to invest in a cloud mining operation, find one that lets you specify when to pay out.

            • Ofir Beigel on

              Interesting point, however Genesis can’t know for sure they will receive miner fees on transactions you spend since they can’t be sure they will succeed in mining those future blocks. I agree with the fact that you’re better of buying coins but I don’t think there is any profitable cloud mining op out there.

          32. Jaap bantje on

            Thanks Ofir. I have more or less the same results. Here are my numbers
            Genesis mining
            start 25/12/2016 0.7 TH/s for $ 100 invested
            12/04/2017 0,026 earned
            so i might be BE after 1 year

            fortunately I have a far better system making almost 150% p.a. , that runs risk free on profits only.

            • Hi
              Your 0.026 BTC earned in 4 months worths $76 at today’s rate of $2870/BTC.
              You still have 20 months to go. If you see it as an investment (which is more so better than that sticks shares), and the program didn’t close down, then it worths the contracts on the long run.
              Let’s in 18 months you earn 0.11 BTC, even at today’s rate, you’re in profit and you’re still earning

          33. I view this as a buy versus mine decision. You can only engage in this analysis after deciding to invest a certain amount of USD in Bitcoins.

            As I write this BTC stands around $1,180.

            If you decide to invest:
            – $105 in BTC you can buy 0,088983 BTC or a 0,7 THs mining contract (cost per THs: $150)
            – $1050 in BTC you can buy 0,88983 BTC or a 7,5 THs mining contract (cost per Ths: $140)
            – $5200 in BTC you can buy 4,40678 BTC or a 40 THs mining contract (cost per Ths: $130 which is the cheapest rate in Genesis)

            In order to compare alternatives, you must decide how much compensation you require for taking the risk of not receiving you BTC immediately. The mining contract can go on forever but take a clue from Genesis altcoins contracts and just assume it will run for 2 years.

            If you decided to invest $5200 you would get 4,40678 BTC with an outright purchase. If you mine, and you require a 50% return over 2 years, you want to get mining payouts of at least 6,61017 BTC over that period. If you require a 100% return, then your threshold is 8,81356 BTC.

            Using your mining calculator to make a rough estimation, a 40THs contract yields 0.60393677 BTC per month. Over 24 months that would amount 14.50 BTC. That is obviously inflated but it still gives you a 5,69 BTC cushion above the required 100% return.

            • Ofir Beigel on

              Thanks for this calculation – am I wrong or did you forget to take the maintenance fee into account? Seems like it’s almost 50% from the revenues.

              • Yes, I did not input any costs. And of course the monthly return is expected to dwindle. Also, if you buy BTC outright you can lend it out in Bitfinex, Poloniex, or other and earn interest. Not an easy call, but the decision should be preceded by a decision to change an X amount of fiat into BTC.

              • Two fees – depending on what is being mined – upfront and maintenance. Even if you get a maintenance free contract they sometimes increase the rate of the upfront free so you end up in some cases paying more than 50%. The mining difficulty will most likely increase over the term reducing the profit even more, as you’re committed to paying gm an upfront fee – The contract does state all this which is fair enough but I don’t think you are going to great return – unless your coin surges exponentially during your mining term, which you can’t predict – better off buying and holding.

              • Actually If you buy 40 TH/S you will be generating around $ 950 a month, with a bit more of $ 5200 invested, so if the fee is $ 0.00028 for each GH/s a day, 0.00028*40000GH/s = $ 11.2 a day fee, so a month will be $ 336 discount fee, with a clean earning of around $ 600, so first year will be $ 7200 – 5200 = $2000, then $7200….

                But as you say the bitcoin is unstable and every year increased price and mining difficulty, so I think is a risk investment, we can be lucky or not.

          34. chike chukwuma on

            Thanks for your review my question still is how can those of us in Africa succeed in these bitcoin investment and i will like you to use your expertise look into this product

          35. Elio-David Di Iorio on

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            What is not mentioned considered is that price per unit of hashrate goes down significantly on higher priced contracts, so contract for $100 may not be profitable, but one for $2000 is a completely different story,

          36. Profitabliity

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            Hi Ofir , great article! I too became interested in BTC about 3-4 years ago. Thanks for the information on Mining…..I’m glad I found 99Bitcoins, I like the way you try to teach us what you have discovered about Bitcoin.

            Thanks, Good Luck!

          37. Kulder Zipke on

            Good write up, but analysis is much more simple.
            When you invest in cloud mining – say 100$ look at the the at that time Bitcoin price. – so you can buy X Bitcoin immediatly for your 100$
            Currently Bitcoin value increase (despite volatility) over the Mining return is way superior,
            As indicated in the article, mining return tends to decrease due to difficulty increase.
            You are much better off to buy Bitcoin directly.

            • Zsofia - 99Bitcoins support on

              Thanks for the feedback, indeed, you can also view profitability in a simpler way. The article captures multiple aspects of the topic.

          38. Glenn Arcaro on

            Hey Ofir. Thanks for the article. Good information. I’d also like to add that I noticed that contracts for mining bitcoin in Genesis seem to be ridiculously high. Having said that, do you think it’s more profitable to mine dash for example where the contracts are much much cheaper for the hash rate?

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